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PROFITS OF WAR -- INSIDE THE SECRET U.S.-ISRAELI ARMS NETWORK

5.  The Agreement

KHOSRO FAKHRIEH TOOK a gulp of his beer and stared me straight in the eyes. He was a stocky man, and his double- breasted suit made him look even broader.

"I'm deadly serious, Mr. Ben-Menashe," he said. "We want to deal with the Americans, but not the Americans who are in power. And we're relying on Israel to make the arrangements."

It was early May 1980. The first of the secret meetings between Casey and Karrubi had already been held in Madrid two months earlier. But Tehran wanted to involve Israel in the deal, if only to ensure, initially, that nothing went wrong.

I had flown to Vienna to meet Fakhrieh, a close aide to Supreme Council member Ayatollah Hashemi (who was assassinated a few years later), on the instructions of the director of Military Intelligence, who had asked me to keep in touch with my Iranian friends. I was not to commit myself on anything. Accompanied by my long-time contact Sayeed Mehdi Kashani, I had checked into the Hilton Hotel; Fakhrieh was also staying there. We met in his room. A cloud of cigarette smoke billowed around his face as he talked.

"I'll be frank with you, Mr. Ben-Menashe," he said. "We want to rid ourselves of this heretic menace from the west" -- he was, of course, talking about Saddam Hussein of Iraq -- "but we will have nothing to do with Carter."

It wasn't difficult to read the desperation in his words. I watched him stub out yet another cigarette.

"There is a problem," I said. "Carter is the president, and he is the only one with the legal -- and I repeat, legal -- power to talk to you people."

Fakhrieh chuckled. "You need not be so cautious. It's quite clear to us, as it must be to you, that the embarrassment Iran has caused him will cost Carter the election later this year. With that in mind, we're willing to make a secret deal with the Republicans -- and the CIA."

I asked him what he had in mind, knowing that what he told me would be the official Iranian line.

"America gets back their people, our money is freed from U.S. banks, and we also get our arms from Israel, with the blessing of your U.S. masters. We are willing to trust the Americans -- who are usually not trustworthy -- in reaching such a deal."

Fakhrieh revealed that at the next meeting in Madrid, to be held later in May, Karrubi would meet Casey again. But there would be another man present, representing a second Republican presidential candidate, George Bush. His name: Robert Gates.

Gates had visited Tel Aviv numerous times for intelligence exchange meetings. A career CIA official who at times served on various National Security Councils, he became a close associate of George Bush's when Bush was Director of Central Intelligence. Shortly before the Iranian revolution, Gates made several trips to Israel to meet intelligence community officials to discuss Iran's uncertain future. I briefed him and his aides on Iran several times, and I quickly reached the conclusion that he was not the Soviet analyst he was always represented to be -- he just didn't seem to know very much about the Soviet Union, nor did he seem very interested in it. Israeli intelligence had also learned of his connections with Ariel Sharon, Mike Harari, and arms sales to Central American governments.

Robert Gates was the new player at the second Madrid meeting. It took place at the end of May. As before, they met at the Ritz Hotel. Those present on the U.S. side, in addition to Gates, were William Casey, Robert McFarlane, and Earl Brian. Representing the Iranians were Mehdi Karrubi, Sayeed Mehdi Kashani, Ahmed Omshei, and this time an addition -- the man I had met in Vienna, Khosro Fakhrieh. By now the power structure of the Republican ticket had been defined. Casey was representing Ronald Reagan, while Gates -- although he was officially executive assistant to CIA Director Stansfield Turner, a Carter appointee -- was there representing George Bush.

No Israelis were present. Although Israel was determined to keep its finger on the pulse, it did not want to be seen to be intervening, especially after the outraged Carter phone call to Prime Minister Begin following the sale of the aircraft tires to Iran. Begin was worried that if Congress heard that Israel was meeting the Iranians along with a group of Americans that were not part of the official government, this would be perceived as subversion of legal government in the United States.

As before, Israeli intelligence received reports on the second Madrid meeting from Kashani, McFarlane, and Brian. At this meeting, as reported to me by Kashani, it was made clear to the Americans that in return for a promise that they would release frozen Iranian monies after the Republicans took office in January 1981, and that Israel would not be castigated by the Republicans or Congress for selling arms to Iran, the hostages would be released right away.

"You want to know something, Ari?" said Kashani. "These Americans don't want their people released yet. They've now come up with another proposal that a very high official of the future U.S. administration should meet with Hojjat El-Islam Karubi and work out the details of the deal with Iran. It's obvious these guys are procrastinating."

The reason was obvious, too. Even though steps could be taken immediately to free the hostages, Carter, as president, would get all the credit. Indeed, we also learned that the Hashemi brothers, on behalf of the Carter administration, had made contact with some Iranian officials at about the same time. Since they could not promise major arms sales through the Israelis, though, they got nowhere.

"Why don't they just come straight out and say they don't want their people released before January?" Kashani wondered.

So we knew as early as May 1980 that the Iranians were prepared to talk seriously about freeing the hostages. If they could receive U.S.-made equipment through Israel, the captives would be freed. Although they didn't want to deal directly with Carter, they would be happy to use the CIA as an intermediary. And yet Kashani and I had no doubt that the Republicans and their unofficial CIA friends were going to keep Carter in the dark and continue their negotiations at a pace that suited them.

***

Intelligence reports continued to flow in about the Iraqi build-up on the eastern border with Iran. The Soviets were arming the Iraqis, but Moscow was so uncertain what to do that it sent queries to Israel asking for an assessment of the Iranian situation, acting through the quasi-official representative of the KGB in Israel, the Russian Orthodox Church's Papal Nuncio in Jerusalem. [1] The KGB's contacts with Israeli intelligence had gone through him ever since Israel and the Soviet Union cut diplomatic ties in 1967. Moscow was officially represented at the time by an Interests Section in the Finnish Embassy in Tel Aviv. The queries were left unanswered because Israel did not want to pass intelligence to the Soviets who could, in turn, hand it on to Iraq.

War drums were beginning to be heard around Europe, and the United States, egged on by the Iranian opposition, asked for help from Israel to launch a coup d'etat against the Iranian government. The Israeli government, having decided by then that it was in Israel's interests to keep Khomeini in power, didn't respond to the American request.

About two weeks after Reagan and Bush officially won the Republican nominations for president and vice president in mid-July 1980, the third Madrid meeting took place. Parallel meetings between the Iranians and the Hashemis, representing the Carter administration, also occurred. The same issues were discussed, along with future U.S.-Iranian relations under a Reagan-Bush administration. If it was not clear beforehand, the cards were now on the table: The Americans would not commit themselves to any deal regarding the hostages before January 20, 1981, when the new president would be sworn in. They said they could not let Israel sell arms to the Iranians, despite the pleas from Tehran, until the Republicans were in power.

"Fine. These guys want to be popular with the American people," Kashani told me in a phone call from Europe. "Why not get the prisoners released after the November elections?"

"How do I know?" I said. "Ask your American friends." But the answer was obvious. The Republicans were going to wait until they could take all the credit.

***

At the beginning of August, a bizarre directive to the Israeli intelligence community on a "need-to-know" basis came out of the Prime Minister's Office. The document, which was read to me and others at a meeting called by the director of Military Intelligence, Maj. Gen. Sagi, revealed that the Israeli Cabinet had decided it would be "appropriate" for the Israeli security and defense forces to cooperate with elements in the United States that were not necessarily members of the present administration or blessed by the administration. In essence, the prime minister was telling his intelligence network that we were to cooperate with the Republican camp.

Now that the go-ahead had been given by the prime minister, who was also defense minister, the instruction that went out to me and other intelligence officials was to see what we could do for the Iranians -- but to be careful. The Carter administration should not know what was going on. As Sagi pointed out, the prime minister was still very sensitive about Israel being seen as subverting the legal government of the United States.

