CIA SOUGHT 3RD-COUNTRY CONTRA AID

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000807600011-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: February 23, 2012
• Sequence Number: 11
• Publication Date: May 19, 1984
• Content Type: OPEN SOURCE

Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP90-00965R000807600011-2
WASHINGTON POST
19 May 1984
CIA Sought
3rd-Country
Contra Aid
By Bob Woodward
Washington Poet 8tatt Writer
The CIA unofficially asked Saudi Arabia
and Israel last month to provide covert sup-
port for the U.S. intelligence agency's secret
operations against the Sandinista govern-
ment of Nicaragua, according to informed
sources.
The Saudi government turned down the
request. But the sources said some U.S. in-
telligence officials have claimed that Israel
provided some type of well-concealed finan-
cial assistance to U.S.-backed guerrillas,
called "contras," who are conducting paramil-
itary operations against the leftist govern-
ment in Managua.
. A senior Israeli official denied this yester-
day, saying, "We have not supplied any mon-
ey to the contras, either directly or indirect-
ly. We are not consciously or with knowledge
passing anything to the contras .... We are
not a surrogate for the United States."
According to U.S. sources, the Israeli as-
sistance reportedly totals several million dol-
lars and appears to be reaching the contras
through a South American intermediary.
The United States might repay Israel for this
unofficial assistance, the sources said, in the
$2.5 billion in military and economic aid it
annually sends to Israel.
Asked about overtures to Saudi Arabia
and Israel, a senior Reagan administration
official said this week, "There were lots of
conversations ... but nothing of that char-
acter that was official." The Saudi contact,
according to this official, was "totally unau-
thorized."
Sources said that Reagan administration
lawyers questioned the legality of any CIA
effort to circumvent Congress, which so far
has refused to approve additional money the
administration has requested for the covert
operations. Another well-placed official said
about the Saudi contact, "In a sense [the
United States] didn't ask and [the Saudis]
didn't say no ... but of course it happened."
The Reagan administration appears to be Two sources each
making wide-ranging efforts to keep the con- quence of events for the back-channel request
tras supplied with money and equipment to Saudi Arabia after The Washington Post
while Congress remains in a stalemate over published an April 13 report in which an un-
further funding for the secret operations identified source revealed that the CIA was
against Nicaragua's government. In at least considering the possibility of asking "another
one case, congressional sources said yester- country, such as Saudi Arabia, to send money
-day, the CIA borrowed aircraft from the U.S. to the contras." The source was a U.S. official,
Air Force and loaned it to the rebels at no although not identified as such in the report.
cost.
This circuitous process, described by con- Soon after the report appeared, a CIA of-
gressional sources as "bailment," appears to facial asked a Saudi official if the wellplaced
allow the CIA to get around the financial lam source had been a Saudi and whether Saudi
its imposed by Congress on aid to the contras. Arabia was hinting interest in helping to sup-
The sources said they believe the CIA may neg ati ely acontras. cco ding to thedsources andpthed
have borrowed other aircraft or ships, but not pressed b
arms, from the Defense Department. was P by the U.S. official, who noted
According to the congressional sources, the that the requested $20 million to $30 million
CIA has about $1 million left of the $24 would be "peanuts" for the oil-rich kingdom.
million that Congress last approved for aid to The Saudi official then agreed to check of.
the Nicaraguan rebels. ficially at high levels of his government. The
The Nicaraguan Democratic Force, largest sources said the reply was negative, with these
of the three rebel groups receiving U.S. aid, reasons given:
announced yesterday that its forces had cap- ' The Saudis believed that the CIA could
tured a government outpost in a southern part not or would not really offer anything of sub.
of Nicaragua called Chontales. If true, this stance in return.
would indicate that the rebels still have the ? The Saudis generally disagreed with many
strength to open a new front. aspects of U.S. policy in Central America. The
In the current atmosphere of reciprocity Nicaraguan government, which the CIA is ha-
between the Israeli and U.S. intelligence agen- rassing through its support of the contras, is ties, Israeli assistance to the contras would not essentially pro-Arab, while two U.S.-backed
countries in the region-Costa Rica and El
be out of the question, according to both U.S. Salvador-recently moved their embassies in
and Israeli sources. Several officials said that Israel to the city of Jerusalem, a move op-
William J. Casey, in his three years as CIA di- posed by Arab states, including Saudi Arabia.
rector, has provided Israeli intelligence with ? The Saudis claimed they had no confi-
access to sensitive satellite photographs and dence that secrets could be kept in the Reagan
other reconnaissance information that had administration and that any covert Saudi aid
been denied the Israelis in the late 1970s. soon would be reported in the American press
Several contra leaders have been quoted re- and embarrass them.
cently, as they were last year, as saying that The extent of U.S.-Israeli cooperation on in-
they had made arrangements to get assistance telligence matters is a matter of some concern in
from Israel. Several well-placed sources said it the CIA. Some officials believe that Casey has
is apparent that some type of alternative gone too far. Others say, however, that the Unit-
funding got through to the contras after Con- ed States gets much crucial information in re-
gress refused last month to approve the $21 turn from the well-respected Israeli services.
million requested by President Reagan for the Retired Israeli Maj. Gen. Yehoshua Saguy,
covert operations. who was head of Israeli military intelligence
"The desperation of April has turned to the 'from 1979 to 1993, said in an interview earlier
confidence of May," said one source. A senior this year that the CIA now gives the Israelis
Reagan administration official yesterday at- access to data from reconnaissance satellites
tributed the new mood of confidence to "lots "not only the information but the photos
of scrounging around" by the contras. themselves .... Casey now says 'yes' all the
Both Casey and other CIA officials have de- time." Saguy said Casey's action was "very
nied to the House and Senate Intelligence wise politically" and confirmed it was a rever-
committees that they have any personal sal from the policy of CIA director Stansfield
knowledge of a third country providing money Turner, who left office in early 1981,
to the contras. S TAT
Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP90-00965R000807600011-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP90-00965R000807600011-2
;.7'Ildrner confirmed that Saguy had come to
in 1980 and asked for information and
data that he declined to provide. Other
sources said the Israelis got satellite photos
when George Bush was CIA director in 1976
and 1977, but that Turner agreed only to pro.
vide indirect information gained from the sat.
ellites.
Israel does not have its own technology for
satellite reconnaissance, the sources said. One
official called the current CIA support
"Casey's gift," and said it is so valuable to the
Israelis that no price tag could be put on it.
The Israelis would have every reason to do
what Casey wanted," this source said, adding
that he had no first-hand knowledge that Is-
rael had agreed to indirectly help the contras
in return.
Staff writer Margaret Shapiro and staff
researcher Barbara Feinman contributed to
this article.
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Declassified in Part - Sanitized Copy Approved for Release 2012/02/23: CIA-RDP90-00965R000807600011-2