IRAN/ARMS SMUGGLING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88-01070R000201220005-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 21, 2016
• Document Release Date: December 10, 2008
• Sequence Number: 5
• Publication Date: May 25, 1984
• Content Type: OPEN SOURCE

Approved For Release 2008/12/10: CIA-RDP88-0107OR000201220005-8
IRAN/ARMS' PALMER: A former Justice Department official may have
SMUGGLING been caught in the government's crackdown on people
illegally selling arms and other military hardware to
Iran. NBC News has learned that the official could be
among those indicted for helping to set up a parts
pipeline. Jim Polk tonight on that investigation.
(GRAPHICS: The U.S. Capitol)
STANLEY POTTINGER: Mr. Chairman and members of the two
committees, I am Stanley Pottinger.
POLK: Pottinger, testifying on Capitol Hill this week,
was a assistant attorney general, this nation's top law
enforcement official for civil rights in the Nixon and
Ford years. But now Pottinger is under investigation,
facing possible indictment for violating the arms embargo
against Iran by heloinz send military supplies to the
Ayatollah Khomeini's government during the hostage crisis.
Authorities say this man, Cyrus *Oshami, was the
Ayatollah's arms broker in New York. In the fall of 1980,
the FBI put national security wiretaps in this building
where Oshami operated out of a corner suite overlooking
Central Park. The government says Pottinger, who was
Oshami's'lawyer, was heard on hidden microphones giving
advice on how to make military shipments to Iran through
dummy companies in other countries. Federal authorities
say that military supplies disguised under phony invoices
were flown to Zurich, Switzerland, then shipped to Tehran
by this firm on a quiet street in Basel, the T & T
Freighting Company, which the government says is Iran's
arms merchant in Europe. Among the illegal shipments made
in 1980 and '81 were sniper scopes, night vision lenses,
radar equipment, and electronic guidance systems for
Iran's air force. Pottinger went before a grand jury
early this year, but he will not talk publicly about the
investigation. POTTINGER: There's nothing to be
discussed about it. There's an attorney working on it,
and I have nothing to comment about.
POLK: Have you testified before the grand jury on that?
POTTINGER: I just can't comment about it, sorry.
POLK: I could ask you the tough question. As you may be
aware, there's a recommendation working its way up to the
Justice Department that you be indicted in the matter.
POTTINGER: I'm really, I'm sorry, I can't comment about
it , Jim.
ConCIUed
Approved For Release 2008/12/10: CIA-RDP88-0107OR000201220005-8
 Approved For Release 2008/12/10: CIA-RDP88-01070R000201220005-8
POLK: Federal officials say Pottinger approached the CIA
during the hostage crisis to suggest Oshami could carry
messages to the ayatollah. But they say when the CIA
asked for an FBI wiretap to check up on Oshami, the tap
picked up Pottinger advising Oshami on arms shipments.
Cyrus Oshami is now operating out of London, beyond the
reach of U.S. law, but his older brother was arrested in
this case last week when he landed in New York and was
caught in a U.S. customs sting operation. The grand jury
is scheduled to meet within two weeks to return
indictments in the arms smuggling case. Prosecutors here
have asked the Justice Department here in Washington, to
bring charges against Pottinger for conspiracy and
perjury. James Polk, NBC News, New York.
PALMER: Tonight, Pottinger said if the charges are
actually made, they will be the result of a sincere
mistake by the FBI and the Justice Department.
Approved For Release 2008/12/10: CIA-RDP88-01070R000201220005-8