[FONT face=Times New Roman size=3][STRONG]American Airlines Plans to Lay Off 415 Workers in Mid-January[/STRONG] [/FONT][BR][BR][FONT face=Times New Roman size=3]FORT WORTH (AP) - American Airlines, looking to cut costs aggressively, has notified state officials that it plans to lay off 415 workers in mid-January.[/FONT][BR][BR][FONT face=Times New Roman size=3]The layoffs will cover 218 fleet-service clerks and 197 airport agents and representatives at Dallas-Fort Worth International Airport, the airline said in a notice to the Texas Workforce Commission. The notice, filed in early December, was obtained Tuesday by The Associated Press.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [BR][/FONT][A target=_blank href=http://biz.yahoo.com/ap/021231/american_layoffs_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/ap/021231/american_layoffs_1.html[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]United Airlines faces crucial month - Industry's shape is at stake as labor negotiations loom[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]CHICAGO (CBS.MW) - The future of United Airlines and perhaps the entire airline industry will be charted in the coming weeks in courtrooms and labor negotiations.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story:[BR][/FONT][A target=_blank href=http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B9C139BC3%2DECC8%2D4435%2D87AE%2DC4A06B4E4F05%7D][FONT face=Times New Roman color=#0000ff size=3]http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B9C139BC3%2DECC8%2D4435%2D87AE%2DC4A06B4E4F05%7D[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]Chip comments: [/STRONG]A colleague of ours noted that UAL had approximately a $8.75 million operating loss per day, every day for the entire year of 2002.[/FONT][BR][BR][FONT face=Times New Roman size=3][STRONG]United Mechanics Oppose a Cut in Pay Now, files objection[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]NEW YORK (New York Times) - The machinists' union at United Airlines said yesterday that it opposed the airline's demand for short-term wage concessions because executives had not provided enough financial information for the union to make an informed decision and because the two sides had not engaged in back-and-forth negotiations.[/FONT][BR][BR][FONT face=Times New Roman size=3]The union also said that United needed to return to profitability by developing a comprehensive business plan rather than by asking its employees for piecemeal cuts.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [BR][/FONT][A target=_blank href=http://www.nytimes.com/2003/01/01/business/01AIR.html?ex=1042002000&en=3e341d7e123dc969&ei=5040&partner=MOREOVER][FONT face=Times New Roman color=#0000ff size=3]http://www.nytimes.com/2003/01/01/business/01AIR.html?ex=1042002000&en=3e341d7e123dc969&ei=5040&partner=MOREOVER[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]Court approves UAL's $1.5B DIP[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]CHICAGO (TheDeal.com) - Although bankrupt airline UAL Corp. has received court approval to tap up to $1.5 billion in debtor-in-possession financing, the struggling carrier is scrambling to cut costs and stabilize operations while trying to resolve contentious issues with workers, fiduciaries and investors. [/FONT][BR][BR][FONT face=Times New Roman size=3]The parent of United Airlines, the world's second-largest carrier, said it will be posting a $3.2 billion loss from operations for 2002 and said that it will have a massive layoff in the next few weeks as it attempts to find $2.4 billion in wage cuts. [/FONT][BR][BR][FONT face=Times New Roman size=3]But the airline has managed to get DIP financing that includes a $300 million facility from Bank One and a $1.2 billion loan from a group led by J.P. Morgan Chase & Co. and Citicorp USA Inc. [/FONT][BR][BR][FONT face=Times New Roman size=3]U.S. Bankruptcy Judge Eugene R. Wedoff of the Northern District of Illinois in Chicago approved the $800 million interim package on Dec. 10. [/FONT][BR][BR][FONT face=Times New Roman size=3]A UAL spokesman said Tuesday he was not aware if the company had drawn on the preliminary loan, but according to court filings UAL was burning $5 million in cash a day as recently as November. [/FONT][BR][BR][FONT face=Times New Roman size=3]The loan will help us emerge and allows us to continue to operate and serve our customers, UAL spokesman Chris Brathwaite