A New Jersey corporation asked a federal judge in Washington to grant a $66.5-million fraud judgment against Iraq as compensation for the blocked sale of high-temperature furnaces whose purpose allegedly was misrepresented. Iraqi officials told representatives of Consarc Corp. of Rancocas, N.J., that the furnaces would be used to make artificial limbs for victims of the Iran-Iraq War. The Commerce Department approved the sale, despite being warned by Consarc that the furnaces could also be used in nuclear arms development. The Defense Department objected, and the White House halted the sale.
From Times Staff and Wire Reports
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