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Iran-Contra and Arms-for-Hostages Scandals

Third-Party Funding

Project: Iran-Contra and Arms-for-Hostages Scandals
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Retired Air Force Major General Richard Secord becomes deeply involved in organizing a covert supply operation for Nicaragua’s Contras under the name “Airlift Project.” Secord later testifies to the Congressional Iran-Contra Committee that the project’s money comes from private donations and friendly foreign governments. [New York Times, 11/19/1987]

Entity Tags: Contras, Joint House-Senate Iran-Contra Committee, Richard Secord

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Iran-Contra Affair, Richard Secord

Assistant Secretary of State Elliott Abrams (see April 19, 1985 and After) joins the National Security Council (NSC)‘s Oliver North and the CIA’s Central American Task Force chief Alan Fiers as the principal members of a Restricted Interagency Group (RIG) which works on Central American affairs for the Reagan administration. Abrams, a staunch supporter of Nicaragua’s Contras, becomes aware of North’s machinations to divert US funds to the Contras (see December 6, 1985 and April 4, 1986) in spite of Congress’s prohibition on such funding (see October 10, 1984). Abrams will also become directly involved in secret, illegal efforts to secure funding for the Contras from other nations (see June 11, 1986). [Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: Restricted Interagency Group, Contras, Oliver North, Elliott Abrams, Alan Fiers

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Iran-Contra Affair, Violation of US Law, Elliott Abrams, Oliver North, Alan Fiers

Senior White House officials attend a National Security Planning Group (NSPG) meeting on the subject of Central America. Attending the meeting are President Reagan, Vice President Bush, Secretary of State George Shultz, Treasury Secretary James Baker, Defense Secretary Caspar Weinberger, CIA Director William Casey, and White House Chief of Staff Donald Regan. The interests of the Nicaraguan Contras are represented by Assistant Secretary of State Elliott Abrams (see September 4, 1985), NSC officer Oliver North (see December 6, 1985 and April 4, 1986), and senior CIA official Alan Fiers (see Late 1985 and After). According to minutes of the meeting, North reminds the group that under the 1986 Intelligence Authorization Bill, the State Department can legally approach other countries for non-military funding for the Contras. During the ensuing discussion, Reagan asks, according to the minutes: “What about the private groups who pay for ads for the contras? Have they been contacted? Can they do more than ads?” This indicates that Reagan is well aware of the private, illegal funding being channeled to the Contras. Fiers will later give a somewhat different version of events in his testimony to the Iran-Contra grand jury (see July 17, 1991), recalling Reagan asking about “Ollie’s people” working with the Contras and asking if they could help with funding. Fiers will recall the question causing tension among the group, and then someone quickly responding, “that’s being worked on.” After the meeting, North becomes more outspoken in his descriptions of his illegal funding of the Contras. [Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: William Casey, Contras, Caspar Weinberger, Alan Fiers, Donald Regan, Ronald Reagan, Elliott Abrams, James Baker, George Herbert Walker Bush, George Shultz, Oliver North, Reagan administration

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Iran-Contra Affair, Violation of US Law, Alan Fiers, Caspar Weinberger, Elliott Abrams, George H. W. Bush, George Shultz, Oliver North, Ronald Reagan

After a National Security Planning Group (NSPG) meeting that covered the need for further monetary assistance to the Nicaraguan Contras, Assistant Secretary of State Elliott Abrams, in a discussion with his boss, Secretary of State George Shultz, broaches the idea of soliciting donations from other nations. Shultz is receptive, but warns Abrams that he does not want donations from a country that receives large amounts of US aid, as such solicitations might appear to be kickbacks from such aid. And Shultz does not want a right-wing dictatorship such as Taiwan or South Korea to contribute because it would create a potentially embarrassing link between those countries and the Contras. Abrams suggests asking the Sultan of Brunei, Hassanal Bolkiah, for funds. Brunei is a tremendously rich Muslim oil state in Southeast Asia. Shultz is planning on visiting Brunei in late June anyway, and Abrams says the visit is a perfect opportunity for Shultz to ask for donations. Shultz agrees (see June 11, 1986), but will not ultimately ask the Sultan for money during the visit (see June 23-24, 1986). After the discussion, Abrams meets with National Security Council officer Oliver North, and asks where the money should be sent should the Sultan agree to provide funds. North tells Abrams to wait until he can clear the solitication with his boss, NSC chief John Poindexter. North tells Poindexter that he has “the accounts and the means by which this thing [transfer of solicited funds] needs to be accomplished.” Poindexter will approve the solicitation. [Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: George Shultz, Contras, Elliott Abrams, John Poindexter, Hassanal Bolkiah, Oliver North, National Security Planning Group

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Geopolitics and Diplomacy, Iran-Contra Affair, Violation of US Law, Elliott Abrams, George Shultz, John Poindexter, Oliver North

Hassanal Bolkiah, the Sultan of Brunei.Hassanal Bolkiah, the Sultan of Brunei. [Source: Attar Maher / Corbis Sygma]National Security Adviser John Poindexter advises the National Security Council’s Oliver North that the Sultan of Brunei, Hassanal Bolkiah, will donate an unspecified sum of money to the Contras (see After May 16, 1986). Poindexter says the deal was brokered by Assistant Secretary of State Elliott Abrams; Poindexter has discussed the deal over lunch with Abrams. [New York Times, 11/19/1987; Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: Hassanal Bolkiah, Elliott Abrams, John Poindexter, Oliver North

Category Tags: Third-Party Funding, Iran-Contra Affair

Secretary of State George Shultz visits the oil-rich Sultan of Brunei, Hassanal Bolkiah. Shultz planned on asking the Sultan for a discreet donation of funds to the Nicaraguan Contras (see After May 16, 1986), but on the advice of the US Ambassador to Brunei, Barrington King, Shultz does not ask the Sultan for any such assistance. [Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: Hassanal Bolkiah, Barrington King, George Shultz, Contras

