The Iran-

Contra Affair

Ronald Reagan, the

Nicaraguan Revolution, and

the

OV

ERV

IEW

• Foreign policy of Reagan administration

as a reaction to changes from 70s

• 1979• Nic.- socialist movement gain power• Iran- US backed Shah

gov. overthrown by radical Islamisists (Ayatollahs)

The Iss

ues

1.US support of rebel forces (Contras) vs. communist Sandinistas

• Congress had stopped $$

(Boland Amend.)2.US selling arms to Iran

in exchange for release of hostages

3.Profits from arms sale

indirectly going to fund

Contras

BackgroundNicaragua, Iran, and U.S. involvement

Nic

ara

gua

• History of US involvement• Monroe Doctrine, Roosevelt

Corollary, Good Neighbor

Policy, Alliance for Progress

• Fighting between conservatives and liberals over control of

government• 1928- Liberal Jose Moncada as President• Former ally Augusto

Sandino continued to fight

against government• US trained Nic. Nat’l Guard

• 1932- Anastasio Somoza

Garcia head of NNG and

supported by US• Sandino maintained own

army and control over

small area of land• 1934- Somoza’s NG killed

Sandino• 1936- Somoza seized

power over Juan Sacasa• Somoza family in power for

43 years

http://www.newsofinterest.tv/politics/book_summaries/anastasio_somoza/index.php

The S

om

oza

s &

Sandin

ista

Revo

luti

on

• 1961- Sandinista Nat’l

Liberation Front (FSLN) formed

• Named after Sandino, anti-

Somoza, pro-socialism, tied to

Cuba• 1967- Anastasio Somoza

Debayle (son) President

• Suppressed opposition,

absorbed power• 1972- Somoza gave self

emergency power after

earthquake• Stole int’l aid $$• 1974- Sandinistas kidnap

elites, Somoza launches

“state of siege” vs. guerillas

and peasants

http://www.newsofinterest.tv/politics/book_summaries/anastasio_somoza/index.php

• By 1977- Pres. Carter

refuse to send aid until

Somoza regime stopped human rights

violations• Sandinistas still rebelling, joined by Nicaraguan businessmen & other

Latin American countries • 1979- US wants

Somoza out plan to

“moderate” new government• 7-19: Sandinistas seize

power

http://foundsf.org/index.php?title=Sandinistas_in_SF

A S

oci

alis

t Sta

te is

born

: S

andin

ista

s in

Po

wer

• Impose state of emergency, seize land/business from “old

regime,” banks/mines/

transit nationalized, nullify

laws, elections• $99 mil in aid sent by US

under Carter• Aid effort and to prevent ties

to USSR & Cuba: FAIL• Align w/ Cubans & Soviets

• Cubans advised on policy

• 1980- sign agreements w/

USSR• Econ, Soc, Tech, Sci• Weapons

Sandis

tas

Gone

Bad

• Sandinistas sending weapons/arms trafficking to Salvadorian rebels,

expansion of socialism• Attempt to guarantee

Soviet support in case

of war vs. US?

Bir

th o

f th

e

Contr

as

• Mid-1980: Nicaraguan

Democratic Force (FDN) formed

• Main base of support for

“Contras”- counterrevolutionaries

• Contras supported by farmers,

Creoles, Indians, disenfranchised• Also, businessmen & elites

• Support armed rebellion

• Operate out of Honduras

• US involvement through $$ and

supplies• Argentina trained men, chose

leadership• Fear of Somoza issues- human

rights violations, violence vs.

noncombatants • Former NG under Somoza involved

http://www.latinamericanstudies.org/contras.htm

https://sites.google.com/site/coldwarhotspotslathrop/nicaragua-3

US R

esp

onse

TO INTERVENE OR NOT

TO INTERVENE. . .?• Carter- use CIA to

support resistance, no

action • Reagan- CIA covert action, end to aid • Funding of rebellions?• Overthrow of Sandinistas?

http://herb.ashp.cuny.edu/items/show/1579

• 1982- Reagan Doctrine support democracy everywhere

• Shifts involvement from supplier to helping shift power• Use of CIA operatives

• Propaganda campaigns

to gain US support leading up to vote on

Contra support $$

DEB

ATE

• 1982- US press reports

on Contra affairs (“secret

war”) and Sandinistas• Debate sparked over

issue• Boland Amendment I: no

$$ to be used to overthrow N. gov. or start

war between N. and Hon.

• Problem? Promises already

made to support Contras at

any cost• Time to defy Congress?

CO

VERT A

CTIO

N

• LOOPHOLE- as long as goal

was not to overthrow N.

gov, could still send $$ in

form of humanitarian aid or

through third-parties• 1983-1984: CIA assists with

air strikes, destruction of

tanks, mines in harbors• Lt. Col. Oliver North- US

Marine, worked for National

Security Council for Reagan

• NS Advisor Robert McFarlane

& Carl “Spitz” Channel-

secured $$ from Saudi Arabia,

Taiwan for Contra support

INC

REA

SE D

A

CTIO

N

• Contra attacks increase, number of soldiers increase• Response of Cuba/USSR to send

more support & weapons for Sandinistas

DEB

ATE II

• 1984- Boland II passed • No federal $$ sent to N.

