Overproduction for driving down the price of oil
Saddam accused Kuwaitand the United Arab Emirates of complicity with the United States of cheating on oil production quotas. He blamed this overproduction for driving down the price of oil, causing the loss of billions of dollars to Iraq.
During this period, the million-manned armed forces along withaggressive research anddevelopment programs (including Iraq’s large nuclear development effort) were consuming enormous sums of money. Iraq’s 1990 military budget was $12.9 billion, or approximately $700 per citizen in a country where the average annual income was $1,950. By mid-1990,Iraq had only enough cash reserves for threemonths of imports and aninflation rate of 40 percent.
Iraq started the crisis with oneof the world’s larger armies,equipped with significant numbers of tanks, armored personnelcarriers, and artillery, some of which were state-of-the-art models. It had a sizable air force with many top-line fighters and fighter-bombers (F-1s, MiG-29s, and Su-24s) and a modern air defense command and control (C2) system.
They had developed excellent operational security anddeception. Iraqi ground forceshad more than 5,000 main battle tanks, 5,000 armored infantry vehicles, and 3,000 artillery pieceslarger than 100mm. The Iraqi military supply and transportation infrastructure was extensive and well-equipped,with ample supplies of ammunition, water, food, and fuels.
- Invasion of Kuwait
At 0100 (Kuwait time), 2 August 1990, three Iraqi Republican Guard Forces Command Divisions (RGFC) attacked across the Kuwaiti frontier. A mechanized infantry division and an armored division conducted the main attack south into Kuwait along the Safwan-Abdally axis, driving toward the Al-Jahra pass. Another armored division led a supporting attack farther west.
Almost simultaneously, at 0130,a special operations force conducted the first attack on Kuwait City – a heliborne assault against critical government facilities. Meanwhile commando teams made assaults against the Amir’s palace and other key installations.
On 4 August, Iraqi tanks were establishing defensive positions. Hundreds of logistics vehicles were moving men and massive quantities of munitions and supplies south. RGFC infantry divisions that had been deployed to the border area in late July rolled into Kuwait, occupied Kuwait City, and secured the primary lines of communications to and from Southern Iraq.
By this time, more Iraqi divisions were moving south to Kuwait from garrisons in Iraq. These forces would replace the RGFC units in defensive positions in Kuwait. This replacement was ominous, while it allowed a possible return of RGFC units to Iraq, it also freed these formations for a subsequent attack into Saudi Arabia should Saddam order it.
By 6 August, the Iraqis had consolidated their gains andwere resupplying their forces, another indication Iraqmight continue its drive south. At this point, elements of at least eleven divisions were either in or entering Kuwait.This amounted to more than 200,000 soldiers, supported by more than 2,000 tanks. Two days laterSaddam announced the annexation of the country,describing Kuwait as the “19th Province – aneternal part of Iraq.”
Despite the demands of other Arab countriesand the world community, Saddam refused to withdraw.The UN condemned the invasion and called for the immediate withdrawal of Iraq. On 2 August at 0230 Washington time, General Colin Powell phoned the Joint Chiefs of Staff Operations director, Lieutenant General Thomas Kelly, and told him to find GeneralSchwarzkopf and immediately orderhim back to Washington.
Schwarzkopf and Powell met thePresident and other National Security Council membersat the White House at 0800. In the meeting, Schwarzkopf laid out preliminary militaryoptions to respond to the invasion and a summary of Iraqi military capabilities.
Later that day, PresidentBush condemned the invasion, stating the seizure of Kuwait and potential Iraqidomination of Saudi Arabia through intimidation or invasion presented a real threat to US national interests, requiring a decisiveresponse. The President immediately froze all Iraqi and Kuwaiti financialassets in the United States to prevent Iraq fromgaining access to this wealth.
On 5 August, after consultations with allies, President Bush characterized the invasion as “naked aggression” and stated, “Thisshall not stand.” The President decisively framedUS national policy objectives:
