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Walsh Iran / Contra Report - Chapter 1 United States v. Robert C. McFarlane
Chapter 1
United States v. Robert C. McFarlane
Robert C. ``Bud'' McFarlane was President Reagan's national security adviser from October
1983 to December 1985. He briefed the President daily about world events and conferred
regularly with Vice President Bush, Secretary of State George P. Shultz, Secretary of Defense
Caspar W. Weinberger and CIA Director William J. Casey, who were the principal members of
President Reagan's National Security Council.
Prior to becoming national security adviser, McFarlane had been deputy to his predecessor
William Clark; counselor to Alexander M. Haig, Jr., when he was secretary of state; a member of
the staff of the Senate Armed Services Committee; and military aide to Henry Kissinger when he
was national security adviser to President Nixon. An Annapolis graduate, he commanded the
first U.S. Marine battery to land in the Republic of South Vietnam. He completed two tours,
each characterized by the heavy fighting in I-Corps just south of the demilitarized zone that
separated North and South Vietnam. He received a Bronze Star for valor and other individual
and unit decorations. He resigned from the U.S. Marine Corps as a lieutenant colonel.
As national security adviser, McFarlane headed the President's NSC staff, which was designed
to assist the President in integrating the views of Government agencies responsible for national
security matters. McFarlane regularly advised President Reagan on foreign and domestic issues
of national security significance. He ordinarily based this advice on consultations with the NSC
members, and on objective analyses by their agencies and the NSC staff.
Under President Reagan, the NSC staff assumed a role beyond that of an advisory or
coordinating body: It at times became operational, taking on primary responsibility for the
execution of the Iran and contra covert operations. McFarlane did not shrink from the
operational tasks that were of high personal interest to the President. He delegated some of them
to a hard-driving NSC staff member, Marine Lt. Col. Oliver L. North, McFarlane's deputy
director of political-military affairs.
In 1984, President Reagan directed McFarlane to keep the financially strapped Nicaraguan
contras alive as a viable fighting force, despite a ban on U.S. military assistance, McFarlane
assigned the job to North. North kept McFarlane generally informed of his efforts on behalf of
the contras, which McFarlane told North to undertake in utmost secrecy. When Congress in
1985 inquired about press reports of North's contra-aid efforts, McFarlane denied the allegations.
In 1985, McFarlane and Casey were the chief advocates of weapons sales to Iran in exchange
for the release of American hostages held by pro-Iranian terrorists in Beirut; again, McFarlane
turned to North to help implement, in utmost secrecy, the arms-for-hostages deals. Although
McFarlane resigned as national security adviser in December 1985, he stayed in contact with his
former deputy and successor, Navy Vice Adm. John M. Poindexter, and with North. He
remained involved in the Iran weapons sales, acting as President Reagan's emissary on a mission
to Tehran in May 1986. In November 1986, McFarlane helped Poindexter and North conceal
details of the Iran initiative, just as they had done when the operation was underway.
Beginning in December 1986 after the public exposure of Iran/contra, McFarlane voluntarily
provided information to Congress, to President Reagan's Tower Commission and to Independent
Counsel. Because McFarlane was only partially truthful, it was difficult for investigators to
determine on which matters he could be believed. Further complicating the matter was the fact
that McFarlane's testimony was, in some crucial respects, at odds with that of other senior
Reagan Administration officials. McFarlane, for example, stood alone in insisting that President
Reagan had approved the earliest 1985 sales of U.S. arms to Iran by Israel and had agreed to
replenish Israeli weapons stocks. It was only after contemporary notes recording the events in
question were discovered late in Independent Counsel's investigation that much of what
McFarlane said could be verified. His desire to keep secret certain contra-assistance activities
resulted in criminal charges being brought against him.
After lengthy negotiations with Independent Counsel, McFarlane on March 11, 1988, pleaded
guilty to four misdemeanor charges that he unlawfully withheld information from Congress
about North's contra-support activities and about the solicitation of foreign funding for the
contras. As a condition of his plea, he agreed to cooperate with the ongoing criminal
investigation. On December 24, 1992, McFarlane was one of six Iran/contra defendants
pardoned by President Bush.
McFarlane's Involvement in Aiding the Contras
The contra effort was a matter of high priority to President Reagan and his Administration.
The President compared the contras' struggle against Nicaragua's communist-supported
Sandinista government to that of the American revolutionaries who fought and triumphed over
British rule. But the contra war engendered battles on Capitol Hill, where military funding was
alternately won and lost by narrow margins.
Early in 1984, President Reagan gave McFarlane responsibility for keeping the contras alive
``body and soul.'' 1 McFarlane took this charge seriously, seeking ways to deal with the problem
of rapidly depleting funds and later an all-out ban on contra aid imposed by the Boland
Amendment in October 1984. McFarlane testified that the President was angry about the funding
cut-off and viewed Congress's actions as a ploy not only to injure the contras but to damage him
politically.2
1 McFarlane, North Trial Testimony, 3/10/89, p. 3946.
2 Ibid., 3/14/89, pp. 4357-59.
On January 6, 1984, the President's National Security Planning Group (NSPG) approved
``immediate efforts to obtain additional funding of $10-15 million from foreign or domestic
sources to make up for the fact that the current $24 million appropriation [for the contras] will
sustain operations only through June 1984.'' 3 McFarlane was responsible for the
implementation of this plan with the assistance of North and another NSC staff member,
Constantine Menges.
3 Memorandum from North and Menges to McFarlane, 1/13/84, AKW 038381.
In late March 1984, Casey sent a memo to McFarlane urging him to explore with Israel and
other countries the possibility of obtaining weapons and financial aid for the contras.4
Subsequently, McFarlane in April 1984 dispatched NSC staff member Howard Teicher to ask the
Israelis for assistance; the mission was unsuccessful.5 Although McFarlane later characterized
the Teicher approach to Israel as ``perfectly legal,'' he was intent on keeping it secret, because
such a disclosure would be ``annoying to and upsetting to the Congress'' and ``embarrassing'' to
Israel.6 When Secretary of State Shultz learned of Teicher's mission from the U.S. Embassy in
Israel, McFarlane informed Shultz that Teicher had gone to Israel ``on his own hook.'' 7
4 Memorandum from Casey to McFarlane, 3/27/84, ER 13712.
5 Teicher, Grand Jury, 6/24/87, pp. 10-12.
6 McFarlane, North Trial Testimony, 3/15/89, p. 4619.
7 Shultz, Select Committees Testimony, 7/23/87, pp. 31-33.
Despite the failed approach to Israel, McFarlane continued his secret search for third-country
funding for the contras. In May 1984, he met with Prince Bandar, the Saudi Arabian ambassador
to the United States, and explained President Reagan's strong concern that the gap in the financial
support of the contras be filled. According to McFarlane, ``it became pretty obvious to the
Ambassador that his country, to gain a considerable amount of favor and, frankly, they thought it
was the right thing to do, they would provide the support when the Congress cut it off.'' 8
8 McFarlane, North Trial Testimony, 3/10/89, p. 3933.
A few days later, Prince Bandar contacted McFarlane and volunteered $1 million a month for
the contras. Bandar said that the donation signified King Fahd's gratitude for past Reagan
Administration support of the Saudi government.9 McFarlane subsequently obtained from North
a contra bank account number where a donation could be made, and McFarlane gave the number
to Prince Bandar.
