The situation was resolved in October, when the British troops were withdrawn and replaced by a 4,000-strong Arab League force, which acted as a barrier against the Iraqi threat.[259]
In December 1961, Qasim's government passed Public Law 80, which restricted the partially American-controlled Iraq Petroleum Company (IPC)'s concessionary holding to those areas in which oil was actually being produced, effectively expropriating 99.5% of the IPC concession. U.S. officials were alarmed by the expropriation as well as the recent Soviet veto of an Egyptian-sponsored UN resolution requesting the admittance of Kuwait as UN member state, which they believed were connected. Senior National Security Council adviser Robert Komer worried that if the IPC ceased production in response, Qasim might "grab Kuwait" (thus achieving a "stranglehold" on Middle Eastern oil production) or "throw himself into Russian arms". Komer also made note of widespread rumors that a nationalist coup against Qasim could be imminent, and had the potential to "get Iraq back on [a] more neutral keel".[260]
In April 1962, the State Department issued new guidelines on Iraq that were intended to increase American influence there. 