SYRIA APPEARS TO BE SPOILER OF ACCORD BETWEEN U.S., IRAN ON HOSTAGES, ARMS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000403030001-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: November 21, 2012
• Sequence Number: 1
• Publication Date: November 6, 1986
• Content Type: OPEN SOURCE

4 . Declassified and Approved For Release 2012/11/21: CIA-RDP90-00965R000403030001-4
ARTICLE APPEARED
ON PAGE J..0-S
WALL STREET JOURNAL
u November 1986
Syria Appears to Be Spoiler of Accord
Between U. S., Iran on Hostages, Arms
'J By Yot'SSEF M. IBRAHIM.
J And ROBERT S. GREENBERGER
staff Reporrer.c of Ttte: WALL STREET JOCRNAL
Syria, which often has blocked U.S.-
Mideast diplomacy, appears to be the pri-
mary spoiler of a delicate U.S.-Iranian un-
derstanding to release the remaining
American hostages in Lebanon in ex-
change for U.S. arms.
According to Arab diplomats. gov-
ernment and intelligence sources and Iran-
ian-affairs experts. the deal had been se-
cretly in the making since Ma , when an
Iranian official, former Foreign Minister
Ibrahim Yazdi, visited the U.S.
The agreement moved closer to fruition
last week with the release of one hostage,
David Jacobsen. by his pro-Iranian captors
in Beirut. But the arrangement seems to
have been scuttled, at least temporarily,
by Syrian disclosure of a secret visit by a
Reagan envoy to Tehran sometime in Sep-
tember.
Embarrassment in U.S., Iran
The publicity has embarrassed the Iran-
ian and U.S. governments, angered U.S.
Arab allies such as Saudi Arabia, and
placed the Reagan administration in an
embarrassing position with Western allies
it had been urging to refrain from supply-
ing weapons to Iran. The Syrian action
may have been provoked by White House
Chief of Staff Donald Regan's insistence
Sunday that Syria played no part in Mr.
Jacobsen's release. Syria repeatedly has
sought ways to underscore to the U.S. that
Damascus can't be excluded from a cen-
tral role in Mideast events.
-Hafez al-Assad (Syria's presidents has
always acted as a spoiler in the Mideast
whenever he's disregarded in any deal,"
said David Mizrahi. editor of MidEast Re-
port.
Things began to unravel Monday with
the startling revelation in a pro-Syrian Bei-
rut publication, Al Shiraa, that Robert
McFarlane, former national security ad-
viser to President Reagan, had visited Iran
secretly. On Tuesday, Iran's parliamen-
tary speaker confirmed the news, which he
characterized as a sign of "American
weakness." Although the U.S. officially
hasn't acknowledged the McFarlane visit,
top administration officials privately said
that it was a one-time diplomatic maneu-
ver.
The perception that the administration
is willing to strike an arms deal with Iran
has increased anxiety in Saudi Arabia and
other Persian Gulf states that already are
nervous about Iran's militant fundamental-
ism and its six-year-old war with Iraq.
Iraq's ambassador to the U.S. sought an
exp tion
lana yesterday from the assistant
secretary of state for Mideast affairs. Iraq,
which has been receiving U.S. arms, and
Saudi Arabia, which relies on U.S. security
guarantees, see an American willingness
to sell arms to their most feared adver.
sary. Iran, as a betrayal.
In addition. Democratic dominance of
the Senate is likely to further erode Saudi
confidence that the administration can se-
cure Congress's approval for arms sales to
Riyadh.
The top administration officials said
yesterday that the McFarlane trip doesn't
represent a change in the longstanding
U.S. policy to deny arms to Iran. Sources
say any U.S. arms or spare parts that
might have been part of an agreement
would have come indirectly from Europe
and Israel.
Even so, there appears to be resistance
to such a deal within the administration.
Secretary of State George Shultz, a long-
time opponent of supplying arms to Iran,
said on his way to Vienna yesterday:
"That's what I believe .... I still believe
it."
Similarly, in Iran, a substantial part of
the government feels that even though that
country's need for arms is acute, it
shouldn't be satisfied at the price of deal-
ing with the U.S., still dubbed the "great
Satan."
