It's 1981 West Germany. Katrin delivers a bomb made by mysterious PLO bomb-maker Khalil killing an Israeli diplomat and his family. Charlie (Diane Keaton) is a naive pro-Palestinian actress. She is in Greece to do a job. When she spots Joseph, she believes him to be the masked Palestinian spokesman whose meeting she attended. He's actually an Israeli Mossad agent and they had taken the real masked man who is Khalil's brother Michel. The whole Greece trip is an Israeli trick. They reveal themselves to her and Martin Kurtz (Klaus Kinski) recruits her to be the brother's girlfriend to infiltrate Khalil's group.
John le Carré's brand of espionage stories is often muddled. His world is a murky chaotic vision where questionable things are done which are often not the right course of action. Having said that, I don't understand why the Israelis would ever recruit Charlie. It doesn't make sense to me. I don't see Charlie helping the Israelis or ever believe them enough to really help them. They don't need the recruit to be Jewish, just not anti-Israeli. It might make sense if they pretend to be another terrorist group hoping to connect to Khalil. It's simply hard to understand the Israeli's course of action. Charlie's motivation for her journey is way too twisty. If one can ignore the questionable motivations, the plot is an intriguing twisty affair.