CBS Evening News for Tuesday, Oct 18, 1977
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(Studio) Senate Foreign Relations Committee votes unanimously to recommend to President Carter that arms sales to Saudi Arabia, Iran and other Persian Gulf ntns. be limited. There is concern with regard to region's military balance. Iran wants United States arms and rptdly. is proposing barter deal to get them.
REPORTER: Walter Cronkite
(DC) General Dynamics Corp., which makes airplanes, has apparently acted as go-between in deal with Iran to exchange oil for arms. (General Dynamics film shown.) General Dynamics builds F-16 fighters and Iran has ordered 160, offering to give direct exchange of oil for planes; however, all foreign arms sales must be done through government and completed for cash. Iran then asked General Dynamics to find independent oil company which would buy oil Iran would in turn give money to United States government and buy arms. Accding. to congress sources, General Dynamics has put Iran in touch with Ashland Oil Company of Kentucky; Iran confirms it has been in touch with Ashland, but oil company refuses comment. Govt. sources say there's nothing illegal in such deal, but it will raise questions from Congmen. opposed to United States being continually drawn into Iran's defense efforts.
REPORTER: Ike Pappas