Stung By Role In Arming Iraq, Germany To Aid Israel

U.S. and British intelligence services have told the government that more than 80 German companies are suspected of violating the U.N. embargo against Iraq. Last week, the government announced the preliminary prosecution of seven companies suspected of breaking the embargo.

More than 110 companies are suspected of having helped Hussein build his military arsenal since 1980. One company, Walter-Thosti-Boswau, has admitted it built a $65 million bunker for the Iraqi president.

A study group of the opposition Social Democratic Party told the parliamentary committee yesterday that German companies had helped Iraq in five main areas: development of gas factories; creation of a factory to build a deadly super-cannon; participation of several small firms in increasing the Scud's range and accuracy; nuclear industry; and helping develop a new rocket, the Condor.

The party pointed out that many of those projects were done legally. It therefore proposed a tightening of export rules to limit the export of weapons to NATO countries or countries allied with NATO.

Kohl declined yesterday to say how much of an added contribution Germany might make to the American war effort. He did say, however, that it would be substantial and would probably require a tax increase. Japan, which has also kept the war at arm's length thus far, announced yesterday that it would contribute an extra $9 billion to the war effort.

Kohl also declined to say what Germany would do if Iraq attacked Turkey. Germany has 18 jets and about 230 airmen and ground personnel stationed in Turkey as part of a NATO defensive squadron.

One widely held interpretation of the German constitution says German forces can only be used within NATO or to defend a NATO partner from attack

from the outside. The issue in Turkey's case is whether a NATO response would be required since Turkey would have provoked the attack by allowing the Americans to use the NATO base Incirlik for strikes against Iraq.