NO. 29


The Middle East Situation

Even by Middle Eastern standards it has been an extraordinary week. Iraq'ssudden and unexpected recapture of the Fao peninsula represented a seriousmilitary and psychological setback for Iran, which was compounded the next daywhen "measured" US retaliation for Iran's latest bout of minelaying inthe Gulf developed into generalized clashes between the navies of the two sidesin which the US says it sank or damaged five Iranian vessels. At the...