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Dat, , : 8/13/811... TOI DIRECTOR. FBI

FROM: SAC. WASHINGTON FIELD O Y 7 I C ~ ' (65C-13191) (P) (CI -7)UNSUES:THl'.:ll"T OF' CLASS I ? 1 m DOClJ) .{ENTS FRCMTHE UNITED BTATES TRADE REPRESE:NTATIYES :ESPIONAGE-ISRAEL .00 : Wl"O

A ll markings. no t&t ione . and i t :ems o f iufol::LlI&tionconta ined i n t h i s COlLUlUllcatioll aLe c las l ! J i f ied "SEC'ftli:'f'" un:lesBet::herwise ftot:eei.He WFO t e l to Di . rec tor da ted 6/20/BII .~ n c l o s e d f o r the Bureau a re th e o r i g i n a l and f o u r

copies of an LHM da t ed and cap t ioned a s above .P r e l ~ i n a r y i n v e s t i g a t i o n by WFO i n d i c a t e s t h a t th ec on f ide n t i a l r epo r t on t r a d e with I s r a e l was l i k e l y t aken whi lebeing prepared a t the I n t e r n a t i o n a l Trade Commiss ion ( ITC) . A

cu r so ry r e v i e ~ of s e c u r i t y procedures a t . I TC d i s c l o s e d nos e c u r i t y procedures a re in p lace t h a t would p r e v e n t o u t r i g h tt h e f t o r th e pr in t ing of an " e x t r a " copy o f t h e r e p o r t .

This c on f ide n t i a l r e po r t c o n t a i n s no n a t i o n a l de fensein fo rma t ion and was o r i g n a l l y c l a s s i f i e d to p r o t e c t th e U.S.barga in ing pos i t ion dur ing ne go t i a t i ons with I s r a e l . The"Eus i ness Conf iden t ia l " in f o r ma t ion i d e n t i f i e s seven U.S.i ndus t r i e s t h a t would be harmed by lower ing i m p o r t tariffs onI s r a e l produc t s . .

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Personnel a t U8T.R and rTC were most ange r ed by th e f a c tt h a t the Amer ican - I s r ae l i Pub l i c A ~ f a i r s Commiss ion (AIPAC) hadapparent ly a t tampted t o i n f l u en ce members o f Congr ess with theuse of a pur lo ined copy o f th e ITC r e p o r t and had unsu r ped t h e i rau t h o r i t y .

WFO f i l e s d i s c l o s e t h a t AIPAC is a power fu l p r o - I s r a e llobbying sroup s t a f f e d by U.8 . c i t i z e n s . WFO files c o n t a i n anu n s u b ~ t a n t i a t e d a l l e ga t i on t h a t a member o f th e I s r a e l iI n t e l l i ge nc e Serv ice was a B t a f f member o f AIPAC.

REQUEST OF THE BUREAUThe Bureau is r eques ted t o co o r d i n a t e t h i s m a t t e r with

the appr op r ia te o f f i c i a l s a t th e DEPARTMENT OF J U S T I C ~ fo r aprosecut ive op in ion .

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pe r sonne l . On May ,3 . 1.984. f ive more c o p i e s were di -s t . r ibut .edwit .hin IT C f o r s en io r s t . a f f / e d i t o r i a l r ev iew and fo r r ev iew byt.he s ix IT C Commissioners . On May 1.6 .. .1984. 1.3 more c o p i e sca l l ed "Act. ion Jacket ." cop ie s were d i s t r i b u t e d w i t h i n ITC as adev i ce fo r r ecording th e c l e a r a n c e s and comments of t hecommiss ioners . On May 31.. 1.984, 40 cop ie s o f t he f i n a l r e p o r twere d is t r ibu t . ed wit.h one .copy to the Pres iden t , . 2B cop ie s t oUSTR. and 1.1. cop i es with in ITC. One copy o f th e statisticalappend ix to th e sUbj ec t repor t . was made a v a i l a b l e t.o USTR on May9 . 1 ~ 4 . to a s s i s t in th e p r ep a r a t i o n o f t e s t imony be f o r eCongress . No ot .her cop ie s were a v a i l a b l e to any o t h e ri n d i v i d u a l s or agenc i es u n t i l May 30. 1.984.