The second half of August 1980 was a very interesting period. I called Kashani, now back at his Paris number. He had been flying back and forth from Tehran by private plane, keeping in touch constantly.

"I have good news for you," I said. "We're ready to help. Prepare your wish lists."

I heard his sigh of relief on the other end. "I'm very happy, Ari. And please send my regards to your mother. I still remember her cooking."

At Kashani's suggestion, we arranged a meeting in Amsterdam.

"You think it's secure? We won't be spied on there?" I asked.

"Oh no, nothing to do with that," he laughed. "The women in Holland are very pretty."

I expected Kashani to be alone when we met at the Marriott Hotel in the middle of August. But he brought with him a battery of six Iranian officials from the Defense Ministry. I was surprised. I had come alone.

We spent a few minutes warming up. All seven men were expensively and elegantly dressed, and one was enjoying beer -- forbidden in Iran. Another of Kashani's companions, Cyrus Husseinzadeh, spoke Hebrew and was in SAVAMA, the revolution's version of the Shah's secret police, SAVAK. He told how he had originally been a member of the SAVAK and had been trained in Israel by SHABAK, the Israeli secret police and internal security service. He'd taken a course in counterintelligence, but "after I saw the atrocities committed by my superiors in the SAVAK, I refused to take part and joined the revolution."

After a while the Iranians handed me a 50-page file -- their shopping list -- that included everything a nation preparing for war required: aircraft, tanks, anti-aircraft missiles, anti-tank missiles, artillery shells, aircraft wheelbases, mortars, grenades, and many other spare parts.

They stressed the immediate need for supplies. There was no problem about the payment. As one of them told me, "As a sign of good faith, when you guys move, we will initially deposit $1 billion U.S. in a bank of your choice in Europe."

We talked about the hostages. "It's not up to us when they're released," I was told. "It's up to the Americans. They have the final say. The ball is in their court."

Kashani insisted on paying my hotel bill. As I checked out, he mentioned he would like to put a proposition to me -- to come and stay at his holiday house in Marbella, Spain, for two or three days. After that he would like to fly back with me to Israel. I didn't want to offend him, but I said I had to call my office first. I phoned Tel Aviv and mentioned the "shopping list."

"Go with him to Spain," said Sagi's chief of staff, Hebroni. "Enjoy yourself. And if he wants to come to Israel to spell out his requests, let him come."

At Amsterdam's Schiphol Airport, Kashani insisted on paying for the round-trip ticket to Marbella. The courtship with the Israelis had begun in earnest: It was now "unofficially official." And during the three days we spent at his modest red-roofed house overlooking the Mediterranean, waited upon by a North African maid, he expressed his relief that Iran would finally be getting Israeli military equipment with American blessing.

"Let's not get ahead of ourselves," I cautioned as we drank tea during one of those hot Spanish evenings. "We haven't got real American blessing. We've only got a nod from the shadows. And Sagi hasn't seen the details of your list yet. I don't even know if we've got all that stuff."

Kashani used his Philippine passport to get into Israel. And the following day, after breakfast at my parents' home -- a treat he insisted on, as he fondly remembered his earlier visit -- he watched as Gen. Sagi went through the Iranian weapons list.

"Of course, we're happy to cooperate," Sagi told him. "But I honestly don't know how much we can do until the new administration takes over in the U.S. A lot of these weapons and parts are American-made. But we'll certainly look into your request as far as it concerns Israeli-made materials."

It was my turn to do the entertaining, driving the Iranian around Jerusalem and taking him to Hebron to the place where the patriarch Abraham is believed to be buried. The Moslems, who believe that Abraham was their forefather, as do the Jews, call the site Haram El-Ibrahimi. The Moslems wanted a mosque on the site, the Jews a synagogue. The building is now alternately used both as a mosque and a synagogue, an arrangement imposed by the Israeli military.

"What do you think, Ari?" he asked as we strolled. "Do you think we can get enough from your people to arm us sufficiently?"

"As the boss said, we'll do what we can for you. Your enemy is also ours, don't forget."