said. [/FONT][BR][BR][FONT face=Times New Roman size=3]The size of the loan is on par with some of the post-petition financing in some other recent megabankruptcies. Kmart Inc.'s record DIP totaled $2 billion, compared with scandal-ridden Enron Corp.'s $1.5 billion and WorldCom Inc.'s $1.1 billion. [/FONT][BR][BR][FONT face=Times New Roman size=3]United said that to abide by cost-cutting targets laid out in the DIP agreement, it will have to negotiate wage reductions with workers represented by six unions. The company has said that it has reached tentative agreements with four of the groups, but has not reached accord with the remaining two. If UAL and the holdout unions can't cut a deal, Wedoff will hear the matter by Jan. 10. [/FONT][BR][BR][FONT face=Times New Roman size=3]Then there is State Street Bank & Trust Co. and Aon Fiduciary Counselors, Inc., which handle UAL's employee stock ownership plan and 401k stock funds, respectively. State Street and Aon had previously announced their intention to sell UAL shares. In a Securities and Exchange Commission filing which was released Tuesday, State Street said it would seek to sell 32.4 million shares in the coming three months. [/FONT][BR][BR][FONT face=Times New Roman size=3]But the airline argues that because of the volume of such a transaction, the sales could constitute a change in ownership in UAL. That could jeopardize the carrier's ability to write off net operating losses in the future, which UAL said could be worth close to $1.5 billion in tax savings over the coming years. A hearing on the matter, and other large sales of securities, is scheduled for January 15. [/FONT][BR][BR][FONT face=Times New Roman size=3]Separately, an ad hoc committee of investors with $3 billion in UAL notes has also asked the court to grant it increased protection for its securities. The group says that its notes financed the acquisition or lease of airplanes, on which they claim first priority security interests. [/FONT][BR][BR][FONT face=Times New Roman size=3]The investors point to the Chapter 11 bankruptcy case of US Airways. They argue that because the value of the planes will likely deteriorate either through continued use, parts-swapping or lack of maintenance, they should receive increased protection for their investments. They'd like to get cash and assurances that the company won't remove valuable parts, among other items. [/FONT][BR][BR][FONT face=Times New Roman size=3]In some housekeeping matters Monday, Wedoff granted UAL permission to retain Kirkland & Ellis as legal counsel, Huron Consulting Group LLC as restructuring consultants and Babcock & Brown as a restructuring adviser for its secured debt and lease obligations. [/FONT][BR][BR][FONT face=Times New Roman size=3]The judge also cleared the employment of three law firms as labor counsel: Vedder Price Kaufman & Kammholz; Paul Hastings Janofsky & Walker LLP and Piper Rudnick LLP. [/FONT][BR][BR][FONT face=Times New Roman size=3]UAL filed for bankruptcy protection Dec. 9, citing a decrease in business after the Sept. 11 terrorist attacks and the broad economic malaise. The airline has said that passenger revenues plunged from nearly $17 billion in 2000 to less than $12 billion in 2002.[/FONT][BR][BR][FONT face=Times New Roman size=3][STRONG]December 27, 2002 - United Airlines IAM Bankruptcy Update[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]To District 141-M Represented Employees at United Airlines:[/FONT][BR][BR][FONT face=Times New Roman size=3]Dear Sisters and Brothers,[/FONT][BR][BR][FONT face=Times New Roman size=3]In an expected development, United Airlines filed an application today in U.S. Bankruptcy court for rulings that can lead to changes in wages, work rules and benefits for IAM members and all unionized employees at United Airlines.[/FONT][BR][BR][FONT face=Times New Roman size=3]United petitioned the court for two rulings under Section 1113 of the U.S. Bankruptcy Code: one, (an 1113© motion) begins a process that can lead to abrogation of collective bargaining agreements, the other, (an 1113(e) motion) seeks immediate financial relief, including a 13 percent pay cut, effective January 1, 2003, for IAM members at United.