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Manbar wasn't alone

The Jerusalem Post, 07/17/1998

Background by STEVE RODAN


(July 17) - Nahum Manbar may be slippery and mendacious, as the three-judge panel that sentenced him to 16 years yesterday determined. But one thing is clear: He wasn't the only one selling military equipment to Iran.

In the late 1980s and early 1990s, a host of Israeli defense contractors sold their goods to Iran. Israeli court records show Elbit tried to interest Iran in purchasing equipment that would detect chemical weapons in a $50 million deal via Poland. Defense sources say such companies as Rabintex sold Teheran fire-protection garments. In most cases, the equipment was sold via European countries, but with the knowledge and permission of the Defense Ministry's Sibat arms export agency.

So, why was Manbar arrested and convicted? Manbar and his supporters say he is a scapegoat and his prosecution was meant to assuage US authorities, who had declared him persona non grata in 1994.

Intelligence sources familiar with the case say Manbar simply went too far.

In July 1994, Manbar's two companies, Europol Holding and Mana Investment International, both based in Western Europe, were placed on a State Department list of companies that sold chemical weapons parts to rogue states in defiance of the US embargo.

US Assistant Secretary of State Thomas McNamara said in his report that US companies are banned from doing business with the companies of Manbar and others that appear on the list. Their goods also would be kept out of the US.

At the same time, US officials were pressing Israel for Manbar's prosecution. They argued that Manbar's activities could not be overlooked if the US embargo on Iran was to be taken seriously.

For several years, intelligence sources say, Israeli officials hesitated. Part of the problem was the contradicting views of Manbar in Israel's intelligence community. The General Security Service had been receiving information on Iran volunteered by Manbar since 1991. The GSS assured Manbar that he would not be prosecuted for dealing with Iran.

During the Manbar trial, a GSS agent, identified as A, testified that he and his colleagues had promised to protect Manbar.

"It was clear to the establishment that Nahum had information on interesting subjects, such as the heart of [Iran's] biological and chemical establishment," A testified. "It wasn't clear what his part was in this array."

The sources said Manbar's relations with the GSS were so cozy that he was seen at least once dining with then-GSS chief Ya'acov Perry.

But Manbar's dealings with Iran were opposed by the Mossad and its then-chief Shabtai Shavit. Shavit argued that Manbar was hurting the US's dual containment policy and Israeli efforts to try to stop Iran's military programs. He said Manbar's offer of chemical weapons equipment to Iran was not worth the intelligence he might be receiving from Teheran.

"Shavit's message was that this was not the way to get intelligence," an intelligence source said.

By early 1993, then-prime minister Yitzhak Rabin was convinced that the Israeli weapons dalliance with Iran had to stop. What persuaded him were reports from the IDF that Hizbullah was firing mortars, supplied to Iran over the previous few years from the Yokne'am-based contractor Soltam, at Israeli troops in Lebanon. Rabin ordered an immediate halt to defense sales to Iran.

Civilian exports, however, continued to arrive in Iran and industry sources say current trade, largely done through European companies, is estimated at close to $100 million annually.

Manbar was warned to stop selling equipment to Iran. But, as his associates said, he still had unfinished business to complete. It took until 1994 for Manbar to end his relationship with Teheran.

As Manbar's older brother, Zvi, recalls, Nahum told him: "If I don't keep my agreement with these people I could get kill

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