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ISRAEL WATCHING IRAQ

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Defense Minister Yitzhak Rabin voiced alarm Wednesday at Iraq's development of a long-range missile capability and said Israel would have to make "the appropriate decision."

Answering parliamentary questions, Rabin gave the first public Israeli response to Baghdad's announcement Dec. 7 of the successful launch of a three-stage space rocket."The defense establishment is keeping a close watch on developments in Iraq in various technological areas, especially Iraq's progress in developing medium- and long-range ground-to- ground missiles, its entry into space and the development of non-conventional weapons," he said.