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Iran-Contra Scandal

Iran-Contra Scandal. Q. Was Iran-Contra worse than Watergate?. Reagan’s Foreign Policy. Rejection détente, Realpolitik (publicly) Changed attitudes: Soviets defeatable  no mere containment

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Iran-Contra Scandal

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  1. Iran-Contra Scandal Q. Was Iran-Contra worse than Watergate?

  2. Reagan’s Foreign Policy • Rejection détente, Realpolitik (publicly) • Changed attitudes: Soviets defeatable no mere containment • Ignored/overlooked democracy: no action apartheid S Africa (“constructive engagement”) until divestiture movement forces sanctions ‘86

  3. Why not Reagan? • The scandal involved serious legal, constitutional, and moral “improprieties” much greater than the Watergate break in • When scandal first broke out, a majority of Americans called for Reagan’s impeachment • Why did Reagan survive when Nixon had fallen?

  4. I. The Contra End A. Support for Somoza Brutal dynasty of dictators who came to power in Nicaragua in 1934 Pro-US Anastasio Somoza

  5. B. The Sandinistas • 1961: Sandinista National Liberation Front formed (FSLN) • Communist/nationalist • Led by Daniel Ortega Ortega

  6. 1978: US suspends military aid to Somoza regime • 1979: FSLN overthrows Somoza and sets up communist regime (nationalize, redistribute land, etc.)

  7. Carter: fait accompli Rejected request for $75 million in aid (disliked revolutionaries) Moderate regime but no action Reagan: 2nd Cuba Kill the bastards C. American Reaction

  8. D. Bay of Pigs Redux • Reagan orders CIA Director William Casey to plan overthrow

  9. Casey: create and fund (1981: $19 million) counterrevolutionaries Contras • Started small (about 500) but grew (several thousand)

  10. Contras’ small numbers guerilla tactics, assassination, terror • Murdered villagers, nuns • US secretly mined Nicaragua’s harbors World Court rules US in violation international law • Reagan justified support by comparing the Contras to the American Revolutionaries

  11. Increasingly angry, in 1984 Congress prohibits funding to Contras: • Boland Amendment to an appropriations bill • Reagan signed the bill: public, press, Congress believe that US out of Nicaragua • Election year polls showed majority opposition to Reagan’s Latin American policies

  12. E. Ollie North • Reagan decides to secretly evade/break the law • But how to get the money? • Casey delegates to NSC staffer Oliver North

  13. Tactics • Wealthy individuals: “charitable” gifts to Contras • State Department approaches foreign countries for $ aid • Contras sell drugs in US for $ (with CIA assistance?)

  14. Problems • Illegal for administration to promise something for the $ (quid pro quo) • Upsets Constitutional system of checks and balances • Contras still unable to win major military victory

  15. Solution • North combines Contra operation with “The Enterprise”: Iran

  16. II. Iran End A. Anti-Terrorism? • Reagan publicly a hard-line anti-terrorist • Privately a soft touch (met with families) • 1979: Iranian Revolution American embassy hostages (50+) • Released when Reagan was inaugurated and US unfroze Iranian $ in US • Not connected (?)

  17. Iran supported anti-US terrorism • Lebanese kidnappings of American Zionists • 1985: Reagan meets with family visibly shakenobsessed with hostages

  18. National Security Advisor Robert McFarlane approached by Iranian businessman Manucher Ghorbanifar: • Arms for hostages

  19. Problems • Illegal: Congress had passed law against arms sales to Iran • Went against Reagan’s public policy • Major advisors spoke out against it  Do it anyways McFarlane goes to North

  20. B. One Simple Deal • Supposed to be one (1) simple deal: sell weapons (30% markup) for hostages • Iranians up ante: 2 plane loads rather than 1, 1 hostage rather than all 7

  21. Despite failure continue to try (120 for 5) • Continued failure: McFarlane decides to call it off but resigns John Poindexter appointed • ON convinces JP to continue: combine the deals

  22. III. Diversion of Funds • North: profits from arms sales Contras • Problem: unelected bureaucrat funding illegal activity with illegal funds (“Shadow government”) • North deals 2 more times • At end of arms trade there were MORE hostages in Lebanon • The exact reason Bush refuses to deal w/Iraqi kidnappers today

  23. October 1986: Contra end exposed— • Sandinistas shot down American plane carrying arms and soldiers why were they there? • North starts shredding

  24. Four weeks later Iranian government leaks story to Mid East paper to embarrass Reagan • North shreds faster

  25. Senate held hearings to investigate scandal

  26. North, Poindexter, and Secretary of Defense Caspar Weinberger and others convicted of perjury and contempt of Congress • Eventually overturned in court based on the 5th Amendment • George H.W. Bush pardoned the others

  27. IV. Comparison to Watergate • Belief that loss of liberty abroad loss of liberty at home • Contempt of Congress • Reagan’s guys destroyed the evidence • Iran-Contra substantially worse • Revelations help lead to greater support for Saddam Hussein, 1st Gulf War, and 9-11

  28. The Teflon President • Reagan saved by the fact that there was no smoking gun • Either didn’t exist or was destroyed • Reagan remembered as great president • Subordinates go on: North runs for Congress, works for FOX News, Poindexter and TIA, Bush President • Presidential Records

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