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Iran-Contra Affair, Violation of US Law, George Shultz

To facilitate the donation of funds from the Sultan of Brunei to the Nicaraguan Contras (see After May 16, 1986 and June 11, 1986), Assistant Secretary of State Elliott Abrams obtains bank account information from the National Security Council’s Oliver North, on a card typed by North’s secretary, Fawn Hall. Hall accidentally transposed two numbers in the account, resulting in the eventual transfer of the funds to the wrong account. [Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: Oliver North, Contras, Elliott Abrams, Fawn Hall, Hassanal Bolkiah

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Geopolitics and Diplomacy, Iran-Contra Affair, Violation of US Law, Elliott Abrams, Oliver North

Assistant Secretary of State Elliott Abrams meets with the Deputy Minister of Defense of Brunei, General Pengiran Haji Ibnu Ba’asith, to discuss a secret donation from the Sultan of Brunei to the Nicaraguan Contras (see After May 16, 1986). Ibnu was told earlier that an emissary from the US would call him using the pseudonym “Kenilworth.” Abrams calls Ibnu, using the false name, and meets with Ibnu in London. Ibnu oversees the donation of $10 million from the Sultan of Brunei’s Citibank account to a Swiss bank account in the Eaux Vives branch of the Credit Suisse bank, to account number 368430-22-1. But the money is deposited in the wrong account (see Late June, 1986). [Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: Contras, Pengiran Haji Ibnu Ba’asith, Elliott Abrams

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Iran-Contra Affair, Elliott Abrams

National Security Council officer Oliver North, who was involved in the solicitation of a secret $10 million donation from Brunei to the Contras (see After May 16, 1986), is puzzled as to why the money is not in the Swiss bank account set up to handle the funds (see August 9-19, 1986). Unbeknownst to North, a transcription error sent the money to the wrong account (see Late June, 1986). North has just received a cable from the US Ambassador to Brunei, Barrington King, stating that “[t]hose on the receiving end here cannot confirm consummation of arrangements. But they tell us that this is not unusual in view of the process involved. If you are asked on this point, we suggest that simply say that the material is apparently still in the pipe-line.” Three days later, White House officials ask King to have Brunei officials ask for a bank trace of the funds. When the money is not receipted to the account by September 26, officials in both Washington and Brunei become concerned, though the Sultan of Brunei tells US officials that “because of the procedures that had been used we might have to wait for a short while more before the transaction is completed.” [Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: Oliver North, Barrington King

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Geopolitics and Diplomacy, Iran-Contra Affair, Oliver North

The Washington Post, having gotten wind of a secret fund transfer from a third-party nation to the Nicaraguan Contras (see August 9-19, 1986), reports that Saudi Arabia may be funding the Contras. (The Post’s sources are apparently unaware of the Brunei transaction.) Assistant Secretary of State Elliott Abrams, who originated and facilitated the Brunei deal (see After May 16, 1986), is asked by Senator John Kerry (D-MA) during his testimony to the Senate Foreign Relations Committee (see October 10-15, 1986) if he or the CIA representatives accompanying him—Clair George and Alan Fiers—are aware of any third-party funding of the Contras, whether it be Saudi Arabia or anyone else. Abrams says, “No.” George, also aware of the Brunei transaction, says, “No.” Fiers, who was involved in discussions of the transactions, says, “No, sir.” Abrams adds, “I think I can say that while I have been assistant secretary, which is about 15 months, we have not received a dime from a foreign government, not a dime, from any foreign government.” He says that if the Contras have received funding from other nations, he is not aware of it. “The thing is I think I would know about it because if they went to a foreign government, a foreign government would want credit for helping the contras and they would come to us to say you want us to do this, do you, and I would know about that.” Abrams repeats the lie to the House Intelligence Committee. [Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986, 8/4/1993]

Entity Tags: Washington Post, Alan Fiers, Clair George, Contras, Elliott Abrams, John Kerry, House Intelligence Committee

Category Tags: Aid for Nicaraguan Contras, Third-Party Funding, Violation of US Law, Alan Fiers, Elliott Abrams

Former CIA agent Alan Fiers.Former CIA agent Alan Fiers. [Source: Terry Ashe / Time Life Pictures / Getty Images]The former head of the CIA’s Central America task force, Alan Fiers, pleads guilty to two counts of lying to Congress. Fiers has admitted to lying about when high-ranking agency officials first learned of the illegal diversion of US funds to the Nicaraguan Contras (see December 6, 1985 and April 4, 1986). Fiers now says that when he learned of the diversions in the summer of 1986, he informed his superior, then-Deputy Director for Operations Clair George, who ordered him to lie about his knowledge (see Summer 1986). In return for his guilty pleas to two misdemeanor counts instead of far harsher felony charges, Fiers is cooperating with the Iran-Contra investigation headed by Lawrence Walsh (see December 19, 1986). Time reports: “The Iran-Contra affair has been characterized by US officials as a rogue operation managed by overzealous members of the National Security Council. But if Fiers is correct, top-ranking CIA officials not only knew about the operation and did nothing to stop it; they also participated in an illegal cover-up.… Suddenly a number of unanswered questions assume a new urgency. Just what did Ronald Reagan—and George Bush—know? And when did they know it?” [Time, 7/22/1991]

Entity Tags: Central Intelligence Agency, Alan Fiers, Contras, Ronald Reagan, George Herbert Walker Bush, Clair George

Category Tags: Third-Party Funding, Iran-Contra Affair, Violation of US Law, Special Prosecutor, Alan Fiers, George H. W. Bush, Oliver North, Ronald Reagan

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