Iran Arms Deal a ‘Blunder,’ Israel Foreign Minister Says : Hostages ‘Prime Consideration’ in Policy--Peres

The U.S.-Israeli arms deal with Iran was a blunder, Israeli Foreign Minister Shimon Peres said today, but there appeared to be no other way to negotiate for American hostages held in Lebanon.

“When two democratic countries have to deal with one undemocratic country, we create a blunder,” he said. “When the Israel-American-Iran arms deal is analyzed, it will be seen there would not have been a crisis if it hadn’t been for the hostages.”

Peres spoke to 100 Israelis and Americans at a luncheon honoring Jeane J. Kirkpatrick, former U.S. ambassador to the United Nations.

Hostages a Factor

U.S. and Israeli officials say the arms sales to Iran, said to have begun in September, 1985, were part of efforts to free hostages held by extremist groups in Lebanon allied with Iran. Those missing in Lebanon include six Americans and at least two Israelis.

According to Israel radio, Peres was questioned by a parliamentary committee and said rescuing the hostages “was a prime consideration” in the arms deal.

President Reagan has asserted that winning the release of three U.S. hostages was only a “bonus” and that the arms were intended to open communications with moderate elements in Iran.

Silent on Earlier Sales

Peres would not say whether Israel sold weapons to Iran before making the arrangement with Washington last year. Israeli officials have acknowledged previously that arms were sold to Iran’s fundamentalist Shia Muslim regime in 1980-82.

Peres denied that the arms shipments had an impact on Iran’s 6-year-old war with Iraq. “Israel can little influence the (Persian) Gulf war. It’s ridiculous to say Israel can intervene,” he said.

Kirkpatrick said the case had not created a rift between the United States and Israel.

“People are crisis-mongering,” she said. “There is certainly no crisis in Israel-American relations. . . . Israel helped the United States when the United States needed help. Our enemies will have to look very hard to find any real differences between us.”