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [BR][/FONT][A target=_blank href=http://www.iam141m.org/united.htm][FONT face=Times New Roman color=#0000ff size=3]http://www.iam141m.org/united.htm[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]UAL S.1113 filing[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story:[BR][/FONT][A target=_blank href=http://www.iam141m.org/ual1227Sec1113.pdf][FONT face=Times New Roman color=#0000ff size=3]http://www.iam141m.org/ual1227Sec1113.pdf[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]UAL AFA: No Planned Flight Attendant Layoffs or Furloughs[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]CHICAGO (AFA.org) - No Planned Flight Attendant Layoffs or Furloughs (Dec 30) Today we have reconfirmed with the company that there are no plans for additional Flight Attendant furloughs. [/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [BR][/FONT][A target=_blank href=http://www.unitedafa.org/news/no_layoffs.htm][FONT face=Times New Roman color=#0000ff size=3]http://www.unitedafa.org/news/no_layoffs.htm[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]United family life on the fly - Airline’s woes mean upheaval at home for flight attendants [/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]WASHINGTON (MSNBC.com) - Meg Kelly, a resourceful and can-do single mother of triplets who has been a flight attendant at United Airlines for 17 years, has become an expert juggler in the six years since the children - two girls and a boy - were born. Feeding them, giving them baths, getting them dressed and overseeing their homework gives her plenty of practice in getting many things done simultaneously.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story:[BR][/FONT][A target=_blank href=http://www.msnbc.com/news/853374.asp?0si][FONT face=Times New Roman size=3]http://www.msnbc.com/news/853374.asp?0si[/FONT][/A][FONT face=Times New Roman size=3]=-[/FONT][BR][BR][FONT face=Times New Roman size=3][STRONG]US Air Flight Crew Instructors OK Restructure Plan[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]ARLINGTON (Dow Jones) - US Airways Group Inc.'s flight crew training instructors, represented by the Transport Workers Union, ratified their agreement reached in mid-December on the carrier's restructuring plan to emerge from bankruptcy.[/FONT][BR][BR][FONT face=Times New Roman size=3]The Transport Workers Union also represents simulator engineers and dispatchers. The simulator engineers ratified the plan Friday, and the dispatchers are expected to vote on the agreement by early next week, US Airways said in a press release Tuesday.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story:[BR][/FONT][A target=_blank href=http://biz.yahoo.com/djus/021231/1311000161_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/djus/021231/1311000161_1.html[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]US Airways: No major facilities to close[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]CHARLOTTE (BizJournal.com) - US Airways Group Inc.doesn't expect to close heavy maintenance centers at its three largest hubs in Charlotte, Pittsburgh and Philadelphia, a company spokesman says. [/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [BR][/FONT][A target=_blank href=http://www.bizjournals.com/charlotte/stories/2002/12/30/daily14.html][FONT face=Times New Roman color=#0000ff size=3]http://www.bizjournals.com/charlotte/stories/2002/12/30/daily14.html[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]US Air may close light maintenance center in Triangle[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]RALIEGH-DURHAM (BizJournals.com) - US Airways is considering closures of some line maintenance facilities throughout its system - including a site in the Triangle. [/FONT][BR][BR][FONT face=Times New Roman size=3]US Airways' members of the International Association of Machinists and Aerospace Workers are set to vote on a proposal in January that would cut about 100 maintenance jobs systemwide through the closures of line maintenance facilities at airports in cities including Raleigh, Greensboro, Indianapolis and Newark, N.J., US Airways spokesman David Castelveter says. There are about 29 US Airways line maintenance workers at Raleigh-Durham International Airport, he says.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story:[BR][/FONT][A target=_blank href=http://www.bizjournals.com/triangle/stories/2002/12/30/daily14.html][FONT face=Times New Roman color=#0000ff size=3]http://www.bizjournals.com/triangle/stories/2002/12/30/daily14.html[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]US Airways Tidbits[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]Orlando To Reduce to 6 Gates[/FONT][BR][BR][FONT face=Times New Roman size=3]Reports indicate Orlando will reduce its number of gates from 16 to 6 as part of the POR.