Iran-Contra Affair

• Author: Jeffrey Lehman, Shirelle Phelps

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The Iran-Contra Affair involved a secret foreign policy operation directed by White House officials in the NATIONAL SECURITY COUNCIL (NSC) under President RONALD REAGAN. The operation had two goals: first, to sell arms to Iran in the hope of winning the release of U.S. hostages in Lebanon, and second, to illegally divert profits from these sales to the Contra rebels fighting to overthrow the Sandinista government of Nicaragua. Discovery of the secret operation, in 1986, triggered a legal and political uproar that rocked the Reagan administration. The numerous related investigations and indictments did not end until 1993 and even then questions remained about the roles of senior White House officials in this arms-for-hostages deal.

The affair came to public attention on November 3, 1986, when a Lebanese publication, Al-Shiraa, first reported that the United States had sold arms to Iran. The news was shocking because the Reagan administration had previously denounced Iran as a supporter of international TERRORISM. Shortly after the Al-Shiraa report Nicaraguan forces downed a U.S. plane and captured its pilot. The pilot's confession led to a second startling revelation: a private U.S. enterprise was supplying arms to Contra rebels.

The enterprise seemed designed to circumvent the will of Congress. In the early 1980s, after bitter debate, Congress had passed legislation barring the use of federal monies to overthrow the Nicaraguan government. Through a series of amendments to appropriations bills enacted between 1982 and 1986, known as the Boland amendments, this legislation blocked the Reagan administration's wish to go on supporting the Contras. Now it was revealed that private citizens and private monies were being used to this end. Moreover, the operation was being directed from within the White House by the NSC?the president's advisory cabinet on security affairs and covert operations. Directing the Iran-Contra enterprise were Vice Admiral John Poindexter, national security assistant, and his subordinate, Lieutenant Colonel Oliver North, deputy director for political-military affairs.

Each branch of government quickly began a separate investigation into the affair. In December 1986, President Reagan issued an EXECUTIVE ORDER creating the Tower Commission, named after its chair, John Tower. The purpose of this three-member review board was to recommend changes in executive policy regarding the future roles and procedures of the NSC staff. Reagan's creation of the commission was a tacit disavowal of presidential knowledge or responsibility for the actions of Iran-Contra participants. Although admitting that his administration had negotiated secretly with Iran in order to free the hostages in Lebanon, he publicly denied knowing about the arms-supplying enterprise directed by his own NSC staff.

Simultaneously, the Senate and the House of Representatives each created a select Iran-Contra committee. These committees were charged with holding hearings to uncover facts and to recommend legislative action to prevent future illegal foreign policy operations. In their zeal to fully expose the affair, the committees

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granted limited forms of IMMUNITY to several key witnesses. This decision proved to be a mixed blessing. On the one hand, it provided Congress and the U.S. public with a wider understanding of the affair through televised hearings (which also made a public figure out of Lieutenant Colonel North). But it ultimately proved harmful to efforts to prosecute North and Vice Admiral Poindexter.

The attorney general requested that an INDEPENDENT COUNSEL be appointed to investigate wrongdoing. An independent counsel is a special appointee who is given the authority to bring indictments and pursue convictions. For this important role, the U.S. Court of Appeals for the District of Columbia Circuit, Independent Counsel Division, selected Lawrence E. Walsh, a former AMERICAN BAR ASSOCIATION president and former federal judge. Legal authority for Walsh's appointment existed in provisions of the Ethics in Government Act (Pub. L. No. 95-521 [Oct. 26, 1978], 92 Stat. 1824 [28 U.S.C.A. § 592(c) (1) (1982)]).

The various Iran-Contra investigations soon uncovered a plethora of legal violations. The covert arms sales to Iran violated numerous statutes that restricted the transfer of arms to nations that support international terrorism, principally the Arms Export Control Act of 1976 (Pub. L. No. 90-629, 89 Stat. 1320 [22 U.S.C.A. §§ 2751?2796c (1989 Supp.)]). By failing to report the Iranian sales to Congress, the Reagan administration had ignored reporting provisions in the 1980 Intelligence Oversight Act (Pub. L. No. 96-450, tit. IV...