European Stars and Stripes (Newspaper) - June 18, 1992, Darmstadt, Hesse                                Thursday june 18, 1992 the stars and stripes a Page 3saddam gains strength report says by Elaine Sciolino the new York times Washington a despite stringent economic sanctions and diplomatic isolation iraqi president Saddam Hussein is stronger now than he was a year ago according to a classified intelligence report. The inter Agency report concludes that Saddam has begun to rebuild his country a infrastructure by importing goods from Jordan in violation of the  sanctions and by tapping hidden iraqi reserves said administration officials familiar with the report. It also states that he is trying to reconstitute his military and is strengthening his political base by imposing More repressive measures on his population. On the other hand the report says that As Long As the sanctions Are in place living conditions for most people in Iraq will continue to Worsen and pressures on Saddam will increase. A this is not a flip Flop in our thinking but More a question of degree a an administration official said in describing the report. A the main Point is that Saddam is still there and we expect him to stay. It used to be that people were saying that the sanctions were making him weaker. They re not saying that anymore. He is clearly stronger than he was a year  soon after the iraqi Leader suppressed rebellions by kurd in the North and shiite muslims in the South the Central intelligence Agency concluded that sad he added a from what in be seen recently it does no to look like he a going to fall anytime  the report which reflects the thinking of the Cia and the other intelligence agencies is scheduled to be distributed to from what i be seen recently it does t look like he a going to tall anytime soon a James r. Lilley dam could remain in Power for years. At the time some senior officials in the White House Pentagon and state department were portraying Saddam As getting weaker by the Day. James r. Lilley assistant Secretary of defense for International Security affairs said last week of Saddam a ability to survive a was Long As he Sable to get his hands on enough stuff to buy off his cronies the Republican guard his chances of staying in Power Are pretty  Bush and senior officials this week. Its timing is particularly embarrassing for Bush who has had to defend his administrations conciliatory policies toward Iraq before its August 1990 invasion of Kuwait against both democratic critics in Congress and Ross Perot who is laying the groundwork for an Independent presidential Campaign. These critics have accused Bush of appeasing Saddam and leading the United states into a War that might have been avoided. One Factor that has enhanced Saddam a position is the widespread smuggling to Iraq from Jordan in violation of economic sanctions imposed soon alter the August 1990 invasion of Kuwait. The smuggling involves construction materials Industrial electrical and communications equipment spare parts and luxury goods. Intelligence officials also suspect illegal shipments of military related equipment arc being made. Under rules set up by the . Security Council Jordan sends Large amounts of food and Medicine to Iraq through its port at Aqaba and Overland across its 100-mile Border with Iraq. Bush is said to be particularly distressed at the scale of the smuggling particularly because he received a pledge from Jordan a King Hussein to abide by the International sanctions. The Cia is seeking an additional $40 million in fiscal 1993 for its Covert program to overthrow Saddam but there is serious disagreement among intelligence officials Over the Wisdom of a program that May have Little Chance of Success. Much of the Money is used to finance iraqi groups in exile Clandestine radio stations and other propaganda activities. 2 German hostages released in Beirut former hostages Heinrich str big left and Thomas Kemptner appear fit in Beirut after being released by their captors on wednesday. Beirut Lebanon apr the last westerners held hostage in Lebanon two German Relief workers seized three years ago by shiite gunmen were handed Over to a German envoy wednesday by the country a prime minister. Their release ends an eight year ordeal in which nearly 100 foreigners were kidnapped most of them by pro iranian shiite Muslim groups. Heinrich str big and Thomas Kemptner first reported turned Over to syrian officials on monday night finally surfaced wednesday at the office of prime minister Rashid Solh looking fit and dressed in dark suits and neckties. A a in a Fine a str big said when a reporter asked How it Felt to be free after More than three years in Captivity. Str big 51, and Kemptner 30, had been escorted to the prime ministers office by the Beirut chief of syrian intelligence. After being handed Over to German envoy bed Schmidbauer in a 10-minute ceremony during which they made no statements the former hostages were examined and pronounced a physically Well by lebanese doctors. They met with president Elias Herawi then left by plane for the Mediterranean Island of Crete for a meeting with their families before their expected return to Germany a spokesman for the prime minister said. Schmidbauer and the sex captives drove to the Airport in a limousine escorted by a 50-Vehiclc motorcade of lebanese troops led by six police motorcycles with sirens wailing. A the release of the two German hostages closes the dark chapter of hostage taking in Lebanon forever a Solh told reporters. . Hostage negotiator Giandomini co Picco who was instrumental in releasing the last nine american and British hostages last year stood behind str big and Kemptner during the handover. He had spent tuesday and Early wednesday meeting with various officials in an Effort to resolve the germans Case. Str big and Kemptner were abducted May 16, 1989, in Southern Lebanon where they were working for a private German Relief organization. Their capture was claimed by a group calling itself holy warriors for Freedom that wanted to Swap them for two lebanese shiite Brothers jailed in Germany on terrorism charges. Germany refused. But according to the Beirut newspaper As Safir and diplomats a Deal was struck when Germany agreed to better prison conditions for the shiite Brothers Mohammed Ali Hamadi and Abbas Hamadi. The Brothers Are to be transferred from separate jails to the same prison and they were to receive regular visits by their  resumes joint anti drug work with . Mexico City a Mexico says it has a Tempo Arilyn resumed joint anti drug efforts with the United states after receiving assurances that Washington will Tot act on a supreme court ruling and seize More sus jets across the Border. Mexico had halted cooperation monday night out of Mger at a ruling by the . Court that a suspect in the tilling of . Drug agent Enrique Camarena who was kidnapped in Mexico could be tried in the United states. The suspect a mexican doctor was spirited across he Border for trial. On tuesday after a series of meetings Between . And mexican officials the administration of president Carlos Salinas de Gortari agreed to continue cooperating a in order not to allow this period of negotiations to interrupt the intensive programs of cooperation in the fight against narcotics a a foreign affairs department statement said. . Ambassador John Negroponte had met tuesday afternoon with Mexico a Deputy foreign minister Andres Rosenthal and later said they had discussed the countries 1978 extradition treaty. A mexican official who spoke on condition of anonymity said Mexico wanted the United states to make Clear it will not use the new tool Given it by the supreme court. The official said Negroponte made proposals to continue cooperation in the drug War while taking Mexico a concerns into account. By some accounts More than half the cocaine and marijuana entering the United states is shipped through Mexico much of it from South America. An agreement two years ago allowed up to 60 . Drug enforcement administration agents to work in Mexico and 60 of their mexican counterparts to work in the United states. Most of the work involves Exchange of information. About 35 Dea agents Are thought to be working in Mexico now. The arrangement was worked out to smooth tensions after american agents kidnapped or. Humberto Alvarez Machain in Guadalajara in april 1990 in connection with the 1985 torture slaying of Camarena. Mondays court ruling in effect approved of the kidnapping. It said Machain could be tried in the United states instead of being sent Back to Mexico As Mexico had demanded. In August 1990, Congress approved $17 million Tor use by Mexico to help Stop the drug flow