| The
full story of the Iran-Contra affair is complicated, and, for this Nation,
profoundly sad. In the narrative portion of this Report, the Committees
present a comprehensive account of the facts, based op 10 months of investigation,
including 11 weeks of hearings.
But the facts alone do not explain how this or why the events occurred.
In this Executive Summary, the Committees focus on the key issues and
offer their conclusions. Minority, supplemental, and additional views
are printed in Section II and Section III.
Summary
of the facts
The Iran-Contra Affair has its origin in two unrelated revolutions
in Iran and Nicaragua. In Nicaragua, the long-time President, General
Anastasio Somoza Debayle, was overthrown in 1979 and replaced by a government
controlled by Sandinista leftists. In Iran, the pro-Western Government
of the Shah Mohammed Riza Pahlavi was overthrown in 1979 by Islamic fundamentalists
led by Ayatollah Khomeini. The Khomeini Government, stridently anti-American,
became a supporter of terrorism against American citizens.
Nicaragua
United States policy following the revolution in Nicaragua was to encourage
the Sandinista Government to keep its pledges of pluralism and democracy.
However, the Sandinista regime became increasingly anti-American and autocratic;
began to aid leftist insurgency in El Salvador; and turned toward Cuba
and the Soviet Union for political, military, and economic assistance.
By December 1981, the United States had begun supporting the Nicaraguan
Contras, armed opponents of the Sandinista regime.
The Central Intelligence Agency (CIA) was the US Government agency that
assisted the Contras. In accordance with the Presidential decisions, known
as Findings, and with funds appropriated by Congress, the CIA armed, clothed,
fed and supervised the Contras. Despite this assistance, the Contras failed
to win widespread popular support or military victories within Nicaragua.
Although the President continued to favour support of the Contras, opinion
polls indicated that a majority of the public was not supportive. Opponents
of the Administration's policy feared that US involvement with the Contras
would embroil the United States in another Vietnam. Supporters of the
policy feared that, without U. S support for the Contras, the Soviets
would gain a dangerous toehold in Central America.
Congress prohibited Contra aid for the purpose of overthrowing the Sandinista
Government in fiscal year 1983, and limited all aid to the Contras in
fiscal year 1984 to $24 million. Following disclosure in March and April
1984 that the CIA had role in the Connections with the mining of the Nicaraguan
harbours without adequate notification to Congress, public criticism mounted
and the Administration's Contra policy lost much of it's support within
Congress. After further vigorous debate, Congress exercised its Constitutional
power over appropriations and cut off all funds to the Contras' military
and paramilitary operations. The statutory provision cutting off funds,
known as the Boland Amendment, was part of a fiscal year 1985 omnibus
appropriations bills, and was signed into law by the President on October
12 1984.
Still, the President felt strongly about the Contras, and he ordered his
staff, in the words of his National Security Adviser, to find a way to
keep the Contras "body and soul together." Thus began the story
of how the staff of a White House advisory body, the NSC staff, became
an operational entity that secretly ran the Contra assistance effort,
and later the Iran initiative. The action officer placed in charge of
both operations was Lt.Col. Oliver L North.
Denied funding by Congress, the President turned to third countries and
private sources. Between June 1984 and the beginning of 1986, the President,
his National Security Adviser, and the NSC staff secretly raised $34 million
for the Contras from other countries. An additional $2.7 million was provided
for the Contras during 1985 and 1986 from private contributors, who were
addressed by North and occasionally granted photo opportunities with the
President. In the middle of this period, Assistant Secretary of State
A. Langhorne Motley- from whom these contributions were concealed- gave
his assurance to Congress that the Administration was not "soliciting
and/or encouraging third countries" to give funds to the Contras
because, as he conceded, the Boland Amendment prohibited such solicitation.
The first contributions were sent by the donors to bank accounts controlled
and used by the Contras. However, in July 1985, North took control of
the funds and -with the support of two National Security Advisers (Robert
McFarlane and John Pointdexter) and, according to North, Director Casey-
used those funds to run the covert operation to support the Contras.
At the suggestion of Director Casey, North
recruited Richard V. Secord, a retired Air Force Major General with experience
in special operations. Secord set up Swiss bank accounts, and North steered
future donations into these accounts. Using these funds, and funds later
generated by the Iran arms sales, Secord and his associate, Albert Hakim,
created what they called "the Enterprise," a private organisation
designed to engage in covert activities on behalf of the United States.
The Enterprise, functioning largely at North's direction, had its own
airplanes, pilots, airfield, operatives, ship, secure communications devices,
and secret Swiss bank accounts. For 16 months, it served as the secret
arm of the NSC staff, carrying out with private and non-appropriated money
and without the accountability or restrictions imposed by law on the CIA,
a covert Contra aid program that Congress thought it had prohibited.
Although the CIA and other agencies involved in intelligence activities
knew that the Boland Amendment barred their involvement in covert support
for the Contras, North's Contra support operation received logistical
and tactical support from various personnel in the CIA and other agencies.
Certain CIA personnel in Central America gave their assistance. The U.S.
Ambassador in Costa Rica, Lewis Tambs, provided his active assistance.
North also enlisted the aid of Defense Department personnel in Central
America, and obtained secure communications equipment from the National
Security Agency. The Assistant Secretary of State with responsibility
for the region of this support, Elliott Abrams, professed ignorance of
this support. He later stated that he had been "careful not to ask
North lots of questions."
By Executive Order and National Security Decision Directive issued by
President Reagan, all covert operations must be approved by the President
personally and in writing. By statue, Congress must be notified about
each covert action. The funds used for such actions, like all government
funds, must be strictly accounted for.
The covert action directed by North however, was not approved by the President
in writing. Congress was not notified about it. And the funds to support
it were never accounted for. In short, the operation functioned without
any accountability required of Government activities. It was an evasion
of the Constitution's most basic check on Executive action- the power
of Congress to grant or deny funding for Government programs.
Moreover, the overt action to support the Contra was concealed from Congress
and the public. When the press reported in the summer of 1985 that the
NSC staff was engaged in raising money and furnishing military support
to the Contras, the President assured the public that the law was being
followed. His National Security Adviser, Robert C. McFarlane, assured
Committees of Congress, both in person and in writing, that the NSC staff
was obeying both the spirit and letter of the law, and was neither soliciting
money nor coordinating military support for the Contras.
A year later, McFarlane's successor, Vice Admiral John M. Pointdexter,
repeated these assurances to Congressional Committees. Then, with Pointdexter's
blessing, North told the House Intelligence Committee he was involved
neither in fundraising for, nor in providing military advice to, the Contras.
When one of Secord's planes was shot down over Nicaragua on October 5,
1986, the President and several administration spokesmen assured the public
that the U.S. Government had no connection with the flight or the captured
American crew member, Eugene Hasenfus. Several senior Government officials,
including Elliott Abrams, gave similar assurances to Congress.
Two moths later, McFarlane told Congressional Committees that he had no
knowledge of contributions made by a foreign country, Country 2, to the
Contras, when in fact McFarlane and the President had discussed and welcomed
$32 million in contributions from that country. In addition, Abrams initially
concealed from Congress- in testimony given to several Committees- that
he had successfully solicited a contribution of $10 million from Brunei.
North conceded at the Committees' public hearings that he had participated
in making statements to Congress that were "false", "misleading",
"evasive and wrong."