directly or indirectly• LOOPHOLE: Private third-

party funds, private individuals, other countries

$ to Contras OK• Also, belief that NSC was for

President only and Boland II

not apply• NSC not mentioned in Boland II &

is for policymaking, so not an

intelligence agency/entity

• Relied on North & McFarlane

• Led to more creative ways of

support: arms deals, air

supply ops, intelligence

PR

IVATE F

UN

DIN

G

FOR

CO

NTR

AS

• By 1985- $11 mil. in

arms sent to Contras• Deals with Iranian

businessmen• No solicitation- just that

US funds were out and

they needed support• Airstrip built in Costa

Rica to supply arms• Plane shot down and

crewmember captured by

Sandinistas• North gave US/CIA info.

on location of Soviet

arms/equipment

TH

E D

IVER

SIO

N

SC

HEM

E

• North’s idea to overcharge

Iran for weapons & use prof

its to fund Contras• Richard Secord & Albert

Hakim orchestrate deals

• Reported to Reagan and

John Poindexter (new

advisor of NSC) that $12 M

used for supplies• Men involved in sale of arms

kept much profit- so only a

little got to Contras• Gov. money means 100%

goes to effort, Privately

funded means only a portion

goes toward effort (room for

profit)

CO

NG

RESS

BA

CKT

RA

CK

S

• 1985-1986: Congress

passes legislation to

allow funds to aid Contra effort• State Dept. raises funds, • CIA can train & give

intelligence, but no participation or planning involvement

• 1987- Civil War ends• 1990- Elections

IRA

N

BA

CK

GR

OU

ND

• Mohammad Reza Shah

Pahlavi- “The Shah”o 1953-1979: secular,

authoritarian rule, pro-

Western, modernization

• 1978- protests, riots,

violence by Iranian people

• Lack of focus on religious

values, relationship w/ U.S.

• Jan. ‘79- left Iran, replaced by Ayatollah

Ruhollah Khomeini (religious and political

leader)• Islamic Republic, anti-

American

• U.S. tries to normalize

relations• Need oil access, want to

assert power in ME, keep Soviets out

• Difficult w/ Khomeini-

fundamentalist, anti-

Western

HO

STA

GE

SIT

UATIO

N

• 11/4/1979- Iranians seize US

Embassy in Tehran• Muslim Followers of the Line of

the Imam • Ends friendly relations b/t US and

Iran• 53 hostages taken• Iranian people/gov. agree w/

actions• MFLI a radical group• Iran demands $$ for release

• Released in early 1981 (Regan

presidency)• Others continue to be

kidnapped through the early

1980s• US/Iran relations tense- money

and power doesn’t work over

Iran

IN T

HE

MEA

NTIM

E…

• Iran-Iraq War: 1980-1990

• Reason Iran needed weapons

• Conflict along borders- over

territory/ethnic issues• US publicly supported Iraq

• Saddam Hussein • War a stalemate between

the two countries • Infantry, air, sea, missile

• Human rights violations• Iran- child soldiers• Iraq- chemical warfare on Kurds

(believed sided with Iran)

• 1988- cease-fire• 1990- terms to end war

US

INV

OLV

EM

EN

T

• 1983- US tries to prevent arms

getting to Iran• NSC simultaneously looking for

covert ways to improve

relationship• McFarlane, former CIA officials,

Israel all pulled in to discussions

• Summer 1985- plan devised

• US arms to Iran via Israel in

exchange for American hostages

in Lebanon to be released

• Iran had influence over terrorist

groups who kidnapped Americans

• No evidence plan was backed by

governments- just private citizens

• August 95- McFarlane gets

Reagan’s approval for plan

• Israel will sell US made weapons

to Iran, US will replenish Israel

weapons

• Shipments to Iran begin,

but no hostages released. • Another round sold to

Iran, one hostage released. • LTC Oliver North brought

in to get hostage home• North worked with NSC and

Contras• Arms supply increased,

so did problems• Since dealing w/ private

firms and other countries,

issues w/ security, logistics, diplomacy

IRA

N-C

ON

TRA

• 1985- $ used from sale of arms to

fund contras• “The Enterprise”- company

formed by Secord (worked for

North) and a business partner

• US used to carry out financial

operations in arms deals

• $1 mil from Israel put into Swiss

bank account- 150k spent on those

weapons, rest of profit went to

Contras • 1986- one step further- US sell

arms to Enterprise and then E.

sells to Iran• Israel involved- serves as base for

weapons movement• NSC now led by John Poindexter

TH

E D

IVER

SIO

N

• Sale of arms to Iran continues w/ OK from

Poindexter, though hostages not always

delivered as promised • Enterprise (under

Secord/North) would

buy from CIA, sell to

Iranian arms dealer (Ghorbanifar)• Profits fund Contras via

Enterprise

Iran-C

ontr

a

Heari

ngs

• 1986- Lebanese newspaper broke news

of Diversion scheme• May 1987- House

Select Committee to

Investigate Covert Arms Transactions with Iran & Senate Select Committee on

Secret Military Assistance to Iran and

the Nicaraguan Opposition

• Tower Commission Report

ordered by Reagan • Report implicated North,

Poindexter & others• Reagan not blamed, but he

should have known more

• North claimed Reagan knew- but no

evidence• "Using the Contras as a front, and

against international law, and US

law, weapons were sold, using

Israel as intermediaries, to Iran,

during the brutal Iran-Iraq war.

The US was also supplying weapons to Iraq,

including ingredients for

nerve gas, mustard gas and other

chemical weapons."• 41 days of hearings, 3 months

• Many pardoned from criminal

charges