But Justice Dept. Insists It Knew Nothing of Diversion of Iran Funds : U.S. Admits Delaying Probes of Contra Links in Miami

Justice Department officials, citing sensitive international negotiations and “legitimate national security concerns,” acknowledged Friday that they delayed for 10 days federal probes of Miami-based efforts to support the Nicaraguan rebels but insisted they did not know funds from Iranian arms sales were being funneled to the contras .

In confirming a Wall Street Journal report of the delay, Justice Department spokesman Patrick S. Korten said that the postponement did not hamper the inquiries, a contention immediately supported by the FBI.

More Questions Raised

Nevertheless, the disclosure of the unusual delay has raised more questions and fueled additional suspicions resulting from the government’s handling of the Iran-contra link, which is already under intense investigation.

The Journal reported that the delay raised questions about whether Atty. Gen. Edwin Meese III and other Justice Department officials knew or suspected that Iranian arms funds were being channeled to the contras. Meese has said repeatedly that he and his aides did not know until Nov. 22, when he conducted a personal inquiry, that the funds were going to the contras at a time when such U.S. aid was outlawed.

The delay of investigations by the FBI and the U.S. Customs Service into Southern Air Transport, which allegedly ferried U.S. weapons bound for Iran and the Nicaraguan insurgents, occurred “several weeks ago,” Korten said.

In explaining why the delay was ordered, officials are understood to have said that lives of American hostages in the Middle East could be jeopardized by the related investigations. However, one official stressed, there was “absolutely not” any mention of funds going to the contras in the instructions.

Knowledge of Funds Denied

“At no time during this period did officials of the Department of Justice have or obtain knowledge of anything related to recent disclosures of funds transferred to the contras which are involved with Iranian arms transfers,” Korten said.

The specific nature of the Customs Service investigation could not be learned.

The FBI began investigating Southern Air Transport after a C-123 cargo plane carrying supplies for the contras was shot down in Nicaragua on Oct. 5. Eugene Hasenfus, the sole surviving American crew member, said he was employed by Corporate Air Services Inc. of Lancaster, Pa., which he described as being linked to Southern Air Transport.

Southern Air has denied any connection with the plane but has acknowledged that its co-pilot, William B. Sawyer Jr., was one of its employees until last April. In addition, the downed plane’s pilot, William J. Cooper, was carrying a Southern Air identification card.

And Southern Air, which was controlled by the CIA in the early 1970s, has been involved in transporting U.S. arms bound for Iran, according to a Miami Herald account that has been confirmed by federal law enforcement sources.

The Herald, citing Transportation Department documents, said Boeing 707 jets chartered from Southern Air delivered U.S. arms to Iran, via Israel, then picked up captured Soviet rifles, grenades and other arms in Lisbon and ferried them to Central America. The flights took place last May, according to the documents.

Arms Probe Criticized

In a separate inquiry that has drawn criticism, the U.S. attorney’s office in Miami has been investigating alleged gun-running by supporters of the contras. Investigators have been looking into a March, 1985, arms shipment to the rebels that left from the Fort Lauderdale-Hollywood International Airport.

That inquiry was referred to a grand jury last month, but no indictments have been returned. Because that investigation began more than a year ago, federal prosecutors have been accused of dragging their feet in the case.

A federal public defender in Miami said Friday that he and his investigator were threatened with indictment by a federal prosecutor and two FBI agents while he was investigating the alleged arms deal in the interests of his client, Jesus Garcia, who had been convicted on a weapons charge.

“It was very frightening,” said John Mattes, the public defender. “Here are some people laying down the law to you (who) have the power to put you away.”

Mattes said that, in early March of this year, he went to Costa Rica along with Ralph Maestri, his investigator, and an aide to Sen. John Kerry (D-Mass.).

Admits to Role

Garcia had insisted that he was a participant in a secret supply route to the contras, and Mattes and Maestri were looking into that claim.

“When we came back, we told (federal investigators) that there were more than a bunch of rogue civilians shooting their guns off in the jungle,” Mattes said, adding that the operation seemed to be coordinated through contacts in Washington.

“Three days later, they invited us over for a very unfriendly little chit-chat,” Mattes said. “I guess we knocked on one door too many.”

Although a spokesman for the U.S. attorney’s office in Miami confirmed that Mattes met several times with prosecutors and FBI agents, he denied that such threats were made.

Ronald J. Ostrow reported from Washington and Barry Bearak from Miami.