9 McFarlane, FBI 302, 3/10/87, p. 6. See Classified Appendix on the nature of this support.
A day or two after the Saudis agreed to provide a million dollars a month to the contras,
McFarlane informed President Reagan and Vice President Bush.10 He said he also informed
Shultz and Weinberger that money had been provided to the contras through the end of the year,
but neither pressed him for details.11
10 McFarlane, Select Committees Testimony, 5/11/87, pp. 38-39. McFarlane, North Trial
Testimony, 3/13/89, pp. 4203-04, said he notified the President of the first Saudi contribution in
June 1984 by putting the information on a card that he slipped into the President's daily briefing
book. He said he either told the President in writing on the card or orally that ``no one else
knows about this'' and the President responded, either in writing or orally, ``Good, let's just make
sure it stays that way.'' When McFarlane learned from Bandar of a second donation in February
1985 and brought it to the President's attention, he said he got the same response.
11 Ibid.
The topic of third-country funding for the contras dominated a June 25, 1984, meeting of
President Reagan's National Security Planning Group (NSPG). Casey advocated such a plan.
Shultz quoted White House Chief of Staff James Baker (who was not in attendance) as stating
that such solicitations would constitute an ``impeachable offense.'' The group, however, agreed
that a legal opinion should be sought from the Justice Department. Underscoring the extreme
secrecy surrounding the matter, President Reagan warned against leaks, stating, ``If such a story
gets out, we'll all be hanging by our thumbs in front of the White House until we find out who
did it.'' 12
12 NSPG Minutes, 6/25/84, ALU 007876.
None of the participants in the NSPG meeting -- which included the President, Vice President,
Shultz, Weinberger, Casey, then-presidential counselor Edwin Meese III and McFarlane --
apparently raised the fact that the successful Saudi solicitation had already occurred. McFarlane,
who was most knowledgeable about it, stated: ``I propose that there be no authority for anyone
to seek third party support for the anti-Sandinistas [contras] until we have the information we
need, and I certainly hope none of this discussion will be made public in any way.'' 13
13 Ibid.
The day after the NSPG meeting, Casey met with Attorney General William French Smith.
Smith determined that third-country funding of the contras was legally permissible as long as no
U.S. funds were used for the purpose, and as long as there was not an expectation on the part of
the third country that the United States would repay the aid.14
14 Memorandum for the Record from Sporkin, 6/26/84, ALV 035917.
Over the course of the following year, Saudi Arabia gave a total of $32 million to the
contras.15 Taiwan later contributed $2 million.
15 North attempted to persuade McFarlane to seek even more Saudi funding in a March 16,
1985, memorandum, recommending an additional $25 to $30 million for the purchase of arms
and munitions; McFarlane responded, ``doubtful.'' Between late February and the end of March
1985, the Saudis contributed a total of $32 million to the contras.
McFarlane Gives North the ``Body and Soul'' Directive
McFarlane continued to discuss the issue of contra funding with the President and his top
advisers throughout the spring and summer of 1984. McFarlane said, ``He [President Reagan] let
us know very clearly in that spring and summer of 1984 that we were to do all that we could to
make sure that the movement, the freedom fighters [contras], survived and I think the term at the
time that's come up here and there was that we were to do all we could to keep them together
body and soul.'' 16
16 McFarlane, North Trial Testimony, 3/10/89, p. 3946.
McFarlane said he discussed the President's directive with his NSC deputy, Donald Fortier,
and with North. McFarlane knew that Fortier and North ``were very resourceful people and
would go out and do a number of things that they believed would achieve what the President told
me and them he wanted and that is, to keep this movement going as healthy as we could so that
ultimately we could win the vote in the Congress, as we did the following year.'' 17 Fortier was
assigned to handle the political and legislative aspects of seeking renewed contra support on
Capitol Hill; 18 North was to act as a liaison with the contra forces, acting as a symbol of
continued Reagan Administration support despite Congress's decision to withhold assistance.19
17 Ibid., p. 3949.
18 McFarlane, FBI 302, 2/16/88, p. 7.
19 McFarlane, Grand Jury, 5/4/87, pp. 10-13.
In October 1984, President Reagan signed into law the Boland Amendment, a provision added
to a 1985 omnibus appropriations bill, which forbade the use of U.S. Government funds
appropriated to any agency involved in intelligence activity for the support of military or
paramilitary action in Nicaragua.
McFarlane testified that he believed that the NSC staff's actions were restricted by the Boland
prohibition on aid to the contras, and he said he specifically gave his staff instructions not to raise
money for the contras.20 McFarlane stated he made clear to North that ``no one could solicit,
encourage, coerce, or broker the transmission of money . . . to the contras.'' 21
20 McFarlane, North Trial Testimony, 3/10/89, p. 3975.
21 McFarlane, Grand Jury, 4/29/87, p. 21. There is documentary evidence that McFarlane
was sensitive to questions of legality, even before the most extreme Boland restrictions were in
place. In a September 2, 1984, memorandum to McFarlane, for example, North asked to
approach a private donor to obtain a ``civilian'' helicopter for use on the contras' northern fighting
front; McFarlane noted, ``I don't think this is legal.'' (Memorandum from North to McFarlane,
9/2/84, ALW 019179.)
After the Boland Amendment was enacted, McFarlane said that CIA Director Casey
expressed concerns that North was doing more than the law permitted. ``I believe that he said
that he had learned that Col. North was conveying intelligence information, as I recall, to the
leadership of the freedom fighters [contras] and that that seemed to him to be a questionable
activity, whether it was allowed or not,'' McFarlane said.22
22 McFarlane, North Trial Testimony, 3/10/89, p. 3977.
In response to Casey's concerns, North sent McFarlane a memo titled ``Clarifying Who Said
What to Whom'' on November 7, 1984.23 In it, North described contra leader Adolfo Calero's
desire for intelligence reports to help the contras ``take out'' Soviet-made Hind helicopters
obtained by Nicaragua. North reported that he got the intelligence Calero needed from Robert
Vickers, a CIA national intelligence officer, and from Army Gen. Paul Gorman. North assured
McFarlane that -- contrary to Casey's concerns -- he had not discussed contra financial
arrangements and the provision of intelligence with CIA Central American Task Force Chief
Alan D. Fiers, Jr.24
23 Memorandum from North to McFarlane, 11/7/84, AKW 000329-30.
24 Also in the fall of 1984, Fiers attended an extraordinary meeting in which Casey asked
North whether he was assisting the contras, and North assured him that he was not. Fiers said
that Clair E. George, the CIA's deputy director for operations, told him after the meeting that this
exchange had been a ``charade'', allowing meeting participants to deny knowledge of North's
activities. See Fiers chapter.
