ISRAEL TOLD U.S. 'AFTER THE FACT' ABOUT IRAN OIL

CIA-STARGATE

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According to recently released documents from the CIA's Stargate program, Israel informed the United States that it had agreed to purchase a significant amount of oil from Iran. The State Department confirmed the transaction but stated that the US policy of refusing to make deals for the release of hostages has not changed. NBC News reported that Israel paid $36 million for the oil to help Iran strengthen its military defenses against Iraq and to encourage Iran to use its influence on radical groups holding hostages in Lebanon. The US government did not explicitly approve the move, and Israel is aware that it cannot sell any equipment containing US technology without Washington's approval. The arms sales to Iran by President Ronald Reagan were partly based on the argument that it would lead to the freedom of American hostages.

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 Israel told the United States last . said, "Foreign .countries do not seek  promised to ; respect that prohibi-
 month that it had agreed to' pur-                       U.S. approval for oil purchases from  Pion
 chase a substantial quantity of oil.  a third country," adding. that the    According to NBC, the oil deal
 from Iran, the State Department       United .,States has not- changed its . was arranged by Uri Lubrani, who
 said yesterday.,.                     policy of refusing to make deals for  served as Israeli ambassador in
 Department spokesman. Margar-       release of the hostages. .            Tehran before the fall of Shah Mo-
 et Tutwiler acknowledged that the                    Other administration sources said     hammed Reza Pahlavi and who
 United States was advised "after      flatly that neither the White House   more recently. has been coordinator
 the fact." The transaction`. was re-  nor"the State Department had said     of Israeli policy toward Lebanon.
 vealed Monday by NBC.News             anything that could be interpreted    Influential military, intelligence
 NBC said Israel paid $36 million      as a U.S. go-ahead for Israel's       and diplomatic circles in Israel have
 for the oil to help Iran bolster its  course.                               said the country needs to seek better
 military defenses against Iraq and    NBC also said Israel had- `4is-       relations with Iran, despite the
 to encourage Iran to use its. influ-  cussed the possibility of selling Iran strongly anti-Zionist and.anti-West-
 ence with radical groups in Lebanon                    spare parts.. for its t,litary equip- ern attitudes of. its revolutionary
 holding three Israeli soldiers,, eight ment, which is largely of :U S: man- government. It was . partly in re-
 Americans and other 'foreigners                             ufacture Tutwiler said;: Israel is    spouse. to this Israeli argument that
 hostage.                              aware. that it cannot sell any equip- President Ronald Reagan authorized
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 move had been approved by the*. containing U.S. technology without          arms to Iran in hopes it would lead to
 United States.' However, Tutwiler     Washington's approval and has         freedom for American hostages.