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

2. Reagan’s Foreign Policy Rejection détente, Realpolitik (publicly) Rejection détente, Realpolitik (publicly) Changed attitudes: Soviets defeatable  no mere containment Changed attitudes: Soviets defeatable  no mere containment Ignored/overlooked democracy: no action apartheid S Africa (“constructive engagement”) until divestiture movement forces sanctions ‘86 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 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 When scandal first broke out, a majority of Americans called for Reagan’s impeachment Why did Reagan survive when Nixon had fallen? 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 1978: US suspends military aid to Somoza regime 1979: FSLN overthrows Somoza and sets up communist regime (nationalize, redistribute land, etc.) 1979: FSLN overthrows Somoza and sets up communist regime (nationalize, redistribute land, etc.)

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

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

10. Contras’ small numbers  guerilla tactics, assassination, terror Contras’ small numbers  guerilla tactics, assassination, terror Murdered villagers, nuns Murdered villagers, nuns US secretly mined Nicaragua’s harbors  World Court rules US in violation international law 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 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 1) Wealthy individuals: “charitable” gifts to Contras 2) State Department approaches foreign countries for $ aid 3) Contras sell drugs in US for $ (with CIA assistance?)

14. Problems 1) Illegal for administration to promise something for the $ (quid pro quo) 2) Upsets Constitutional system of checks and balances 3) Contras still unable to win major military victory

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

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

17. Iran supported anti-US terrorism Iran supported anti-US terrorism Lebanese kidnappings of American Zionists Lebanese kidnappings of American Zionists 1985: Reagan meets with family  visibly shaken  obsessed with hostages 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 1) Illegal: Congress had passed law against arms sales to Iran 2) Went against Reagan’s public policy 3) 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 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 Iranians up ante: 2 plane loads rather than 1, 1 hostage rather than all 7

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

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

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

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

25. Senate held hearings to investigate scandal Senate held hearings to investigate scandal

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

27. IV. Comparison to Watergate 1) Belief that loss of liberty abroad  loss of liberty at home 2) Contempt of Congress 3) Reagan’s guys destroyed the evidence 4) Iran-Contra substantially worse 5) Revelations help lead to greater support for Saddam Hussein, 1 st Gulf War, and 9-11

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