Interviews with various sources in the
U.S., Western Europe and the Middle East
suggest that part of the U.S.-Iranian under-
standing was that the U.S. would overlook
the supply of vital U.S. spare parts. partic-
ularly for the Iranian air force's fleet of
U.S.-built jets purchased by the shah's
regime. Iraqi sources say that Iraqi air-
planes raiding economic and military tar-
gets in Iran have met increased intercep-
tion from Iranian F-4s. presumably resup-
plied with spare parts. in the past two
months. Sources said the spare parts came
from Israel and South Korea via European
suppliers.
Encouragement in Iran
The sources say Mr. McFarlane's White
House-authorized trip to Tehran appar-
ently was encouraged by elements of the
Iranian government, including the speaker
of parliament, Hojatolislam Hashemi Raf-
sanjani, the regime's second-most senior
official after the supreme leader, Ayatol.
lah Ruhollah Khomeini.
The principal motivation pushing the
government of Iran to consider talks with
the U.S. is an acute need for cheaper arms
and ammunition, the sources said. Because
of the American-inspired weapons em-
bargo, Iran has been forced to buy arms
on the international black market at exor.
bitant prices. The fall in oil prices since
December has slashed the country's hard
currency revenues, compounding the prob-
lem.
Since early spring, Iran has amassed
700.000 men for a major assault on Iraq.
but they are still in need of arms, ammuni.
tion and other support to sustain such a
large offensive.
"The Iranians have their backs to the
wall," said Paul Jabber, director of the
Middle East Program at New York's Coun-
cil on Foreign Relations. Mr. Jabber esti-
mates Iranian foreign-currency reserves
have fallen to between $1 billion and $2 bil-
lion because of the oil-price collapse and
that gold holdings are valued at an addi-
tional $3 billion.
Iraqi Foreign Minister Tariq Aziz esti-
mated in a recent interview that the war
costs Iran between $5 billion and $8 billion
a year, which he and other sources suggest
is becoming increasingly difficult to sus-
tain.
'Terrorism Pays'
By attempting to talk with Iran, ana-
lysts in Washington said, the administra-
tion gives the impression of abandoning its
tough anti-terrorism stance. "The message
is, terrorism pays." said Christine Helms,
a Mideast expert at the Brookings Institu-
tion. "If these guys hold out long enough,
they get rewarded for their acts."
James Abourezk, a former U.S. senator
from South Dakota who met with Syrian
President Assad in August over the hos-
tage issue, said: "At this point I would
make every effort to talk directly to the
people holding the hostages, instead of pos-
turing one way publicly about no negotia-
tions with terrorists and then acting an-
other way privately. We haven't exhausted
all avenues yet."
The administration insists that it has a
consistent anti-terrorism policy. A State
Department spokesman reiterated yester-
day. "We do not negotiate with terrorists.
We do not make concessions to terror-
ists."
The analysts also warn that these
mixed signals couldn't come at a worse
time. European Common Market members I
are scheduled to meet next week to discuss
possible sanctions against Syria for its al-
leged involvement in an aborted plot to
blow up an El Al airliner. After a London'
court convicted a Jordanian with close ties
to Syria. Britain broke diplomatic relations
with Damascus.
London has urged other European na-
tions to take similar steps. The appearance
of an American willingness to deal with
Iran, a known sponsor of terrorism, offers
a convenient excuse for several European
states not to take tough measures against
Syria.
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Islamic Jihad, in a statement ac-
companying Jacobsen's release,
warned that "we hold the American
government fully responsible for the
consequences of any failure to take
advantage of this opportunity and
proceed with current approaches
that could lead, if continued, to a so-
lution of the hostages issue."
The references to "current ap-
proaches" suggested secret initia-
tives being undertaken by the Rea-
gan administration and coincided
with the first reports of McFar-
lane's purported mission to Iran.
Ash Shiraa, a pro-Syrian maga-
zine in Lebanon, reported in its lat-
est edition published Monday that
McFarlane visited Tehran in Sep-
tember and stayed at the Indepen-
dence hotel, formerly the Hilton.
According to the Iranian news
agency, Rafsanjani said McFarlane
and his companions were confined
to a hotel for five days and then de-
ported. He said they had arrived,
disguised as crew members, aboard
a plane carrying military equipment
for Iran purchased from interna-
tional dealers.
"The envoys carried Irish pass-
ports with duplicates now being
kept by Iranian officials," Rafsanjani
was quoted as saying. He said the
Americans brought "a Bible signed
by Reagan and a cake" as tokens of
good will.
