Iran-Contra Iran-Contra ScandalScandal

Q. Was Iran-Contra worse than Watergate?

Reagan’s Foreign PolicyReagan’s Foreign Policy

Rejection détente, Realpolitik Rejection détente, Realpolitik (publicly)(publicly)

Changed attitudes: Soviets Changed attitudes: Soviets defeatabledefeatable no mere containment no mere containment

Ignored/overlooked democracy: no Ignored/overlooked democracy: no action apartheid S Africa action apartheid S Africa (“constructive engagement”) until (“constructive engagement”) until divestiture movement forces divestiture movement forces sanctions ‘86sanctions ‘86

Why not Reagan?Why not Reagan?

The scandal involved serious legal, The scandal involved serious legal, constitutional, and moral constitutional, and moral “improprieties” much greater than “improprieties” much greater than the Watergate break inthe Watergate break in

When scandal first broke out, a When scandal first broke out, a majority of Americans called for majority of Americans called for Reagan’s impeachmentReagan’s impeachment

Why did Reagan survive when Nixon Why did Reagan survive when Nixon had fallen?had fallen?

I. The Contra EndI. The Contra End

A. Support for A. Support for SomozaSomoza

Brutal dynasty of Brutal dynasty of dictators who dictators who came to power in came to power in Nicaragua in 1934Nicaragua in 1934

Pro-USPro-US

Anastasio Somoza

B. The SandinistasB. The Sandinistas

1961: Sandinista 1961: Sandinista National National Liberation Front Liberation Front formed (FSLN)formed (FSLN) Communist/Communist/

nationalistnationalist Led by Led by Daniel Daniel

OrtegaOrtegaOrtega

1978: US suspends 1978: US suspends military aid to military aid to Somoza regimeSomoza regime

1979: FSLN 1979: FSLN overthrows Somoza overthrows Somoza and sets up and sets up communist regime communist regime (nationalize, (nationalize, redistribute land, redistribute land, etc.)etc.)

C. American ReactionC. American Reaction Carter: fait accompliCarter: fait accompli

Rejected request for Rejected request for $75 million in aid $75 million in aid (disliked (disliked revolutionaries)revolutionaries)

Moderate regime but Moderate regime but no actionno action

Reagan: 2Reagan: 2ndnd Cuba Cuba Kill the bastardsKill the bastards

D. Bay of Pigs ReduxD. Bay of Pigs Redux

Reagan orders CIA Reagan orders CIA Director Director William William CaseyCasey to plan to plan overthrowoverthrow

Casey: create and Casey: create and fund (1981: $19 fund (1981: $19 million) million) counterrevolutionacounterrevolutionariesries Contras Contras

Started small Started small (about 500) but (about 500) but grew (several grew (several thousand)thousand)

Contras’ small numbersContras’ small numbers guerilla guerilla tactics, assassination, terrortactics, assassination, terror Murdered villagers, nunsMurdered villagers, nuns US secretly mined Nicaragua’s US secretly mined Nicaragua’s

harborsharbors World Court rules US in World Court rules US in violation international lawviolation international law

Reagan justified support by Reagan justified support by comparing the Contras to the comparing the Contras to the American RevolutionariesAmerican Revolutionaries

Increasingly angry, in Increasingly angry, in 1984 Congress prohibits 1984 Congress prohibits funding to Contras:funding to Contras: Boland AmendmentBoland Amendment

to an appropriations to an appropriations billbill

Reagan signed the bill: Reagan signed the bill: public, press, Congress public, press, Congress believe that US out of believe that US out of NicaraguaNicaragua

Election year polls Election year polls showed majority showed majority opposition to Reagan’s opposition to Reagan’s Latin American policiesLatin American policies

E. Ollie NorthE. Ollie North

Reagan decides to Reagan decides to secretly secretly evade/break the evade/break the lawlaw

But how to get the But how to get the money?money?

Casey delegates to Casey delegates to NSC staffer NSC staffer Oliver Oliver NorthNorth

TacticsTactics

1)1) Wealthy individuals: “charitable” Wealthy individuals: “charitable” gifts to Contrasgifts to Contras

2)2) State Department approaches State Department approaches foreign countries for $ aidforeign countries for $ aid

3)3) Contras sell drugs in US for $ (with Contras sell drugs in US for $ (with CIA assistance?)CIA assistance?)

