-Caveat Lector-

Israel-Hollywood nuclear connection

Capture of fugitive revives case involving famed producer

By Robert Windrem
MSNBC

http://www.msnbc.com/news/606092.asp?0dm=C1APN&cp1=1

      NEW YORK, July 27   A fugitive U.S. defense scientist wanted on
charges of smuggling nuclear weapons components to Israel is under arrest
in Spain, a development that could prove a major embarrassment for both
Israel and a billionaire Hollywood producer. Richard Kelly Smyth, a
retired 71-year-old aerospace scientist, was arrested July 10 in Malaga
and now awaits extradition to the United States.

SMYTH, A FORMER science adviser to the U.S. Air Force, disappeared in
August 1985 after his indictment, leaving federal investigators unable to
prove his role in the illegal shipment of 800 nuclear weapons triggers to
Israeli companies owned by Arnon Milchan, a Hollywood producer and
industrialist with dual citizenship in Israel and Monaco.
       Smyth fled the United States five months after being indicted by a
federal grand jury in Los Angeles on 15 counts of exporting nuclear arms
technology and 15 counts of falsification of documents from 1979 to 1982.
Officials at the U.S. Embassy in Madrid and the U.S. attorneys office in
Los Angeles said Smyth was in a Spanish jail while the United States
prepared an extradition package that would take months to complete.
       All we can say is that he is in custody in Spain and we are
delighted, Dean Boyd, a spokesman for the U.S. Customs Service, when asked
about Smyths arrest.

THE HOLLYWOOD CONNECTION

Federal officials have long sought a way to revisit the case involving
Milchan, whose producing credits include JFK, L.A. Confidential Brazil,
Fight Club, and Pretty Woman, as well as the Free Willy series and the Fox
television comedy Malcolm in the Middle. The 1985 indictment identified
Milchans companies as the recipient of the nuclear triggers, known as
krytrons. Federal authorities told NBC News in 1993 that Milchan also
shared in the profits derived from the sales. Krytrons, at the time, were
considered dual use components  which have other civilian and military
applications  requiring export licenses.
       Internal documents obtained at that time by NBC News from Milco
International Inc., Smyths company, revealed that he had also exported
other equipment to Israel, including chemicals used to make missile fuel.
Both the krytrons and the chemicals in question are so-called dual use
items.
       But Smyths disappearance, and the unwillingness of Israeli
officials to cooperate with U.S. investigators on the case, left federal
authorities unable to proceed. Nowhere, that is, until Smyth turned up in
Spain.

U.S. officials say Milchan has no exposure to any smuggling charge, as the
statute of limitations on conduct dating from before 1982 has expired.
However, customs officials, who requested anonymity, said anyone can be
prosecuted for obstruction of justice if evidence shows that he or she
aided or in any way encouraged Smyth to flee. Because Smyth fled after
being indicted, the smuggling charges against him are still active, and no
statute of limitations applies.
       Milchan has denied that he had done anything illegal in interviews
with NBC News in 1992 and 1993. Friday, his Los Angeles office said he was
traveling and could not be reached for comment in the wake of Smyths
arrest.

ANYWAY I CAN HELP ISRAEL, I WILL



        However, in interviews with both 60 Minutes and Los Angeles
magazine over the past year, Milchan was less circumspect. In Los Angeles
magazine, he said: Lets assume that theres nothing that Israel and the
United States do separately. ... Ill say it in my own words. I love
Israel, and any way I can help Israel, I will. Ill do it again and again.
       If you say I am an arms dealer, thats your problem. In Israel,
there is practically no business that does not have something to do with
defense.
       Israel has never publicly admitted that it possesses nuclear
weapons. However, U.S. intelligence agencies estimate that Israels arsenal
is the fifth largest in the world, with about 200 warheads, behind those
of the United States, Russia, France and China.
       The Israeli nuclear issue frequently has caused problems for the
United States in its efforts to curb the proliferation of nuclear and
ballistic missile technology in other regions and to get nations like
India, Pakistan and North Korea to adhere to the Nuclear Non-Proliferation
Treaty. Arab states, among others, accuse Washington of a double standard
for not putting similar pressure on Israel to sign the treaty, which would
require declaring the extent of nuclear capabilities and opening nuclear
sites to international inspection.

       Robert Windrem is an investigative producer at NBC News and
co-author with William E. Burrows of Critical Mass: The Dangerous Race for
Superweapons in a Fragmenting World (1994, Simon & Schuster, New York).
MSNBCs Michael Moran contributed to this report.

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