SECRET

2. Summary and Comment: In his 90-minute meeting with Rumsfeld, Saddam Hussein showed obvious pleasure with President’s letter and Rumsfeld’s visit and in his remarks [missing text?] removed whatever obstacles remained in the way of resuming diplomatic relations, but did not take the decision to do so. He said Arabs should press Syria to leave Lebanon and also that Iraq favored development of positive relations between PLO and Jordan. Rumsfeld told Saddam US and Iraq had shared interests in preventing Iranian and Syrian expansion. He said US was urging other states to curtail arms sales to Iran and believed it had successfully closed off US-controlled exports by third countries to Iran. In response to Rumsfeld’s interest in seeing Iraq increase oil exports, including through possible new pipeline across Jordan to Aqaba, Saddam suggested Israeli threat to security of such a line was major concern and US might be able to provide some assurances in this regard. Our initial assessment is that meeting marked positive milestone in development of US-Iraqi realtions [sic] and will prove to be of wider benefit to US posture in the region. END SUMMARY AND COMMENT.