ProblemsProblems

1)1) Illegal for administration to Illegal for administration to promise something for the $ (quid promise something for the $ (quid pro quo)pro quo)

2)2) Upsets Constitutional system of Upsets Constitutional system of checks and balanceschecks and balances

3)3) Contras still unable to win major Contras still unable to win major military victorymilitary victory

SolutionSolution

North combines Contra operation North combines Contra operation with “The Enterprise”: Iranwith “The Enterprise”: Iran

II. Iran EndII. Iran EndA. Anti-Terrorism?A. Anti-Terrorism? Reagan publicly a hard-line Reagan publicly a hard-line

anti-terroristanti-terrorist Privately a soft touch (met with Privately a soft touch (met with

families)families) 1979: Iranian Revolution1979: Iranian Revolution

American embassy hostages American embassy hostages (50+)(50+) Released when Reagan was Released when Reagan was

inaugurated and US unfroze inaugurated and US unfroze Iranian $ in USIranian $ in US

Not connected (?)Not connected (?)

Iran supported anti-US terrorismIran supported anti-US terrorism Lebanese kidnappings of American Lebanese kidnappings of American

ZionistsZionists 1985: Reagan meets with family1985: Reagan meets with family

visibly shakenvisibly shakenobsessed with obsessed with hostageshostages

National Security National Security Advisor Advisor Robert Robert McFarlaneMcFarlane approached by approached by Iranian Iranian businessman businessman Manucher Manucher Ghorbanifar:Ghorbanifar:

Arms for Arms for hostageshostages

ProblemsProblems

1)1) Illegal: Congress had passed law Illegal: Congress had passed law against arms sales to Iranagainst arms sales to Iran

2)2) Went against Reagan’s public Went against Reagan’s public policypolicy

3)3) Major advisors spoke out against itMajor advisors spoke out against it

Do it anywaysDo it anyways McFarlane goes McFarlane goes to Northto North

B. One Simple DealB. One Simple Deal Supposed to be Supposed to be

one (1) simple one (1) simple deal: sell weapons deal: sell weapons (30% markup) for (30% markup) for hostageshostages

Iranians up ante: Iranians up ante: 2 plane loads 2 plane loads rather than 1, 1 rather than 1, 1 hostage rather hostage rather than all 7than all 7

Despite failureDespite failure continue to try (120 continue to try (120 for 5)for 5)

Continued failure: McFarlane Continued failure: McFarlane decides to call it off but resignsdecides to call it off but resigns John Poindexter John Poindexter appointedappointed

ON convinces JP to continue: ON convinces JP to continue: combine the dealscombine the deals

III. Diversion of FundsIII. Diversion of Funds

North: profits from arms salesNorth: profits from arms sales ContrasContras

Problem: unelected bureaucrat Problem: unelected bureaucrat funding illegal activity with illegal funding illegal activity with illegal funds funds (“Shadow government”)(“Shadow government”)

North deals 2 more timesNorth deals 2 more times At end of arms trade there were At end of arms trade there were

MORE hostages in LebanonMORE hostages in Lebanon The exact reason Bush refuses to deal The exact reason Bush refuses to deal

w/Iraqi kidnappers todayw/Iraqi kidnappers today

October 1986: Contra end exposed—October 1986: Contra end exposed— Sandinistas shot down American Sandinistas shot down American

plane carrying arms and soldiersplane carrying arms and soldiers why were they there?why were they there?

North starts shreddingNorth starts shredding

Four weeks later Iranian Four weeks later Iranian government leaks story to Mid East government leaks story to Mid East paper to embarrass Reaganpaper to embarrass Reagan North shreds fasterNorth shreds faster

Senate held hearings to investigate Senate held hearings to investigate scandalscandal

North, Poindexter, and Secretary of North, Poindexter, and Secretary of Defense Defense Caspar WeinbergerCaspar Weinberger and and others convicted of perjury and others convicted of perjury and contempt of Congresscontempt of Congress Eventually overturned in court based on Eventually overturned in court based on

the 5the 5thth Amendment Amendment George H.W. Bush pardoned the othersGeorge H.W. Bush pardoned the others

IV. Comparison to IV. Comparison to WatergateWatergate

1)1) Belief that loss of Belief that loss of liberty abroadliberty abroad loss loss of liberty at homeof liberty at home

2)2) Contempt of CongressContempt of Congress3)3) Reagan’s guys Reagan’s guys

destroyed the destroyed the evidenceevidence

4)4) Iran-Contra Iran-Contra substantially worsesubstantially worse

5)5) Revelations help lead Revelations help lead to greater support for to greater support for Saddam Hussein, 1Saddam Hussein, 1stst Gulf War, and 9-11Gulf War, and 9-11

The Teflon PresidentThe Teflon President Reagan saved by the fact Reagan saved by the fact

that there was no that there was no smoking gunsmoking gun Either didn’t exist or was Either didn’t exist or was

destroyeddestroyed Reagan remembered as Reagan remembered as

great presidentgreat president Subordinates go on: Subordinates go on:

North runs for Congress, North runs for Congress, works for FOX News, works for FOX News, Poindexter and TIA, Poindexter and TIA, BushBush President President

Presidential RecordsPresidential Records