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File:IranContraTimeCover.jpg

A Time Magazine cover of Oliver North's testifying in front of the U.S. Congress

The Iran-Contra Affair (also known as "Irangate") was a mid-1980s political scandal in the United States. President Ronald Reagan's administration sold arms to Iran, an avowed enemy. At the time, Americans were being held hostage by Islamic terrorists in Lebanon, and it was hoped that Iran would influence the terrorists to release the hostages; at the same time, Iran, which was in the midst of the Iran-Iraq War, could find few nations willing to supply it with weapons. The U.S. diverted proceeds from the sale to Contras fighting a guerrilla war against the Marxist Sandinista government of Nicaragua, which was backed by Cuba and the Soviet Union. Both the sale of weapons and the funding of the Contras violated either stated administration policy or legislation passed by the Democrat-controlled Congress, which had outlawed funding the Contras.

The arms-for-hostages deal

In July 1985 the Israeli government approached the Reagan Administration with a proposal to get hostages held by Iranian-backed terrorists released.

The Israelis wanted the United States to act as an intermediary by shipping 508 American-made TOW anti-tank missiles to Iran in exchange for the release of the Reverend Benjamin Weir, an American hostage being held by Hezbollah, Iranian-commanded terrorists in Lebanon. This was done with the understanding that the United States would then ship replacement missiles to Israel. Robert McFarlane, the Assistant to the President for National Security Affairs, approached Secretary of Defense Caspar Weinberger and arranged the details. The transfer took place over the next two months. The first American hostage was released in mid-September.

In November 1985, there was another round of negotiations, where the Israelis proposed to ship Iran 500 HAWK surface-to-air missiles in exchange for the release of all remaining American hostages being held in Lebanon. General Colin Powell attempted to procure the missiles, but realized that the deal would require Congressional notification as its overall value exceeded $14 million. McFarlane responded to Powell that the President had decided to conduct the sale anyway. Israel sent an initial shipment of 18 missiles to Iran in late November, 1985, but the Iranians didn't approve of the missiles, and further shipments were halted. Negotiations continued with the Israelis and Iranians over the next few months.

In December 1985, President Reagan signed a secret presidential "finding" describing the deal as "arms-for-hostages."

In January of 1986, the Administration approved a plan proposed by McFarlane employee Michael Ledeen, whereby an intermediary, rather than Israel, would sell arms to Iran in exchange for the release of the hostages, with proceeds made available to the Contras. At first, the Iranians had refused the weapons from Manucher Ghorbanifar, the Iranian intermediary, when both Oliver North and Ghorbanifar created a 370% markup (WALSH, Lawrence E. "Firewall"). With the marked-up income of $10 million from the $3.7 million before, and with Hezbollah capturing new hostages when they released old ones, this was the end of the arms-for-hostages deal. In February, 1,000 TOW missiles were shipped to Iran. From May to November, there were additional shipments of miscellaneous weapons and parts.

Funding the Contras

Proceeds from the arms sales were made available, in an arrangement instituted by Colonel Oliver North, aide to the U.S. National Security Advisor John Poindexter, to purchase arms for the Nicaraguan Contras, anti-Communist guerrillas fighting the Sandinista government. Under the Boland Amendment, Congress had barred American funding to the Contras based on concerns over reports of Contra atrocities. Thus, the Reagan administration illegally provided covert financial assistance to the Contras in order to circumvent Congress, made possible by the North's diversion of profits from weapons sales to Iran. In addition, the Contras received weapons and training from the Central Intelligence Agency.

Discovery and scandal

The Lebanese magazine Ash-Shiraa exposed the arrangement on 3 November 1986. This was the first public reporting of the weapons-for-hostages deal. The operation was discovered only after an airlift of guns was downed over Nicaragua. The scandal was compounded when on November 21, Oliver North and his secretary Fawn Hall shredded pertinent documents. US Attorney General Edwin Meese on November 25 admitted that profits from weapons sales to Iran were made available to assist the Contra rebels in Nicaragua.

On November 26 President Reagan, faced with mounting pressure from Congressional Democrats and the media, announced that as of December 1 former Senator John Tower, former Secretary of State Edmund Muskie, and former National Security Adviser Brent Scowcroft would serve as members of a Special Review Board looking into the matter; this Presidential Commission became known as the Tower Commission. At this point, President Reagan said he had not been informed of the operation. The Tower Commission implicated North, Poindexter, and Weinberger, amongst others. It did not determine that the President had knowledge, although it argued that the President ought to have had better control of the National Security Council staff.

