Iraq's foreign minister said today that his country intends to escalate its attacks on Iranian oil installations in coming weeks as part of a military campaign to weaken Iran's economy.

Tariq Aziz, the foreign minister, described the planned attacks as retaliation for Iran's "war of economic attrition" against Iraq. He acknowledged that the nearly three-year old Persian Gulf war had been economically draining for Iraq, forcing it to scale back massive economic development plans and to seek agreements for rescheduling of debts with foreign governments and jittery companies operating here.

He said virtually every family in the country is sacrificing by committing a son to the military. There are more than 1 million Iraqi men in uniform, he said--in a population of about 14 million. About 40,000 Iraqi men have been captured by Iranian forces compared with about 7,000 Iranians taken by Iraqi troops.

Now, he said, Iraq intends to respond, and "the bet placed by the Iranians on economic war will be a failure as was the bet on military war a failure."

Aziz suggested that those concerned about more oil spills in the gulf as the result of Iraq's planned new military campaign should pressure Iran to end the war or at least to stop the fighting in the Persian Gulf.

"You will see, you will hear, in every month from now Iraq will be able to cause some damage to the Iranian economic institutions in the depth of Iran and in the gulf," Aziz said.

"This means that the economic condition in Iran . . . will suffer more deterioration . . . contrary to what those ignorant people expect."

The Iraqi foreign minister spoke for more than three hours today to U.S., Arab and European journalists here. He appeared anxious to paint a brave portrait of Iraq's endurance, but he also made a strong appeal for outside mediation in what the Iraqis consider a potentially ruinous and all-but-forgotten war for those not directly involved.

In bitter tones, Aziz lashed out at the superpowers, the United Nations and at other Arab nations for what he described as their "vicious cycle of weakness" for not acting to end the conflict.

He suggested that other gulf Arab regimes might not comprehend the threat to them of Ayatollah Ruhollah Khomeini's revolution. Western powers appear unconcerned either because they enjoy seeing two enemies tearing at one another or because the gulf war is a conflict occurring in the Third World, he said.

"It seems that we in their view are of lower standard, and what's going on in our territory is not very important," he said.

As an example, he said, Iraq was using the French-made Exocet missile before and during the Falklands war but did not get the attention and exposure that Argentina did in its conflict with Britain. He did not discuss, however, the difficulty journalists have getting visas to cover the Persian Gulf war.

The foreign minister acknowledged the curtailment of Iraqi development plans, adding that vital transportation and communications improvements were still under way although what he described as luxury projects such as the Baghdad subway had been deferred.

Living standards in the oil-rich nation, blocked by Iran and by its ally Syria from exporting much of its crude oil, had declined, he said.

France, Yugoslavia and Japanese and British companies have either concluded or are in the process of negotiating special arrangements with Iraq for deferring payments owed to them.

Aziz acknowledged that there is a fifth column of opposition to Iraq's government, but he described this as only a technicality that will be easily eradicated.

He confirmed that six relatives of a prominent Shiite Moslem clergyman challenging the rule of President Saddam Hussein had been executed in May.

News of the executions of the relatives of Hojatoleslam Mohammed Bager Hakim, the Iraq Says It Will Escalate Attacks On Petroleum Centers Inside Iran By Herbert H. Denton Washington Post Foreign Service

BAGHDAD, Iraq, July 20--Iraq's foreign minister said today that his country intends to escalate its attacks on Iranian oil installations in coming weeks as part of a military campaign to weaken Iran's economy.

Tariq Aziz, the foreign minister, described the planned attacks as retaliation for Iran's "war of economic attrition" against Iraq. He acknowledged that the nearly three-year old Persian Gulf war had been economically draining for Iraq, forcing it to scale back massive economic development plans and to seek agreements for rescheduling of debts with foreign governments and jittery companies operating here.

He said virtually every family in the country is sacrificing by committing a son to the military. There are more than 1 million Iraqi men in uniform, he said--in a population of about 14 million. About 40,000 Iraqi men have been captured by Iranian forces compared with about 7,000 Iranians taken by Iraqi troops.

Now, he said, Iraq intends to respond, and "the bet placed by the Iranians on economic war will be a failure as was the bet on military war a failure."

Aziz suggested that those concerned about more oil spills in the gulf as the result of Iraq's planned new military campaign should pressure Iran to end the war or at least to stop the fighting in the Persian Gulf.

"You will see, you will hear, in every month from now Iraq will be able to cause some damage to the Iranian economic institutions in the depth of Iran and in the gulf," Aziz said.

"This means that the economic condition in Iran . . . will suffer more deterioration . . . contrary to what those ignorant people expect."