On May 2.1. 1.984. a DEPARTMENT OF COMMERCE (DOC)employee was in Jerusa lem fo l lowing th e formal U . S . - I s r a e l in e g o t i a t i o n s which had been he l d t b j week b e f o r e . ThiS e ~ p l o y e e met with a l _of th e Israeli delega t . ion andan I s r a e l i Embassy o f f i c i a l from WDC. I I s t a t ed he hadr ece ived a cab le from th e I s r a e l i Embassy i n WDC and t henproceeded to r ead from t h i s c a b l e what appea r ed to be a f u l lsummary of the repor t . i nc lud ing the conc lus ions r ega r d ings e ns i t i ve produc t s .

On or about May 30 . 1.984. p r i o r t o the USTRd i s t r i b u t i o n o f the " f i n a l r e p o r t . " a member o f th e TradeSUbcommit.t.ee of the Senate Finance Committ.ee n o t i f i e d USTR t h a taf t .er a conve r sa t ion wit.h an employee o f th e AIPAC. WDC, t h i smember was left with th e impres s ion t h a t AIPAC had a copy o f t.hes u b j ec t r e p o r t al though they d i d n o t o f f e r a copy to t h i semployee. Thi s AIPAC member was f a m i l i a r w i t h t h e r e p o r t ' scon ten t s and conc lus ions .

On June 7 . 1.984. th e I s r a e l i t r a d e m i n i s t e r jn d Ilunched wi th A m b a s s a ~ Q r WII,I.fAM BROCX I _ U S T R = ~ . - - - - b ~ I ~ e c a l l e d thatL Jwas a w a r e - o ~ f ~ t ~ h - e - - c - o - n - . t - e - n - t - s o f th e b7r ep o r t .On June 1.2 and 1.3. 1.984. i n f o r m a t i o n p a s s e d to USTR

i n d i c a t e d t h a t c e r t a in members 'o f Congress cou l d a c q u i r e c o p i e so f the IT C r ep o r t th rough AIPAC.

On June i5 , i 9 th e U9TR g e n e r a l c o u n s e l t e l ephonedAIPAC e m P I O y e e ~ and inqUi red i f ~ h a d a copy o f 0'th e U S r e p o r t . adv i sed t hey d i d . was asked to l ) iC r e turn t h i s co n f i d en t i a l r ep o r t and all cop e s . Subsequen t ly .I lo f AIPAC, c o n t a c t e d USTR. to c la im noknowledge of th e r epo r t h imse l f and to d i s a s s o c i a t e h i m s e l f fromsuch a c t i v i t i e s . A copy of th e USTR r e p o r t was subsequen t ly

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de l ive r ed to USTR. Also d e l i v e r ed was a B u b s t an t i a l p o r t i o n of auecond copy of t he r e po r t i n an u n s o r t e d c o n d i t i o n . The f u l lr e p o r t copy was & copy o f th e " f i n a l r e po r t " and had no .i d e n t i f y i n g mark on t h e o u t s i d e c o v e r which w as c l e a r l y s tampedco n f i d en t i a l . This i n d i c a t e s t h a t t h i s copy was probab ly madep r i o r to th e May 30 d e l i v e r y t o USTR. USTR o f f i c i a l s adv i sed thes i g n i f i c a n c e of t he unau tho r i zed d i s c l o s u r e o f th e co n t en t s o fth e IT C r e p o r t is t h a t t he ba rga in ing p o s i t i o n of th e Uni t edS t a t e s was compromised and "Bus i ness C o n f i d en t i a l " in f o r ma t ionused i n th e r ep o r t was made a v a i l a b l e to t h e p u b l i c . Thi sd isc lo su r e a l so ~ p a c t B on' th e e f f e c t i v e n e s s o f th e IT C tos o l i c i t da ta from th e U. s . b u s i n e s s communi ty. No n a t i o n a ldef ense i n f o r ma t i on . was u t i l iz e d i n th e p r e p a r a t io n o f th e IT Cr e p o r t .OBJECTIVE::

To i de n t i f y i n d i v i d u a l { s ) r e s p o n s i b l e fo r th eunauthor ized d i s c l o s u r e of t he co n t en t s o f th e ITC r e p o r t t o t hegovernment of I s r a e l and employees o f AIPAC t h r ough i n t e r v i e w s o fIT C per sonne l and congr e s s iona l s t a f f a i d e s .