During the period when the Administration was denying
to Congress that it was involved in supporting the Contras' war effort,
it was engaged in a campaign to alter public opinion and change the vote
in Congress on Contra aid. Public funds were used to conduct public relations
activities; and certain NSC staff members, using the
prestige of the White House and the promise of meetings with the President,
helped raise private donations for media campaigns and for weapons to
be used by the Contras.
Pursuant to a Presidential directive in 1983 the Administration adopted
a 'public diplomacy' program to promote the President's Central American
policy. The program was conducted by an office in the State Department
known as the Office for Public Diplomacy for Latin America and the Caribbean,
(S/LPD). S/LPD's activities were coordinated not within State Department,
but an interagency working group established by the NSC. The principle
NSC staff for a year with Casey's approval, and who upon retirement from
the CIA became a Special Assistant to the President with responsibility
for public diplomacy matters.
S/LPD produced and widely disseminated a variety of pro-Contra publications
and arranged speeches and press conferences. It also disseminated what
one official termed '"white propaganda": pro-Contra newspaper
articles by paid consultants who did not disclose their connection to
the Administration. Moreover, under a series of sole source contracts
in 1985 and 1986, S/LPD paid more that $400,000 for pro Contra public
relations work to International Business Communications (IBS), a company
owned by Richard Miller, whose organization was described by one White
House representative as a "White House outside the White House."
The Administration, like Members of Congress, may appeal directly to the
people for support of its positions; and government agencies may legitimately
disseminate information and educational materials to the public. However,
by law appropriated funds may not be used to generate propaganda "designed
to influence a Member of Congress;" and by law, as interpreted by
the Office of the Comptroller General, appropriated
funds may not be used by the State Department for ''covert" propaganda
activities. A GAO report concluded that S/LPD's white propaganda activities
violated the ban of arranging "covert propaganda."
Private funds were also used. North and Miller helped
Carl R. "Spitz" Channell raise $10 million, most of which went
to Channell's tax-exempt organization, the National Endowment for the
Preservation of Liberty (NEPL). They arranged numerous "briefings"
at the White House complex on Central America by Administration officials
for groups of potential contributors. Following these briefings, Channell
reconvened the groups at the Hay-Adams Hotel, and made a pitch for tax-deductible
contributions to NEPL's Central America "public education" program
or, in some individual cases, for weapons. Channell's major contributors
were given in private briefings by North, and were afforded Private visits
and photo sessions with the President. On one occasion, President Reagan
participated in a briefing.
Using the donated money, Channell ran a series of television advertisements
in 1985 and 1986, some of which were directed at television markets covering
the home districts of Congressmen considered to be 'swing' votes on Contra
aid. One series of advertisements was used to attack Congressman Mike
Barnes, a principle opponent to Contra aid, and one of the Congressmen
to whom Administration officials had denied violating the Boland Amendment
in September of 1985. Channell later boasted that he "had participated
in a campaign to ensure Congressman Barnes' defeat."
Of the $10 million raised by North, Channell and Miller, more than $1
million was used for pro-Contra publicity. Approximately $2.7 million
was sent through IBC and off-shore accounts of another Miller-controlled
company to Secord's Swiss accounts, or to Calero's account in Miami. Most
of the remainder was spent on salaries and expenses for Channell, Miller
and their business associates.
NEPL's charter did not contemplate raising funds for a covert war in Nicaragua,
and the Internal Revenue Service never approved such activity when the
NEPL was granted exempt status. As a consequence, Channell and Miller
have each pleaded guilty to the crime of conspiring to defraud the United
States Treasury of revenues "by subverting and corrupting the lawful
purposes of NEPL." Channell named North as a conspirator.
In private fundraising, as in the "white propaganda" campaign,
the goal of supporting the Contras was allowed to override sensitivity
to law and to accepted norms of behaviour.
Iran
The NSC staff was already engaged in covert operations through Secord
when, in the summer of 1985, the Government of Israel proposed that missiles
be sold to Iran in return for the release of seven American hostages held
in Lebanon and the prospects of improved relations with Iran. The Secretaries
of State and Defense repeatedly opposed such sales to a government designated
by the United States as a supporter of international terrorism. They called
it a straight arms-for-hostages deal that was contrary to U.S. public
policy. They also argued that these sales would violate the Arms Export
Control Act, as well as the U.S. arms embargo against Iran. The embargo
had been imposed after the taking of hostages at the U.S. Embassy in Tehran
on November 4 1979, and was continued because of the Iran-Iraq war.
Nevertheless, in the summer on 1985, the President authorized Israel to
proceed with the sales. The NSC staff conducting the Contra covert action
also took operational control of implementing the President's decisions
on arms sales to Iran. The President did not sign a finding for this covert
operation, nor did he notify the Congress.
Israel shipped 504 TOW anti-tank missiles to Iran in August and September
1985. Although the Iranians had promised to release most of the American
hostages in return, only one, Reverend Benjamin Weir, was freed. The President
persisted. In November he authorized Israel to ship 80 HAWK anti-aircraft
missiles in return for all the hostages, with a promise of prompt replenishment
by the United States, and 40 more HAWKS to be sent directly by the United
States to Iran. Eighteen HAWK missiles were actually shipped from Israel
in November 1985, but no hostages were released.
In early December 1985, the President signed a retroactive Finding purporting
to authorize the November HAWK transaction. That Finding contained no
reference to improved relations with Iran. It was a straight arms-for-hostages
Finding. National Security Adviser Pointdexter destroyed this Finding
a year later because, he testified, its disclosure would have been politically
embarrassing to the President.
The November HAWK transaction had additional significance. The Enterprise
received a $1 million advance from the Israelis. North and Secord testified
this was for transportation expenses in connection with the 120 HAWK missiles.
Since only 18 missiles were shipped, the Enterprise was left with more
than $800,000 in spare cash. North directed the Enterprise to retain the
and spend it for the Contras. The "diversion" had begun.
North realized that the sale of missiles to Iran could be used to support
the Contras. He told Israeli Defense Ministry officials on December 6
1985, one day after the President signed the Finding, that he planned
to generate profits on future arms sales for activities in Nicaragua.
On December 7, 1985, the President and his top advisers met again to discuss
the arms sales. Secretaries Shultz and Weinberger objected more vigorously
once more, and Weinberger argued that the sales would be illegal. After
a meeting in London with an Iranian interlocutor and the Israelis, McFarlane
recommended that the sales be halted. Admiral John Pointdexter (the new
National Security Adviser), and Director Casey were aware of the opposite
opinion.
The President decided to go forward with the arms sales to get the hostage
back. He signed a Finding on January 6 1986, authorizing more shipments
of missiles for the hostages. When the CIA's General Counsel pointed out
that authorizing Israel to sell its U.S.-manufactured weapons to
Iran might violate the Arms Export Control Act, the President, on the
legal advice of the Attorney General, decided to authorize direct shipments
of the missiles to Iran by the United States and signed a new Finding
on January 17 9168. To carry out the sales, the NSC staff turned once
again to the Enterprise.
Although North had become sceptical that the sales would lead to the release
of the hostages or a new relationship with Iran, he believed that the
prospect of generating funds for the Contras was "an attractive incentive"
for continuing the arms sales. No matter how many promises the Iranians
failed to keep throughout this secret initiative, the arms sales continued
to generate funds for the Enterprise, and North and his superior, Pointdexter,
were consistent advocates for their continuation. What North and Pointdexter
asserted in their testimony that they did not know, however, was that
most of these arms sales profits would remain with the Enterprise and
never reach the Contras.
