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UNDLASSIFIED

Throughout this process, the USG has acted within the limits of established policy and in compliance with all U.S. law. The shipment of 2,008 TOWs and 235 HAWK missile parts was undertaken under the provisions of a covert action Finding.

In support of this Finding and at the direction of the President, the CIA provided the following operational assistance:

Sterile overseas bank accounts for financial transactions.

A secure transhipment point for the dispatch of U.S.
military items from the U.S.

Transhipment of military items from the U.S. to Israel.

Communications and intellige

with Iranian effic
May.

the

Cleared meeting sites in Europe for meetings` with_Irakiew]

officials.

Alias documentation for U.S. and foreign officials for
meetings in Europe and Tehran.

The weapons and materiel provided under this program are in no
way adequate to alter the balance of military power nor the
outcome of the war with Iraq. They have, however, had a positive
effect on the Afghan resistance and demonstrated the U.S. commit-
ment to Iranian territorial integrity. Further, U.S. efforts
over the last 18 months have had tangible results on Iranian
policy:

The Rafsanjani/Velayati intervention on behalf of the TWA
1847 passengers (June 1985).

Iranian direction that the hijacked Pan Am #73 could not
leave Karachi for Iranian territory.

The release of three American and two French hostages.
ས་བབ :

It should also be noted that the U.S. arms embargo notwithstand-
ing, West European nations have provided $500 million a year in
military equipment to Iran. Most of these transfers were accom-
plished with government knowledge and/or acquiescence.

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UNCLASSIFIED

12

All appropriate Cabinet Officers have been apprised throughout. The Congress was not briefed on the covert action Finding due to the extraordinary sensitivity of our Iranian contacts and the potential consequences for our strategic position in Southwest Asia. Finally, our efforts to achieve the release of the hostages in Lebanon must continue to rely on discreet contacts and intermediaries who cannot perform if they are revealed.

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UNCLASSIFIED

The Soviets believe that once Khomeini dies, they will have an excellent opportunity to influence the formation of a government in Tehran that serves Soviet strategic interests in the area.

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Declassify: OADR

UNGLASSLEHED

#87

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Communist nations have become the principal arms suppliers
to Iran-making Iran dependent on this source of supply in
contending with an increasingly strengthened Iraq. This
leads us to the conclusion that the Soviets may well be
attempting to pursue their own revolution in Iran. That is,
by fueling both sides in the conflict, the Soviets could
well encourage a disastrous final offensive" by Iran that
would precipitate a political disintegration in Iran,
leaving a power vacuum which the Soviets could exploit.
Specifically, the indicators of Communist influence in Iran.

The increasing desperation brought on by the costs of the Iran-Iraq war has exacerbated Iran's vulnerability to Soviet influence. Moreover, Soviet designs in Afghanistan, pressure on Pakistan, and actual crossborder strikes in Iran from Afghanistan have made: reopening a strategic dialogue increasingly important...