Israeli Disputes North on Who Conceived Contra Aid

Lt. Col. Oliver L. North told Atty. Gen. Edwin Meese III that a senior Israeli official had originated the idea of funneling Iran arms sales profits to the contras, Justice Department sources said Tuesday in confirming closed congressional testimony by Meese about the incident.

David Kimche, former director general of the Israeli Foreign Ministry, denied North’s charge that he had conceived the Iran-contra link and said the former national security aide may have panicked under Justice Department questioning and attempted to shift the blame to “an Israeli he hardly knew.”

Justice Department attorneys and FBI investigators have been unable to corroborate North’s statement, which Meese obtained on Nov. 23 in questioning North as he emerged as the central figure in the scandal. North was fired two days later.

North’s statement, about which Meese testified two weeks ago before the Senate and House Intelligence committees, was first reported Tuesday by the New York Times.

Some former colleagues of North have questioned his veracity, but, if support is developed for his charge, it would suggest that Israel played a role in the contra connection, which Israeli officials have denied knowing anything about.

Meese, in his congressional testimony, quoted North as saying he had conferred with an Israeli official about a year ago on channeling aid to the Nicaraguan rebels. A source familiar with Meese’s responses before both intelligence panels said he had named Kimche as the official before one of the committees.

North, who allegedly took part in efforts to line up private aid for the rebels after Congress banned government support for the contras in 1984, met with Kimche after the ban.

According to Meese’s testimony, North said Kimche saw three options for the United States.

First, it could provide U.S. funds to the rebels directly or, second, it could divert U.S. foreign aid to Israel--but those alternatives would violate the congressional ban.

Kimche’s third option, North said in Meese’s recollection of the questioning, was to inflate the price charged the Iranians for the arms and divert the proceeds to the contras.

Israelis Dismayed

At a Nov. 25 press conference, Meese dismayed the Israeli government by stating that Israeli representatives had been involved in the fund diversion.

“Bank accounts were established, as best we know, by representatives of the forces in Central America,” Meese said. “And this information was provided to representatives of the Israeli government--or representatives of Israel, I should say--and then these funds were put into the accounts.”

Later in the press conference, Meese said: “Whether they were specifically authorized by the (Israeli) government is one of the things I assume we will find out.”

Kimche, who lost his post in Israel’s Oct. 20 change in government, made his denial in an interview on Israel’s state radio.

Met North Twice

Kimche has emerged as an important figure in arranging contacts between the United States and Iran in the Administration’s arms-and-hostages efforts.

Kimche said he met North only twice: in Washington in November, 1985, and in London the next month. Others were at the meetings, Kimche said, and the subject of diverting funds to the Nicaraguan rebels was never raised.

“If, in fact, he (North) said this, the only explanation I can offer is he panicked, looked for a way to thrust it off himself, and pushed it off on an Israeli he hardly knew,” Kimche said.

Notes Taken by Aides

During the November questioning of North and other Administration officials by Meese and a team of the attorney general’s close advisers, notes were taken by some of the attorneys, a Justice Department source said.

Transcripts of the notes were used by Meese in responding to questions by the House and Senate committees, according to the source.

North has made no substantive public comment since the Meese interview and has invoked his Fifth Amendment privilege against self-incrimination in refusing to answer questions before congressional committees.