The cake, which Rafsanjani said
the Americans described as "a key
to open U.S.-Iran relations," was in
the shape of a key, he said, but was
eaten by hungry revolutionary
guards at the airport.
In his speech, Rafsanjani listed
Iran's conditions for the release of
French and American hostages as
follows:
"The Washington and Paris gov-
ernments should guarantee the re-
turn of Iranian assets, recognize the
rights of Lebanese Moslem people
and set free political prisoners in-
carcerated in Israel and other parts
of the world."
Rafsanjani, who is considered one
of the country's shrewdest politi-
cians and a key player in the suc-
cession fight, is believed to be one
of the leading figures advocating
more cooperative relations with
other countries, especially Saudi
Arabia.
Rafsanjani is backed by Iranian
President Ali Khamenei in his
views, but reportedly is opposed by
Montazeri and his followers, includ-
ing the arrested Hashemi.
In his speech yesterday, Rafsan-
jani said the prime minister of Japan
had sent a letter asking [ran to use
its influence to secure the release of
U.S. and French hostages.
Rafsanjani said he told Tokyo
that Iran would make efforts in that
direction if the United States
shipped weapons that were pur-
chased by the shah's government
but never delivered.
In 1979 the United States froze a
roughly $500 million Iranian fund to
purchase arms from the Pentagon.
Some Arab diplomats said they be-
lieved this money could also be a
factor in hostage negotiations.
If the reported McFarlane visits
to Tehran were linked to allowing
even indirect arms or spare parts
shipments to [ran, it would repre-
sent a reversal of what had been
Reagan administration policy.
The United States, throughout
the Reagan administration, has
maintained a publicly enunciated
policy of trying to force resolution
of the [ran-Iraq war by denying
both sides the weapons and other
materiel necessary for continued
fighting and thereby forcing them
into negotiations.
In pursuing this policy, the admin-
istration rhetorically has tilted to-
ward Iraq on several occasions, not-
ing Iraqi flexibility toward the idea of
negotiations and accusing Iran of
seeking to prolong the fighting. As a
result, the United States has been
following a policy of seeking to deny
Iran the means of continuing to wage
war by appealing both publicly and
privately to other nations not to sell
weapons to Iran.
That policy was given a particu-
larly high priority after George P.
Shultz became secretary of state in
1982.
According to the officials, it was
pressure from Shultz that caused
Israel to abandon the policy it appar-
ently had pursued in the early days of
the war of supplying some materi-
el-reportedly spare parts such as
airplane tires-to the Iranians.
Despite official Israeli denials,
the Israelis supposedly had been
doing this for three reasons: to keep
Iraq tied down militarily and unable
to take an active part in the Arab-
Israeli conflict, to earn some for-
eign exchange because Iran was
paying premium prices, and to pro-
tect the small remaining Jewish
population in [ran from reprisals.
However, the officials said, it has
been the American understanding
that the Israelis, deciding the effort
was not worth the risk of alienating
Shultz, abandoned its covert deal-
ings with Iran around 1983.
Washington Post staff writers
David Koffman and John M.
Goshko and special correspondent
Peyman Peyman contributed to this
article.
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MULE APPEARED 5 November 1986
U.S. Suggests It Would Allow Weapons
For Iran in Return for Hostages ' Release
By JOHN WALCm F
And Yot'SSEF M. IBRAHIM
Staff Reporters of THE WALL STREET JOURNAL
The Reagan administration has sug-
gested that it might relax-albeit not end-
its six-year effort to halt shipments of mili-
tary equipment and spare parts to Iran in
exchange for the release of American hos-
tages in Lebanon and a halt to Iranian sup-
port for international terrorism, U.S. offi-
cials said.
Officials said they hope at least two
more Americans held by a pro-Iranian
group in Lebanon, Associated Press corre-
spondent Terry Anderson and educator
Thomas Sutherland, will be released soon.
Anglican Church envoy Terry Waite told a
news conference in Wiesbaden, West Ger-
many that there are "reasonably strong in-
dications" that the Islamic Jihad-or Is-
lamic Holy War-might release the two
Americans. The group freed one hostage,
David Jacobsen. last weekend, but it isn't
known what led to his release.
Washington officials declined to com-
ment on a claim by the speaker of the
Iranian Parliament that Iran recently de-
tained and expelled former U.S. National
Security Adviser Robert McFarlane and
four aides. The speaker said the men were
on a secret mission to Tehran on behalf of
President Reagan. An aide to Mr. McFar-
lane also wouldn't comment and Mr.
