Defense Special Assessment 18 August 1991 As of 0930 EST Subject: IRAQ-KUWAIT: Situation Update [b.1. sec. 1.5.(c)] In a blunt threat to Washington, Baghdad warned that it would use weapons of "mass destruction and strategic deterrrance" to repel any attack, according to the Al Qadisiyah newspaper, the organ of Iraq's Defense Ministry. Iraq has a substantial chemical arsenal and has demonstrated a willingness to use it in combat. Meanwhile, Iraqi radio taunted US troops deployed in Saudi Arabia saying that they will be "swallowed by the desert" while their women back home consort with oil-rich Arabs. [b.1. sec. 1.5.(c)] Outlook Saddam Husyan appears worried that US forces will attack Iraqi-occupied Kuwait and Iraq itself. Baghdad's apparent threat to use chemical or biological weapons, its restricting of foreigners [b.1. sec. 1.5.(c)] reflect this apprehension and indicate Iraq's intent to, at a minimum, hold Kuwait. Nonetheless, Iraq's forces in Kuwait and southern Iraq are currently sufficient and properly positioned for a short-notice attack on Saudi Arabia. [b.2.] ?