US $2.5 billion arms sale of
American weapons to Iran by
international arms dealers, in-
cluding Israelis.
In the case, 17 defendants,
four of them Israelis, are
charged in a New York court
- with conspiracy to sell
American-made weapons and
- spare parts to Iran through a
third party.

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Israel Signs
SDI Contract

Tel Aviv (JTA) — Israel
\ signed a contract with the
• U.s. last week to undertake
research on anti-ballistic
missile defense systems, a
\ project related to the Reagan
• Administration's Strategic
Defense Initiative (SDI), com-
monly known as Star Wars.
/- The contract, reported to be
in the neighborhood of US
$5.1 million, is the first of its
kind entered into by the U.S.
with a non-NATO country. It
was regarded as Israel's first
i bid for a share in the US S27
• billion SDI research alloca-
tion.

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American Community

Attorneys for defendants in
the case filed papers in court
contending that high-ranking
- Administration, State De-
., partment and Pentagon of-
' ficials considered and even-
tually approved covert arms
sales of American military
hardware to Iran. -
The lawyers said the U.S.
officials had used some of the
defendants, who were interna-
tional arms merchants, as in-
termediaries to sell the arms
to Iran.
The defendants in the case
negotiated with an Iranian
who posed as a buyer for the
Iranian government but who
was actually acting as an in-
formant for the U.S. govern-
- ment. That man, Cyrus
Hashemi, is the cousin of the
Speaker of the Iranian Parlia-
ment, Hashemi-Rafsanjani
- who first released the story
on McFarlane's visit.
Government sources in the
U.S. have acknowledged that
Teheran was promised, in ex-
change for assistance in get-
ting the American hostages
in Lebanon release, that the
U.S. would not block the sale
of surplus American arms
and spare parts to Iran from
‘,.
/--- third parties, according to
reports.
Although there is no osten-
sible link between the McFar-
lane caper and the court case
involving the Israeli arms
dealers, the most recent
- reports seem to confirm much
of what the lawyers in the
case have alleged in regard to
the U.S. government's in-
volvement in third party sales
of American surplus military
hardware.

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