In February 1986, the United States, acting through the Enterprise, sold
1,000 TOWs to the Iranians. The U.S. also provided the Iranians with the
military intelligence about Iraq. All of the remaining American hostages
were supposed to be released upon Iran's receipt of the first 500 TOWs.
None was. But the transaction was productive in one respect. The difference
between what the Enterprise paid the United States for the missiles and
what it received from Iran was more than $6 million. North directed part
of this profit for the Contras and for other covert operations. Pointdexter
testified that he authorized this "diversion."
The diversion, for the Contras and other covert activities, was not an
isolated act by the NSC staff. Pointdexter saw it as "implementing"
the President's secret policy that had been in effect since 1984 of using
Non-appropriated funds following the passage of the Boland Amendment.
According to North, CIA Director Casey saw the
"diversion" as part of a more grandiose plan to use the Enterprise
as a "stand alone", "off-the-shelf", covert capacity
that would act throughout the world while evading Congressional Review.
To Casey, Pointdexter, and North, the diversion was an integral part of
selling arms to Iran and just one of the intended uses of the proceeds.
In May 1986, the President again tried to sell weapons to get the hostages
back. This time, the President agreed to ship parts for the HAWK missiles
but only on the condition that all American hostages in Lebanon be releases
first. A mission headed by Robert McFarlane, the former National Security
Adviser, travelled to Tehran with the first instalment of the HAWK parts.
When the mission arrived, McFarlane learned that the Iranians claimed
they had never promised to do anything more than try to obtain the hostages'
release. The trip ended amid misunderstanding and failure, although the
first instalment of HAWK parts were delivered.
The Enterprise was paid, however, for all of the HAWK parts, and realized
more than an $8 million profit, part of which was applied, at North's
direction, to the Contras. Another portion of the profit was used by North
for other covert operations, including the operation of a ship for a secret
mission. The idea of an off-the-shelf, stand-alone covert capacity had
become operational.
On July 26, 1986, another American hostage, Father Lawrence Jenco, was
released. Despite all the arms sales, he was only the second hostage freed,
and the first since September 1985. Even though McFarlane had vowed at
the Tehran meeting nor to deliver the remainder of the HAWK parts until
all the hostages were released, the Administration capitulated again.
The balance of the HAWK parts was shipped when Father Jenco was released.
In September and October 1986, the NSC staff began negotiating with a
new group of Iranians, the "Second Channel", that Albert Hakim
had opened, in part through promise of bribes. Although these Iranians
allegedly had better contacts with Iranian officials, they in fact, represented
the same principals as did the First Channel and had the same arrangement
in mind, the Administration insisted on release of all the hostages but
settled for less.
In October, after a meeting in London, North left Hakim to negotiate with
the Iranians. Hakim made no secret of his desire to make large profits
for himself and general Secord in the $15 billion-a-year Iranian market
if relations with the Untied States could be restored. Thus, he had every
incentive to make an agreement, whatever concessions might be required.
As an unofficial "ambassador" selected by North and Secord,
Hakim produced a remarkable nine-point plan, subsequently approved by
North and Pointdexter, under which the United States would receive "one
and a half" hostages (later reduced to one). Under the plan, the
United States agreed not only to sell the Iranians 500 more TOWs, but
Secord and Hakim promised to develop a plan to induce the Kuwaiti Government
to release the Da'wa prisoners (Seventeen Kuwaiti prisoners, connected
to "al-Dawa", and Iranian revolutionary group, had been convicted
and imprisoned for their parts in the December 12, 1983, attacks in Kuwait
on the U.S. Embassy, a U.S. civilian compound, the French Embassy, and
several Kuwait I Government facilities. The plan to obtain the release
of the Da'wa prisoners did not succeed, but the TOW missiles for sold
for use by the Iranian Revolutionary Guard. Following the transfer of
these TOWs, a third hostage, David Jacobsen, was released on November
2 1986, and more profit was generated for the Enterprise.
Pointdexter testified that the President approved the nine-point. But
other testimony raises questions about this assertion. Regardless of what
Pointdexter may have told the President, Secretary Shultz that when he
informed the President on December 14 1986, that the nine-point plan included
a promise about the release of the Da'wa prisoners in Kuiwait, the President
reacted with shock, "like he had kicked in the belly."
During the negotiations with the Second Channel, North and Secord told
the Iranians that the President agreed with their positions that Iraq's
President, Saddam Hussein, had to be removed and further agreed that the
United States would defend Iran against Soviet aggression. They did not
clear this with the President and their representations were flatly contrary
to U.S. policy.
The decision to designate private parties- Secord and Hakim- to carry
out the arms transactions had other ramifications. First, there was virtually
no accounting for the profits from the arms deals. Even North claimed
that he did not know how Secord and Hakim actually spent the money committed
to their custody. The committees' investigation revealed that of the $16.1
million profit from the sales of arms to Iran only about $3.8 million
went to support the Contras (the amount representing "the diversion").
All told, the Enterprise received nearly $48 million from the sale of
arms to the Contras and Iran, and in contributions directed to it by North.
A total of $16.5 million was used to support the Contras or to purchase
the arms sold to (and paid for by) the Contras; $15.2 million was spent
on Iran; Hakim, Secord, and their associate, Thomas Clines, took $6.6
million in commissions and other profit distributions; almost $1 million
went for Other covert operations sponsored by North; $4.2 million was
held in "reserves" for use in future operations; $1.2 million
remained in Swiss bank accounts for the Enterprise; and several thousand
dollars were used to pay for a security system at North's residence.
Second, by permitting private parties to conduct arms sales, the Administration
risked losing control of an important foreign policy initiative. Private
citizens- whose motivations of personal gain could conflict with the interests
of this country- handled sensitive diplomatic negotiations, and purported
to commit the United States to positions that were anathema to the President's
public policy and wholly unknown to the Secretary of State.
The cover up
The sale of arms to Iran was a "significant anticipated intelligence
activity." By law, such an activity ,must be reported to Congress
"in a timely fashion" pursuant to Section 501 of the National
Security Act. If the proposal to sell arms to Iran had been reported,
the Senate and House Intelligence Committees would likely have joined
Secretaries Shultz and Weinberger in objecting to this initiative. But
Pointdexter recommended- and the President decided- not to report the
Iran initiative to Congress.
Indeed, the Administration went to considerable lengths to avoid notifying
Congress. The CIA General Counsel wrote on January 15 1986, the "key
issue in this entire matter revolves around whether or not these will
be reports made to Congress." Shortly thereafter, the transaction
was restructured to avoid the pre-shipment reporting requirements of the
Arms Export Control Act, and place it within the more limited reporting
requirements of the National Security Act. But even these reporting requirements
were ignored. The President failed to notify the group of eight (the leaders
of each party in the House and Senate, and the Chairmen and ranking Minority
Members of the Intelligence Committees) specified by laws for unusually
sensitive operations.
After the disclosure of the Iran arms sales on November 3, 1986, the American
public was still not told the facts. The President sought to avoid any
comment on the ground that it might jeopardise the chance of securing
the remaining hostages' release. But it was impossible to remain silent,
and inaccurate statements followed.
In his first public statement on the subject on November 6, the President
said that reports concerning the arms sales had "no foundation."
A week later, on November 13, the President conceded that the United States
had sold arms, but branded as "utterly false" the allegations
that the sales were in return for the release of the hostages. The President
also maintained that there had been no violations of federal law.
