Israel Can Disprove Allegations in Funds Diversion, Shamir Says

Prime Minister Yitzhak Shamir said Saturday that Israel can prove to the United States that it did not know proceeds from U.S. arms sales to Iran were being diverted to Nicaraguan rebels.

Shamir said on Israel radio’s English-language broadcast that U.S. officials who made such allegations are wrong, “and we can very easily convince them they are wrong.”

“When we will have an opportunity to explain to them about our part in all these matters, it will be very easy for us to prove that these allegations are baseless,” Shamir said.

He indicated the Israeli explanations would be made to U.S. congressmen probing Israel’s role in the Iranian arms deal. Shamir has promised Israeli cooperation once such a probe begins.

Will Restrict Questioning

Shamir indicated earlier that such cooperation should be on a government-to-government level, and that he would not allow questioning of the Israelis involved by U.S. officials.

Atty. Gen. Edwin Meese III told a congressional panel last week that Marine Lt. Col. Oliver L. North contended that the transfer of money to the contras was proposed by David Kimche, former director general of the Israeli Foreign Ministry.

North was fired from his post at the National Security Council after the Reagan Administration said millions of dollars in proceeds from the arms deal were diverted to the U.S.-backed contras in violation of a congressional ban.

Kimche said Saturday that anyone who claimed Israel knew of the diversion of funds was guilty of “slander against myself, and much more so against the state of Israel.”

‘No Interest’ in Contras

Kimche, speaking on the same broadcast as Shamir, added that Israel “had no interest whatsoever to bring in the subject of the contras.”

“We sold arms to Iran at the request of the Americans,” he said.

Referring to reports that North said that Kimche proposed sending money to the contras, Kimche said: “If he said it, he’s a liar.”

Shamir also denied reports that the United States has asked Israel to desist from future arms supplies to Iran. “It’s not Israel’s policy to sell arms to Iran,” Shamir said.