Iran announced tonight that its major offensive against Iraq in the Gulf war had ended after dealing savage blows against the Baghdad government<SPLIT>.
The Iranian news agency IRNA<SPLIT>, in a report received in London<SPLIT>, said the operation code-named Karbala-5 launched into Iraq on January 9 was now over<SPLIT>.
It quoted a joint statewment by the Iranian Army and Revolutionary Guards Corps as saying that their forces had "<SPLIT>dealt one of the severest blows on the Iraqi war machine in the history of the Iraq-imposed war<SPLIT>.<SPLIT>"
The statement by the Iranian High Command appeared to herald the close of an assault on the port city of Basra in southern Iraq<SPLIT>.
"<SPLIT>The operation was launched at a time when the Baghdad government was spreading extensive propaganda on the resistance power of its army<SPLIT>...<SPLIT>,<SPLIT>" said the statement quoted by IRNA<SPLIT>.
It claimed massive victories in the seven-week offensive and called on supporters of Baghdad to "<SPLIT>come to their senses<SPLIT>" and discontinue support for what it called the tottering regime in Iraq<SPLIT>.
Iran said its forces had "<SPLIT>liberated<SPLIT>" 155 square kilometers of enemy-occupied territory during the 1987 offensive and taken over islands<SPLIT>, townships<SPLIT>, rivers and part of a road leading into Basra<SPLIT>.
The Iranian forces "<SPLIT>are in full control of these areas<SPLIT>,<SPLIT>" the statement said<SPLIT>.
It said 81 Iraqi brigades and battalions were totally destroyed<SPLIT>, along with 700 tanks and 1,500 other vehicles<SPLIT>.

U.S. bank discount window borrowings less extended credits averaged 310 mln dlrs in the week to Wednesday February 25<SPLIT>, the Federal Reserve said<SPLIT>.
The Fed said that overall borrowings in the week fell 131 mln dlrs to 614 mln dlrs<SPLIT>, with extended credits up 10 mln dlrs at 304 mln dlrs<SPLIT>.
The week was the second half of a two-week statement period<SPLIT>.
Net borrowings in the prior week averaged 451 mln dlrs<SPLIT>.
Commenting on the two-week statement period ended February 25<SPLIT>, the Fed said that banks had average net free reserves of 644 mln dlrs a day<SPLIT>, down from 1.34 billion two weeks earlier<SPLIT>.
A Federal Reserve spokesman told a press briefing that there were no large single day net misses in the Fed's reserve projections in the week to Wednesday<SPLIT>.
He said that natural float had been "<SPLIT>acting a bit strangely<SPLIT>" for this time of year<SPLIT>, noting that there had been poor weather during the latest week<SPLIT>.
The spokesman said that natural float ranged from under 500 mln dlrs on Friday<SPLIT>, for which he could give no reason<SPLIT>, to nearly one billion dlrs on both Thursday and Wednesday<SPLIT>.
The Fed spokeman could give no reason for Thursday's high float<SPLIT>, but he said that about 750 mln dlrs of Wednesday's float figure was due to holdover and transportation float at two widely separated Fed districts<SPLIT>.
For the week as a whole<SPLIT>, he said that float related as of adjustments were "<SPLIT>small<SPLIT>,<SPLIT>" adding that they fell to a negative 750 mln dlrs on Tuesday due to a number of corrections for unrelated cash letter errors in six districts around the country<SPLIT>.
The spokesman said that on both Tuesday and Wednesday<SPLIT>, two different clearing banks had system problems and the securities and Federal funds wires had to be held open until about 2000 or 2100 EST on both days<SPLIT>.
However<SPLIT>, he said that both problems were cleared up during both afternoons and there was no evidence of any reserve impact<SPLIT>.
During the week ended Wednesday<SPLIT>, 45 pct of net discount window borrowings were made by the smallest banks<SPLIT>, with 30 pct by the 14 large money center banks and 25 pct by large regional institutions<SPLIT>.
On Wednesday<SPLIT>, 55 pct of the borrowing was accounted for by the money center banks<SPLIT>, with 30 pct by the large regionals and 15 pct by the smallest banks<SPLIT>.
The Fed spokesman said the banking system had excess reserves on Thursday<SPLIT>, Monday and Tuesday and a deficit on Friday and Wedndsday<SPLIT>.
That produced a small daily average deficit for the week as a whole<SPLIT>.
For the two-week period<SPLIT>, he said there were relatively high excess reserves on a daily avearge<SPLIT>, almost all of which were at the smallest banks<SPLIT>.
American Express Co remained silent on market rumors it would spinoff all or part of its Shearson Lehman Brothers Inc<SPLIT>, but some analysts said the company may be considering such a move because it is unhappy with the market value of its stock<SPLIT>.
American Express stock got a lift from the rumor<SPLIT>, as the market calculated a partially public Shearson may command a good market value<SPLIT>, thereby boosting the total value of American Express<SPLIT>.
The rumor also was accompanied by talk the financial services firm would split its stock and boost its dividend<SPLIT>.
American Express closed on the New York Stock Exchange at 72-5/8<SPLIT>, up 4-1/8 on heavy volume<SPLIT>.
American Express would not comment on the rumors or its stock activity<SPLIT>.