McFarlane and other Administration officials repeatedly claimed that there was a
``compartmentation'' of knowledge regarding North's activities, and that only a limited number of
people were made privy to the information. In many cases, Independent Counsel found that this
claim was feigned, and many officials knew much more than they initially admitted. Even
McFarlane found Casey's inquiry into North's activities in November 1984 as ``very odd at the
time'' because ``Bill Casey knew what Ollie was doing.'' 25
25 McFarlane, North Trial Testimony, 3/15/89, p. 4645.
McFarlane, North and the President
North reported many of his contra-assistance efforts to McFarlane. McFarlane testified that
he reported almost daily to President Reagan on changes in the military situation in
Nicaragua.26 Asked by the Select Committees whether he ever withheld information from the
President to protect him, McFarlane answered no, ``and I believe the President was conscious of
everything I did that was close to the line.'' 27 Because McFarlane generally denied knowledge
of North's legally questionable activities, however, it was not possible to determine whether
McFarlane ever reported North's unlawful acts to the President.
26 McFarlane, Select Committees Testimony, 5/13/87, pp. 10-12.
27 Ibid., p. 81.
In some notable instances, there is documentation that McFarlane elevated certain
contra-assistance issues to the President and his Cabinet, setting into motion contacts between
President Reagan and other heads of state. These contacts resulted in increased foreign aid and
other favors to those countries that assisted the contras.
On February 11, 1985, McFarlane received from North and another NSC staff member,
Raymond Burghardt, a draft memo for circulation to Shultz, Weinberger, Casey and Joint Chiefs
Chairman Gen. John Vessey, the principal members of the Crisis Pre-Planning Group (CPPG).
The memo, reflecting the substance of a CPPG discussion several days earlier, sought
``agreement in a strategy for enticing the Hondurans to greater support for the Nicaraguan
resistance [contras],'' specifically, release of $75 million in embargoed economic aid. It also
sought CPPG concurrence on a draft letter from President Reagan to President Roberto Suazo of
Honduras, signaling continued U.S. assistance to Suazo and recognizing Honduras' continued
support for the contras.28
28 Memorandum from North and Burghardt to McFarlane, 2/11/85, ALU 0086481-82.
As a result of the North-Burghardt memo, on February 19, 1985, McFarlane sent a memo to
President Reagan attaching a proposed letter to Suazo. McFarlane explained to the President,
``The CPPG agreed that an emissary should again proceed to Honduras carrying the signed copy
of your letter and, in a second meeting, very privately explain our criteria for the expedited
economic support, security assistance deliveries, and enhanced CIA support.'' 29 The President
approved the plan.30
29 Memorandum from McFarlane to President Reagan, 2/19/85, ALU 0101807.
30 McFarlane, North Trial Testimony, 3/15/89, pp. 4531-32.
On April 25, 1985, McFarlane enlisted President Reagan's help in unsnagging a contra
weapons shipment that the Honduran military had seized.31 McFarlane recommended that the
President call Suazo. ``The Honduran military this morning stopped a shipment of ammunition .
. .'' McFarlane informed the President:
President Suazo will need some overt and concrete sign of this commitment in order to
forestall his military in taking action against the FDN [contras] . . . [I]t is essential that you call
President Suazo to reassure him that we intend to continue our support for the freedom fighters
[contras] and that you are examining actions for which Congressional approval is not required.32
31 McFarlane, Recommended Telephone Call, 4/25/85, ALU 0097413-14.
32 Ibid.
In a handwritten note on McFarlane's memo recommending the phone call, President Reagan
recorded the substance of his conversation with Suazo:
Expressed his respect of me & his belief we must continue to oppose Communism. Will call
his mil. commander & tell him to deliver the ammunition. Pledged we must continue to support
the freedom [fighters] in Nicaragua. Then he spoke of a high level group coming here next week
about [illegible] mil. in aid(?) . . . [illegible] both Shultz & Weinberger will meet with them.33
33 Ibid. The question mark in parentheses was part of President Reagan's handwritten note.
On October 30, 1985, North sent a memo to McFarlane titled ``Reconnaissance Overflights,''
reporting on contra military developments.34 According to notations on the document,
Poindexter briefed President Reagan on North's recommendations that two reconnaissance
aircraft be deployed to collect intelligence for the contras. North stated explicitly in the memo,
``You should also tell the President that we intend to air-drop this intelligence to two Resistance
[contra] units deployed along the Rio Escondito, along with two Honduran provided 106
recoilless rifles which will be used to sink one or both of the arms carriers which show up in the
photograph at Tab I.'' A handwritten note by Poindexter on the memo indicated that the
``President approved.'' 35
34 Memorandum from North to McFarlane, 10/30/85, ALU 0068483-86.
35 Ibid.
The 1985 Congressional Inquiries and ``Problem Documents''
Although McFarlane and North tried to keep their contra-support activities secret, it was
impossible to conceal completely such an ambitious project involving individuals throughout
Central America and in Washington. In the summer of 1985, a series of press reports raised
serious, detailed allegations of North's fund-raising and other contra-support activities, in
apparent violation of the Boland prohibition on contra aid. These press reports prompted
inquiries to McFarlane from Rep. Michael Barnes, chairman of the House Foreign Affairs
Subcommittee on Western Hemisphere Affairs, and Rep. Lee Hamilton, chairman of the House
Permanent Select Committee on Intelligence.
McFarlane and North recognized the serious problems posed by the press stories. Despite the
danger, North continued his clandestine activities. In an August 10, 1985, memo to McFarlane,
North described efforts to assist a southern military front for the contras from Costa Rica. North
noted, referring to the press reports: ``I am sincerely sorry that this very difficult time has
occurred and wish to reiterate my offer to move on if this is becoming a liability for you or the
President.'' 36 McFarlane responded by approving North's obtaining a false passport and
personal papers using an alias for a trip to Central America.
36 PROFs Note from North to McFarlane, 8/10/85.
In testimony since the public exposure of Iran/contra in November 1986, McFarlane took
general responsibility for North's activities as his superior, while professing little knowledge of
his actual contra-support efforts. There is extensive documentary evidence, however, that North
reported regularly to McFarlane about many of his activities.
