The Paris News from Paris, Texas • Page 9

The Paris May 7, 1987 9A HOW SECRET IRAN ARMS DEAL WORKED Transaction May-August 1986, summarized in the Tower Commission report Secord sheds sunlight on shadowy money trail Financing the deal Iranian-born intermediary Ghorbanifar gives three post-dated checks totalling $18 million to Saudi businessman Khashoggi, who deposits $15 million in Swiss account of Lake Resources, a company controlled by Secord, a retired USAF general. Secord transfers $6.5 million to a CIA Swiss bank account. Dept. of Defense TOW HAWK missiles- CIA TOW missiles. Israel Iran Shipping the arms Dept.

of Defense signs over TOW and HAWK missile supplies to CIA; they are shipped via CIA-connected Southern Air Transport to Israel. TOWs are "replenishment," to replace Israeli stocks earlier sold to Iran. One batch of HAWK supplies accompanies ex-National Security Adviser Robert McFarlane on flight to Iran; second planeload is turned back to Israel when no hostages are released. More HAWK supplies are shipped to Iran several months later. Iran Manucher Ghorbanifar Authority to expose $8 million WASHINGTON (AP) Richard Vernon Secord is the ultimate insider of the Iran-Contra affair.

The testimony of the retired Air Force major general is shedding sunlight on some of the corners of the complex affair that have been most difficult to illuminate: the money trail and the alleged privatization of an important U.S. foreign policy issue. But shadows remain. Members of the House and Senate Iran-Contra investigating committees are expected to question Secord closely today about his motives: whether they were pure as he has contended, stemming from patriotism and loyalty, or whether his actions were really aimed at personal profit. On Wednesday, his second day of facing questions and providing answers in the Senate Caucus Room, Secord declared: "There was no intention of profiteering.

None." Many senators say, however, that only half the story has been told and that ultimately Secord's credibility can be judged only after the testimony of many other witnesses. Beyond that, however, Secord's hours at the witness table represent the first time someone informed about both the secret arms shipments to Iran and the diversion of proceeds to the Contras has told the story under oath and in public. "Up until now all we have had is leaks and innuendoes and allegations," Senate committee Chairman Daniel K. Inouye, D-Hawaii, told a reporter Wednesday. "So I think his testimony is important.

This is the first public exposition of RICHARD SECORD Wednesday what happened in Iran and Tel Aviv and in Central America." Rep. Lee Hamilton, chairman of the House investigating panel, voiced similar thoughts last week. "Secord is a comprehensive witness," Hamilton said. "There aren't many of them in this drama. Most of the witnesses who will follow him will fill in the gaps." Secord has opened the door on the private network that took up the work of supplying the Contra rebels in Nicaragua after Congress in passed the Boland Amendment, which forbade the White House to do that, directly or indirectly.

For the first time in public, Secord has offered testimony that specific amounts of money were in fact diverted to the Contras from the Iran arms proceeds. And he has implied, in testimony denied by the White House and Making the payoff Iran transfers $8 million to Ghorbanifar in payment for HAWK supplies received. Ghorbanifar transfers funds, perhaps $8 million, to an Israeli account controlled by Nir, an adviser to the Israeli government; Nir forwards funds to Lake Resources. Ghorbanifar authorizes Khashoggi to expose $8 million against checks held; Secord pays Khashoggi $8 million from Lake Resources account. Richard Miller worked as North's intermediary President Keagan, that the president knew of his efforts.

Secord testified that in 1984 he was asked by Marine Lt. Col. Oliver North, then a member of the National Security Council staff, to help the Contras. He said that by November 1985 he and his company, Lake Resources were at the beginning of an operation to air drop supplies to the Contras. Secord's activities had soon become double-barreled.

He had served as an Air Force officer in Iran at the time of the shah, helping build the country's air force. And when the administration opened a secret initiative to Iran, Secord was asked to help arrange the transport of arms, first from Israel, later from the United States. Swiss bank accounts controlled fay Lake Resources were used as depositories for $30 million in arms purchase money, Secord said. Some of the money $12.5 million went to the U.S. Treasury to pay for U.S.

weapons. Other amounts went for expenses and shipping costs. But Secord said that some $3.5 million was in fact diverted to support the Contras in Central America. He also testified that North had used some arms sale payments to pay the expenses of Drug Enforcement Administration agents detailed to try to locate and rescue some of the U.S. hostages held in Lebanon.

