Reagan Abandons Plan to Sell Saudis 1,600 Missiles : Foes Had Veto-Proof Numbers

The Reagan Administration, in the face of certain defeat in Congress at the hands of a broad coalition of liberals and conservatives, today withdrew a proposed sale of 1,600 advanced anti-tank missiles to Saudi Arabia.

President Reagan made the decision after it became clear that opponents of the proposed $360-million sale of the air-to-ground Maverick missiles had gathered a veto-proof margin to block it.

The announcement of the withdrawal came in a letter signed by Air Force Lt. Gen. Philip C. Gast. It was given to the Senate Foreign Relations Committee by Assistant Secretary of State J. Edward Fox, who said the decision had been made because of the “strong interest and concern expressed by Congress.”

‘Should Be a Lesson’

Senate Minority Leader Bob Dole (R-Kan.) said he believed the incident “should be a lesson, that I hope will be learned, that sometimes it pays to consult (with Congress) ahead of time.”

The Administration, said sale opponent Sen. Jesse Helms (R-N.C.), “acted wisely to the arithmetic that was staring it in the face.”

Congressional opposition had focused on fears that the weapons might be used against Israel, and on criticism of the Saudis for not intercepting an Iraqi jet fighter shortly before the jet attacked the U.S. Navy frigate Stark last month in the Persian Gulf, killing 37 U.S. seamen.

At least 67 senators had co-sponsored a resolution by Sen. Bob Packwood (R-Ore.) to disapprove the sale.

‘A Bad Deal’

Rep. Larry Smith (D-Fla.), a leading House opponent of the plan, called the decision “smart. . . . It was a bad deal at a bad time. And I think the White House people knew they were going to get their brains beat in up here.”

Before the Stark attack on May 17, the Iraqi jet was tracked by a U.S. AWACS radar plane flying above Saudi Arabia. A Saudi F-15 was with the AWACS plane, but did not intercept the Iraqi plane even though U.S. officials say the F-15 pilot knew about the Iraqi jet.

At the Pentagon, chief spokesman Robert Sims, asked how much cooperation the United States might expect now from the Saudis in extending protection to Kuwaiti oil tankers, replied, “Not a whole lot.”

Pentagon sources have said the Administration is pressing the Saudis to allow at least an extension of the patrol patterns for AWACS surveillance planes based in Saudi Arabia to assist Navy ships that will soon escort the tankers.

Sale Plan Defended

Richard Murphy, assistant secretary of state, defended the sale plan in testimony Wednesday to the committee and defended the Saudi actions.

Murphy said the Saudis were acting “in accordance with a longstanding informal arrangement” to protect their air space.

When the Saudi air controllers aboard the AWACS plane sought authority from their superiors on the ground to intercept the Iraqi jet, there was no answer from the ground until it was too late, Murphy said.

Some members of Congress, including Helms, have also complained that the Saudis have done too little to advance the peace process in the Middle East and have continued to subsidize the Palestine Liberation Organization to the amount of about $85 million a year.

The Saudis had sought the 1,600 air-to-ground anti-tank missiles to offset a perceived military threat from Iran and other neighbors along the Persian Gulf.

The United States earlier sold 1,500 of the missiles to Saudi Arabia and opponents of the new sale said that bringing the total number of the weapons to about 4,000 would give the Saudis far more than they needed.