GRAPEVINE

By DAVID ELLIS

RAISING THE FLAG

Concerned that the Saudis might somehow view U.S. troops as an occupying force, some overzealous field commanders had ordered troops to remove flag patches from their uniforms. But the American Civil Liberties Union protested to Defense Secretary Dick Cheney about a potential infringement of First Amendment rights. Since then, the Stars and Stripes have quietly reappeared.

SORRY, THE PARKING LOT IS FULL

How large is the military-aircraft presence in Saudi Arabia? One indication: the Pentagon was forced to turn down a Dutch offer to send a squadron of F-16s to the area because there is no space left on any air base for the planes.

A TAXING PROBLEM

Senate minority leader Bob Dole plans to introduce a bill this month in Congress that will waive interest charges for gulf-based soldiers who can't complete their tax returns by April 15. IRS officials recognize the problem but say legislation is needed to allow the exemptions.

THE WAR DIVIDEND

, The Defense Department has seized upon the gulf crisis as an excuse to expand the 1,000-sq.-mi. Fort Irwin, a high-tech desert-training facility in Southern California, by some 390 sq. mi. Environmentalists pledge to stall any such action.

ORDER AMONG THIEVES

Intelligence sources say the sacking of Kuwait took place under an unwritten "looting hierarchy." The new Iraqi Governor of Kuwait got first crack at the treasures stored in royal palaces, while commanders looted the residences of businessmen. Support units were allowed only into ordinary homes, which they stripped of VCRs, refrigerators and bathroom fixtures.

With reporting by Linda Williams