Some of the most detailed and explicit memos that North wrote to McFarlane were identified
by NSC general counsel Paul B. Thompson in August 1985, after Congress asked McFarlane to
respond to press allegations about North. Thompson, whom McFarlane had asked to gather
documents relevant to the congressional inquiries, pulled six aside as potentially troubling in
their contents. McFarlane called these the ``problem documents.'' 37
37 McFarlane, North Trial Testimony, 3/13/89, pp. 4084-85, and 3/16/89, p. 4796.
They were culled from the NSC's ``System IV'' document file, which is a permanent, official
collection of highly classified material, carefully logged and strictly controlled. Thompson and
another NSC staff member, Brenda Reger, decided not to search North's office for documents
that might have been responsive to the congressional inquiries but were not logged into the
official NSC system.38 The six System IV ``problem documents'' were:
38 See Thompson chapter.
1. A North to McFarlane memo of December 4, 1984, titled ``Assistance for the Nicaraguan
Resistance.'' 39 This three-page memo first described a meeting North had with a Chinese
official in Washington regarding a transfer of Chinese-made SA-7 missiles and missile launchers
for the contras. The official expressed concern because the end-user certificates indicated that
the missiles were bound for Guatemala, which was on unfriendly terms with China. North
explained to the Chinese official that the Guatemalan end-user certificates were false and that the
weapons were, in fact, destined for the Nicaraguan contras.40
39 Memorandum from North to McFarlane, 12/4/84, AKW 037386-88.
40 This sale of weapons to the contras was the first executed by retired U.S. Air Force Maj.
Gen. Richard Secord and Albert Hakim. Washington attorney Thomas Green and a Canadian
weapons dealer, Emanuel Weigensberg, were the chief investors. See Flow of Funds section.
In the memo's second part, North described efforts by retired U.S. Army Maj. Gen. John
Singlaub to seek military aid for the contras in South Korea and Taiwan.
The third part of the memo recounted a meeting North had with David Walker, a British
military-security expert whom North wanted to introduce to Calero to conduct sabotage against
Nicaragua. North added that efforts would be made to help Calero ``defray the cost'' of
employing Walker.
2. A North to McFarlane memo dated February 6, 1985, titled ``Nicaraguan Arms
Shipments.'' 41 North reported that a Nicaraguan merchant ship, the Monimbo, would be
carrying weapons from Taiwan to the Sandinistas. North proposed that the cargo be seized and
delivered to the contras, and/or that the ship be sunk. North suggested seeking the assistance of
the South Korean military to sink the ship. He also sought McFarlane's authorization that Calero
be given intelligence on the Monimbo. Poindexter added in a handwritten note at the bottom of
the memo, ``We need to take action to make sure ship does not arrive in Nicaragua.''
41 Memorandum from North to McFarlane, 2/6/85, AKW 011528 (2 pages).
3. A North to McFarlane memo dated March 5, 1985, titled ``Guatemalan Aid to the
Nicaraguan Resistance.'' 42 North attached a memo for McFarlane to send to Shultz,
Weinberger, Casey and Vessey seeking their views on increased U.S. aid to Guatemala. North
told McFarlane, ``The real purpose of your memo is to find a way by which we can compensate
the Guatemalans for the extraordinary assistance they are providing to the Nicaraguan freedom
fighters [contras].'' North attached fabricated end-user certificates provided by Guatemala, to
allow the contras to receive $8 million in weapons under the guise of receipt by Guatemala. Also
attached was a ``wish list'' of military items needed by Guatemala. North added, ``Once we have
approval for at least some of what they have asked for, we can ensure that the right people in
Guatemala understand that we are able to provide results from their cooperation on the resistance
[contra] issue.'' McFarlane approved and signed North's proposed memo to Shultz, Weinberger,
Casey and Vessey.
42 Ibid., 3/5/85, AKW 015554-65D.
4. A North to McFarlane memo of March 16, 1985, titled ``Fallback Plan for the Nicaraguan
Resistance.'' 43 North reported on possible options if Congress did not approve renewed funding
for the contras, informing McFarlane that money from the ``current donors'' (Saudi Arabia)
would keep the contras supplied until October 1985. North proposed that President Reagan
publicly seek donations to a tax-exempt organization; McFarlane noted ``not yet'' on the memo in
the margin next to North's recommendation that the President announce the formation of a
tax-exempt contra fund. When North recommended that the ``current donors'' be urged to
provide an ``additional $25-30M[illion] to the resistance [contras] for the purchase of arms and
munitions,'' McFarlane noted: ``doubtful.'' McFarlane briefed the President on this memo.44
43 Ibid., 3/16/85, AKW 000536-38.
44 McFarlane, North Trial Testimony, 3/10/89, p. 4017.
5. A North to McFarlane memo dated April 11, 1985, titled ``FDN Military Operations.'' 45
North summarized contra funding from July 1984 to April 9, 1985, and reported on growth in
troop strength from 9,500 to more than 16,000. He attached a detailed list of contra weapons
purchases and deliveries between July 1984 and February 1985, and stated that the contras had
spent approximately $17 million of the $24.5 million available to them since U.S. funding was
cut off. Although the Secord Enterprise was not mentioned, North categorized the non-Secord
purchases as ``Independent Acquisition.'' North again recommended that ``the current donors
[Saudi Arabia] be approached to provide $15-20M[illion] additional between now and June 1,
1985.''
45 Memorandum from North to McFarlane, 4/11/85.
6. A North to McFarlane memo dated May 31, 1985, titled ``The Nicaraguan Resistance's
Near-Term Outlook.'' 46 North reported on contra operations to cut Nicaraguan supply lines and
other actions on the northern front ``in response to guidance . . .'' He noted that plans were
underway for the CIA to take back intelligence-gathering and political operations, once certain
portions of the Boland prohibitions were lifted by Congress. He reported that, ``The only portion
of current activity which will be sustained as it has since last June, will be the delivery of lethal
supplies.''
46 Ibid., 5/31/85, ALU 008429-31.
The documents were clearly responsive to a letter from Chairman Barnes dated August 16,
1985, in which he asked McFarlane to ``provide Congress with all information, including
memoranda and any other documents, pertaining to any contact between Lt. Col. North and
Nicaraguan rebel leaders as of enactment of the Boland Amendment in October, 1984.'' 47
Hamilton followed with a similar request in a letter dated August 20, 1985. A short while later,
the Senate Select Committee on Intelligence (SSCI) also sought information about North's
alleged activities.
47 Letter from Barnes to McFarlane, 8/16/85, AKW 001511.
The Barnes and Hamilton inquiries arrived at the White House while McFarlane was in
California with President Reagan. When McFarlane returned to Washington, he met with North
to discuss the problem documents that Thompson had identified.