***

On September 2, 1980, all Israel's fears came true when the Iraqis attacked southern Iran in the first big border clash, the precursor to the offensive that began on September 22. Saddam Hussein had decided that he should establish his control over Shatt Al-Arab and then go on to take over the oilfields in Khuzistan, Iran's southwestern province on the Persian Gulf. Iraqi troops poured into Iran, but the Iraqi Army was not as good as we had feared. Their air force was also ineffective in its attempts to destroy Iranian Air Force bases. The Iraqis quickly became bogged down by a surprisingly good defensive campaign launched by the Iranian military. Although the Iranians basically had only equipment left over from the Shah's time, much of it unusable because it had not been serviced and maintained, there was still enough to keep the invaders at bay.

Earlier that year, Iran had established an elected government, in which Abol Hassan Bani-Sadr had defeated Adm. Madani. However, even by the time of the invasion, the real shots were still being called by the Supreme Council. Bani-Sadr, as commander-in-chief, personally intervened to free from jail all the Iranian Air Force pilots who had been imprisoned for allowing the Israelis to steal their F-14 jets at the start of the revolution. But he insisted they each swear on the Koran to serve their country -- this wasn't a war for the Mullahs, he told them, but for the very existence of Iran.

Despite the strong defensive position taken by the Iranians, the Israeli government and intelligence community were extremely worried about Iraq's incursion. It would be in Israel's interest to flood Iran with military equipment, but we had to be cautious. Much of the material we had was American, and if that went to Tehran without the release of the hostages and Carter's okay, there could be serious repercussions in the U.S. Congress with its Democratic majority.

Within a few days of the September 2 incursion, Kashani called to tell me that a fourth meeting had recently taken place between the Iranians and the Americans, this time in Barcelona. An important decision had been reached: that a top-secret meeting between George Bush and Hojjat El-Islam Karrubi would be held in Paris. The Iranians wanted assurances from a Republican leader at the highest level that if they held off the release of the 52 Americans until the Reagan administration took office, they would be supplied with military equipment to defend themselves against the Iraqis, and their monies frozen in the U.S. would also be released.

"It's also been decided that Israeli representatives should come to Paris," said Kashani. "Although Bush and Karrubi will be making the ultimate decision, we'll be setting up numerous discussions between other officials and aides."

So this time it was the vice president of the anticipated Republican administration who would be in attendance. Carter would be furious if he knew what George Bush's intentions were, but then, of course, Bush's presence in Paris was not expected to leak out to the Carter people. Kashani had made no mistakes with his information concerning the Iranian decision to meet Bush -- the same details were fed to Rafi Eitan from his U.S. contacts, McFarlane and Brian.

"By the way" said Kashani, "we're still after anything you can give us for our war effort. The Americans have told us to hold out. They'll help, but only after the Republicans have taken over and the hostages have been released."

Some time around September 10 I was called into Sagi's office for an official briefing on a letter that had been sent by Stansfield Turner, curiously directed to the head of IDF/MI and not to the American's counterpart in Israel, the Mossad chief. In it, Turner outlined his thoughts about the Middle East situation; the most interesting part of the letter was his forecast that no matter who was elected as president of the United States, he expected to continue leading the CIA in 1981.

According to Sagi, there had also been phone calls from Casey to Begin and Sagi and to Nachum Admoni, the acting director of Mossad, in which Casey outlined his contacts with the Iranians. He confirmed he had met various Iranians in Spain and was about to reach an agreement with them. There would be a meeting, to which the Israelis were invited, in mid-October 1980. The Israelis were to be the channel used to sell arms to Iran. None of this was news to us, of course.

The Israeli intelligence community remained extremely concerned about the Iraqi threat to Iran. If Iraq won that struggle, Israel would have a major problem on its hands with that land mass and those oil reserves in the hands of Saddam Hussein. We started looking for a way to solve the problem of supplying arms to Iran and getting the hostages freed before January. Perhaps, it was suggested, we, the Israelis, could reach an independent deal with the Iranians, get them to release the hostages, and then present it to the Americans as a fait accompli. This way the Iranians would have their way, without having to deal with the Carter people, and on the other hand the Reagan people would have to accept it because it would have all been happily completed.