The U.S. Congress issued its final report on 18 November, 1987, which stated that the President bore "ultimate responsibility" for wrongdoing by his aides and his administration exhibited "secrecy, deception, and disdain for the law." Oliver North and John Poindexter were indicted on multiple charges on March 16, 1988. North, indicted on nine counts, was initially convicted of three minor counts, although the conviction was later vacated upon appeal on the grounds that North's Fifth Amendment rights may have been violated. The violation was said to be the indirect use of his testimony to Congress which had been given under a grant of immunity. Poindexter was convicted on several felony counts of lying to Congress, obstruction of justice, conspiracy, and altering and destroying documents pertinent to the investigation. His convictions were also overturned on appeal on similar grounds as North's. The Independent Counsel chose not to re-try North or Poindexter.

Faced with undeniable evidence of his involvement in the scandal, Reagan expressed regret regarding the situation on national television. In his speech, Reagan stated that he believed what he did was right, and understood how the American people might not think the same way. Neverthess, Reagan survived the scandal, and would see his approval ratings return to previous levels.

Significance: The separation of powers

The Iran-Contra Affair is significant because it brought many questions into public view:

Does the president have unconditional authority to conduct foreign policy? (Can the president approve selling arms to a foreign nation without congressional approval?)
What information does the president have to provide to Congress and when should that information be supplied? (Does the president have to tell Congress about foreign policy initiatives?)
What authority, if any, does Congress have to oversee functions of the executive branch? (Does funding for foreign policy initiatives have to be approved by Congress? Who defines the entire spending budget and who regulates it? Is the provision of the 1978 Ethics in Government Act that creates the position of independent counsel answering to the Attorney General, constitutional?)
What role does the Supreme Court have in deciding conflicts between the legislative branch and executive branch?
How much support is America entitled to provide to armed opposition forces seeking to replace governments with ones more sympathetic to the United States?

Most, if not all, of the constitutional and ethical questions are still unresolved. On one view, it appears that if the legislative and executive branches do not wish to work together, there are no legal remedies. These are transient issues in that the executive and legislative branches change every few years.

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	] testifying in front of the U.S. Congress]]		] testifying in front of the U.S. Congress]]

	The '''Iran-Contra Affair''' (also known as '''"Irangate"''') was a mid-] political scandal in the United States. ] ]'s administration sold ] to ], an avowed enemy. At the time, Americans were being held hostage by ] in ], and it was hoped that Iran would influence the terrorists to release the hostages; at the same time, Iran, which was in the midst of the ], could find few nations willing to supply it with weapons. The U.S. diverted proceeds from the sale to ]s fighting a ] against the ] ] government of ], which was backed by ] and the ]. Both the sale of weapons and the funding of the Contras violated either stated administration policy or legislation passed by the ]-controlled ], which had outlawed funding the Contras.		The '''Iran-Contra Affair''' (also known as '''"Irangate"''') was a mid-] political scandal in the United States. ] ]'s administration sold ] to ], an avowed enemy. At the time, Americans were being held hostage by ] in ], and it was hoped that Iran would influence the terrorists to release the hostages; at the same time, Iran, which was in the midst of the ], could find few nations willing to supply it with weapons. The U.S. diverted proceeds from the sale to ]s fighting a ] against the ] ] government of ], which was backed by ] and the ]. Both the sale of weapons and the funding of the Contras violated either stated administration policy or legislation passed by the ]-controlled ], which had outlawed funding the Contras.

	==The arms-for-hostages deal==		==The arms-for-hostages deal==
	In July ] the ]i government approached the Reagan Administration with a proposal to get ]s held by Iranian-backed terrorists released.		In July ] the ]i government approached the Reagan Administration with a proposal to get ]s held by Iranian-backed terrorists released.

	The Israelis wanted the United States to act as an intermediary by shipping 508 American-made ] anti-tank missiles to Iran in exchange for the release of the ], an American hostage being held by ], Iranian ~~backed~~ ] in ]. This was done with the understanding that the United States would then ship replacement missiles to Israel. ], the ], approached ] ] and arranged the details. The transfer took place over the next two months. The first American hostage was released in mid-September.		The Israelis wanted the United States to act as an intermediary by shipping 508 American-made ] anti-tank missiles to Iran in exchange for the release of the ], an American hostage being held by ], Iranian-commanded ] in ]. This was done with the understanding that the United States would then ship replacement missiles to Israel. ], the ], approached ] ] and arranged the details. The transfer took place over the next two months. The first American hostage was released in mid-September.

