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Context of 'August 9-19, 1986: Sultan of Brunei Donates $10 Million to Contras'

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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

Timeline Tags: Iran-Contra Affair

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

Timeline Tags: Iran-Contra Affair

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

Timeline Tags: Iran-Contra Affair

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

Timeline Tags: Iran-Contra Affair

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

Timeline Tags: Iran-Contra Affair

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]

Entity Tags: Bill Bradley, Alan Fiers, Oliver North, Senate Intelligence Committee, Elliott Abrams, Contras

Timeline Tags: Iran-Contra Affair

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