THE code word for the merchandise was "toys." But the purpose of
the deal was anything but playful: It might have meant thousands of
United States antitank missiles and other smuggled weapons for the
troops of Iraqi leader Saddam Hussein.
Fortunately for US-led forces now gathering in Saudi Arabia, the
alleged arms middlemen were trapped by Customs Service agents and
taken into custody on Aug. 13.
They fell prey to a year-long probe dubbed "Operation Dragon,"
and their story shows some of the shadowy methods Iraq and other
Middle East nations use to try to obtain advanced weapons
Because unfortunately, Operation Dragon is far from an isolated
The Customs Service currently is conducting more than 20
investigations dealing with potential Iraqi arms-technology
smuggling. There are hints that in the months before Iraq's invasion
of Kuwait its attempts to obtain US weapons intensified.
"Saddam Hussein's got an objective to obtain all the equipment he
can," says Jack Kelley, Customs senior special agent and head of the
EXODUS export control program.
Operation Dragon began in early July 1989, when an American arms
dealer received a letter from a Dr. Claus Fuhler, a German eye
doctor living in Spain, requesting help in obtaining TOW missiles
and other items, according to an indictment handed up in US District
Court in Orlando on Aug. 15.
The tube-launched, wire-guided TOW is the Pentagon's top antitank
weapon and a highly controlled export item. The arms dealer
contacted the Customs Service, agreed to act as an informant, and
then sent Dr. Fuhler a return letter containing TOW brochures.
Fuhler allegedly wrote back that he would be working with a
Spaniard named Juan Martin Peche-Koesters, and that for discretion's
sake they would thereafter refer to the TOWs as "toys." Eventually,
the pair also supplied a secret code for use in communications.
In letters and phone calls during the following months, Fuhler
and Mr. Peche-Koesters allegedly discussed the purchase of 10,000
TOWs for $160 million, 10,000 empty artillery shells capable of
holding poison gas, and some 10,000 conventional artillery shells.
They said their customers were also interested in "rifles,
mortars, demolition charges, grenades, nuclear waste, atomic
garbage, and chemical garbage," according to the unsealed
Early this year, Peche-Kosters also allegedly requested a price
quote on Toyota jeeps mounted with 106mm guns. Purchase of this
equipment was said to be "urgent." The US dealer submitted a bid,
only to be told that the arms brokers in Spain had three days
earlier found an alternative source. …