Iran-Contra: What happened?

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The Iran-Contra affair involved two separate scandals: the selling of weapons to Iran in exchange for hostages held by Hezbollah, and the diversion of excess money from arms sales to fund the Contra rebels in Nicaragua. The scandal implicated members of the Reagan administration, and many documents were destroyed. President Reagan denied involvement, but his faulty memory caused controversy. Oliver North coordinated the implementation of the secret plan and testified but couldn’t remember many details.

In 1987, a commission headed by a former Texas senator named John Tower was convened to investigate allegations of an illegal “guns for hostages” plan carried out by members of then-President Ronald Reagan’s administration. The scandal became known as the Iran-Contra affair, because it involved both the Iranian government and a right-wing insurgent group in Nicaragua known as the Contras. In reality, the Iran-Contra affair linked two separate political scandals under one top-secret umbrella.

In 1983, the Lebanon-based terrorist group Hezbollah took 30 Westerners hostage, including half a dozen Americans. When direct negotiations for their release broke down, the Reagan administration began looking for a solution outside normal diplomatic or military channels. One such solution involved selling desperately needed military equipment to Iran, a close ally of Hezbollah embroiled in a bloody war with Iraq. In exchange for the weapons, Iran would agree to put pressure on Hezbollah to release the hostages unharmed.

This original plan did not work out as planned, with Hezbollah continuing to hold most of the hostages. Since the United States was prohibited by law from selling weapons to Iran, another plan used Israel as a go-between. This plan also failed. Desperate for a viable solution, the Reagan administration turned to the National Security Agency (NSA) for assistance. The NSA formulated a new strategy to deliver weapons to Iran and tasked Lieutenant Colonel Oliver North with coordinating the implementation of that secret plan. Thus the seeds of what was to become the Iran-Contra affair were planted.

The NSA plan included a bold and legally questionable decision to inflate the price of any weapon sold to Iran in exchange for the hostages’ release. At first, Iran refused to pay the significant markup on the weapons, but later agreed after realizing that other vendors were unavailable. The extra money raised from arms sales to Iran would then be used to finance another project already underway in Nicaragua.

The left-wing regime led by Daniel Ortega ruled Nicaragua with an iron fist, and the Reagan administration backed the right-wing Contra fighters who sought to overthrow him. Direct funding of the Contras would violate international law, but Contra fighters could not sustain their attacks without financial assistance. During this critical part of the Iran-Contra affair, Oliver North, with the tacit approval of his White House and NSA superiors, decided to divert excess money from Iranian arms sales to Contra rebels in Nicaragua.

The precise details of how these illicit “hostage weapons” and funding of Contra rebels unfolded may never be known, since many of the documents regarding the Iran-Contra affair were later destroyed by North, his secretary Fawn Hall and other members of the Reagan administration. Many of those officials directly involved in the Iran-Contra affair have resigned in disgrace or been summarily fired.

During the actual Tower Commission investigation into the Iran-Contra affair, President Reagan was questioned about his personal knowledge of the NSA plans. Reagan has categorically denied any involvement in planning or approving covert arms sales. His faulty memory, however, created some public controversy. Reagan has implied that his vice president, George HW Bush, may have been present at certain meetings where the details of the Iran-Contra affair were discussed. Oliver North’s own testimony became a riveting television event, even though he said he can’t remember numerous details of his covert operation.




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