 Nicaragua led by Somoza family  U.S. had long relationship with Somozas of Nicaragua  Dictators  Pro U.S. and anti- communist

 Somozas overthrown by the Sandinistas  Reagan believes communism is taking over Nicaragua  1981: Approves CIA program:  Helps create a counter- revolutionary, paramilitary organization: The Contras  $19 million in aid  Created a training camp in Honduras

 1984: Congress is pressured by international community and U.S. citizens to stop funding military groups  Boland Amendment is passed  Forbids government agencies from supporting “directly or indirectly military or paramilitary operations” in Nicaragua

 1980: U.S. breaks all diplomatic and trade ties with Iran  Why?  Weapons and trade embargo – no buying or selling allowed

 From : Thirty Americans taken hostage by pro-Iranian, Islamic extremists – Hezbollah  Reagan: “We do not negotiate with terrorists.”

 An operation to free American Hostages being held by terrorist groups with Iranian ties.  It was planned that Israel would ship weapons to Iran, and then the U.S. would resupply Israel and receive the Israeli payment.  Being held by the Lebanese Shia Islamist group Hezbollah  Hezbollah: militant group and political party in Lebanon (terrorist group).

 The plan deteriorated into an arms-for- hostages scheme  Lieutenant Colonel Oliver North in 1985 mostly set up the plan where a portion of the proceeds from the weapon sales was diverted to fund anti-Sandinista and anti- communist rebels, or Contras, in Nicaragua.

 Lebanese newspaper reported that the U.S. sold arms to Iran through Israel in exchange for the release of hostages by Hezbollah.

 President Ronald Reagan: was a supporter of the Contra cause  no evidence has been found showing that he authorized the exchange of the money raised by the Iranian arms sales to the Contras.  Oliver North and his secretary, Fawn Hall, destroyed documents

 After the weapon sales were revealed in November 1986, Reagan appeared on national television and stated that the weapons transfers had indeed occurred, but that the United States did not trade arms for hostages.

 On March 4, 1987, Reagan returned to the airwaves in a nationally televised address, taking full responsibility for any actions that he was unaware of.

 Bush was vice-president at the time of the affair.  Some of those involved in the Iran–Contra scandal who were convicted of felonies and subsequently pardoned later became members of the administration of George W. Bush.