``. . . [T]hese are the ones [the documents] that had passages in them that in my mind I
thought a congressman might criticize or believe was -- was not allowed by the Boland
Amendment,'' McFarlane later explained.48 He said he met with North several times and
discussed the documents because ``they were documents that at least I did not fully understand
and I figured a congressman wouldn't either and so I wanted to know what the truth was so I
could answer it.'' 49
48 McFarlane, North Trial Testimony, 3/13/89, p. 4077.
49 Ibid., p. 4085.
McFarlane gave North a list of the problem documents, which North taped to his desk.50
McFarlane said North suggested that he re-write at least one of the memoranda -- the May 31,
1985, document -- ``to make sure that it was clear.'' 51 McFarlane told OIC that North's stated
intention was to make the documents more accurately reflect the facts of the situation.52 North's
changes to the document, however, were obviously intended to obscure his contra-aid efforts.53
McFarlane asked NSC counsel Paul Thompson about the legality of altering NSC documents and
was told that both the original and the altered document should be filed with an explanation of
the changes. McFarlane said he threw away the altered memo.54
50 In November 1986, North retrieved from the System IV files five of the six documents on
the list and attempted to alter their substance. A sixth document, the December 4, 1984,
document could not be located by the System IV officer at the time of North's request. North's
secretary, Fawn Hall, altered the documents that North retrieved. North's purpose was defeated,
however, because both the altered and unaltered versions of the documents were found in the
NSC files by investigators.
51 McFarlane North Trial Testimony, 3/13/89, p. 4109.
52 McFarlane, FBI 302, 4/15/87, p. 5.
53 Instead of referring to the ``guidance'' the contras had received from the NSC staff about
cutting Nicaraguan supply lines, North inserted the word ``awareness;'' he deleted the entire
passage of the document regarding the delivery of lethal supplies.North was tried and convicted
of altering and shredding official documents; his conviction was overturned on appeal.
54 McFarlane North Trial Testimony, 3/13/89, pp. 4114-15.
In addition to reviewing the problem documents with North, McFarlane said they discussed
the press allegations that North had been fund-raising for the contras. ``I asked him how he
responded to the charge that he had been raising money, and he explained how he had conducted
himself whenever he had been speaking in public and explained to me why this was not a
violation of law, in his judgment, and we went over it in some detail.'' 55 McFarlane said North
assured him that although he made public speeches on behalf of the contras, he always explained
that he, personally, could not raise funds because he was a Government official.56
55 Ibid., p. 4074.
56 Ibid., pp. 4074-75.
McFarlane testified that it was not ``clear'' to him that North was involved in delivering
weapons to the contras, despite memos indicating that he was.57 McFarlane admitted that North
reported to him in 1985 that a secret airstrip was being constructed in Costa Rica to resupply the
contras, but he claimed he did not know what North's role was in establishing a southern military
front for the contras. McFarlane said:
57 Ibid., 3/10/89, p. 4035.
. . . He was reporting to me that one [a southern front] was being set up but I'd been in the
military for 20 years and I knew quite well that the activities of a single officer devoted to setting
up an entire front for an army is inconsequential.58
58 Ibid., p. 4038.
McFarlane and North drafted letters of response to Congress that were patently false.59 On
September 5, 1985, McFarlane wrote Hamilton:
59 North was charged with obstruction of and false statements to Congress in regard to the
1985 false responses. He was not convicted of those charges.
. . . I can state with deep personal conviction that at no time did I or any member of the
National Security Council staff violate the letter or spirit of the law. . . . It is equally important to
stress what we did not do. We did not solicit funds or other support for military or paramilitary
activities either from Americans or third parties. We did not offer tactical advice for the conduct
of their military activities or their organization.60
60 Letter from McFarlane to Hamilton, 9/5/85, AKW 001528-29.
On September 12, 1985, McFarlane sent Barnes a letter containing virtually identical false
denials of contra-aid activities by North and the NSC staff.61
61 Letter from McFarlane to Barnes, 9/12/85, AKW 001512-14.
In addition to written representations, McFarlane on September 5, 1985, met with leaders of
the Senate Select Committee on Intelligence and assured them no laws had been broken and no
NSC staff member had aided the contras or solicited funds on their behalf. On September 10,
1985, he made similar assurances in a meeting with Hamilton and other House Intelligence
Committee members; the Hamilton meeting was followed up with written questions and answers,
in which McFarlane again misrepresented the facts.62 In these responses, he stated that North
had not helped facilitate the movement of supplies to the contras and that no one on the NSC
staff had an official or unofficial relationship to fund-raising for the contras.
62 Letter from McFarlane to Hamilton, 10/7/85, AKW 001540-48.
Despite McFarlane's denials, Barnes on September 30, 1985, sought from McFarlane ``oral
and documentary'' information, including memoranda, on NSC staff involvement in contra
assistance.63 McFarlane invited Barnes to meet with him at the White House on October 17,
1985. McFarlane showed Barnes a large stack of NSC documents described as relevant to his
inquiry. McFarlane told Barnes, however, that the material could not leave the White House --
that members of Congress could review them there.
63 Letter from Barnes to McFarlane, 9/30/85, AKW 001515-16.
Barnes did not take up McFarlane's offer. On October 29, 1985, he again requested that
McFarlane turn over the documents to the House Intelligence Committee, which had facilities
for safeguarding classified materials.64 McFarlane did not respond.
64 Letter from Barnes to McFarlane, 10/29/85, AKW 011734-36.
McFarlane later admitted that his responses to Congress were ``too categorical'' and they were
at the least, overstated.65 He claimed, however, that he did not lie. He explained that he
understood that Congress was primarily concerned with fund-raising for the contras -- not the
other types of violations exposed by North's memoranda.
65 McFarlane, FBI 302, 9/13/90, p. 13.
McFarlane said North did not tell him certain things, because, ``he was probably trying to
protect me.'' 66 McFarlane was asked whether North raised objections when they were drafting
the false responses to Congress:
66 McFarlane, North Trial Testimony, 3/13/89, p. 4184.
Q: Did Colonel North say anything to indicate that he believed that these statements were just
flat-out lies?
A: No, but that's not his fault. It's mine.
Q: You say it's your fault. But you also say you didn't do anything wrong. Is that -- do I
understand your testimony correctly?
A: I have said over and over again I did a lot of things wrong.
Q: Did you lie to Congress, Mr. McFarlane, in connection with these statements right here?
A: At the time I didn't believe it but at the time I was wrong and I admit that.67
67 Ibid., pp. 4168-69.
McFarlane insisted that he did not lie to Congress. Instead, he claimed, he merely told them
his version of the truth:
You do not lie to the Congress, that in my experience and working nine years on the White
House staff it was often the case that congressmen would not always tell us everything on their
agenda and similarly the Executive branch didn't always tell everything on its agenda to the
Congress. You don't lie. You put your own interpretation on what the truth is.68
68 Ibid., pp. 4129-30.
In 1986, after McFarlane resigned as national security adviser, North continued to seek his
advice on a range of contra-related matters, making it clear that he was still actively involved in
contra support.69 In the spring and summer of 1986, after a new round of press allegations of
North's activities spurred a new round of congressional inquiries, McFarlane raised concerns
about North's vulnerability with Poindexter in a computer message dated June 11, 1986.70
McFarlane said, ``I was worried in Colonel North's behalf. It didn't have anything to do with
truth or falsity, but as a human being.'' 71 McFarlane continued:
69 On April 21, 1986, for example, North in a computer note to McFarlane expressed his
frustration over a shortage of contra funds: ``There is great despair that we may fail in this effort
and the resistance support acct. is darned near broke. Any thoughts where we can put our hands
on a quick $3-5 M?'' North added, ``the pot is almost empty.'' (PROFs Note from North to
McFarlane, 4/21/86, AKW 001150-51.)
