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24

Friday, December 5, 1986

NEWS

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THE DETROIT JEWISH NEWS

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• Did Israel have prior
knowledge that proceeds
from the sale were to be paid
to the Nicaraguan Contras,
thereby deliberately subver-
ting a recent congressional
decision which severely
restricted the amount of U.S.
aid to the guerillas?
If the answers do not
satisfy Washington, officials
in Jerusalem fear that Israel
could be facing a vengeful
Congress which will not
hesitate to apply the stick.
Among the most immed-
iate victims of congressional
displeasure could be Israel's
aspiration to be granted
NATO privileges on arms
purchases and a plan for the
joint development of new sub-
marines and missile boats for
the Israeli Navy.
Also in jeopardy could be
the Lavi, Israel's 21st-century
jet fighter whose continued
development and ultimate
production — already a
source of considerable con-
troversy between Israel and
America — depends on
United States financial
support.
An obvious political victim
could be U.S. participation in
a renewed diplomatic in-
itiative aimed at kicking life
into the stalled Middle East
peace process and attempting
to reduce the influence of the
Palestine Liberation Organ-
ization in the West Bank and
Gaza.
On the economic front, con-
cern has been expressed that
Congress may restrict the
terms of the one-year-old free-
trade agreement between
Israel and the United States,
an agreement that is regard-
ed by Jerusalem as being an
integral component if its
economic recovery program.
With investigators from the
Justice Department and
various United States con-
gressional committees ex-
pected in Israel to question a
number of top officials on
Israel's role in the affair, there
is an air of righteous indigna-
tion in Jerusalem.
Particular anger has been
directed at Attorney-General
Meese, who has laid much of
the blame for the arms deal
on Israel.
Israel, he said, had repaid
the United States $13 million
for the arms it shipped to
Iran, but had received up to
$30 million more from the
Iranians, with at least part of
the proceeds winding in a
numbered Swiss bank ac-
count operated by the Con-
tras.
Israel, however, has cat-
egorically denied any involve-
ment in the payment to the

Contras, insisting that none
of the money involved in the
Iranian arms deal passed
through Israel.
Indeed, a senior source in
Jerusalem alleges that White
House officials deliberately
concealed from Israel the fact
that the Contras were to be
beneficiaries of the deal.
"We feel deceived," said the
source. "They fooled us and
they fooled Congress."
The Israeli government had
earlier categorically rejected
charges of channeling funds
to the Contras in a late night
statement, drafted by Prime
Minister Yitzhak Shamir,
Foreign Minister Shimon
Peres and Defense Minister
Yitzhak Rabin, and timed to
coincide with the evening
newscasts on U.S. television
networks.
The Israeli statement
followed a day of high drama
in Washington, which started
with the resignations of Na-
tional Security Adviser John
Poindexter and a senior aide,
Col. Oliver North, and ended
with the damaging accusa-
tions by Meese.
Conceding for the first time
that "Israel helped in the
transfer of defensive arms
and spare parts from the
United States to Iran in
response to American re-
quests," the statement said:
"The payment for the equip-
ment was transferred direct-
ly by an Iranian represen-
tative to a Swiss bank, in line
with the instructions of the
U.S. representative."
Israel was "surprised" by
the charges that part of these
funds had been transferred to
the Contras, who are fighting
to topple the Marxist San-
dinista regime in Nicaragua:
"This matter has no connec-
tion with Israel," said the
statement, "and the Govern-
ment of Israel has no knowl-
edge of it.
"It is clear that Israel did
not serve, and is not prepared
to serve, as a conduit for such
a transfer."
According to the mass-
circulation Hebrew-language
daily Yediot Aharanot, the
remarks by Attorney-General
Meese are not consistent with
the facts: "It appears that
Washington has decided to
extricate President Reagan
from the affair at any price."
National Security Adviser
Poindexter and Col. North
were the first to pay the price,
said the newspaper. "Israel
would appear to be next in
line, with an attempt under-
way to transform it from a
strategic partner to an ac-
complice in an offense."
While Israeli leaders are
adamant that they knew
nothing of the Contra connec-
tion, this has been vigorously
challenged by United States

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