It was an interesting proposition, particularly since Begin was unhappy about the idea of an Israeli delegation participating with Carter's opposition at the Paris meeting. The prime minister was a very legalistic man who believed in law and order around the world.

So the fait accompli plan went ahead. First, Begin sent Khomeini's old friend, Ruth Ben-David, as his direct emissary to see the Ayatollah in Tehran in mid-September. Her mission was to get Khomeini's agreement to release the hostages immediately in exchange for Israeli guarantees of arms to Iran. Khomeini agreed in principle, and the details were left to be worked out by others at another meeting. Sagi briefed me on all this and then instructed me to ask Kashani to arrange a meeting between a senior Israeli delegation and an Iranian who could actually carry out the release of the hostages.

We met in Amsterdam in the second half of September. The Israelis included David Kimche, head of Tevel; Uri Simchoni and another man from IDF; Shmuel Morieh from SHABAK; and myself. From the Iranian side, there were Kashani; Ahmed Khomeini, the son of the Ayatollah; Khosro Fakhrieh; and Ahmed Omshei. The Iranian team was regarded as extremely high-level because of the presence of Ahmed Khomeini.

The meeting in the Marriott Hotel lasted nearly two days. At the end of it, we had a working agreement. The Iranians would arrange for the release of the hostages in the first week of October. They would be flown to Karachi, Pakistan, where a U.S. Air Force plane would be waiting. The cash side of the arrangement was that Israel would pay $52 million, through Kashani, so he could payoff the radical leaders. After the release, Israel would start supplying military equipment to Iran, for which Iran would pay. In addition, Israel would exact a commitment from the Republicans that, when they came to power in the U.S., they would release all frozen Iranian funds in American banks.

Just what the Americans would think of the deal was anybody's guess. But my superiors, at least, were happy. The scheme was then put to Casey by my boss, Maj. Gen. Sagi. The response was cool. Casey said that he didn't believe the Iranians would go ahead with the deal, and he proposed that an Iranian representative secretly travel to the U.S. to present the case. So the Americans were still employing their delaying tactics.

It was agreed that the Israelis would escort an Iranian official to the U.S. if Tehran agreed. The Iranians were desperate to try anything as long as they could receive arms from somewhere, so they agreed to send a representative. The American contingent said they would arrange a U.S. visa for the Iranian official in Germany, even though the State Department was not under their control.

We were told that the Americans would be represented at the Washington meeting by Robert McFarlane; Richard Allen; James Baker III, former campaign manager for George Bush; and Lawrence Silberman, a close friend of Bush's. The choices of McFarlane, Baker, and Silberman were all understandable, considering their connections. But Allen was a mystery; he was a man with connections to the Carter administration. We did not know, until McFarlane told Eitan, that Allen had a deal with the Reagan camp that assured him the position of national security adviser for Reagan.

These four people were to meet an Iranian emissary and an Israeli intelligence officer -- I was designated -- on October 2. In Frankfurt I was waiting to meet their man -- Dr. Ahmed Omshei, who was by now a familiar face. He collected his visa, and we flew to Washington via New York. The details of this meeting were coordinated by Hushang Lavi, an Iranian Jew living in the U.S. and working for Israeli intelligence. Lavi was a known arms dealer who left Iran under the Shah to live in the United States. From the U.S. he frequently visited Israel and was recruited by Mossad in the late 1970s as an intelligence asset to further Israel's arms-sales policies. His work for the Israeli government ended in 1983 because he refused to heed warnings about his unauthorized moonlighting in arms with the Hashemi brothers, among others.

As it turned out, James Baker did not attend the October 2 meeting, held in the lobby of Washington's L'Enfant Plaza Hotel. But the other three were there. I said nothing while they listened politely as Dr. Omshei once again outlined the Israeli plan accepted by the Iranians. The meeting lasted just half an hour, during which Omshei suggested that the planned Paris conference between Bush and Karrubi would now not be necessary because the Israelis were negotiating on America's behalf for the release of the hostages.

