The subcommittee heard testimony on the situation in the Middle East, particularly concerning Iraq’s invasion of Kuwait. Specifically, the subcommittee sought testimony on Iraq’s invasion, the status of the U.S.' reply, the economic sanctions against Iraq, burden sharing of the price of economic sanctions by other Western countries, the Soviet response to the invasion, and the policies concerning arms sales to other countries. Assistant Secretary Kelly, who had accompanied Sec. of State James Baker on a recent eleven day tour of Middle Eastern countries, characterized Iraq as a lone “international pariah,” and “outlaw,” and said there were approximately 1,400 hostages being held in Iraq against their will. Asst. Secretary Rowen stated that Iraq could have entered Saudi oil fields, and would have dominated the Saudi peninsula if their aggression into Kuwait was left unchecked. He also said Operation Desert Shield was currently costing approximately $3 billion a month.