The Iraqi foreign minister spoke for more than three hours today to U.S., Arab and European journalists here. He appeared anxious to paint a brave portrait of Iraq's endurance, but he also made a strong appeal for outside mediation in what the Iraqis consider a potentially ruinous and all-but-forgotten war for those not directly involved.

In bitter tones, Aziz lashed out at the superpowers, the United Nations and at other Arab nations for what he described as their "vicious cycle of weakness" for not acting to end the conflict.

He suggested that other gulf Arab regimes might not comprehend the threat to them of Ayatollah Ruhollah Khomeini's revolution. Western powers appear unconcerned either because they enjoy seeing two enemies tearing at one another or because the gulf war is a conflict occurring in the Third World, he said.

"It seems that we in their view are of lower standard, and what's going on in our territory is not very important," he said.

As an example, he said, Iraq was using the French-made Exocet missile before and during the Falklands war but did not get the attention and exposure that Argentina did in its conflict with Britain. He did not discuss, however, the difficulty journalists have getting visas to cover the Persian Gulf war.

The foreign minister acknowledged the curtailment of Iraqi development plans, adding that vital transportation and communications improvements were still under way although what he described as luxury projects such as the Baghdad subway had been deferred.

Living standards in the oil-rich nation, blocked by Iran and by its ally Syria from exporting much of its crude oil, had declined, he said.

France, Yugoslavia and Japanese and British companies have either concluded or are in the process of negotiating special arrangements with Iraq for deferring payments owed to them.

Aziz acknowledged that there is a fifth column of opposition to Iraq's government, but he described this as only a technicality that will be easily eradicated.

He confirmed that six relatives of a prominent Shiite Moslem clergyman challenging the rule of President Saddam Hussein had been executed in May.

News of the executions of the relatives of Hojatoleslam Mohammed Bager Hakim, the imam of Iraq's Shiite community who lives in self-exile in Iran, were made public in Tehran last month.

Aziz, accusing Hakim's relatives of high treason in time of war, said 70 of them had been arrested and six hanged.

On other matters, the foreign minister said:

U.S. officials and members of Congress were guilty of hypocrisy in complaining of the presence in Iraq of Abu Nidal, a breakaway Palestine Liberation Organization terrorist who has claimed credit for the shooting last year of the Israeli ambassador in London and this year of a PLO peace activist, Issam Sartawi. Aziz said American firms are allowed to do substantial business with Libyan leader Muammar Qaddafi, whom he accused of fomenting terrorism.

Iraq's relations with Egypt will continue to grow. Although he said Baghdad continued to disagree with Egypt's peace treaty with Israel, Iraq appreciated Egypt's support in the gulf war and made a distinction between the rule of the late Egyptian president Anwar Sadat, who signed the Camp David accords, and his successor, Hosni Mubarak. The Arab decision to rebuke Egypt and cut off relations was made here in 1978 with Iraq a leading advocate of the move.

The United States was indirectly providing U.S.-manufactured arms to Iran and other countries.

The recent incursion of Turkish troops into northern Iraq came because they wanted to pursue dissident Kurds opposed to the Turkish government.

Aziz said agreement had been reached prior to the operation that they would penetrate less than two miles and carry out the operation for no more than 72 hours. The Turkish troops complied with those conditions, he said. imam of Iraq's Shiite community who lives in self-exile in Iran, were made public in Tehran last month.

Aziz, accusing Hakim's relatives of high treason in time of war, said 70 of them had been arrested and six hanged.

On other matters, the foreign minister said:

U.S. officials and members of Congress were guilty of hypocrisy in complaining of the presence in Iraq of Abu Nidal, a breakaway Palestine Liberation Organization terrorist who has claimed credit for the shooting last year of the Israeli ambassador in London and this year of a PLO peace activist, Issam Sartawi. Aziz said American firms are allowed to do substantial business with Libyan leader Muammar Qaddafi, whom he accused of fomenting terrorism.

Iraq's relations with Egypt will continue to grow. Although he said Baghdad continued to disagree with Egypt's peace treaty with Israel, Iraq appreciated Egypt's support in the gulf war and made a distinction between the rule of the late Egyptian president Anwar Sadat, who signed the Camp David accords, and his successor, Hosni Mubarak. The Arab decision to rebuke Egypt and cut off relations was made here in 1978 with Iraq a leading advocate of the move.

The United States was indirectly providing U.S.-manufactured arms to Iran and other countries.

The recent incursion of Turkish troops into northern Iraq came because they wanted to pursue dissident Kurds opposed to the Turkish government.

Aziz said agreement had been reached prior to the operation that they would penetrate less than two miles and carry out the operation for no more than 72 hours. The Turkish troops complied with those conditions, he said.