[/FONT][BR][BR][FONT face=Times New Roman size=3][STRONG]More Florida[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]ARLINGTON (theHub.com) - US Airways will add daily nonstop roundtrip service between Reagan National Airport and Fort Myers beginning Feb. 9, 2003. The service will operate with Boeing 737-400 aircraft. “Florida continues to be one of the nation’s hot spots for vacation travel and a choice destination year-round for business gatherings. With our new service from Reagan National, we will provide the most direct means of transportation to and from Florida, offering 14 daily departures for Washington-area travelers,†said Andrew Nocella, vice president of planning and scheduling. US Airways currently serves the following Florida destinations nonstop from Ronald Reagan Washington National Airport: Fort Lauderdale; Jacksonville; Orlando; Tampa and West Palm Beach.[/FONT][BR][BR][FONT face=Times New Roman size=3][STRONG]US Airways Restructuring Q&A regarding pensions[/STRONG] [/FONT][BR][BR][FONT face=Times New Roman size=3]ARLINGTON (theHub.com) [/FONT][BR][BR][FONT face=Times New Roman size=3]Q. What about pensions? Are they subject for discussions too?[/FONT][BR][BR][FONT face=Times New Roman size=3]A. The business plan under consideration by the ATSB takes into account all of the company's obligations. The company recently estimated it will have to contribute $3.1 billion in cash over a six-year period beginning in 2003 to meet pension funding obligations under the current plans. Such a huge funding obligation would cripple the company's recovery.[/FONT][BR][BR][FONT face=Times New Roman size=3]Q. Why such a large figure? [/FONT][BR][BR][FONT face=Times New Roman size=3]A. It's a combination of the dramatic drop in the value of the stock market and falling interest rates. The decline in returns in the securities markets over the past three years has eroded pension plan assets. In addition, today's declining interest rates means US Airways must set aside more money now to pay for future pension liabilities. This is not a situation unique to US Airways. Many other companies, both inside and outside the airline industry, face the same issues.[/FONT][BR][BR][FONT face=Times New Roman size=3]Q. Not every work group has a defined benefit pension plan. Who does? [/FONT][BR][BR][FONT face=Times New Roman size=3]A. We have three active plans, covering our pilots, flight attendants and mechanics. We have a frozen defined benefit plan covering passenger service, fleet service, and non-contract employees for service prior to 1992. Other US Airways Group subsidiaries have a total of three defined benefit plans. We have made it clear that only those employee groups covered by defined benefit pension plans will be involved in a solution to the pension funding issue. Those work groups not covered by such plans will not be impacted.[/FONT][BR][BR][FONT face=Times New Roman size=3]Q. Could US Airways terminate defined benefit plans as part of the bankruptcy process?[/FONT][BR][BR][FONT face=Times New Roman size=3]A. While there are provisions under federal law to terminate these types of benefit plans, they are maintained pursuant to collective bargaining agreements. Termination of these plans is not something the company wants to pursue at this time. Rather, US Airways is seeking to negotiate with the unions involved for ways to ease the impending financial impact.[/FONT][BR][BR][FONT face=Times New Roman size=3]Q. So what's the solution to the pension problem? [/FONT][BR][BR][FONT face=Times New Roman size=3]A. The company is in discussions with the unions that represent the impacted employees, as well as the Pension Benefits Guaranty Corp. (PBGC), the federal agency responsible for overseeing the funding of pension plans, as we explore ways to maintain the pension plans but negotiate funding options that are more acceptable.[BR][FONT face=Times New Roman size=3][STRONG][BR]America West To Test Charging For Food On Airplanes[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]NEW YORK (Dow Jones) - Airline food has come to mean no more than a sandwich and a cookie, and it might soon become something that you pay for.