At his news conference on November 19, 1986, he denied that the United
States was involved in the Israeli sales that occurred prior to the January,
17 1986 Finding. The President was asked:
Mr.
President…are you telling us tonight that only shipments with which
we were involved were the one or two that followed you January 17 Finding
and that… there were no other shipments which the U.S. condoned?
The
President replied:
That's
right. I'm saying nothing, but the missiles we sold.
And
on November 25, 1986, the Attorney General- with the President at his
side- announced at a press conference that the President did not know
of the Israeli Shipments until after they had occurred. He stated that
the President learned of the November 1985 HAWK shipment in February 1986.
In fact, however, the Israeli sales, including the HAWK shipment, were
implemented with the knowledge and approval of the President and his top
advisers; and the President himself told Shultz on the day of his press
conference that he had known of the November 1985 shipment when it occurred.
McFarlane, Pointdexter, and North were intimately involved in the Israeli
shipments; and the CIA had actually transported one delivery from Israel
to Iran.
While the President was denying any illegality, his subordinates were
engaging in a cover-up. Several of his advisers had expressed concern
that the 1985 sales violated the Arms Export Control Act, and a "cover
story" had been agreed on if these arms sales were ever exposed.
After North had three conversations on November 18, 1986, about the legal
problems with the Israeli shipments, he, Pointdexter, Casey and McFarlane
all told conforming false stories about U.S. involvement in these shipments.
With McFarlane's help, North rewrote NSC staff chronologies on November
19 and 20, 1986, in such a way that they denied contemporaneous knowledge
by Administration of Israel's shipments to Iran in 1985. They asserted
at one point that the U.S. Government believed the November 1985 shipment
consisted of 'oil-drilling equipment,' not arms.
Pointdexter told Congressional Committees on November 21, 1986, that the
United States had disapproved of the Israeli Shipments and that, until
the day before his briefing, he believed that the Administration officials
did not know about any of them until after they had occurred. He then
destroyed the only Finding signed by the President that showed the opposite.
Casey told Congressional Committees on November 21, 1986, that although
a CIA proprietary airline had actually carried missiles to Iran from Israel
in 1985, the proprietary had been told the cargo was "oil-drilling
equipment."
McFarlane told the Attorney General on November 21, 1986, that the Israelis
said they were shipping oil-drilling equipment in November 1985 and that
McFarlane did not learn otherwise until May 1986.
On learning that the President had authorized the Attorney General to
gather relevant facts, North and Pointdexter shredded and altered official
documents on November 21, 1986, and later that weekend. On November 25,
1986, North's secretary concealed classified documents in her clothing
and, with North's knowledge, removed them from the White House.
According to North, a "fall guy" plan was proposed by Casey
in which North and, if necessary, Pointdexter, would take the responsibility
for the covert Contra support operation and the diversion. On Saturday
November 22, 1986, in the midst of the efforts to conceal what had happened,
Pointdexter had a two and one half hour lunch with Casey. Yet Pointdexter
could not recall anything that was discussed.
North testified that he assured Pointdexter that he had destroyed all
documents relating to the diversion. The diversion nevertheless was discovered
on November 22, 1986, when a Justice Department official, assisting the
Attorney General's fact-finding inquiry, found a "diversion memorandum"
that had escaped the shredder.
Prior to the discovery of the memorandum, each interview by the Attorney
General's fact finding team had been conducted in the presence of two
witnesses, and careful noted were taken in accordance with standard professional
practices. After the discovery of the diversion memorandum-which itself
gave rise to an inference of serious wrongdoing- the Attorney General
departed from these standard practices. A series of important interviews-
Pointdexter, McFarlane, Casey, Regan, and Bush- was conducted by the Attorney
General alone and no notes were made.
The Attorney General then announced at his November 25 press conference
that the diversion had occurred and that the President did not know of
it. But he made several incorrect statements about his own investigations.
He stated that the President had not known of the Israeli pre-Finding
shipments, and he stated that the proceeds of the arms sales had been
sent directly from the Israelis to the Contras. The statements were both
mistaken and inconsistent with information that had been received during
the Attorney General's fact-finding inquiry.
Pointdexter testified to these Committees that the President did not know
of the diversion. North testified that while he assumed the President
had authorized each diversion, Pointdexter told him on November 21, 1986,
that the President had never been told of the diversion.
In light of the destruction of material evidence by Poindexter and North
and of the death of Casey, all of the facts may never be known. The committees
cannot even be sure wether they heard the whole truth or whether Casey's
"fall guy" plan was carried out at the hearings. But enough
is clear to demonstrate beyond doubt that fundamental processed were disregarded
and the rule of law subverted.
Findings
and Conclusions
The common ingredients of the Iran and Contra policies were secrecy, deception
and distain for the law. A small group of senior officials believed that
they alone knew what was right. They viewed knowledge of their actions
by others in the Government as a threat to their objectives. They told
neither the Secretary of State, the Congress nor the American people of
their actions. When disclosure was threatened, they destroyed official
documents and lied to Cabinet officials, to the public, and to elected
representatives in Congress. They testified that they even withheld key
facts from the President.
The United States Constitution specifies the process by which laws and
policy are to be made and executed. Constitutional process is the essence
of our democracy and our democratic form of Government is the basis of
our strength. Time and time again we have learned that a flawed process
leads to bad results, and that a lawless process leads to worse.
Policy Contradictions and Failures
The Administration's departure from democratic processes created the conditions
for policy failure, and led to contradictions which undermines the credibility
of the United States.
The United States simultaneously pursued two contradictory foreign policies-
a public one and a secret one:
- The public policy was not to make any concessions for the release of
hostages lest such concessions encourage more hostage-taking. At the same
time, the United States was secretly trading weapons to get the hostages
back.
- The public policy was to ban arms shipments to Iran and to exhort other
Governments to observe this embargo. At the same time, the United States
was secretly selling sophisticated missiles to Iran and promising more.
The public policy was to improve relations with Iraq. At the same time,
the United States secretly shared military intelligence on Iraq with Iran
and North told the Iranians in contradiction to United States policy that
the United States would help promote the overthrow of the Iraqi government.
- The public policy was to urge all Governments to punish terrorism and
to support, indeed encourage, the refusal of Kuwait to free the Da'wa
prisoners who were convicted of terrorist acts. At the same time, senior
officials secretly endorsed a Secord-Hakim plan to permit Iran to obtain
the release of the Da'wa prisoners.
- The public policy was to observe the 'letter and spirit' of the Boland
Amendment's prescriptions against military or paramilitary assistance
to the Contras. At the same time, the NSC staff was secretly assuming
direction and funding of the Contras' military effort.
- The public policy, embodied in agreements signed by Director Casey,
was for the Administration to consult with the Congressional oversight
committees about covert activities in a 'new spirit of frankness and cooperation.'
At the same time, the CIA and the White House were secretly withholding
from those Committees all information concerning the Iran initiative and
the Contra support network.
- The public policy, embodied in Executive Order 12333, was to conduct
covert operations soley through the CIA or other organs of the intelligence
community specifically authorized by the President. At the same time,
although the NSC was not authorized, the NSC staff secretly became operational
and used private, non-accountable agents to engage in covert activities.
These
contradictions in policy inevitably resulted in policy failure:
- The United States armed Iran, including its most radical elements, but
attained neither a new relationship with that hostile regime nor a reduction
in the number of American hostages.
- The arms sales did not lead to a moderation of Iranian policies. Moderates
did not come forward, and Iran to this day sponsors actions directed against
the United States in the Persian Gulf and elsewhere.
