Saddam's Grab for Advanced Western Arms US Customs' Uncovering of TOW-Missile Smuggling Saga Shows How Iraq's Military Dealt under Table in Hunt for Modern Weapons

By Peter Grier, writer of The Christian Science Monitor | The Christian Science Monitor, August 31, 1990 | Go to article overview

Saddam's Grab for Advanced Western Arms US Customs' Uncovering of TOW-Missile Smuggling Saga Shows How Iraq's Military Dealt under Table in Hunt for Modern Weapons


Peter Grier, writer of The Christian Science Monitor, The Christian Science Monitor


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 technology.

Because unfortunately, Operation Dragon is far from an isolated case.

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 indictment.

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. …

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