[/FONT][BR][BR][FONT face=Times New Roman size=3]America West Holdings Corp.'s America West Airlines will begin a test Monday to charge for the food on its airplanes. If enough travelers turn out to be willing to cough up cash for the meals, the No. 8 U.S. airline may decide to offer food for sale on all flights lasting for 2 1/2 hours or more.[/FONT][BR][BR][FONT face=Times New Roman size=3]Complete Story: [/FONT][A target=_blank href=http://biz.yahoo.com/djus/021231/1748000280_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/djus/021231/1748000280_1.html[/FONT][/A][BR][BR][FONT face=Times New Roman size=3][STRONG]Assad carries last Bush ultimatum to Saddam[/STRONG][/FONT][BR][BR][FONT face=Times New Roman size=3]LONDON (DEBKAfile Military-Intelligence Report) - DEBKAfile’s intelligence and military sources report that Saturday, December 21 - or Sunday, December 22 - directly after his visit to London, Syrian president Bashar Assad traveled again – this time to a secret rendezvous with Iraqi ruler Saddam Hussein in Baghdad. [/FONT][BR][BR][FONT face=Times New Roman size=3]He brought with him President George W. Bush’s final ultimatum to the Iraqi ruler, delivered into his hands by British premier Tony Blair. [/FONT][BR][BR][FONT face=Times New Roman size=3]According to sources familiar with this latest gambit, the Bush ultimatum consists of nine main points: [/FONT][BR][BR][FONT face=Times New Roman size=3]A. Saddam is given a last chance to
voluntarily give up his weapons of mass destruction and avert a military showdown with the United States. [/FONT][BR][BR][FONT face=Times New Roman size=3]B. He must deliver a full, factual and public account of the nuclear, chemical and biological weapons in his possession, together with a solemn undertaking to hand the forbidden arms over to the UN arms inspectors within two weeks, that is by mid-January 2003. [/FONT][BR][BR][FONT face=Times New Roman size=3]C. In return, the United States promises to suspend military preparations for war on Iraq. [/FONT][BR][BR][FONT face=Times New Roman size=3]D. The United States also promises not treat the Iraqi president’s statement as a casus belli or a pretext for harming him and his family members, physically, politically, or by means of hostile propaganda. [/FONT][BR][BR][FONT face=Times New Roman size=3]E. The United States will guarantee Saddam’s orderly retirement from office and the transfer of power to a new regime [/FONT][BR][BR][FONT face=Times New Roman size=3]F. With the handover of Iraq’s forbidden arsenal to the UN inspectors, the United States will grant Saddam Hussein and his family safe passage to any destination of their choice in an Arab country prepared to receive him and agree to let him to live privately as a political exile. [/FONT][BR][BR][FONT face=Times New Roman size=3]G. As a token of good faith, the United States postpones until January 1, the dispatch of half the ground, air and naval forces assigned to the war against Iraq – some 50,000 combat troops – to join the strength already posted in the region. It also freezes the call-up of reserves for auxiliary units, such as the National Guard. This call-up would potentially raise the number of Americans under arms to 250,000. [/FONT][BR][BR][FONT face=Times New Roman size=3]H. The United States does not expect a reply to its ultimatum; nor will it enter into direct or indirect negotiation on its terms. Saddam can take it or leave it. [/FONT][BR][BR][FONT face=Times New Roman size=3]I. If those terms are not met by New Year’s Day, the United States will order the next batch of fighting men to leave for their war stations in the Persian Gulf. The US campaign on Iraq will be deemed to have been launched. [/FONT][BR][BR][FONT face=Times New Roman size=3]The Syrian ruler came away from his meeting with Saddam without a reply. However, this week, the Iraqi ruler was unusually forthcoming on the UN inspectors’ requirements. Certain rare concessions appeared to signal his willingness to consider Washington’s terms seriously: [/FONT][BR][BR][FONT face=Times New Roman size=3]1. One or more of the Iraqi scientists interviewed by UN arms inspectors were allowed to drop hints about a secret Iraqi nuclear project. Later, there was some backtracking, but even those hints would not have been voiced without permission from the highest government level. [/FONT][BR][BR][FONT face=Times New Roman size=3]2. On Saturday, December 27, Iraq submitted to the inspectors a surprisingly long list – 500 names - of Iraqi scientists employed on missile development and