Iran-Contra Affair — Arms for Hostages Linking Iran, Nicaragua, and the White House
The Reagan administration sold missiles to Iran and used the profits to fund Nicaraguan rebels that Congress had prohibited it from funding. Two policies collided. Congress had passed the Boland amendments between 1982 and 1984 cutting off all military aid to the Contras, and the administration had decided to keep them going anyway — soliciting money from Saudi Arabia, Brunei and Taiwan and running the operation out of the National Security Council staff, which was not covered by the statutory language. Separately, seven Americans were being held by Hezbollah in Lebanon, and an approach through Israeli intermediaries offered their release in exchange for TOW and Hawk missiles for Iran, which was three years into its war with Iraq and short of American spare parts. The United States was publicly embargoing arms to Iran and asking its allies to do the same. Oliver North's contribution was to overcharge the Iranians and divert the difference — some 18 million dollars — to the Contras, which he described in a memorandum as a neat idea. The story broke in a Lebanese magazine in November 1986. Fourteen people were charged and eleven convicted, several convictions were overturned on immunity grounds, and George H. W. Bush pardoned six of the remainder in 1992, including a defence secretary awaiting trial. Reagan said in a broadcast that his heart told him no arms had been traded for hostages but the facts told him otherwise. Three hostages were released and three more were taken. The independent counsel's final report concluded that the two operations were known to senior officials including the president and the vice-president, and that the evidence did not establish criminal knowledge beyond reasonable doubt in their cases. It took seven years and cost 47 million dollars.
- Year: 1986 CE
- Category: Political
