GULF WATCH: Day 50 : A Daily Briefing Paper On Developments In The Crisis : Diplomatic Front:

As congressional opposition grew to a Pentagon proposal to sell more than $20 billion in arms to Saudi Arabia, a Saudi official said his nation will buy the weapons elsewhere if the Administration doesn’t push the plan.

Iraqi President Saddam Hussein asked for time on U.S. television to speak directly to the American people. The White House said it will do nothing to keep his message off the air.

Iraq is trying to persuade neighboring Iran to link the two nations’ oil pipelines, a move that would let Baghdad evade the international trade embargo, U.S. officials say. Iran apparently has not yet responded to the request.

Military Front:

The Pentagon announced the call-up of 7,106 more reserve soldiers and airmen.

Defense Secretary Dick Cheney extended “imminent danger pay” of $110 month to all U.S. troops assigned to the Persian Gulf, retroactive to Sept. 1.

A hot-line number--703-274-3561--has been established for Americans wanting information about donations of money or other items for the troops in Saudi Arabia. The Pentagon cautioned that alcoholic beverages and pork products are prohibited by the Saudi government and clothing is not needed.

Economic Front:

The IMF is looking into the possibility of asking nations that have benefitted from rising oil prices to help nations hard hit by price jumps by extending some form of financing.

Oil prices hit a 7-year high of nearly $35 a barrel on the New York futures markets. The Dow Jones industrial average fell 39.11 points to 2,518.32 as traders focused on the inflationary effects of soaring oil prices and the increasing likelihood of recession.

Crisis Indicators:

* Reserves called up Thursday: 7,106

* Reserves previously mobilized: 14,323

* Maximum authorized reserve activation: 49,703

* Crude oil: $34.71 per bbl., up $1.53

* Wholesale heating oil: 91.86 per gal., up 3.33

* Wholesale gasoline: 91.54 per gal., up 1.64

* U.S. troops in/near Saudi Arabia: more than 165,000.

* High temperature in Dhahran: 102