- The United States opened itself to blackmail by adversaries who might
reveal the secret arms sales and who, according to North, threatened to
kill the hostages if the sales stopped.
- The United States undermined its credibility with friends and allies,
including moderate Arab states, by its public stance of opposing arms
sales to Iran while undertaking such arms sales in secret.
- The Untied States lost a $10 million contribution to the Contras from
the Sultan of Brunei by directing it to the wrong bank account- the result
of an improper effort to channel that humanitarian aid contribution into
an account used for lethal assistance.
- The United States sought to illicit funding for the Contras through
profits form the secret arms sales, but a substantial portion of those
profits ended up in the personal bank accounts of the private individuals
executing the sales- while the exorbitant amounts charged for the weapons
inflamed the Iranians with whom the United States was seeking a new relationship.
Flawed
Policy Process
The record of the Iran-Contra Affair also shows a seriously flawed policymaking
process.
Conclusion
There was confusion and disarray at the highest levels of Government.
- McFarlane embarked on a dangerous trip to Tehran under a complete misapprehension.
He thought the Iranians had promised to secure the release of all hostages
before he delivered arms, when in fact they had promised only to seek
the hostages' release, and then only after one planeload of arms had arrived.
- The President first told the Tower Board that he had approved the initial
Israeli shipments. Then, he told the Tower Board that he had not. Finally,
he told the Tower Board that he does not know whether he approved the
initial Israeli shipments, and his top advisers disagree on the question.
- The President claims he does not recall signing a Finding approving
the November 1985 HAWK shipment to Iran. But Pointdexter testified that
the President did sign a Finding on December 5, 1985, approving the shipment
retroactively. Pointdexter later destroyed the Finding to save the President
from embarrassment.
- That Finding was prepared with adequate discussion and stuck in Pointdexter's
safe for a year; Pointdexter claimed he forgot about it; the White House
asserts the President never signed it; and when events began to unravel,
Pointdexter ripped it up.
- The President and the Attorney General told the public that the President
did not know about the November 1985 Israeli HAWK shipment until February
1986- an error the White House Chief of Staff explained by saying that
the preparation for the conference 'sort of confused the Presidential
mind.'
- Pointdexter says the President would have approved the diversion, if
he had been asked; and the President says he would not have.
- One National Security Adviser understood that the Boland Amendment applied
to the NSC; another thought that it did not. Neither sought a legal opinion
on the question.
- The President incorrectly assured the American people that the NSC staff
was adhering to the law and that the Government was not connected to the
Hasenfus airplane. His staff was in fact conducting a 'full service' covert
operation to support the Contras which they believed he had authorized.
- North says he sent five or six completed memorandums to Pointdexter
seeking the President's approval for the diversion. Pointdexter does not
remember receiving any. Only one has been found.
Dishonesty
and Secrecy
The Iran-Contra Affair was characterised by pervasive dishonesty and inordinate
secrecy.
North admitted that he and other officials lied repeatedly to Congress
and the American people about the Contra covert action and Iran arms sales,
and that he altered and destroyed official documents. North's testimony
demonstrates that he also lied to members of the Executive branch, including
the Attorney General, and officials of the State Department, CIA and NSC.
Secrecy became an obsession. Congress was never informed of the Iran or
Contra covert actions, not withstanding the requirement in the law that
Congress be notified of all covert actions in a "timely fashion."
Pointdexter said that Donald Regan, the President's Chief of Staff, was
not told because he might reveal it to the press. Secretary Shultz objected
to third-country solicitation in 1984 shortly before the Boland Amendment
was adopted; accordingly, he was not told that, in the same time period,
the National Security Adviser accepted an $8 million contribution from
Country 2 even though the State Department had prime responsibility for
dealings with that country. Nor was the Secretary of State told by the
President in February 1985 that the same country had pledged another $24
million- even though the President briefed the Secretary of State in his
meeting with the head of state at which the pledge was made. Pointdexter
asked North to keep secrets from Casey; Casey, North, and Pointdexter
agreed to keep secrets from Shultz.
Pointdexter and North cited fear of leaks as a justification for these
practices. But the need to prevent public disclosure cannot justify the
deception practices upon Members of Congress and Executive branch officials
by those who knew of the arms sales to Iran and the Contra support network.
The State and Defence Departments deal with the most sensitive matters
affecting millions of lives here and abroad. The Congressional Intelligence
Committees receive the most highly classified information, including information
on covert activities. Yet, according to North and Pointdexter, even the
senior officials of these bodies could not be entrusted with the NSC's
staff secrets because they might leak.
While Congress's record in maintaining the confidentiality of classified
information is not unblemished, it is not nearly as poor or perforated
as some members of the NSC staff maintained. If the Executive branch has
any basis to suspect that any member of the Intelligence Committees breached
security, it has the obligation to bring that breach to the attention
of the House and Senate Leaders- not make blanket accusations. Congress
has the capability and responsibility of protecting secrets entrusted
to it. Congress cannot fulfil its legislative responsibilities if it is
denied information because members of the Executive branch, who place
their faith in a band of international arms merchants and financiers,
unilaterally declare Congress unworthy of trust.
In the case of the 'secret' Iran arms-for-hostages deal, although the
NSC staff did not inform the Secretary of State, or the leadership of
Congress, it was content to let the following persons know:
-Manucher Ghorbanifar, who flunked every polygraph test administrated
by the U.S. government;
-Iranian officials, who daily denounced the United States but received
an inscribed
Bible from the President;
-Officials of Iran's Revolutionary Guard, who received the U.S. weapons;
-Secord and Hakim, whose personal interests could conflict with the interests
of the United States;
-Israeli officials, international arms merchants, pilots and air crews,
whose interests did not always coincide with ours, and
-An unknown number of shadowy intermediaries and financiers who assisted
with both the First and Second Iranian Channels.
While sharing intelligence with this disparate group, North ordered the
intelligence agencies not to disseminate intelligence on the Iran initiative
to the Secretaries of State and Defense. Pointdexter told the Secretary
of State in May 1986 that the Iran initiative was over, at the time the
mission to Tehran was being launched. Pointdexter also concealed from
Cabinet officials the remarkable nine-point agreement negotiated by Hakim
with the Second Channel. North assured the FBI liaison to the NSC as late
as November 1986 that the United States was not bargaining for the release
of hostages but seizing terrorists to exchange for hostages- a complete
fabrication. The lies, omissions, shredding, attempts to rewrite history-
all continued, even after the President authorized the Attorney General
to find out all the facts.
It was not operational security that motivated such conduct- not when
our own Government was the victim. Rather, the NSC staff feared, correctly,
that any disclosure to Congress or the Cabinet of the arms-for-hostages
and arms-for-profit activities would produce a storm of outrage.
As with Iran, Congress was misled about the NSC staff's support for the
Contras during the period of the Boland Amendment, although the role of
the NSC staff was no secret to others. North testified tat his operation
was well-known to the press in the Soviet Union, Cuba, and Nicaragua.
It was not a secret from Nicaragua's neighbours, with whom the NSC staff
communicated throughout the period. It was not a secret from the third
countries- including a totalitarian state-from whom the NSC staff sough
arms of funds. It was not a secret from the private resupply network which
North recruited and supervised. According to North, even Ghorbanifar knew.
