Despite Cabinet Tiff, Baldrige Defends Computer Sale to Iran

WASHINGTON — Commerce Secretary Malcolm Baldrige, turning aside objections by Defense Secretary Caspar W. Weinberger, on Thursday defended the proposed sale of equipment containing American-made computers to Iran.

“I see no reason to put U.S. manufacturers at a disadvantage,” Baldrige told a Senate panel, contending that the relatively unsophisticated equipment involved could be easily obtained by Iran from foreign manufacturers.

The dispute, the latest argument between the two Cabinet officers on the issue of export controls, flared with reports that Weinberger was seeking to have the proposed $1.4-million sale reviewed by the National Security Council, and possibly even President Reagan.

Baldrige said he was not happy about Weinberger’s strong reaction, and suggested that the Pentagon should not have a role in the proposed sale. “This is not a defense issue. This is a foreign policy issue,” he said.

Baldrige added that lacking any State Department directive against such sales, “we have no reason not to approve it.”

The computers in question have no military applications, and “we could ship them directly to the Soviet Union, for that matter,” Baldrige told a Senate banking subcommittee.

He said that the proposed sale involves equipment to be used in power generation and for Iran’s press agency.

State Department spokesman Charles E. Redman confirmed that the department did not oppose the sale.

“In the normal review process, the views of the Department of State were sought by the Commerce Department, and after careful review we agreed with Commerce’s view that there is no significant military utility in these particular computers and thus we did not object to the issuance of licenses,” he said.