THE AT ALL COSTS' HOSTAGE DEAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000101020032-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 28, 2010
• Sequence Number: 32
• Publication Date: January 16, 1981
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/06/28: CIA-RDP90-00552R000101020032-4
A %. 1CL A Fi::1R D THE WASHINGTON POST
ON PAGZ r'7 16 January 1981
.-. a
. :. . _:. _..
.
Roivland Eu 's-and Robert Novak` 'z '
'
'
.i osta. e
..Ii- Costs
Behind "Deputy Secretary of tate
Warren Christopher's round-the-clock ef-
fort for the American hostages is this ver-
bal order from President Carter, arousing.
mixed emotions among Ronald Reagan's
men: free the hostages "at all costs" be-
fore the Jan. 20 inauguration.
',The=admonition '..'at 'all costs" helps
explain the steep: U.S: raise in the hoe-
`tags bidding,'_ Although State Depart-'
ment-officials denied'the published fig-
ure of $8_ billion, the *actual Carter offer
now stands close to W at, a rounded-off
$73 billion:''
All?'this has ~cbilt=ed~'U.S.` bankers and
means mole. out low ahead for the leaky
U.S Triisury:.'-:While-. Reagan abjures
bargaining': with "barbarians" and con-
demns paying ransom, his foreign policy
advisers would be delighted to have the
hostage headache- cured . before he is
sworn in. For Jimmy Carter, there are no
doubtsr ifthiv last. bid--fails, he rightly
fears the hostage taint will dominate his-
tory's view of his presidency. ,:.. , 1 .1 "1
Carter's order.~to win. hostage freedom. ''i
"at all Costs" has.concerned major banks'
holding from Iranian -assets that, would;
betaken ovei lry the'US. government for
return to Iran.'That means claims against I
Iran for outstanding 'debts in the end
may have -to be paid by unsuspecting
American taxpayers. That could 'delay
payment to- the- bankers far into the fu-
ture. . i
Nevertheless; the banks cannot inter-.
yens."We cannot--even think about tam-.
pering with, such n' life-or-death issue;'
one. major Manhattan -bank 'executive
'told-- %W-Off we did, 'the': politicians in
'"Washington would'string us up without a
`peep from.anyoni."
What has-worried- Carter administra
=:tiort officialsfar-more than the banks: is
ther- Reagan - reaction: -Strenuous efforts
have been made to tie Reagan to any hos=
tage.deal negotiated but.not.finally con-
summated by Carter before Jan. 20.
A top-secret White House cable to U.S.,
eniisearies in Algeria went as far as possi.
2bleto'satisfy Iranian doubts about the io
coming administration., If -the hostages
:are freed before Jan. 20, it said, Secretary.
.of'State-designate Alexander Haig would
look:"favorably" :on -the- United-States i
carrynot ha,.barg~sin Pledged by Car.
ter. Asecond cable; used the word'"prob=
ably."
Publicly; Reagan and Haig are buying
nothing of the kind. Insiders declare that
any deal smacking of high-cost ransom I
will be subjected to intense *scrutiny be-
fore Reagan agrees.
The-reality is more 'complicated. If
Carter. issues an executive order unfreez.
ing the Iranian- assets, Reagan's options"
will be circumscribed. Besides,.the onus,
on paying-tribute for the hostages would'
be Carter's, not Reagan's. - .. - '
There is, moreover, an additional rea-:
,son for Reagan and Haig privately to wel?
come even an "at all costs" Carter deal of
-cash for hostages: ending the hostage-
crisis would cost the Soviet Union its hoe-
tage trump.card and free the U.S. hand
in the Persian Gulf. Once the hostages
.are freed, the United States once again
becomes a competitor with Moscow for
'future influence with one of the richest
and most strategically important coun
tries bordering the Soviet Union.
Soviet intrigue against the United
States in Iran has increasingly concerned,
the lame duck president. One month ago,
Carter began to worry that the J(rernlir
was fomenting radical Iranian factions to
block any consensus for releasing the hoe-
,tages....:..?' . _-. ;. .
He asked for a thorough Central Intel
ligence Agency stu of Moscow's true
o icy. 13u when it arrived in. the OvalLT
lice - i was a useless "maybe
ma be no" assessment of the Kre n
Z tentrons at to arter not -. - c
Reagan advisers need no UIA report.:'
,.,They are certain the Soviets want to per.,
petuate the hostage crisis in their own in-
tereet.- No- matter how hesitant the -new
f president is in promoting a new U.S.-Ira-
inran era, release of the hostages. immedi
ately ends Soviet effectiveness in poison-
ing relations between Washington and!
Iran. That -could .prove ' invaluable for.
Reagan in the coming battles- over the'
oersian Gulf and its oil.
=.- For: the old- president,` what matters.
.most is history's blessing t-He wants it1
written that Jimmy Carter at. the. 11th,
hour ended one of the most disgraceful:
-: episodes in American history, whatever;
the cost to American taxpayers.-
~
STAT
Sanitized Copy Approved for Release 2010/06/28: CIA-RDP90-00552R000101020032-4