The Administration never sought to hide its desire to assist the Contras
so long as aid was authorized by statute. On the contrary, it wanted the
Sandinistas to know that the United States supported the Contras. After
enactment of the Boland Amendment, the Administration repeatedly and publicly
called upon Congress to resume U.S. assistance. Only the NSC staff's Contra
support activities were kept under wraps. The Committees believe these
actions were concealed in order to prevent Congress from learning that
the Boland Amendment was being circumvented.
It was stated on several occasions that the confusion, secrecy and deception
surrounding the aid program for the Nicaraguan freedom fighters was produced
in part by Congress' shifting positions on Contra aid.
But Congress' inconsistency mirrored the chameleon-like nature of the
rationale offered for granting assistance in the first instance. Initially,
Congress was told that our purpose was simply to interdict the flow of
weapons from Nicaragua into El Salvador. Then Congress was told that our
purpose was to harass the Sandinistas to prevent them from consolidating
their power and exporting their revolution. Eventually, Congress was told
that our purpose was to eliminate all foreign forces from Nicaragua, to
reduce the size of the Sandinista armed forces, and to restore the democratic
reforms pledged by the Sandinistas during the overthrow of the Samoza
regime.
Congress had cast a sceptical eye upon each rationale proffered by the
Administration. It suspected that the Administration's true purpose was
identical to that of the Contras- the overthrow of the Sandinista regime
itself. Ultimately Congress yielded to domestic political pressure to
discontinue assistance to the Contras, but Congress was unwilling to bear
responsibility for the loss of Central America to communist military and
political forces. So Congress compromised, providing in 1985 humanitarian
aid to the Contras; and the NSC provided what Congress prohibited: lethal
support for the Contras.
Compromise is no excuse for violation of the law and deceiving Congress.
A law is no less a law because it is passed by a slender majority, or
because Congress is open-minded about its reconsideration in the future.
Privatization
The NSC staff turned to private parties and third countries to do the
Government's business. Funds denied by Congress were obtained by the Administration
from third countries and private citizens. Activities normally conducted
by the professional intelligence services- which are accountable to Congress-
were turned over to Secord and Hakim.
The solicitation of foreign funds by an Administration to pursue foreign
policy goals rejected by Congress is dangerous and improper. Such solicitations,
when done secretly and without Congressional authorization, create a risk
that the foreign country will expect and demand something in return. McFarlane
testified that 'any responsible official has an obligation to acknowledge
that every country in the world will see benefit to itself by ingratiating
itself with the United States.' North, in fact, proposed rewarding a Central
American country with foreign assistance funds for facilitating shipments
to the Contras. And Secord, who had once been in charge of the U.S. Air
Force's foreign military sales said, 'where there is quid, there is a
quo.'
Moreover, under the Constitution only Congress can provide funds for the
Executive branch. The Framers intended Congress's 'power of the purse'
to be one with the principal checks on Executive action. It was designed,
among other things, to prevent the Executive from involving this country
unilaterally in a foreign conflict. The Constitutional plan does not prohibit
a President from asking a foreign state, or anyone else, to contribute
funds to a third party. But it does prohibit such solicitation where the
United States exercises control over their receipt and expenditure. By
circumventing Congress' power of the purse through third country and private
contributions to the Contras, the Administration undermined a cardinal
principle of the Constitution.
Further, by turning to private citizens, the NSC staff jeopardized its
own objectives. Sensitive negotiations were conducted by parties with
little experience in diplomacy and financial interests of their own. The
diplomatic aspect of the mission failed- the United States today has no
long-term relationship with Iran and no fewer hostages in captivity. But
the private financial aspect succeeded- Secord and Hakim took $2.2 million
more for their personal benefit; in addition, they set aside reserves
of over $4 million in Swiss bank accounts of the Enterprise.
Covert operations of this Government should only be directed and conducted
by the trained professional services that are accountable to the President
and Congress. Such operations should never be delegates, as they were
here, to private citizens in order to evade Governmental restrictions.
Lack of Accountability
The confusion, deception, and privatization which marked the Iran-Contra
Affair were the inevitable products of an attempt to avoid accountability.
Congress, the Cabinet, and the Joint Chiefs of Staffs were denied information
and excluded from the decision-making process. Democratic procedures were
disregarded.
Officials who make public policy must be accountable to the public. But
the public cannot hold officials accountable for policies of which the
public is unaware. Policies that are known can be subjected to the test
of reason, and mistakes can be corrected after consultation with the Congress
and deliberation within the Executive branch itself. Policies that are
secret become the private preserve of the few, mistakes are inevitably
perpetuated, and the public loses control over the Government. That is
what happened in the Iran-Contra Affair:
-The President's NSC staff carried out a covert action in furtherance
of his policy to sustain the Contras, but the President said he did not
know about it.
- The President's NSC staff secretly diverted millions of dollars in profits
from the Iran arms sales to the Contras, but the President said he did
not know about it and Pointdexter claimed he did not tell him.
- The Chairman of the Joint Chief of Staff was not informed of the Iran
arms sales, nor was he ever consulted regarding the impact of such sales
on the Iran-Iraq war or on U.S. military readiness.
- The Secretary of State was not informed of the millions of dollars in
Contra contributions solicited by the NSC staff from foreign governments
with which the State Departments deals each day.
- The Congress was told almost nothing- and what it was told was false.
Deniability
replaced accountability. Thus, Pointdexter justified his decision not
to inform the President of the diversion on the ground that he wanted
to give the President 'deniability'. Pointdexter said he wanted to shield
the President form political embarrassment if the diversion became public.
This kind of thinking is inconsistent with democratic governance. 'Plausible
denial' an accepted concept in intelligence activities, means structuring
an authorized covert operation so that, if discovered by the party against
whom it is directed, United States involvement may be plausibly denied.
That is a legitimate feature of authorized covert operations. In no circumstance,
however, does 'plausible denial' mean structuring an operation so that
it may be concealed from -or denied to- the highest elected officials
of the United States Government itself.
The very premise of democracy is that 'we the people' are entitled to
make our own choices on fundamental policies. But freedom of choice is
illusory if policies are kept, not only from the public, but from its
elected representatives.
Intelligence
Abuses
Covert
Operations
As former National Security Adviser Robert McFarlane testified, 'it is
clearly unwise to rely on covert action as the core of our policy.'' The
Government cannot keep a policy secret and still secure the public support
necessary to sustain it. Yet it was precisely because the public would
not support the Contra policy, and was unlikely to favour arms deals with
Iran, that the NSC staff went underground. This is was a perversion of
the proper concept of covert operations:
- Covert operations should be conducted in accordance with strict rules
of accountability and oversight. In the mid-1970s, in response to disclosures
of abuses within the intelligence community, the Government enacted a
series of safeguards. Each covert action was to be approved personally
by the President, funded by Congressional appropriations, and Congress
was to be informed.
In the Iran-Contra Affair, these rules were violated. The President, according
to Pointdexter, was never informed of the diversion. The President says
he knew nothing of the covert action to support the Contras, or the companies
funded by non-appropriated monies set up by North to carry out that support.
Congress was not notified of either the Iran or Contra operations.
- Covert actions should be consistent with publicly defined U.S. foreign
policy goals. Because covert operations are secret by definition, they
are of course not openly debated or publicly approved. So long as the
policies which they further are known, and so long as they are conducted
in accordance with law, covert operations are acceptable. Here, however,
the Contra covert operation was carried out in violation of the country's
public policy as expressed in the Boland Amendment; and the Iran covert
operation was carried out in violation of the country's stated policy
against selling arms to Iran or making concessions to terrorists. These
were not covert actions, they were covert policies and are incompatible
with democracy.