McFarlane couldn't be reached for com-
ment.
But U.S. officials acknowledged that the
administration has told Iran through inter-
mediaries that it is willing to consider
looking the other way while that country
buys some military spare parts, possibly
from China and other countries friendly to
the U.S. But the officials stressed that the
administration isn't prepared to abandon
all efforts to restrict the flow of military
equipment to Iran or to permit the Iran-
ians to acquire offensive weaponry that
could tip the balance in Iran's six-year-old
war with Iraq.
The reports out of Washington, coupled
with political tensions in Iran and the wor-
sening state of the Iranian military, com-
bined to produce a flurry of activity in
the hostage drama.
"The Iranians are in much worse shape
than they've let on, both politically and
economically." said one U.S. official.
White House and State Department
spokesmen yesterday refused to restate
the administration's longstanding policy of
denying arms and spare parts to
Iran. "This whole situation is being handled
in another locale," said State Department
spokesman Charles Redman.
White House spokesman Larry Speakes
urged reporters to "be a little careful on
reporting" news that could impede efforts
to free the hostages.
All this comes at a time when there are
unconfirmed reports in the Middle East
that the 86-year-old Iranian leader, Ayatol-
lah Ruhollah Khomeini, had suffered a se-
rious heart attack, leaving him unable to
mediate between squabbling factions in
Tehran. Moreover, his hand-picked succes-
sor, Ayatollah Hossain All Montazari, ap-
pears to be under attack from opponents
who last week arrested close associates of
his.
Recent reports suggest that the height-
ened factionalism concerns conflicts over
the conduct of the war with Iraq and over
whether to improve relations with the West
to secure badly needed armaments.
The Iranian news agency yesterday
quoted the speaker of Iran's parliament,
H,ashemi Rafsanjani, as saying that Mr.
McFarlane and four aides arrived in Iran
posing as aircraft crewmen, bearing Irish
passports and toting a Bible signed by
President Reagan, a cake, and a message
calling for an improvement in U.S.-Iranian
relations. The news agency said the five
were detained for five days before being
deported.
U.S. officials, speaking anonymously,
FILE ONLY
said that while he was national security
adviser, Mr. McFarlane had directed the
administration's secret efforts to free the
hostages in Lebanon. They said Mr.
McFarlane's successor, Vice Admiral John
PPoindexter, has since taken over day-
to-day control of the small administration
group in charge of U.S. efforts to free the
hostages.
The officials said a member of the Na-
tional Security Council staff, Lt. Col. Oli-
ver North. has made repeated trips to Eu-
rope and the Middle East-sometimes in
disguise or using an assumed name-dur-
ing the past two years to meet with in-
formers and possible intermediaries in the
hostage drama.
Officials said Col. North flew to Cyprus
early last week to meet with Mr. Waite,
the Anglican envoy. Some U.S. officials
said that while Mr. Waite has performed
"heroically," he also has served in part as
a "cover" for negotiations with Iran and
Islamic Jihad through other channels. In
West Germany yesterday, Mr. Waite said:
"I don't want to comment on the political
dynamics."
U.S. officials said the U.S. has paid
some self-proclaimed intermediaries in
Lebanon and elsewhere for help in negoti-
ating for the release of the the hostages,
but they said most such efforts proved use-
less.
The latest developments were compli-
cated by internal clashes among factions
of Iran's Islamic regime. On Oct. 27, sev-
eral close associates of Ayatollah Monta-
zari were arrested in connection with the
kidnapping of a top Syrian diplomat in
Tehran earlier in the month.
The diplomat was released a few hours
later, but those arrested were also charged
with a host of other accusations including
murder, seditious activities and crimes
against the state.
Ayatollah Montazari was designated
last November as constitutional successor
to Ayatollah Khomeini, but the decision
hasn't been universally accepted by the
various groupings in the clergy.
"The arrests are primarily related to
an effort by groups within the clergy to
discredit Montazari and upset his succes-
sion to Khomeini." said Shahrough Akhavi,
an Iranian affairs expert at the University
of South Carolina. But Mr. Akhavi agreed
with other experts that as long as Ayatol-
lah Khomeini is in power, it is difficult to
see the Iranian leadership reversing the
basic elements of its foreign policy, pri-
marily that the war with Iraq must be
pursued until a political or military victory
changes the Iraqi regime.
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