One part of Secord's testimony raised a critical issue still obscured by shadow: that of presidential involvement. Secord asserted that. North and others told him the president knew of and appreciated his activities in Central America and Iran. Hostage rescue planned after arms sales failed WASHINGTON (AP) U.S. officials, disappointed that arms sales had failed to produce freedom for American hostages in Lebanon, planned a possible rescue mission using drug enforcement agents, according to testimony in the Iran-Contra case.

Richard V. Secord, the retired Air Force major general who worked with fired White House aide Oliver L. North in the sale of arms to Iran and diversion of money to the Nicaraguan rebels, provided glimpses Wednesday of an operation planned in May 1986, but he did not reveal details of how it was to work. "It did not succeed," Secord said in his second day of testimony before the congressional panels investigating the Iran-Contra case. "I had been asked by North some time just before this mission to support the DEA Enforcement Agency) people in another attempt to locate and perhaps rescue some of the hostages in Lebanon," Secord said.

The mission he referred to was the trip that North, former national security adviser Robert McFarlane and others took to Tehran in May 1986 in an unsuccessful attempt to bargain for the release of Americans held by pro- Iranian groups in Lebanon. The U.S. team brought weapons with it. "He was very disappointed, and of course, so were we all," Secord said of McFarlane. Meantime, planning was under way for the possible rescue mission, which involved a ship that Secord and his business partner, Albert Hakim, had bought for about $350,000.

Secord has said they hoped to lease the ship for $1.2 million for the six-month project. The DEA agents who had been tapped for the mission working out of Cyprus, but they went to Switzerland to pick up money from Hakim for their operation, Secord testified. "It was a little bit confusing for me," Secord said. "And, in fact, after I heard of some curious things about this Cyprus operation one of which was they wanted my to go down and stand offshore to be used in some operation to pick up the hostages." Secord then asked his friend, Thomas Clines, a 'former CIA agent, to go to Cyprus "to join up with the DEA agents and try to find out was going on." Clines assessed the operation as having a 40 percent chance of success, and then he downgraded its chances to 20 percent, Secord said. The DEA agents were given expense money from the private Secord network because the DEA chief had agreed to "detail some agents to this project from time to time, but the expenses of these agents would have to be borne by outside financing," Secord said.

DEA spokesman CorneJius Dougherty said the DEA did not want to comment immediately on the specifics of its involvement, but he said an explanation offered by another government official "makes pretty good sense." That official, who spoke only on condition he not be identified, said DEA agents had: good contacts in Lebanon, a country where drug profits are often used by local warlords to pay for military equipment. Officials thought the DEA's contacts could prove useful to freeing the hostages, he said. But DEA agents could not get money to pay sources for information from their agency because the hostage operation was not a drug program, meaning they couid not have used legally appropriated funds. WASHINGTON (AP) The second man to plead guilty in the Iran-Contra case, Richard Miller, is a former State Department official who became an intermediary in Lt. Col.

Oliver North's covert plans to help the Contras. And like the first person to enter a guilty plea, conservative fundraiser Carl "Spitz" Channell, Miller also named North as a fellow conspirator in the scheme to use privately raised funds to arm the Nicaraguan rebels. Miller, 34, who headed broadcast services for President Reagan's 1980 campaign, is the president of International Business Communications, a firm that was a conduit for funneling money to the Contra rebels. According to FBI documents, he also was apparently involved in North's efforts to free Americans held captive in Lebanon. On Wednesday, Miller pleaded guilty to conspiracy to defraud the government by using a tax-exempt foundation to raise money for the Contra arms.

The foundation, National Endowment For The Preservation of Liberty, was headed by Channell, who pleaded guilty last week to the same criminal count and named Miller and North as coconspirators. No criminal complaint has been filed against North. Miller, who was on retainer to Channell in the Contra aid effort, admitted participation in a conspiracy involving $3.12 million in private donations to buy weapons while such military assistance was banned by Congress. Miller and Channell have both agreed to cooperate with the independent counsel's ongoing investigation into the U.S. arms sales to Iran and the Contra aid network.

FBI documents show that North also recruited Miller as an in; termediary with an Iranian man who represented himself as a Saudi prince, Mousalreza Ebrahim Zadeh, offering to give money to the Contras. PRIME RIB EVERY FR1. SAT. NIGHT AT 25 N. MAIN PLAZA MALL 785-3152 11 AM-9 PM Fri.

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