'PANIC' IN BAGHDAD.

Just prior to the U.S. President George W. Bush State of the Union address last week, Saddam Hussein was seen on national television telling his top generals that 'real men should not panic.' But panic may best describe the current state of Iraq's leadership. Seemingly taken aback by chief UN weapons inspector Hans Blix's demand for more information and Bush's apparent determination to push ahead with war even without UN approval, the Iraqi leadership had difficulty even organizing news conferences or presenting a concise response to Bush's allegations that Iraq still possesses weapons of mass destruction. In contrast to harried government officials, many Iraqis seem unconcerned. One possible explanation: they are simply beyond caring. Saddam has increased food rations and taken steps to ensure that other necessities will be available, at least intermittently. One of the stated objectives of the U.S. war plan is to obliterate what's left of Iraq's battered power grid. Meanwhile, authorities have called up thousands of young conscripts. On the outskirts of Baghdad, the recruits -- many still wearing their own clothes -- lined up last week to practice basic drills. In an effort to keep morale high among citizens and appear defiant, the regime stages daily demonstrations. Now that the exit fee has been rescinded, hundreds of Iraqi citizens are lining up at government visa offices across the capital to apply for exit papers.