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Newspaper
Syracuse Herald Journal
Location
Syracuse, New York, United States of America
Date
Aug 03, 1990
Page
3
Cyprus to Tehran reports Saddam Hussein presses Kuwait for debt relief and quota changes. He cites oil losses and a disputed field, seeks to topple Kuwait's government, while warning Israel and leveraging Arab unity fears. The invasion threatens Gulf stability and tests GCC cohesion.
The Tokyo market slid as the dollar rose on Iraq Kuwait fears. Oil costs rose, raising wholesale energy prices and signaling possible higher consumer fuel prices. Analysts warn the conflict could slow the US economy, with oil disruptions and embargoes shaping early trading.
Texaco Inc, the sole US oil company with Kuwait operations, and 17 Ameri cans among 800 employees in the jet Saudi Arabian Kuwaiti neutral zone were reported safe earlier. A State Department official and Anita Larsen in New York commented as President Bush weighed responses to the Kuwait crisis and potential military options. Analysts note 3,000 Americans live in Kuwait, many tied to the oil industry, while the Independence carrier nears the Gulf for possible intervention assessments.
The article traces the Kuwait Iraq dispute to post World War I border decisions, noting Britain drew borders after the Ottoman defeat. It details Kuwait's oil development, independence in 1961, and Iraq's long denial of Kuwait’s sovereignty, including past occupations and financial ties during the Iran-Iraq war.
Timeline tracks Iraqi accusations of oil market manipulation and revenue loss, Kuwait oil theft claims, US and Arab involvement, OPEC halting overproduction, and massing troops. By Aug 2 Iraq invades Kuwait, seizing government sites.
Israeli analysts warn that Iraqs Kuwait seizure heightens risk of wider Arab Israeli conflict and elevates Jordan as a crucial buffer. They say a tacit US Arab backing could emerge to deter Iraq while Israel warns Jordan to resist Iraqi influence and maintains a red line at the Iraqi Jordanian border.
Cairo sources say President Mubarak and other Arab leaders have not condemned Iraq's invasion, aiming for peaceful resolution. The reluctance suggests fear of Saddam Hussein, while the Arab League emergency session adjourned without a condemnation. Libya and Jordan warning against foreign intervention.
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