ACCESSION NUMBER:00000
FILE ID:96031303.NNE
DATE:03/13/96
TITLE:13-03-96  WOOLSEY URGES PRESSURE ON IRANIAN SUPPORTERS IN EUROPE, JAPAN

TEXT:
(Concerned about terrorism threat on U.S. mainland) (670)
By George S. Hishmeh
USIA Staff Writer

Washington -- President Clinton's first director of the Central
Intelligence Agency urged the U.S. government to apply pressure on
"our friends in the European Union and Japan" so that they in turn
compel Iran to curtail its alleged sponsorship of terrorism worldwide.
The only European country he named was Germany. R. James Woolsey also
voiced concern that the terrorism that is now being aimed at derailing
the Middle East peace process could very well "come home." He did not
cite any evidence for that except to recall the anti-American views of
the Iranian leadership.

Woolsey was speaking at a panel March 12 on "Terrorism, the Peace
Process and U.S. Policy" at the Washington Institute for Near East
Policy. The panel was organized as the "Summit of Peacemakers" was
under way in Egypt in the wake of recent terrorist attacks in Israel
that left about 60 persons dead.

He said: "The funding of the Iranian debt, which relieves Iran of the
type of pressure it should be under with respect to its sponsorship of
terrorism abroad, is an extraordinarily unfortunate feature of
European, particularly, German, policy and, from time to time,
Japanese as well."

Iran's economy is by any measure in shambles and the country owes
about $30,000 million to several European nations and Japan.

Woolsey also was critical of the Damascus government for its allowing
Syria and Lebanon to remain "a base for operations for terrorism in
and around Israel" at the hands of the pro-Iranian Hizballah
guerrillas in southern Lebanon. Six Israeli soldiers were killed
earlier this month in the so-called Israel security belt there.

The former CIA director noted that the funding of the two Palestinian
fundamentalist groups -- Islamic Jihad and Hamas -- "has migrated in
recent years and months (toward) heavy Iranian support" as well as
backing from Gulf Arab "expatriates living in the Sudan." He did not
identify the latter or provide any amounts for the funding.

Woolsey was not certain whether the incarceration of several
operatives from the Hamas and Islamic Jihad by the Palestine Authority
in the Gaza Strip and the West Bank was the best approach. After
noting that the growth of Hamas was encouraged by Israel in the early
eighties, Woolsey said this month's roundup en masse of several
hundred fundamentalist supporters is "a mixed bag." It may undermine
support for the fundamentalist groups, but at the same time, it could
build up "substantial resentment."

He said the arrest of eight of the 11 senior Hamas military leaders
was more significant. "It is unfortunate and curious" that the
Palestinian Authority has not done this earlier since it has been
possible "for some time."

Woolsey said the best approach to combat terrorism is to infiltrate
its ranks "since espionage ... in many ways is the only line of
defense" in this respect.

A paper distributed by the Washington Institute reported that the
relationship between Iran and Hizballah was in flux. Although the
fundamentalist group was being supported to the tune of about $100-150
million a year in arms and financial aid, the paper claimed that
"Tehran appears to be reducing its aid to Hizballah as the latter
prepares to play a role as a mainstream political party in the new
Lebanon and in anticipation of an Israel-Syria peace agreement that
could further reduce Hizballah's freedom of action."

As a result, the paper alleged, Tehran's support for Hizballah is down
to about $65 million and "much of the difference has been diverted to
the Palestinian Hamas and Islamic Jihad." Additionally, it quoted
unnamed U.S. officials as saying the two groups receive military
training, "including instruction in bomb construction techniques."

The paper was written by Michael Eisenstadt, a military affairs fellow
at the Institute and author of a forthcoming book titled "Iranian
Military Power: Capabilities and Intentions."
NNNN