	In November 1985, there was another round of negotiations, where the Israelis proposed to ship Iran 500 ] ]s in exchange for the release of all remaining American hostages being held in Lebanon. General ] attempted to procure the missiles, but realized that the deal would require ] notification as its overall value exceeded $14 million. McFarlane responded to Powell that the President had decided to conduct the sale anyway. Israel sent an initial shipment of 18 missiles to Iran in late November, 1985, but the Iranians didn't approve of the missiles, and further shipments were halted. Negotiations continued with the Israelis and Iranians over the next few months.		In November 1985, there was another round of negotiations, where the Israelis proposed to ship Iran 500 ] ]s in exchange for the release of all remaining American hostages being held in Lebanon. General ] attempted to procure the missiles, but realized that the deal would require ] notification as its overall value exceeded $14 million. McFarlane responded to Powell that the President had decided to conduct the sale anyway. Israel sent an initial shipment of 18 missiles to Iran in late November, 1985, but the Iranians didn't approve of the missiles, and further shipments were halted. Negotiations continued with the Israelis and Iranians over the next few months.
Line 12:		Line 12:
	In December 1985, President Reagan signed a secret presidential "finding" describing the deal as "arms-for-hostages."		In December 1985, President Reagan signed a secret presidential "finding" describing the deal as "arms-for-hostages."

	In January of ], the Administration approved a plan proposed by McFarlane employee ], whereby an intermediary, rather than Israel, would sell arms to Iran in exchange for the release of the hostages, with proceeds made available to the Contras. At first, the Iranians had refused the weapons from ], the Iranian intermediary, when both ] and Ghorbanifar created a 370% markup (WALSH, Lawrence E. "Firewall"). With the marked-up income of $10 million from the $3.7 million before, and ~~the~~ ~~Iranian backed militants~~ capturing new hostages when they released old ones, this was the end of the arms-for-hostages deal. In February, 1,000 TOW missiles were shipped to Iran. From May to November, there were additional shipments of miscellaneous weapons and parts.		In January of ], the Administration approved a plan proposed by McFarlane employee ], whereby an intermediary, rather than Israel, would sell arms to Iran in exchange for the release of the hostages, with proceeds made available to the Contras. At first, the Iranians had refused the weapons from ], the Iranian intermediary, when both ] and Ghorbanifar created a 370% markup (WALSH, Lawrence E. "Firewall"). With the marked-up income of $10 million from the $3.7 million before, and with Hezbollah capturing new hostages when they released old ones, this was the end of the arms-for-hostages deal. In February, 1,000 TOW missiles were shipped to Iran. From May to November, there were additional shipments of miscellaneous weapons and parts.

	==Funding the Contras==		==Funding the Contras==

	Proceeds from the arms sales were made available, in an arrangement instituted by Colonel ], aide to the U.S. ] ], to purchase arms for the Nicaraguan ] ~~(from Spanish ''contrarrevolucionario''~~, ~~trans. "counter~~-~~revolutionary").~~ ~~The~~ ~~Contras~~ ~~were waging an~~ ] ~~against~~ ~~the~~ ] ] government, ~~but, under~~ the ], ~~the~~ ~~U.S. Congress~~ barred American funding to the Contras. Thus, the Reagan administration illegally provided ] financial assistance to the Contras in order to circumvent Congress, made possible by the North's diversion of profits from weapons sales to Iran. In addition, the Contras received weapons and training from the ].		Proceeds from the arms sales were made available, in an arrangement instituted by Colonel ], aide to the U.S. ] ], to purchase arms for the Nicaraguan ], anti-Communist guerrillas fighting the ] government. Under the ], Congress had barred American funding to the Contras based on concerns over reports of Contra atrocities. Thus, the Reagan administration illegally provided ] financial assistance to the Contras in order to circumvent Congress, made possible by the North's diversion of profits from weapons sales to Iran. In addition, the Contras received weapons and training from the ].