Analysts said comments by the company at an analysts' meeting Tuesday helped fuel the rumors as did an announcement yesterday of management changes<SPLIT>.
At the meeting<SPLIT>, company officials said American Express stock is undervalued and does not fully reflect the performance of Shearson<SPLIT>, according to analysts<SPLIT>.
Yesterday<SPLIT>, Shearson said it was elevating its chief operating officer<SPLIT>, Jeffery Lane<SPLIT>, to the added position of president<SPLIT>, which had been vacant<SPLIT>.
It also created four new positions for chairmen of its operating divisions<SPLIT>.
Analysts speculated a partial spinoff would make most sense<SPLIT>, contrary to one variation on market rumors of a total spinoff<SPLIT>.
Some analysts<SPLIT>, however<SPLIT>, disagreed that any spinoff of Shearson would be good since it is a strong profit center for American Express<SPLIT>, contributing about 20 pct of earnings last year<SPLIT>.
"<SPLIT>I think it is highly unlikely that American Express is going to sell shearson<SPLIT>,<SPLIT>" said Perrin Long of Lipper Analytical<SPLIT>.
He questioned what would be a better investment than "<SPLIT>a very profitable securities firm<SPLIT>.<SPLIT>"
Several analysts said American Express is not in need of cash<SPLIT>, which might be the only reason to sell a part of a strong asset<SPLIT>.
But others believe the company could very well of considered the option of spinning out part of Shearson<SPLIT>, and one rumor suggests selling about 20 pct of it in the market<SPLIT>.
Larry Eckenfelder of Prudential-Bache Securities said he believes American Express could have considered a partial spinoff in the past<SPLIT>.
"<SPLIT>Shearson being as profitable as it is would have fetched a big premium in the market place<SPLIT>.
Some analysts said American Express could use capital since it plans to expand globally<SPLIT>.
"<SPLIT>They've outlined the fact that they're investing heavily in the future<SPLIT>, which goes heavily into the international arena<SPLIT>,<SPLIT>" said Lewis<SPLIT>.
Lewis said if American Express reduced its exposure to the brokerage business by selling part of shearson<SPLIT>, its stock might better reflect other assets<SPLIT>, such as the travel related services business<SPLIT>.
Lewis said Shearson contributed 316 mln in after-tax operating earnings<SPLIT>, up from about 200 mln dlrs in 1985<SPLIT>.
Coleco Industries Inc said it expects to return to profitability in 1987<SPLIT>.
Earlier<SPLIT>, Coleco reported a net loss of 111.2 mln dlrs for the year ended December 31 compared to a profit of 64.2 mln dlrs in the year earlier<SPLIT>.
In a prepared statement<SPLIT>, the company said the dramatic swing in operating results was due primarily to the steep decline in sales of Cabbage Patch Kids products from 600 mln dlrs to 230 mln dlrs<SPLIT>.
Coleco said it changed from a single product company to a more diversified organization through four major acquisitions last year<SPLIT>.
Products from the new acquisitions and other new product introductions are expected to enable it to return to profitability<SPLIT>, it said<SPLIT>.
At the annual Toy Fair earlier this month<SPLIT>, vice president Morton Handel said analysts' 1987 projected earnings of 90 cts a share on sales of 600 mln dlrs are reasonable<SPLIT>.
Azpurua said venezuela has shown solidarity with brazil's decision to suspend payments<SPLIT>, but each country must negotiate according to its own interest<SPLIT>.
Azpurua said the governent plans to pay 2.1 billion dlrs in public and private debt principal this year<SPLIT>.
It was due to amortize 1.05 billion dlrs under the rescheduling<SPLIT>, and pay 420 mln dlrs in non-restructured principal<SPLIT>, both public sector<SPLIT>.
He said venezuela's original proposal was to pay no principal on restructured debt this year<SPLIT>, but is now insisting that if it makes payments they be compensated by new bank loans<SPLIT>.
The banking sources said the committee has been prepared to lower amortizations to around 400 mln dlrs this year<SPLIT>, but that no direct commitment was likely on new loans<SPLIT>.
At the same time<SPLIT>, he said the government is presently studying possible mechanisms for capitlizing public and private sector foreign debt<SPLIT>, based on experience in other countries<SPLIT>.
The rules would be published by the finance ministry and the central bank<SPLIT>.

Thomson McKinnon Mortgage Assets Corp<SPLIT>, a unit of Thomson McKinnon Inc<SPLIT>, is offering 100 mln dlrs of collateralized mortgage obligations in three tranches that include floating rate and inverse floating rate CMOS<SPLIT>.
The floating rate class amounts to 60 mln dlrs<SPLIT>.
The inverse floater totals 4.8 mln dlrs<SPLIT>.
Subsequent rates on the inverse floater will equal 11-1/2 pct minus the product of three times (<SPLIT>LIBOR minus 6-1/2 pct<SPLIT>)<SPLIT>.
A Thomson officer explained that the coupon of the inverse floating rate tranche would increase if LIBOR declined<SPLIT>.
The fixed-rate tranche totals 35.2 mln dlrs<SPLIT>.
The issue is rated AAA by Standard and Poor's and secured by Federal Home Loan Mortgage Corp<SPLIT>, Freddie Mac<SPLIT>, certificates<SPLIT>.
