PERES) KHASHOGGI AND AN IRANIAN ARMS MERCHANT NAMED
GHORBANLEAR (A SLEAZE BAG OF DUBIOUS REBUTE)

NIR CLAIMED THAT ARRANGEMENTS HAD BEEN UNDERWAY FOR SOME TIME THAT FACILITATED LARGE-SCALE SALES OF GRAIN. MILITARY SPARE PARTS AND WEAPONS TO IRAN FROM COUNTRIES

AS FAR AWAY AS

NIR INDICATED THAT HE WANTED ROWLANDS' LONHRO COMPANY
TO PROVIDE AN UMBRELLA FOR THE MANAGEMENT OF FUTURE
SALES.

KHASHOGGI CLAIMED THAT VERY BIG MONEY WAS INVOLVED AND HE EVIDENTLY SHOWED ROWLANDS RECEIPTS FOR VERY LARGE SCALE TRANSFERS OF CASH TO SWISS BANKS.

-- AS MIR DESCRIBED THE OPERATION SPARE PARTS AND WEAPONS SUPPLIES WOULD BE CHANNELED THROUGH

ACCORDING TO NIR AND KHASHOGGI MANY BUSINESSMEN WERE ALREADY PLAYING THE GAME. THE SCHEME MOREOVER OKAY WITH THE AMERICANS. IT HAD BEEN CLEARED WITH THE WHITE HOUSE. POINDEXTER ALLEGEDLY IS THE POINT MAR. ONLY FOUR PEOPLE IN THE U. S. GOVERNMENT ARE KNOWLEDGEABLE ABOUT THE PLAN. THE STATE DEPARTMENT HAS BEEN CUT OUT.

WHO

ROWLANDS ALSO CHECKED THE STORY OUT WITH
CONFIRMED IT WAS FOR REAL AND THAT HE WAS GETTING HIS

CUT

3. COMMENT I ASSUMED THAT WHEN THE ISRAELIS WERE PICKED UP IN BURMUDA FOR ALLEGED INVOLVEMENT IN ANOTHER

!!! TOP SEGRET

6 May 1987

AS

SALE OF ARMS TO IRAN, THE PRESIDENT HAD PUT A HOLD ON
THIS ENTIRE DISTASTEFUL OPERATION. EVIDENTLY THAT IS
NOT THE CASE. NEW ELEMENTS SUGGESTED BY THIS REPORT
ARE THAT (I) THE ISRAELIS ARE SERVING AS MIDOLEMEN
FOR
ARMS SALES TO IRAN AT PRECISELY THE MOMENT
WHEN THE BALANCE IN THE IRAN IRAQ WAR MAY BE SHIFTING
TOWARD TEHRAN. AND (2) GIVEN THE
CONNECTION

THIS ENTIRE OPERATION MAY BE DESIGNED AS A MEANS OF
SIPHONING OFF ADDITIONAL MATERIEL FOR BOTH

LEGAL CONCERNS SEEM NOT TO IMPOSE

ANY CONSTRAINTS WHATSOEVER ON OUR FRIENDS IN THE WHITE
HOUSE. ROWLANDS MENTIONED NO AGENCY CONNECTION BUT
I WOULD BE ASTONISHED IF THERE WAS NONE. ENO COMMENT.

4. CHARLIE ASKED ME WHAT I THOUGHT OF THIS. I EXPRESSED MY PERSONAL DISTASTE FOR AN OPERATION THAT CUTS ACROSS OUR EFFORT TO RESTRAIN ARMS SALES TO IRAN PARTICULARLY

WHEN IT MIGHT BE ACHIEVING THE UPPER HAND IN THE
GULF WAR AND WHEN IT REMAINED DEDICATED TO THE SYSTEMATIC
SUPPORT OF TERRORIST OPERATIONS AND THE HOLDING OF
AMERICAN HOSTAGES. CHARLIE EXPRESSED TOTAL AGREEMENT
ON SUBSTANCE AND ADDED HIS OWN ANXIETIES ABOUT THE
POTENTIAL DOMESTIC POLITICAL RAMIFICATIONS OF THIS
FOR THE PRES.I DENT. CLEARLY HE RECOGNIZES THAT IF
TIET ROWLANDS IS INFORMED AND MANY BUSINESSMEN ARE
HALISG DET LIKE BABBITS OF THIS DEAL IT WILL NOT
LOS FERIE COSFIDESTIAL

5. CHARLIE ASIFED. WETHER FE SHOULD TAKE THE MATTER UP
WITH JOHN POTWESTER. I ENCOURAGED HIM TO EXPRESS HIS
OYE VIEWS DIRECTLY TO JONE AND IF THE OPPORTUNITY
PRESENTED ITSELF. TO SPEAK DIRECTLY TO THE PRESIDENT
ABOUT THIS MATTER. I TOLD HIM THAT I WOULD INFORM YOU.

..

EITHER JOHN
CHARLIE WILL PROBABLY CALL THE PARTY
OR THE PRESIDENT EARLY SATURDAY TOKYO TIME.

6 May 1987

:

* Deply to note of 05/06/06

Bave you talked to Casey about this?

N

75-936 0-88-18