in nuclear, chemical and biological warfare programs. Some sources in Washington read in this detailed list a willingness on the Iraqi ruler’s part to explore ways of accommodating the Washington ultimatum. [/FONT][BR][BR][FONT face=Times New Roman size=3]3. Construction work has speeded up on the compound that has become known as “Saddam City†in the Libyan capital of Tripoli. [/FONT][BR][BR][FONT face=Times New Roman size=3]According to DEBKAfile’s intelligence sources, five vast mansions are under construction in the northern suburbs of Tripoli. Extensive landscaping work is in progress on what looks like becoming a grand park with swimming pools; half a dozen small buildings are going up for staff. The whole project is enclosed by a high wall. Libyan and Egyptian sources claim that the heavily guarded project is destined for Saddam Hussein, his family and entourage after they leave Baghdad for good. [/FONT][BR][BR][FONT face=Times New Roman size=3]Furthermore, Gulf sources close to Iraqi military intelligence, are again reporting pressure on Saddam from some Arab quarters to step down and go into exile. [/FONT][BR][BR][FONT face=Times New Roman size=3]On this subject, two views are reported current in Washington by DEBKAfile’s sources: One, that Saddam has no intention of bowing to the American ultimatum and is generating an atmosphere of compliance to buy time enough to gain himself a free hand. [/FONT][BR][BR][FONT face=Times New Roman size=3]The other view is that Saddam interprets Washington’s proposition as a sign of weakness, the first crack in Bush’s resolve to go to war. He is therefore acting to widen those cracks. [/FONT][BR][BR][FONT face=Times New Roman size=3]Israeli prime minister Ariel Sharon’s admittedly unverified suggestion that Iraq may have shifted weapons of mass destruction into Syria ties in with these speculations. Sharon, say American sources, took the chance of coming out with unverified information because he is worried by the sudden appearance of the Syrian president in center field. He fears that, in response to the American ultimatum, Saddam might choose to send all his WMD into Syria rather than turning them over to the UN inspectors. [/FONT][BR][BR][FONT face=Times New Roman size=3]While this process is still up in the air, the Syrian prime minister Mohammed Miro paid an unscheduled visit to Tehran last week, very possibly to test the Iranian government’s response to the transfer of the Iraqi arsenal to Syria under UN supervision. Sharon regards this possibility as a threat to Israel. He certainly does not want to see Assad’s international standing enhanced, reflecting favorable by association on that of the Syrian ruler’s close friend, the Hizballah terrorist group’s leader, Hassan Nasrallah.[/FONT] [/FONT][BR][BR][FONT face=Times New Roman][FONT size=3][STRONG]Go Ohio State Buckeyes and Cleveland Browns![/STRONG][/FONT][/FONT]
voluntarily give up his weapons of mass destruction and avert a military showdown with the United States. [/FONT][BR][BR][FONT face=Times New Roman size=3]B. He must deliver a full, factual and public account of the nuclear, chemical and biological weapons in his possession, together with a solemn undertaking to hand the forbidden arms over to the UN arms inspectors within two weeks, that is by mid-January 2003. [/FONT][BR][BR][FONT face=Times New Roman size=3]C. In return, the United States promises to suspend military preparations for war on Iraq. [/FONT][BR][BR][FONT face=Times New Roman size=3]D. The United States also promises not treat the Iraqi president’s statement as a casus belli or a pretext for harming him and his family members, physically, politically, or by means of hostile propaganda. [/FONT][BR][BR][FONT face=Times New Roman size=3]E. The United States will guarantee Saddam’s orderly retirement from office and the transfer of power to a new regime [/FONT][BR][BR][FONT face=Times New Roman size=3]F. With the handover of Iraq’s forbidden arsenal to the UN inspectors, the United States will grant Saddam Hussein and his family safe passage to any destination of their choice in an Arab country prepared to receive him and agree to let him to live privately as a political exile. [/FONT][BR][BR][FONT face=Times New Roman size=3]G. As a token of good faith, the United States postpones until January 1, the dispatch of half the ground, air and naval forces assigned to the war against Iraq – some 50,000 combat troops – to join