70 PROFs Note from McFarlane to Poindexter, 6/11/86, AKW 021425.
71 ,McFarlane, North Trial Testimony, 3/13/89, pp. 4234.
Q: Was Colonel North worried in his own behalf when he talked to you?
A: Some.
Q: And did he tell you why he was concerned about having to talk to the people in Congress
about his activities?
A: No.
Q: Did you ask him?
A: No. It was on the telephone and I don't think I would have.
Q: Do you know what his concerns would be, so that you didn't have to ask him, I mean?
A: No. I recognized, as I had the year before, that there certainly were understandable
reasons for him to be concerned because many in the Congress would certainly not agree with
what he did, whatever he did.72
72 Ibid., pp. 4234-35.
McFarlane and the Iran Arms Sales
McFarlane, along with CIA Director Casey, was an early exponent of the view that the United
States should reopen ties with Iran to influence events after the death of the Ayatollah Khomeini.
Independent Counsel did not charge McFarlane with any crime stemming from the arms
initiative. As one of its originators and prime movers he provided valuable testimony regarding
its genesis.
By the end of June 1985, six Americans were being held hostage by pro-Iranian Shi'ite
Muslim terrorists in Beirut.73 Other acts of terrorism were launched against Americans,
including the hijacking of a TWA jet in June 1985 and the murder of one of its passengers, U.S.
Navy diver Robert Stetham.
73 The American hostages were William Buckley, the CIA's chief of station in the Lebanese
capital; Presbyterian minister Benjamin Weir; Father Lawrence Martin Jenco, a Catholic priest;
Associated Press reporter Terry Anderson; David Jacobsen, a hospital administrator; and Thomas
P. Sutherland, a university dean.
Iran had, since the taking of the U.S. Embassy in 1979, been barred from receiving U.S.
weaponry, and the United States, through a policy known as ``Operation Staunch,'' discouraged
weapons sales by other countries. In January 1984 Iran was officially declared by the State
Department to be a sponsor of international terrorism, making it subject to additional
arms-export restrictions.
Against this troubling backdrop, McFarlane dispatched Michael Ledeen, an NSC consultant,
in the spring of 1985 to sound out Israeli officials about the possibility of establishing contacts
inside Iran, in hopes of building ties with more moderate factions there. During the 1985 arms
shipments, Ledeen acted as a conduit for information between Israeli officials, Israeli and Iranian
arms brokers, and the NSC staff.74 By using Ledeen as a private intermediary, McFarlane
pretended not to have official NSC involvement in these overtures. Ledeen said he ``had an
understanding with Mr. McFarlane that neither of us would keep anything in writing regarding
this initiative.'' 75
74 Ledeen was an early subject of Independent Counsel's investigation because of allegations
that he personally profited from the Iran arms sales. No evidence was found supporting these
allegations, although Ledeen admitted that he asked Israeli arms brokers Adolf (Al) Schwimmer
and Yaakov Nimrodi to open a bank account in October 1985 to cover Iran arms sales expenses.
Ledeen said an account was opened in Switzerland, that Schwimmer and Nimrodi gave him the
number, and that he subsequently gave it to North. After the Iran arms sales became public, he
received a letter from Credit Suisse stating that the account was never used and no money was
ever deposited in it. (Ledeen, Grand Jury, 9/18/87, pp. 125-27, and Letter from Credit Suisse to
Ledeen, 4/23/87.)
75 Ledeen, Grand Jury, 9/18/87, p. 34.
Ledeen said he learned in March 1985 from a Western European intelligence official that
Iran's political situation was fluid and that the United States could gain valuable information
from the Israelis.76 At about this time, Ledeen said he discussed with former CIA official
Theodore Shackley a meeting Shackley had in late 1984 with an Iranian (Manucher Ghorbanifar),
who told him it might be possible to ransom the release of American hostage William Buckley,
the CIA's station chief in Beirut. According to Ledeen, Shackley in April or May 1985 asked
him to relay to the Administration a memo on the ransom plan that had already been rejected by
the State Department in December 1984.77 Ledeen said he gave the Shackley memo to
North.78
76 Ibid., pp. 21-23.
77 Memorandum from Shackley to Walters, 11/22/84.
78 Ledeen, Grand Jury, 9/18/87, p. 48. Despite the lack of documentation by McFarlane and
Ledeen, North's notebooks suggest the timing of Ledeen's early contacts regarding Iran. North's
notebooks on January 15, 1985, reflect a call to CIA counterterrorism official Duane R.
Clarridge, regarding Ledeen. (North Notebook, 1/15/85, AMX 000327.) On March 21, 1985,
North noted: ``Mtg w/Ledeen -- Wants to make trip to Israel -- RCM [McFarlane] . . .'' On April
28, 1985, North noted, ``Call Clarridge re Ledeen [] Iranian.'' (North Notebook, 4/28/85, AMX
000626.)
Ledeen traveled to Israel on McFarlane's behalf in early May 1985 and met with Israeli Prime
Minister Shimon Peres. According to Ledeen, Peres asked him to carry a request back to
McFarlane. Peres said Iran wanted to purchase from Israel U.S.-made artillery shells or pieces,
and Israel could not make the sale without U.S. approval.79 Shortly after his return to the United
States in mid-May 1985, Ledeen relayed the results of his meetings in Israel and also the Peres
request. Ledeen said McFarlane checked on the request and subsequently told Ledeen ``that it
was okay but just that one shipment and nothing else.'' 80 McFarlane claimed not to have
remembered any discussion with Ledeen regarding artillery parts.81
79 Ledeen, Grand Jury, 9/18/87, p. 30.
80 Ibid., p. 37.
81 McFarlane, Tower Commission Testimony, 2/19/87, p. 93.
In Israel, meanwhile, talks were progressing among Israeli officials, including Adolf (Al)
Schwimmer, an adviser to Prime Minister Peres; Israeli arms dealer Yaakov Nimrodi; and
Iranian entrepreneur Manucher Ghorbanifar. Ghorbanifar had proposed that Israel sell Iran 100
U.S.-made TOW missiles; as a sign of the power of his contacts in Iran, he would obtain the
release of CIA Station Chief Buckley.82
82 Israeli Historical Chronology, Part One, 7/29/87, p. 5, AOW 0000018, as released in Select
Committees Report, pp. 164-65.
