Ties To Saddam, Too?

Did Terex aid Saddam Hussein's military buildup in the Persian Gulf? A Commerce Dept. investigation will determine whether the company violated export-control regulations by shipping heavy-duty trucks from its plant in Motherwell, Scotland, to Iraq for use as Scud missile launchers. In April, Dr. Richard C. Fuisz, owner of Fuisz Technology, a medical-equipment maker, told a House committee that in September, 1987, while touring the Scotland plant to arrange a deal to sell heavy equipment to Saudi Arabia, he saw two huge trucks painted in desert camouflage. When Fuisz asked what they were for, he testified, plant manager Art Rowe said: "Missile launchers for the Iraqi military."

"Fuisz's statements are totally false," says Marvin B. Rosenberg, a Terex board member. In 1991, Terex filed a libel suit against Fuisz and journalist Seymour Hersh for publishing the Iraq allegations in The New York Times. Hersh's lawyer is moving to dismiss. Says Fuisz: "I saw what I saw. Truth is the ultimate defense."