McFarlane smiled and slowly nodded. "I'll report to my superiors," he said. I didn't understand what that meant. Just who were his superiors?

Two days later I was back in Tel Aviv. I was whisked off instantly to see Sagi in his office.

"I hope you enjoyed your sightseeing trip to Washington, Ari," he said.

I immediately sensed a problem. "You're going to tell me it's all fallen apart."

"Was it ever together in the first place?"

No, I conceded. It had been too much to hope that the Americans would accept our plan.

The Paris meeting was still on. So we continued to make our arrangements to send a team of six who would discuss the minor details of the hostage release while Bush and Karrubi set the official seal on the arrangement. My assignment was to confirm my friendship with the Iranians, to get a list of all their addresses, phone numbers, and telex numbers, and to establish contact points throughout Europe as a prelude for what would certainly be a deal in which Israel would sell arms to Tehran.

When I called Kashani and told him that the Americans had quashed the Israeli plan and there would be no immediate supplies of equipment to Iran, he was devastated.

Iran had been ready to release the hostages months earlier. Israel had been prepared to negotiate a new arms deal. And, all along, the proposals had been delayed or downright-ignored. It was clear to everyone involved that the Republicans and their CIA representatives were going to work this thing out all by themselves and take all the glory on inauguration day.

"It's a blow, Ari," he said. "We're desperate. If nothing else, can you supply us right away with wheelbases for the F-4s?"

"I'll do what I can," I said, and hung up.

My superiors made an instant decision. The wheelbases, 60 of them, could come out of air force stock. It was arranged with Kashani that a French aircraft chartered by the Iranians would fly into Ben-Gurion Airport in late October, pick up the cargo, fly back to Paris, and then go on to Tehran. I asked the Iranians to make payment to Banque Worms.

***

The six of us, five men and a woman, who were chosen to go to Paris were briefed thoroughly about what was to take place there and what our roles would be. As it turned out, the Paris meeting went precisely according to plan. Simon Gabbay, my father's cousin, who was the head of a Jewish organization in Paris, and was for many years an Israeli intelligence asset, coordinated the meetings between the Israeli and Iranian delegations. The purpose of his participation was to eliminate contact between Israeli and Iranian embassy personnel. Gabbay continued to serve this function in years to come.

We six Israelis flew by El Al from Tel Aviv to Orly Airport in mid-October and were as inconspicuous as possible. Arrangements for security had been made. Upon arrival we were met by two Mossad representatives stationed in the Israeli Embassy in Paris. The two senior Israelis -- David Kimche and Shmuel Morieh -- were driven to their quarters at the Ritz Hotel; I rented a car and drove the remaining four of us -- Uri Simchoni, Rafi Eitan, a woman from Mossad, and myself -- to the Eiffel Tower Hilton, where we were to stay. That day my only business was to remain in contact with Israel by a secure phone in a safehouse on the rue du Faubourg Montmartre.

Over the next few days, between calls to Israel, I had the opportunity to meet both the Iranians and some of the American contingent, including Robert Gates and George Cave, a long-time CIA official. Cave was officially purged from the CIA in 1977 but was active until 1989. My career and his were somewhat parallel -- he is an Iranian expert and speaks, reads, and writes Farsi well. At times he was "downplayed" as a low-level translator, but in reality he was an active CIA operative, a member of what we in Israel called the "Iran Group," headed by Robert Gates, which was created as a result of this Paris meeting. Because of his expertise on Iran, he took part with the Israelis in the arms sales. Cave became well-known in Washington circles and was very close to Gates.

Gates and Cave came to the room of one of the Israeli contingent, and we talked about the Iran-Iraq war in general. My colleagues and I tried to keep our contact with the Americans as brief as possible, as we'd been ordered. I kept in close association with the Iranians -- including Kashani, Omshei, and Fakhrieh -- obtaining from them the names of contacts in their embassies and in their Melli Bank branches in London and Paris. These would be needed for future negotiations in the planned arms trade. By the third day, I had nearly completed my role in the mission.