- Finally, covert operations are intended to be kept from foreign powers,
not from the Congress and responsible Executive agencies within the United
States Government itself. As Clair George, CIA Director of Operations,
testified: 'to think that because we deal in lies, and overseas we may
lie and we may do other things, that therefore that gives you some permission,
some right or some particular reason to operate that way with your fellow
employees, I would not only disagree with that I would say it would a
destruction of s secret service in a democracy.' In the Iran-Contra Affair,
secrecy was used to justify lies to Congress, as the Attorney General,
other Cabinet officials, and the CIA. It was used not as a shield against
out own adversaries, but as a weapon against our own democratic institutions.
The NSC Staff
The NSC staff was created to give the President policy advice on major
national security and foreign policy issues. Here, however, it was used
to gather intelligence and conduct covert operations. This departure from
its proper functions contributed to policy failure.
During the Iran initiative, the NSC staff became the principal body for
both gathering and coordinating intelligence on Iran and for recommending
policy to the President. The staff relied on the Iranians who were interested
only in buying arms, including Ghorbanifar, whom CIA officials regarded
as a fabricator. Pointdexter, in recommending to the President the sale
of weapons to Iran, gave as one of his reasons that Iraq was winning the
Gulf War. That assessment was contrary to the views of intelligence professionals
at the State Department, the Department of Defense, and the CIA, who had
concluded as early as 1983 that Iran was winning the war. Casey, who collaborated
with North and Pointdexter on the Iran and Contra programs, also tailored
intelligence reports to the positions he advocated. The record shows that
the President believed and acted on these erroneous reports.
Secretary Shultz pointed out that the intelligence and policy functions
do not mix, because 'it is too tempting to have your analysis on the selection
of information that is presented favour the policy you are advocating.'
The Committees agree on the need to separate the intelligence and policy
functions. Otherwise, there is too great a risk that the interpretation
of intelligence will be skewed to fit predetermined policy choices.
In the Iran-Contra Affair, the NSC staff not only combined intelligence
and policy functions, but it became operational and conducted covert operations.
As the CIA was subjected to greater Congressional scrutiny and regulation,
a few Administration officials- including Director Casey- came to believe
that the CIA could no longer be utilized for daring covert operations.
So the NSC staff was enlisted to provide assistance in covert operations
that the CIA could not or would not furnish.
This was a dangerous misuse of the NSC staff. When covert operations are
conducted by those on whom the President relies to present policy options,
there is no agency in government to objectively scrutinize, challenge
and evaluate plans and activities. Checks and balances are lost. The high
policy decisions confronting a President can rarely be resolved by the
methods and techniques used by experts in the conduct of covert operations.
Problems of public policy must be dealt with through consultation, not
Pointdexter's 'compartmentation'; with honesty and confidentiality, not
deceit.
The NSC was created to provide candid and comprehensive advice to the
President. It is the judgement of these Committees that the NSC staff
should never again engage in covert operations.
Distain
for Law
In the Iran-Contra Affair, officials viewed the law not as setting boundaries
for their actions, but raising impediments to their goals. When the goals
and the law collided the law gave way:
-The covert program of support for the Contras evaded the Constitution's
most significant check on Executive power: the President can spend funds
on a program only if he can convince Congress to appropriate the money.
When Congress enacted the Boland Amendment, cutting off funds for the
war in Nicaragua, Administration officials raised funds for the Contras
from other sources- foreign Governments, the Iran arms sales, and private
individuals; and the NSC staff controlled the expenditures of these funds
through power over the Enterprise. Conducting the covert program in Nicaragua
with funding from the sale of U.S. Government property and contributions
raised by Government officials was a flagrant violations of the Appropriations
Clause of the Constitution.
- In addition, the covert program of support for the Contras was an evasions
of the letter and spirit of the Boland Amendment. The President made it
clear that while he opposed restrictions on military or paramilitary assistance
to the Contras, he recognized that compliance with the law was not optional.
'(W)hat I might personally wish or what our Government might wish still
would not justify us violating the law of the land,' he said in 1983.
A year later, members of the NSC staff were devising ways to continue
support and direction of Contra activities during the period of the Boland
Amendment. What was previously done by the CIA- and now prohibited by
the Boland Amendment- would now be done instead by the NSC staff.
The President set the stage by welcoming a huge donation for the Contras
from a foreign Government- a contribution clearly intended to keep the
Contras in the field while U.S. aid was barred. The NSC staff thereafter
solicited other foreign Governments, for military aid, facilitated the
efforts of U.S. fundraisers to provide lethal assistance to the Contras,
and ultimately developed and directed a private network that conducted,
in North's words, a 'full service covert operation' in support of the
Contras.
This could not have been more contrary to the intent of the Boland legislation.
Numerous other laws were disregarded:
- North's full-service covert operation was a 'significant anticipated
intelligence activity' required to be disclosed to the Intelligence Committees
of Congress under Section 501 of the National Security Act. No such disclosure
was made.
- By Executive order, a covert operation requires a persona; determination
by the President before it can be conducted by an agency other than the
CIA. It requires a written Finding before any agency can carry it out.
In the case of North's full-service covert operations in support of the
Contras, there was no such personal determination and no such Finding.
In fact, the President disclaims any knowledge of this covert action.
- False statements to Congress are felonies if made with knowledge and
intent. Several Administration officials gave statements denying NSC staff
activities in support of the Contras which North later described in his
testimony as 'false', and 'misleading, evasive, and wrong.'
-
The application of proceeds from U.S. arms sales for the benefit of the
Contra war effort violated the Boland Amendment's ban on U.S. military
aid to the Contras, and constituted a misappropriation of Government funds
derived from the transfer of U.S. property.
- The U.S. Government's approval of the pre-Finding 1985 sales by Israel
of arms to the Government of Iran was inconsistent with the Government's
obligations under the Arms Export Control Act.
- The testimony to Congress in November 1986 that the U.S. Government
had no contemporaneous knowledge of the Israeli shipments, and the shredding
of documents relating to the shipments while a Congressional inquiry into
those shipments was pending, obstructed Congressional investigations.
- The Administration did not make, and clearly intended never to make,
disclosure to the Intelligence Committees of the Finding- later destroyed-
approving the November 1985 HAWK shipment, nor did it disclose the covert
action to which the Finding related.
The Committees make no determination as to whether any particular individual
involved in the Iran-Contra Affair acted with criminal intent or was guilty
of any crime. That is a matter for the Independent Counsel and the Courts.
But the Committees reject any notion that worthy ends justify violations
of law by Government officials; and the Committees condemn without reservation
the making of false statements to Congress and the withholding, shredding,
and alteration of documents relevant to a pending inquiry.
Administration officials have, if anything, an even greater responsibility
than private citizens to comply with the law. There is no place in Government
for law breakers.
Congress
and the President
The Constitution of the United States gives important powers to both the
President and the Congress in the making of foreign policy. The President
is the principal architect of foreign policy in consultation with the
Congress. The policies of the United States cannot succeed unless the
President and Congress work together.
Yet, in the Iran-Contra Affair, Administration officials holding no elected
office repeatedly evidenced disrespect for Congress' efforts to perform
its Constitutional oversight orle in foreign policy:
-Pointdexter testified, referring to his efforts to keep the covert action
in support of the Contras from Congress: 'I simply did not want any outside
interference.'
- North testified: 'I did not want to tell Congress anything' about this
covert action.