In early June 1985, McFarlane approved a second trip by Ledeen to Israel, but it was canceled
because Secretary of State Shultz was angry when he learned after the fact of Ledeen's earlier
secret mission.83 When U.S. Ambassador to Israel Samuel Lewis learned of Ledeen's previous
visit, he complained to Shultz; when Shultz confronted McFarlane on the matter, McFarlane
informed Shultz that Ledeen was there on his own, not on an NSC assignment.84
83 Ledeen, Grand Jury, 9/18/87, pp. 40-41. North's notebooks reflect that he discussed the
impending trip with Ledeen on June 3, 1985: ``Call from Ledeen -- Re Iran contact -- so many
people making approaches -- confused as to intermediary -- could we sit down and talk --
Mullah's want to meet with a `person we can deal with' -- Ledeen leaving Friday on trip for Bud
[McFarlane] -- Gone for week -- Ted Shackley 320-2190 (H) 522-3253 (O).'' (North Notebook,
6/3/85, AMX 000732.)
84 McFarlane, FBI 302, 3/10/87, p. 4.
On June 17, 1985, McFarlane circulated a draft National Security Decision Directive (NSDD)
on Iran to Shultz, Casey and Defense Secretary Weinberger, recommending the option of selling
military equipment to Iran in an effort to re-open ties. Shultz and Weinberger opposed the draft
NSDD; Casey endorsed it.
On July 3, 1985, David Kimche, the director general of Israel's Foreign Ministry, met with
McFarlane in Washington. McFarlane's recollection of the discussion was:
. . . In this conversation, there was no request for arms, in any respect, nor linkage made
between arms and the release of the hostages although Mr. Kimche did advert to the possibility
that arms might be raised in the future. He asked that I provide the U.S. Government position.
Within two or three days, I conveyed this information to the President as well as to the
Secretaries of State and Defense. The President reflected on the matter and gave his approval to
such a political dialogue. I conveyed this information to Mr. Kimche. . . .85
85 McFarlane, SSCI Testimony, 12/7/86, p. 9.
McFarlane heard shortly after his Washington meeting with Kimche about a request from
Ghorbanifar for 100 TOW missiles. On July 7, 1985, Kimche, Nimrodi, Schwimmer,
Ghorbanifar and international financier Adnan Khashoggi met in Geneva, where Ghorbanifar
proposed the TOW missile sale to strengthen his position in Iran. As in earlier meetings,
Ghorbanifar claimed he could obtain the release of American hostages as a result.86 On July 8,
1985, Kimche, Nimrodi, Schwimmer, Khashoggi and Ghorbanifar met with Ghorbanifar's
Iranian contact in Hamburg, West Germany. The participants discussed TOW missiles and
hostages, and the possibilities of U.S.-Israeli cooperation on the matter.87
86 Israeli Historical Chronology, Part One, 7/29/87, pp. 12-13, AOW 0000025-26, as released
in Select Committees Report, p. 166,
87 Ibid., pp. 13-14, AOW 0000026-27, as released in Select Committees Report, p. 166.
On July 11, 1985, Schwimmer at Kimche's direction met with Ledeen in Washington.
Schwimmer told Ledeen that Ghorbanifar thought the American hostages could be freed and that
selling TOW missiles to Iran would improve U.S.-Iran relations.88 Continuing the rapid pace of
events in July 1985, Ledeen relayed to McFarlane the information Schwimmer had given him.
McFarlane told Ledeen he would have to study whether the United States should sell TOW
missiles to Iran.89 Shortly after meeting with McFarlane, Ledeen left for Israel, where he met
with Israeli officials and Ghorbanifar.
88 Ledeen, Grand Jury, 9/18/87, pp. 44-45. Ledeen said this was the first time he had ever
heard of Ghorbanifar; he said he did not realize at the time that the memo he had received earlier
from Shackley about ransoming Buckley was based on a meeting with Ghorbanifar. (Ibid., pp.
47-49.)
89 Ibid., p. 53.
McFarlane informed Shultz by way of a back-channel cable on July 14, 1985, about Kimche's
proposal that 100 TOWs be shipped to Iran.
McFarlane's testimony about the July-August 1985 period wavered in terms of precise dates,
but it remained relatively consistent regarding the progression of events. McFarlane said he
informed President Reagan of the Kimche proposal to sell arms to Iran when Reagan was
recovering from cancer surgery at Bethesda Naval Hospital in July 1985.90 According to
McFarlane, the President said ``that he could understand how people who were trying to
overthrow a government would need weapons, but we weren't yet sure about whether they were
legitimate. So he said that we, the United States, could not do it.'' 91
90 McFarlane, North Trial Testimony, 3/16/89, p. 4761. According to ``The Public Papers of
the President, 1985,'' Appendix A, p. 1513, McFarlane on July 18, 1985, ``briefed the President
on the conclusion of round two of the U.S.-Soviet nuclear and space arms negotiations and also
on terrorism and efforts to combat it.'' McFarlane's schedule also shows a meeting with the
President and Secretary of State George Shultz at Bethesda Naval Hospital at 11 a.m. on Friday,
July 19, 1985.
91 Ibid.
McFarlane reported the President's response to Kimche, and Kimche requested a second
meeting. On August 2, 1985, Kimche met with McFarlane at the White House and told
McFarlane that the Iranian contacts the Israelis had developed were legitimate. According to
McFarlane, Kimche asked, ``What if Israel were to deliver the TOWs, not the United States,
would that be different? Would you agree with that?'' 92 Kimche asked McFarlane for the
official U.S. position and McFarlane agreed to report it to the President.
92 Ibid., p. 4762.
McFarlane said Kimche asked whether the United States would sell replacement weapons to
the Israelis if the TOW missiles came from their stocks. McFarlane said he told Kimche:
``David, that's not the point. You've been buying missiles from us for a long time and you
always can. You know that. The issue, and I will get you an answer, is whether it should be
done at all.'' 93
93 Ibid.
McFarlane said in the week following his August 2 meeting with Kimche, there were
meetings at which the TOW missile sale was discussed; he repeatedly testified that Shultz,
Weinberger, Vice President Bush, Poindexter and White House Chief of Staff Donald Regan
were either present in those meetings or kept apprised of the discussions.94 McFarlane said,
President Reagan ``decided that he would approve Israel's delivery of HAWK -- excuse me --
TOW missiles, and that if Israel came to us to purchase replacements they could do that.'' 95
McFarlane said the replenishment issue, as part of his presentation of the Kimche proposal, was
discussed with Shultz and Weinberger.96 McFarlane said shortly thereafter he notified Kimche
of the President's decision.97
94 In an interview with the Tower Commission, McFarlane was perplexed by a lack of White
House meeting agendas for the late July-early August 1985 time frame where all or more than
two or three of the NSC principals gathered. ``[I]t is those meetings where Iran was discussed,''
he said. `` . . . I called the Executive Secretary at the NSC and I asked are there agendas for each
of the following meetings, and I gave them six meetings from July 22 to August 7, and he said
no, there are no agendas for meetings at which the President met with all of them on at least two
occasions. I don't know.'' (McFarlane, Tower Commission Testimony, 2/19/87, p. 19.)