the strength already posted in the region. It also freezes the call-up of reserves for auxiliary units, such as the National Guard. This call-up would potentially raise the number of Americans under arms to 250,000. [/FONT][BR][BR][FONT face=Times New Roman size=3]H. The United States does not expect a reply to its ultimatum; nor will it enter into direct or indirect negotiation on its terms. Saddam can take it or leave it. [/FONT][BR][BR][FONT face=Times New Roman size=3]I. If those terms are not met by New Year’s Day, the United States will order the next batch of fighting men to leave for their war stations in the Persian Gulf. The US campaign on Iraq will be deemed to have been launched. [/FONT][BR][BR][FONT face=Times New Roman size=3]The Syrian ruler came away from his meeting with Saddam without a reply. However, this week, the Iraqi ruler was unusually forthcoming on the UN inspectors’ requirements. Certain rare concessions appeared to signal his willingness to consider Washington’s terms seriously: [/FONT][BR][BR][FONT face=Times New Roman size=3]1. One or more of the Iraqi scientists interviewed by UN arms inspectors were allowed to drop hints about a secret Iraqi nuclear project. Later, there was some backtracking, but even those hints would not have been voiced without permission from the highest government level. [/FONT][BR][BR][FONT face=Times New Roman size=3]2. On Saturday, December 27, Iraq submitted to the inspectors a surprisingly long list – 500 names - of Iraqi scientists employed on missile development and in nuclear, chemical and biological warfare programs. Some sources in Washington read in this detailed list a willingness on the Iraqi ruler’s part to explore ways of accommodating the Washington ultimatum. [/FONT][BR][BR][FONT face=Times New Roman size=3]3. Construction work has speeded up on the compound that has become known as “Saddam City†in the Libyan capital of Tripoli. [/FONT][BR][BR][FONT face=Times New Roman size=3]According to DEBKAfile’s intelligence sources, five vast mansions are under construction in the northern suburbs of Tripoli. Extensive landscaping work is in progress on what looks like becoming a grand park with swimming pools; half a dozen small buildings are going up for staff. The whole project is enclosed by a high wall. Libyan and Egyptian sources claim that the heavily guarded project is destined for Saddam Hussein, his family and entourage after they leave Baghdad for good. [/FONT][BR][BR][FONT face=Times New Roman size=3]Furthermore, Gulf sources close to Iraqi military intelligence, are again reporting pressure on Saddam from some Arab quarters to step down and go into exile. [/FONT][BR][BR][FONT face=Times New Roman size=3]On this subject, two views are reported current in Washington by DEBKAfile’s sources: One, that Saddam has no intention of bowing to the American ultimatum and is generating an atmosphere of compliance to buy time enough to gain himself a free hand. [/FONT][BR][BR][FONT face=Times New Roman size=3]The other view is that Saddam interprets Washington’s proposition as a sign of weakness, the first crack in Bush’s resolve to go to war. He is therefore acting to widen those cracks. [/FONT][BR][BR][FONT face=Times New Roman size=3]Israeli prime minister Ariel Sharon’s admittedly unverified suggestion that Iraq may have shifted weapons of mass destruction into Syria ties in with these speculations. Sharon, say American sources, took the chance of coming out with unverified information because he is worried by the sudden appearance of the Syrian president in center field. He fears that, in response to the American ultimatum, Saddam might choose to send all his WMD into Syria rather than turning them over to the UN inspectors. [/FONT][BR][BR][FONT face=Times New Roman size=3]While this process is still up in the air, the Syrian prime minister Mohammed Miro paid an unscheduled visit to Tehran last week, very possibly to test the Iranian government’s response to the transfer of the Iraqi arsenal to Syria under UN supervision. Sharon regards this possibility as a threat to Israel. He certainly does not want to see Assad’s international standing enhanced, reflecting favorable by association on that of the Syrian ruler’s close friend, the Hizballah terrorist group’s leader, Hassan Nasrallah.[/FONT] [/FONT][BR][BR][FONT face=Times New Roman][FONT size=3][STRONG]Go Ohio State Buckeyes and Cleveland Browns![/STRONG][/FONT][/FONT]