The evening before the big meeting, the two Israeli seniors were to be received by Hojjat El-Islam Karrubi, who had just arrived in Paris. I was asked to go with them to Karrubi's suite at the Hotel Montaigne, a small establishment within walking distance of the Hilton. As Karrubi's two bodyguards watched carefully, I came face to face for the first time with this influential member of Iran's Supreme Council. He impressed his guests as an immensely shrewd and religious man. He spoke English and French and made it quite clear that he believed in the Islamic revolution in his country. He took the familiar position that any cooperation between Iran and Israel on Iraq should not be taken as a sign that the Islamic government would recognize Israel, but should be seen only as a matter of expediency.

The next morning, French security officers were scattered through the lobby of the Ritz Hotel hours before the top-secret meeting was due to take place in an upper-level conference room. I had one more task, which necessitated my going to the Ritz to meet the Iranians. Accompanied by my colleagues, and fully aware that we should keep our distance from the Americans at this important gathering, we walked past the vigilant eyes of the French security men to be confronted by two U.S. Secret Service types. After checking off our names on their list, they directed us to a guarded elevator at the side of the lobby.

Stepping out of the elevator, we found ourselves in a small foyer where soft drinks and fruits had been laid out -- the hotel had tactfully chosen refreshments that were not forbidden by anyone's religious beliefs. The Americans -- Gates, McFarlane, Cave, and Donald Gregg, who worked in President Carter's National Security Council as CIA liaison -- were among those already present, chatting with the Iranians. There was no sign of Bush or Karrubi.

I approached the Iranians to complete my final assignment. This was to arrange the route and clearance designator of the plane that would be picking up the wheelbases from Israel. Ten minutes later, Karrubi, in a Western suit and collarless white shirt with no tie, walked with an aide through the assembled group, bade everyone a good day, and went straight into the conference room.

A few minutes later George Bush, with the wispy-haired William Casey in front of him, stepped out of the elevator. He smiled, said hello to everyone, and, like Karrubi, hurried into the conference room. It was a very well-staged entrance. My last view of George Bush was of his back as he walked deeper into the room, and then the doors were closed.

Bush, Casey, Karrubi, and his aide would have no interruptions as the fate of the hostages was sealed. Iran's future arms purchases from Israel met, for the time being, with unofficial U.S. approval. I learned the details of the deal days later in Sagi's office in Israel. It was exactly as had been arranged in Amsterdam in September by the Israelis: The hostages would be released in exchange for $52 million, guarantees of arms sales for Iran, and unfreezing of Iranian monies in U.S. banks. The only difference was the timing of the hostages' release. Instead of immediately, the Republicans insisted that it take place on January 20, 1981, upon Ronald Reagan's inauguration.

It was such a secret arrangement that all hotel records of the Americans' and the Israelis' visits to Paris -- I cannot speak for the Iranians -- were swept away two days after we left town.

Shortly after the Iranians received their wheelbases, Carter called Prime Minister Begin and raged at him. No one knew how Carter had found out, but this time Begin gave back as good as he got, pointing out that the Iraqis were about to control the biggest known oil reserves in the world and were a danger to the very existence of Israel.

Kashani was happy to have received the wheelbases, but was upset that the arms sales were not going to start until the Reagan Bush administration took office. "The Americans have screwed up from the very beginning," he fumed. "Their people could have left Iran in mid-1980, and now our land is being abused by the Iraqis."

On November 4, 1980, America held its elections. No one who had been involved in the secret meetings in Paris had any doubts about the outcome -- or about how much longer the hostages would continue to eat rice in their Tehran "prison."

There are few rules in the murky depths of espionage, arms deals, and political trade-offs, but there are some rules, nevertheless. In 1980 we all saw that the Americans had gone beyond the pale.

_______________

1.  The Russian Orthodox Church has its own Pope, and his representative in Jerusalem is officially known as the Russian Orthodox Papal Nuncio.

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