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Context of 'June 11, 1986: Sultan of Brunei to Donate Money to Contras'

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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)

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)

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)

Unaware of the White House machinations with Iran and the Nicaraguan Contras (see 1984, May 1984, October 10, 1984, November 19, 1985, December 6, 1985, Mid-1980s, April 4, 1986, May 29, 1986, and June 11, 1986), Congress approves a $100 million appropriation for military and non-arms aid to the Contras. (New York Times 11/19/1987)

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)

Assistant Secretary of State Elliott Abrams, who has already lied repeatedly under oath to Congress about third-party funding of the Contras (see October 10-14, 1986), lies again to the Senate Intelligence Committee about his knowledge of any such funding (see August 9-19, 1986). Appearing before the committee with senior CIA official Alan Fiers, who has himself lied to Congress about the same activities, Abrams tells the committee: “Well, we—after the Hasenfus shootdown (see October 5, 1986) we were asked about, you know, what did you know about the funding of Hasenfus and his operation. And the answer here is the same answer. That is, that we knew there were private contributions coming in, because they sure weren’t surviving on the money that we were giving them, which at one time was nothing and then the 27 million came along (see August 1985). So there was money coming in. But there was no reason to think it was coming from foreign governments, and I certainly did not inquire as to which individuals it was coming from.” Abrams denies ever discussing third-party funding with anyone on the National Security Council staff, which would include Oliver North, Abrams’s partner in the $10 million Brunei deal (see June 11, 1986). A frankly disbelieving Senator Bill Bradley (D-NJ) says: “Well, you would say gee, they got a lot of problems, they don’t have any money. Then you would just sit there and say, what are we going to do? They don’t have any money. You never said, you know, maybe we could get the money this way?” Abrams replies: “No.… We’re not—you know, we’re not in the fundraising business.” Two weeks later, Abrams will “correct” his testimony, but will still insist that he knows nothing of any such third-party funding. (Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986 8/4/1993)

CIA Director William Casey abruptly resigns due to terminal brain cancer (see December 18, 1986). Casey’s illness makes him unavailable to testify before the Congressional Iran-Contra investigation, a huge boon for committee Republicans who are determined to keep the truth of Iran-Contra from being revealed (see January 6-7, 1987). Casey had been one of the prime movers behind the Iran arms sales, and was National Security Council staffer Oliver North’s prime supervisor in what insiders call “the Enterprise”—the ad hoc organization run by North and retired General Richard Secord (see November 19, 1985) that trained, supplied, and even at times fought for Nicaragua’s Contras. North and Secord’s organization managed to evade Congressional oversight and ignore laws passed to limit US involvement in the Nicaraguan insurgency (see October 10, 1984). According to upcoming testimony from North, Casey saw “the Enterprise” as such a success that it should serve as a model for other US covert operations around the globe. It was Casey’s idea to have foreign countries such as Saudi Arabia (see July, 1984) and Brunei (see June 11, 1986) supply money to the Contras, over the objections of White House officials such as Secretary of State George Shultz, who told Casey in reference to the phrase “quid pro quo” that he should remember that “every quid had a quo.” As one Democratic congressmen later puts it, Casey was the “godfather” of the entire Iran-Contra operation, and his unavailability to the committee is a tremendous blow to its ability to find the truth. (Dubose and Bernstein 2006, pp. 70)

Former Assistant Secretary of State Elliott Abrams, in testimony before the Iran-Contra committee, admits he previously lied under oath when he denied the existence of third-party funding of the Nicaraguan Contras. In fact, Abrams himself had facilitated the funding of the Contras by the Sultan of Brunei (see June 11, 1986). Abrams will eventually plead guilty to lying to Congress, but will never see the inside of a jail cell, as President George H. W. Bush will pardon him (see December 25, 1992). During questioning, Republican committee member Dick Cheney (R-WY) praises Abrams’s service, saying, “I do personally believe you have an extremely bright future in the public arena in the United States.” When Cheney becomes vice president in the Bush-Cheney White House, he will name Abrams as deputy national security adviser (see June 2001). (Dubose and Bernstein 2006, pp. 74-75)

Former Assistant Secretary of State Elliott Abrams, facing multiple counts of lying under oath to Congress about, among other things, his knowledge of the US government’s involvement in the resupply operation to the Nicaraguan Contras (see October 10-15, 1986), his knowledge of the role played by former CIA agent Felix Rodriguez in the resupply (see December 17, 1986), and his knowledge of third-party funding of the Nicaraguan Contras (see November 25, 1986), agrees to plead guilty to two misdemeanor charges of withholding evidence from Congress. Abrams agrees to the plea after being confronted with reams of evidence about his duplicity by investigators for special prosecutor Lawrence Walsh as well as from testimony elicited during the House-Senate investigation of 1987 (see July 7-10, 1987) and the guilty plea and subsequent testimony of former CIA agent Alan Fiers (see July 17, 1991). Abrams pleads guilty to two counts of withholding information from Congress, to unlawfully withholding information from the Senate Foreign Relations Committee and the House Intelligence Committee, and admits lying when he claimed that he knew nothing of former National Security Council official Oliver North’s illegal diversion of government funds to the Contras (see December 6, 1985, April 4, 1986, and November 25-28, 1986). Abrams says that he lied because he believed “that disclosure of Lt. Col. [Oliver] North’s activities in the resupply of the Contras would jeopardize final enactment” of a $100 million appropriation pending in Congress at the time of his testimony, a request that was narrowly defeated (see March 1986). Abrams also admits to soliciting $10 million in aid for the Contras from the Sultan of Brunei (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)


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