95 McFarlane, North Trial Testimony, 3/16/89, p. 4764.
96 McFarlane, FBI 302, 3/20/92, p. 5.
97 McFarlane, North Trial Testimony, 3/16/89, p. 4764.
On August 20, 1985, Israel -- working through Nimrodi, Schwimmer and Ghorbanifar --
transferred 96 U.S.-made TOW missiles to Iran via chartered aircraft. No hostages were freed
following the initial TOW missile shipment, although Ghorbanifar continued to promise their
release.98
98 Israeli Historical Chronology, Part One, 7/29/87, p. 27, AOW 000040, as released in Select
Committees Report, p. 168.
In September 1985, Ledeen provided North with information to allow surveillance of
Ghorbanifar and his contacts.99 By this point, North had become involved in logistical aspects
of arranging for the hostages to leave Lebanon. A note taken by a Shultz aide, Nicholas Platt, on
September 4, 1985, reflects information that North, Ledeen and McFarlane were involved in
obtaining the release of hostages, via Israel providing ``equipment'' to Iran.100
99 Ledeen, Grand Jury, 9/18/87, pp. 103-04.
100 Platt Note, 9/4/85, ALW 0036259.
On September 14, 1985, a second shipment of 408 TOW missiles from Israel to Iran was
made, finally resulting in the release of one American hostage, Reverend Benjamin Weir.
Ledeen said the Weir release ``confirmed the legitimacy of Ghorbanifar as a channel to powerful
people in Iran.'' 101 But U.S. officials clearly expected more. The fact that Buckley had not
been released was of special concern, because Administration officials had sought his return
first.102 Throughout September and October, Ledeen continued to act as McFarlane's private
liaison with Israeli officials and Ghorbanifar in the arms-for-hostages deals.103 Instead of
further releases following Weir, however, there were increasing demands by Ghorbanifar for
more weapons. In early October 1985, the terrorist group believed to be holding the hostages in
Beirut reported that Buckley was dead.
101 Ledeen, Grand Jury, 9/18/87, p. 105.
102 McFarlane, FBI 302, 3/20/92, pp. 1, 12.
103 Among these meetings, on October 7 and 8, 1985, Ledeen met in Washington with North,
Schwimmer, Nimrodi and Ghorbanifar.
In October 1985, Ledeen told McFarlane the Iranians wanted several types of missiles,
including Phoenix and Harpoon missiles. McFarlane said it was ``out of the question, it's nuts,
just forget about it.'' 104
104 McFarlane, Grand Jury, 5/4/87, p. 59.
North noted an October 30, 1985, discussion with Ledeen, in which Ledeen described a recent
meeting he had with one of Ghorbanifar's Iranian contacts, Hassan Karoubi, in Geneva. The
notes state: ``what's Rqd. [required] to get hostages out.'' North then noted, 150 HAWKS, 200
Sidewinder missiles, and 30-50 Phoenix missiles.105 The notes also reflect the Israelis'
continuing concern over replenishment of the TOW missiles they shipped to Iran in
August-September 1985, the fact that Buckley had not been released, and McFarlane's apparent
belief that arms sales should be stopped unless more hostages are freed.
105 North Notebook, 10/30/85, AMX 001836.
By November, Ghorbanifar and his Iranian contacts were seeking U.S.-made Improved
HAWK missiles from Israel. Israel proceeded to make plans for a shipment. On November 8,
1985, McFarlane met with Kimche in Washington.106
106 McFarlane Calendar, 11/8/85, MF 856-57.
On November 9, 1985, McFarlane told Weinberger that hostage-release efforts were tied to
arms sales to Iran. Noting a call from McFarlane, Weinberger wrote: ``wants to start `negot.'
exploration with Iranians (+ Israelis) to give Iranians weapons for our hostages . . .'' 107 On
November 10, 1985, Weinberger noted a discussion with McFarlane, stating, ``we might give
them -- thru Israelis -- Hawks but no Phoenix.'' 108 On November 14, 1985, Shultz aide Charles
Hill noted a conversation between Shultz and State Department official Michael Armacost,
stating, ``in last few days Bud [McFarlane] asked Cap [Weinberger] how to get 600 Hawks + 200
Phoenix to Iran. Its [sic] highly illegal. Cap won't do it I'm sure. Purpose not clear. Another
sign of funny stuff on Iran issue. . .'' 109
107 Weinberger Note, 11/9/85, AKW 018126.
108 Ibid., 11/10/85, ALZ 0039775.
109 Hill Note, 11/14/85, ANS 0001187. McFarlane said he did not believe he ever raised
with Weinberger a request for 600 HAWKs and 200 Phoenix missiles for Iran, because he had
rejected such a request by Ledeen in October and was strongly opposed to it. (McFarlane, FBI
302, 3/20/92, pp. 14, 15.)
McFarlane met with Israeli Defense Minister Yitzhak Rabin on November 15, 1985, in
Washington, shortly before McFarlane left for the Geneva summit of President Reagan and
Soviet leader Mikhail Gorbachev. McFarlane said, ``I believe that his [Rabin's] purpose in
coming was simply to reconfirm that the President's authority for the original concept was still
valid. We hadn't changed our minds. And I reconfirmed that that was the case.'' 110 McFarlane
said Rabin told him that the Israelis were about to make another arms shipment to Iran, but he did
not mention HAWKs.111
110 McFarlane, Tower Commission Testimony, 2/19/87, p. 36.
111 McFarlane, FBI 302, 3/20/92, p. 14.
On November 14, 1985, McFarlane and Poindexter discussed hostage-release efforts with
Casey and his deputy John McMahon. McMahon memorialized this meeting for the record,
noting that: ``. . . McFarlane then told us about the Israeli plan to move arms to certain elements
of the Iranian military who are prepared to overthrow the government.'' 112
112 Memorandum for the Record by McMahon, 11/15/85, ER 32809-10.
During the Reagan-Gorbachev summit in Geneva, McFarlane informed President Reagan and
White House Chief of Staff Donald T. Regan of the impending arms shipment and the
anticipated hostage release. On November 19, 1985, McFarlane also informed Shultz in Geneva
of the impending shipment by Israel to Iran. Hill's notes reflect a secure call between McFarlane
and Shultz:
Bud [McFarlane] talked to Kimche. 4 host[a]g[es] to be released Thursd[a]y. Isr[ael]. will fly
plane w[ith] 100 Hawk to [a European city]. Transfer to another plane. If host[a]g[e]s released,
plane will go to Iran. If not, Israel. Isr[ael]. will bu