A State Department spokesman today said that there was “absolutely no foundation in fact” in the report from Jerusalem that American diplomatic representatives in the Middle East were offering economic assistance and arms to Arab governments.
The spokesman said that the rumor might have been started by the fact that an ?ranian government military mission is now here to arrange for the purchase of surplus military equipment for the refurnishing of the Iranian army for internal security purposes. He also pointed out that there have been various surplus property credit arrangements in Middle Eastern countries, and something like that night have touched off the rumor.
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