Leading Senator Investigating ‘billy Gate’ Denounces Libya’s Allegation of a Zionist Campaign

The Libyan government’s charge that Zionism is responsible for the U.S. Senate’s investigation of Billy Carter’s influence for Libya with the White House and that its dealings with President Carter’s brother was related only to business transactions came under scathing denunciation today from a leading Senatorial investigator.

Sen. Robert Dole (R.Kans.), who originally called for a Senate investigation of “Billy gate” and is a member of the Senate Judiciary Sub-committee scrutinizing it described the Libyan statements as “obviously absurd” but form “a commentary” on the Carter Administration in that the Libyans “felt” they had “an opportunity to influence our government” through Billy Carter.

The White House, acting on a request from the Jewish Telegraphic Agency for comment an Libya’s smear of Zionism, said last Friday that the Libyan statement is “completely unfounded and an obvious attempt to shift the blame to others.”

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Responding also to JTA’s request, Dale said: “Statements by the Libyan government concerning the Billy Carter investigation and any alleged Zionist conspiracy are obviously absurd and are hardly worthy of comment. But I will say this — it is a sad commentary on the current Administration that the Libyans –one of the most ruthless anti-Semitic regimes in history–felt that they had a friend in the President’s brother and an opportunity to influence our government This, in my opinion, is the real tragedy of the Billy Carter affair, America is now seen by many as an uncertain ally for Israel and as a potential friend for Libya.”

Libyan leader Muammar Qoddafi said in Tripoli yesterday, according to published reports received here, that Libya’s relationship with Billy Carter and the $500,000 loan to him, of which $220,000 had been paid, was related to business transactions. Qoddafi also said the White House had shown “great concern” in repairing relations with Libya the past six months through the Libyan Embassy in Washington but that Billy Carter had no part in these talks.

Qoddafi’s description of Billy Carter’s services as commercial come a week after the businessman who advised Billy Carter in negotiations on a Libyan oil deal said that the prospects of a lucrative oil contract for the President’s brother was proposed by Libyan political leaders and viewed in Libya as a political rather than a commercial mother.

According to Jack McGregor, described as a long-time friend and business advisor of Billy Carter, the oil deal was an apparent effort to enlist Billy’s help in promoting Libyan interests in the United States. “Talks about an oil deal with Billy were handled in Libya by political officials.” McGregor said. “Billy never talked to a single official from the Libyan national oil company” nor any Libyan oil ministry officials.

McGregor, an independent oil businessman, said among those who handled the oil deal talks with Billy was Ahmed Shahati, who oversees Libyan-American relations for the Libyan government.

Meanwhile, some controversy has bubbled over the note dictated by President Carter on June 28, that appeared in his report last Monday to the investigating U.S. Senate subcommittee. This note said “I talked to Billy about his helping Libya and his refusal to sign the foreign agents permit. He has the some lawyer that represented Hamilton (White House Chief of Staff Hamilton Jordan) recently, and doesn’t believe that he needs to file. This can be come an embarrassing incident later on, particularly with American Jews.”

Friends of President Carter and others ridiculed the nation that this meant the President was thinking in terms of the Jews being principally upset by Billy gate “if you were in the President place, wouldn’t you think the same,” one White House official told JTA. “Of course, Jews would be troubled by Libya’s silly leader, another hand said. This doesn’t made anything at all insofar as the President and the Jewish community are concerned.”