Project Interloper

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.

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