- Abrams acknowledge in his testimony that, unless Members of Congressional
Committees asked 'exactly the right question, using exactly the right
words, they weren't going to get the right answers,' regarding solicitation
of third-countries for Contra support.
- And numerous other officials made false statement to, and misled the
Congress.
Several witnesses at the hearings stated or implied that foreign policy
should be left solely to the President to do as he chooses, arguing that
shared powers have no place in a dangerous world. But the theory of our
Constitution is the opposite: policies formed through consultation and
the democratic processed are better and wiser that those formed without
it. Circumvention of Congress is self-defeating, for no foreign policy
can succeed without the bipartisan support of Congress.
In
a system of shared powers, decision- making requires mutual respect between
the branches of government.
The Committees were reminded by Secretary Shultz during the hearings that
'trust is the coin of the realm.' Democratic government is not possible
without trust between the branches of government and between the government
and the people. Sometimes that trust is misplaced and the systems falters.
But for officials to work outside the system because it does not produce
the results they seek is a prescription for failure.
Who Was
Responsible
Who was responsible for the Iran-Contra Affair? Part of our mandate was
to answer that question, not in a legal sense (which is the responsibility
of the Independent Counsel), but in order to reaffirm that those who serve
the Government are accountable for their actions. Based on our investigation,
we reach the following conclusions.
At the operational level, the central figure in the Iran-Contra Affair was
Lt. Col. North, who coordinated all of the activities and was involved in
all aspects of the secret operations. North, however did not act alone.
North's conduct had the express approval of Admiral John Pointdexter, first
as Deputy National Security Adviser, and then as National Security Adviser.
North also had at least the tacit support of Robert McFarlane, who served
as National Security Adviser until December 1985.
In addition, for reasons cited earlier, we believe that the late Director
of Central Intelligence, William Casey, encouraged North, gave him direction,
and promoted the concept of an extra-legal covert organization. Casey, for
the most part, insulated the CIA career employees from knowledge of what
he and the NSC staff were doing. Casey's passion for covert operations-
dating back to his World War II intelligence days- was well known. His close
friendship with North was attested to by several witnesses. Further, it
was Casey who brought Richard Secord into the secret operation, and it was
Secord who, with Albert Hakim, organized the Enterprise. These facts provide
strong reasons to believe that Casey was involved both with the diversion
and with the plans for an 'off-the-shelf' covert capacity.
The Committees are mindful, however of the fact that the evidence concerning
Casey's role comes almost solely from North; that this evidence, albeit
under oath, was used by North to exculpate himself; and that Casey could
not respond. Although North told the Committees that Casey knew of the diversion
from the start, he told a different story to the Attorney General in November
1986, as did Casey himself. Only one other witness, Lt. Col. Robert Earl
that he had been told by North during Casey's lifetime that Casey knew of
the diversion.
The Attorney General recognized on November 21, 1986 the need for an inquiry.
His staff was responsible for finding the diversion memorandum, which the
Attorney General promptly made public. But as described earlier, his fact-finding
inquiry departed from standard investigative techniques. The Attorney General
saw Director Casey hours after the Attorney General learned of the diversion
memorandum, yet he testifies that he never asked Casey about the diversion.
He waited two days to speak to Pointdexter, North's superior, and then did
not ask him what the President knew. He waited too long to seal North's
offices. These lapses placed a cloud over the Attorney General's investigation.
There is no evidence that the Vice President was aware of the diversion.
The Vice President attended several meetings on the Iran initiative, but
none of the participants could recall his views.
The Vice President said that he did not know of the Contra resupply operation.
His National Security Adviser, Donald Gregg, was told in early August 1986
by a former colleague that North was running the Contra resupply operation,
and that ex-associates of Edwin Wilson- a well known ex-CIA official convicted
of selling arms to Libya and plotting the murder of his prosecutors- were
involved in the operation. Gregg testified that he did not consider these
facts worthy of the Vice President's attention and he did not report them
to him, even after the Hasenfus airplane was shot down and the Administration
had denied any connection with it.
The central remaining question is the role of the President in the Iran-Contra
Affair. On this critical point, the shredding of documents by Pointdexter,
North, and others, and the death of Casey, leave the record complete.
As it stands, the President has publicly stated that he did not know of
the diversion. North said that he never told President, but assumed that
the President knew. Pointdexter told North on November 21, 1986 that he
had not informed the President of the diversion. Secord testifies that North
told him he had not informed the President about the diversion, but North
testified that he had fabricated this story to bolster Secord's morale.
Nevertheless, the ultimate responsibility for the events in the Iran-Contra
Affair must rest with the President. It the President did not know what
his National Security Advisers were doing, he should have. It is his responsibility
to communicate unambiguously to his subordinates that they must keep him
advised of important actions they take for the Administration. The Constitution
requires the President to 'take care that the laws be faithfully executed.'
This charge encompasses a responsibility to leave the members of his Administration
in no doubt that the rule of law governs.
Members of the NSC staff appeared to believe that their actions were consistent
with the President's desires. It was the President's policy- not an isolated
decision by North or Pointdexter- to sell arms secretly to Iran and to maintain
the Contras 'body and soul', the Boland Amendment notwithstanding. To the
NSC staff, implementation of these policies became the overriding concern.
Several of the President's advisers pursued a covert action to support the
Contras in disregard of the Boland Amendment and of several statutes and
Executive orders requiring Congressional notification. Several of the same
advisers lied, shredded documents, and covered up their actions. These facts
have been on the public record for months. The actions of those individuals
do not comport with the notion f a country guided by the rule of law. But
the President has yet to condemn their conduct.
The President himself told the public that the U.S. Government had no connection
to the Hasenfus airplane. He told the public that early reports of arms
sales for hostages had 'no foundation.' He told the public that the United
States had not traded arms for hostages. He told the public that the United
States had not condoned the arms sales by Israel to Iran, when in fact he
had approved them and signed a Finding, later destroyed by Pointdexter,
recording his approval. All of these statements by the President were wrong.
Thus, the question whether the President knew of the diversion is not conclusive
on the issue of his responsibility. The President created or at least tolerated
an environment where those who did not know of the diversion believed with
certainty that they were carrying out the President's policies.
This same environment enabled a secretary who shredded, smuggled, and altered
documents to tell the Committees that 'sometimes you have to go above the
written law', and it enabled Admiral Pointdexter to testify that 'frankly,
we were willing to take some risks within the law.' It was in such an environment
that former officials of the NSC staff and their private agents could lecture
the Committees that a 'rightful cause' justifies any means, that lying to
Congress and other officials in the executive branch itself is acceptable
when the ends are just, and that Congress is to blame for passing laws that
run counter to Administration policy. What may aptly be called the 'cabal
of the zealots' was in charge.
In a Constitutional democracy, it is not true, as one official maintained,
that 'when you take the King's shilling, you do the King's bidding.' The
idea of monarchy was rejected here 200 years ago and since then, the law-
not any official or ideology- has been paramount. For not instilling this
precept in his staff, for failing to take care that the law reigned supreme,
the President bears the responsibility.
Fifty years ago Supreme Court Justice Louis Brandeis observed: 'Our Government
is the potent, the omnipresent teacher. For good or for ill, it teaches
the whole people by its example. Crime is contagious. If the Government
becomes a law-breaker, it breeds contempt for law, it invites every man
to become law unto himself, it invites anarchy.'
The Iran-Contra Affair resulted from a failure to heed this message. |