	The economy of Nicaragua deteriorated under the continuing contra attacks on the country's infrastructure and the inability of the government to obtain financing from Western institutions such as the World Bank due to U.S. opposition. The devastation of ] in ], called by then-US Ambassador to Honduras ] "a contra victory," was another serious blow. In the ] elections, President ] lost to former Sandanista ], who ran with open US support on an anti-Sandanista coalition platform.

	==Discovery and scandal==		==Discovery and scandal==
	The ] magazine '']'' exposed the arrangement on ] ]. This was the first public reporting of the weapons-for-hostages deal. The operation was discovered only after an airlift of guns was downed over ]. The scandal was compounded when on ], ] and his secretary ] shredded pertinent documents. ] ] on ] admitted that profits from weapons sales to Iran were made available to assist the ~~anti-communist~~ Contra rebels in Nicaragua.		The ] magazine '']'' exposed the arrangement on ] ]. This was the first public reporting of the weapons-for-hostages deal. The operation was discovered only after an airlift of guns was downed over ]. The scandal was compounded when on ], ] and his secretary ] shredded pertinent documents. ] ] on ] admitted that profits from weapons sales to Iran were made available to assist the Contra rebels in Nicaragua.

	On ] President Reagan, faced with mounting pressure from Congressional Democrats and the media, announced that as of ] former Senator ], former Secretary of State ], and former National Security Adviser ] would serve as members of a Special Review Board looking into the matter; this ] became known as the ]. At this point, President Reagan said he had not been informed of the operation. The Tower Commission implicated North, Poindexter, and Weinberger, amongst others. It did not determine that the President had knowledge, although it argued that the President ought to have had better control of the ] staff.		On ] President Reagan, faced with mounting pressure from Congressional Democrats and the media, announced that as of ] former Senator ], former Secretary of State ], and former National Security Adviser ] would serve as members of a Special Review Board looking into the matter; this ] became known as the ]. At this point, President Reagan said he had not been informed of the operation. The Tower Commission implicated North, Poindexter, and Weinberger, amongst others. It did not determine that the President had knowledge, although it argued that the President ought to have had better control of the ] staff.

	The ] issued its final report on ], ], which stated that the President bore "ultimate responsibility" for wrongdoing by his aides and his administration exhibited "secrecy, deception, and disdain for the law." Oliver North and John Poindexter were indicted on multiple charges on ], ]. North, indicted on nine counts, was initially convicted of three minor counts, although the conviction was later vacated upon appeal on the grounds that North's ] rights may have been violated. The violation was said to be the indirect use of his testimony to Congress which had been given under a grant of immunity. Poindexter was convicted on several ] counts of lying to Congress, obstruction of justice, conspiracy, and altering and destroying documents pertinent to the investigation. His convictions were also overturned on appeal on similar grounds as North's. The Independent Counsel chose not to re-try North or Poindexter.		The ] issued its final report on ], ], which stated that the President bore "ultimate responsibility" for wrongdoing by his aides and his administration exhibited "secrecy, deception, and disdain for the law." Oliver North and John Poindexter were indicted on multiple charges on ], ]. North, indicted on nine counts, was initially convicted of three minor counts, although the conviction was later vacated upon appeal on the grounds that North's ] rights may have been violated. The violation was said to be the indirect use of his testimony to Congress which had been given under a grant of immunity. Poindexter was convicted on several ] counts of lying to Congress, obstruction of justice, conspiracy, and altering and destroying documents pertinent to the investigation. His convictions were also overturned on appeal on similar grounds as North's. The Independent Counsel chose not to re-try North or Poindexter.

	On ], 1986, the ] (or ]) ruled in favor of Nicaragua in the case of ]. The U.S. refused to acknowledge the court's jurisdiction, and subsequently vetoed a ] Resolution calling on all states to obey international law. The ] passed a in order to pressure the U.S. to pay the fine.

	The Sandinistas lost power in February ] after losing much of their initial popularity due to economic woes, and the continuining aid provided by the US government to anti-Sandinista elements.

	Faced with undeniable evidence of his involvement in the scandal, Reagan expressed regret regarding the situation on national television. In his speech, Reagan stated that he believed what he did was right, and understood how the American people might not think the same way. Neverthess, Reagan survived the scandal, and would see his approval ratings return to previous levels.		Faced with undeniable evidence of his involvement in the scandal, Reagan expressed regret regarding the situation on national television. In his speech, Reagan stated that he believed what he did was right, and understood how the American people might not think the same way. Neverthess, Reagan survived the scandal, and would see his approval ratings return to previous levels.