Arms shipment ruse alleged

Press, 26 December 1986, Page 5

Arms shipment ruse alleged

NZPA-Reuter New York An elaborate scheme for moving guns to the Nicaraguan contras, using a cover story of weapons shipments from Portugal to Guatemala, may have eaten up some of the profits from United States arms sales to Iran, Columbia Broadcasting News reported' last evening. The television network cited documents that it said confirmed the use of Guatemala as the listed destination for arms that were actually headed for El Salvador.

Federal investigators have found that payments -Tom a Swiss bajik acV 8*

count controlled by Lieutenant Colonel Oliver North went to Southern Air Transport, the company that shipped weapons to Iran and helped move arms to the contras in Nicaragua, the network said. Once the Iranian money started flowing to those Swiss bank accounts, Southern Air started flying to Lisbon, a world centre for arms purchases.

The television network cited records at Lisbon airport showing that Southern’s cargo planes would park at an isolated holding area to be loaded with cargo identified only

as defence material.

Airport records indicate that three planeloads of defence material left Lisbon last April and May for Guatemala, C.B.S. said.

However, according to reports filed by Southern Air with the United States Department of Transportation, all 135 tonnes of Southern’s cargo during that time went to Ilopango air base in El Salvador, the base used for air drops to the contras. Southern, which was once owned by the Central Intelligence Agency and still maintains many links with the C.1.A., de-

clined to comment on the discrepancy. The C.B.S. report seemed to indicate that the arms sales revelations may continue through the holiday break. President Ronald Reagan celebrated a traditional Christmas at the White House yesterday. He leaves today for a six-day holiday in California.

© The C.I.A. director, William Casey, who is in hospital with a cancerous brain tumour, may be in much worse medical condition than official statements indicate, “C.B.S. News” reported.

pearly a week after

surgery to remove the tumour, Mr Casey is in a semi-coma, responding only to deliberate stimuli, said the network.

Outside- experts said this was not a typical reaction to the procedure and may mean a poor prognosis, but neurologists said the condition may still be reversible, C.B.S. reported. Mr Casey remained in a stable condition yesterday, according to hospital spokesmen.

The network said Mr Casey was still in no shape to answer any questions about the Irancontra affair. .