CIA STARGATE release
CIA-RDP96-00789R000400020004-2
Opens with: Israel Told U.S. After the Fact" About Iran Oil
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20 Dec 8808-B Approved For Release 2000/08/08 : CIA-RDP96-00789R000400020004-2 GTON POST Israel Told U.S. After the Fact" About Iran Oil Israel told the United States last month that it had agreed to pur- chase a substantial quantity of oil from Iran, the State Department said yesterday. Department spokesman Margar- et Tutwiler acknowledged that the United States was advised "after the fact." The transaction was re- vealed Monday by NBC News. NBC said Israel paid $36 million for the oil to help Iran bolster its military defenses against Iraq and to encourage Iran to use its. influ- ence with radical groups in Lebanon holding three Israeli soldiers, eight Americans and other foreigners hostage. said, "Foreign countries do not seek U.S. approval for oil purchases from a third country," adding that the United States has not changed its policy of refusing to make deals for release of the hostages. Other administration sources said flatly that neither the White House nor the State Department had said anything that could be interpreted as a U.S. go-ahead for Israel's course. NBC also said Israel had dis- cussed the possibility of selling Iran spare parts for its military equip- ment, which is largely of U.S. man- ufacture. Tutwiler said Israel is aware that it cannot sell any equip- promised to respect that prohibi- tion. According to NBC, the oil deal : was arranged by Uri Lubrani, who served as Israeli ambassador in- Tehran before the fall of Shah Mo- hammed Reza Pahlavi and who more recently has been coordinator of Israeli policy toward Lebanon. Influential military, intelligence and diplomatic circles in Israel have said the country needs to seek better relations with Iran, despite the strongly anti-Zionist and anti-West- ern attitudes of its revolutionary government. It was partly in re- . sponse to this Israeli argument that President Ronald Reagan authorized TIApproved FortRelease 0000/08/0&h; OlARER98-00789R000400020004-2.S. move had been approved by the`. containing U.S. technology without United States. However, Tutwiler Washington's approval and has . arms to Iran in hopes it would lead to freedom for American hostages.