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Judge Rules For Israel
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Friday, September 12, 1986 THE DETROIT JEWISH NEWS.:
•
Chicago (JTA) — Federal
Judge Thomas R Griesa ruled
for Israel last week in a cour-
troom hearing called by
Recon Optical Inc. of subur-
ban Chicago. Recon was hop-
ing to frustrate efforts by
Israel to liquidate the com-
pany's US $20 million letter
of credit.
The case gained sudden
media attention when Recon
president Larry Larson ac-
cused Israel of orchestrating
an espionage plot to steal its
technology. Israel steadfastly
refused comment on the case,
except to proclaim its in-
nocence and label Recon's
charges "a desperate attempt
to influence a commercial
contract dispute with wild
media allegations."
The conflict arose from a
top secret aerial recon-
naissance project Israel had
contracted with Recon in
1984 to produce. Code-named
Rom Pisgot (Highest Moun-
tain,) the project would have
yielded the most sophisti-
cated aerial reconnaissance
system to date.
Capable of photographing
distinctly a man smoking a
cigarette 100 miles away, the
system would have been an
invaluable asset to Israel's
defense.
The original contract car-
ried a "fixed price" of US $40
million. But when earlier this
year Recon proposed cost-
overruns that would more
than double the project,
Israel refused. Recon then
halted production, and under
a default provision of the con-
tract, Israel declared it would
recover some US $20 million
already paid to Recon by
drawing down its letter of
credi t .
Recoh then filed an arbitra-
tion demand to settle the
default question, and sought
a federal court order restrain-
ing Israel's recovery of money.
Larson later told govern-
ment investigators that Israel
was stealing classified docu-
ments. When the investiga-
- rTeelop, Recon
tions did ri O
took its case to the media.
In the four-hour court hear-
ing, Griesa rejected all-Recon
claims. He refused to hear the
contract default issues reserv-
ed for the arbitration process,
and denied Recon's motion for
an injunction to prohibit
Israel from reclaiming its US
$20 million.
As for charges of espionage,
the judge declared, "they may
have sex appeal and may be
good for the press," but were
irrelevant to the court pro-
ceedings. In essence, the
judge rejected the pleadings
by Recon that Israel had
"unclean hands" in the affair,
and should therefore be en-
joined from drawing down the
letter of credit.
Recon officials could not be
reached for comment, but
their attorneys announced
they would appeal the deci-
sion. The judge asked Israel's
attorney Jeffrey Fillman to
voluntarily delay seizing the
US $20 million until Recon's
appeals were exhausted and
Fillman agreed.
Israeli officials, tight-lipped
as usual about this case,
issued only a brief statement
through New York press con-
sul Baruch Binah. "We are of
course pleased with the re-
sults," said Binah, "and we
think the judge's decision
speaks for itself."
Athens City Council
Nixes Truman Statue
Athens — Mayor Dimitris
Beis said today that the
Socialist-run Athens city
council would stand by its de-
cision not to re-erect the
statue of Harry S. Truman,
which was destroyed by van-
dals in March, _despite a
commitment by Prime Minis-
ter Andreas Papandreou to
restore it.
In an interview at the
newly built city hail, Beis,
who is running for re-election
in municipal voting in Oc-
tober, also denied that he had
introduced anti-Semitism into
the campaign.
The Papandreou govern-
ment, embarrassed by the
council decision at a time
when it is working to im-
prove Greek-American rela-
tions, assured the United
States that it would find a
place in the capital for the
monument.
No new site has been cho-
sen, however. The monument
was erected in tribute to
Truman's leadership in pro-
viding aid to the Greek gov-
ernment to defeat communist
forces in the civil war of the
late 1940's.
As the pre-election cam-
paign began to heat up, Beis
offended Jews in Athens by
accusing the opposition coun-
cil members of turning a ses-
sion into "a Jewish
synagogue."
Asked to explain the com-
parison, the mayor said, "To
me, a Jewish synagogue is a
place where everyone is read-
ing and shouting by himself
and not listening to the
others."
He added that his remark
was "a popular expression"
without anti-Semitic intent.
Similarly, Papandreou, in the
national election campaign
last year, several times de-
nounced his opponent, Con-
stantine Mitsotakis, as "a
wandering Jew." In a sub-
sequent interview, he, too,
said that this was just a
popular expression.