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Cheers, Ken Hanly

March 23, 2003, 1200hrs MSK (GMT +3), Moscow - The situation in southern
Iraq can be characterized as unstable and controversial. Heavy fighting is
taking place in the Umm-Qasr-An-Nasiriya-Basra triangle. Satellite and
signals intelligence show that both sides actively employ armored vehicles
in highly mobile attacks and counterattacks. Additionally, fighting is
continuing near the town of An-Najaf.

As of this morning the Iraqi defenses along the Basra - An-Nasiriya -
An-Najaf line are holding.

Following the yesterday's Iraqi counter strike near An-Nasiriya the US
command was forced to halt the advance of its troops toward An-Najaf and to
redirect a portion of available tank forces to cover the flanks of the 3rd
Motorized Infantry Division attacked by the Iraqis. By late evening
yesterday constant air strikes and increasing strength of American tank
attacks forced the Iraqis to withdraw their troops back to eastern parts of
Nasiriya, across the Euphrates river, were they assumed defensive positions
along the river bank.

During the last day of fighting the Iraqis lost up to 20 tanks, up to 2
artillery batteries, and around 100 troops.

Yesterday's US losses are estimated at 10 destroyed or disabled tanks,
several armored personnel carriers and up to 15 troops killed in action.

By 0700hrs MSK today the fighting at Nasiriya stopped. Currently both sides
are rushing to regroup their forces and to get them ready for more fighting
in this area.

Near Basra the advance of the coalition forces came to a complete halt at
the near approaches to the western and southwestern outskirts of the city.
The US and British forces are rushing to settle into defensive positions
after failing to surround Basra. Eastern and northern approaches to Basra
remain open and under control of the Iraqi forces.

More controversial reports are coming in from the town of Umm-Qasr. As early
as three days ago the US command has declared that the coalition forces have
captured this small port town and the adjacent oil terminal. However,
throughout these three days heavy fighting continued in the town and in the
suburbs. The US forces are still unable to break the defense put up by the
Iraqi 45th brigade defending the town.

Moreover, several counterattacks by the Iraqi forces at Umm Qasr have pushed
the US forces out of some part of the town. During last night the Iraqi 45th
brigade was reinforced by a special tank battalion of the 51st Infantry
Division. The reinforcement included up to 600 troops and 10 tanks. However,
the coalition forces were also strengthened overnight with two tank
battalions and self-propelled artillery. As of 1000hrs MSK this morning
heavy fighting continues at Umm Qasr.

According to intercepted radio communications, the British marine infantry
units in defensive positions on the Fao peninsula have requested emergency
air and artillery support after being attacked by superior Iraqi forces. So
far it is not clear whether this was an actual counterattack by the Iraqis
or just a nuisance attack. The British commanders report that their
positions are being attacked by up to a regiment of infantry supported by
tanks.

Other intercepted radio traffic suggests that, as the British and US forces
bend the Basra - An-Najaf line of defense, the Iraqi command will pull back
its main forces to the Al-Ammara - Ad-Divaniya line. Already most of the
Iraqi forces in this region have moved to the Al-Ammara - Ad-Divaniya
positions and within the next 48 hours defense of Basra and Fao peninsula
will be reduced to just the local units and garrisons. The goal of the
remaining forces will be to tie up superior coalition forces in these areas.

According to radio intercepts during today's night the coalition begun
airdropping troops in northern Iraq from airfields in Turkey and Jordan.
These forces are being used to form mobile strike groups in northern
Kurdistan and near the western-Iraqi town of Er-Rutbah. Already up to 5,000
coalition troops have been delivered to northern Kurdistan and up to 1000
paratroopers have landed near Er-Rutbah.

Russian military intelligence has uncovered a range of facts pointing to a
separate arrangement between the top leadership of Jordan and the US
military command. Officially Jordan has declared its neutrality in the war
against Iraq and refused to provide its airspace to the coalition aviation.
However, at the same time Jordan has allowed the anti-Iraq coalition to
place surveillance radars and radio reconnaissance stations on its
territory. Jordan has also allowed the coalition to use its military
airbases.

Available information indicates that coalition special ops units, including
up to 400 troops and their command headquarters, have been deployed to the
Jordanian Zarka military base and to the home base of the Jordan's 71st
special ops brigade.

Reports that have surfaced in the media in the past 12 hours about the
capture of a US special ops unit near Baghdad are probably not true. It is
likely that these reports refer to the capture of coalition paratroopers
yesterday morning near the town of Akashat.

During the past 12 hours there has been a drop in intensity of air strikes
against Baghdad. Analysts attribute this to the fact that most of available
coalition air assets are now deployed in support of ground forces.
Intercepted coalition radio traffic shows that most of the bombing attacks
against Baghdad are carried out by the US strategic aviation and by
sea-launched long-range cruise missiles.

So far the US was unable to destroy the air defense networks in central
Iraq. As before, the Iraqis continue to covertly use their radars and SAM
launchers on a limited bases while employing a huge number of decoys
designed to imitate radars.

The US was also unable to disrupt the central control over the Iraqi army.
The US command is forced to admit that, despite the best efforts of the
coalition aviation, the Iraqi forces maintain high combat readiness and
reliable command and control structure.

[Russian] radio intercept units have reported the loss of two coalition
planes. One of the planes was a "Tornado" strike aircraft and the other one
was believed to be an F-16 fighter-bomber. The F-16 was shot down over
Baghdad and is believed to have crash-landed in a desert in southern Iraq. A
coalition search-and-resque unit was immediately dispatched to this area.

A CIA referent in the combat area Col. Davis (likely to be a pseudonym) and
the US DoD Defense Intelligence Agency (DIA) regional director were demoted
due to their inadequate performance in estimating the strength of Iraq's
forces and their combat readiness.

Eyewitnesses report that Gen. Tommy Franks looks extremely exhausted and
irritated. Gen. Franks has cancelled the meeting with journalists planned
for this morning.

Work is paralyzed at the coalition press-center in Kuwait. Journalists are
not able to get any information except for the hourly press communique from
the command. A variety of reasons are cited by the military to reduce the
number of trips into the combat zone for the journalists. All reports coming
from the journalists attached to the coalition units are now being strictly
censored by the military. All live broadcasts, as those seen during the
first day of the war, are now strictly prohibited by a special order from
the coalition command. The required time delay between the time news video
footage was shot and the time it can be broadcast has been increased to a
minimum of 4 hours.

More accurate information became available regarding the losses sustained by
both sides during the first three days of the war. The coalition has
officially acknowledged the deaths of some 25 servicemen. However,
intercepted radio communications show that the actual number of coalition
casualties is at least 55-70 troops killed and no less than 200 wounded. The
emergency dispatch of the "Comfort" medical ship closer to the combat zone
is a direct indication of serious casualties. The "Comfort" is expected to
arrive to the southern tip of the Fao peninsula later tonight.

It is more difficult to evaluate the losses of the Iraqi especially due to
the air strikes. On the south front Iraqi losses are estimated at 400-600
killed, 1,500 wounded and up to 300 captured.






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