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Context of 'November 25, 1986: State Department Official Lies about Third-Party Funding of Contras'

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Congress modifies the Boland Amendment (see October 10, 1984) by authorizing a one-time appropriation of $27 million for humanitarian aid for the Nicaraguan Contras. On August 29, 1985, President Reagan creates the Nicaraguan Humanitarian Assistance Office (NHAO) in the State Department for the purpose of administering the $27 million. [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, Nicaraguan Humanitarian Assistance Office, US Department of State, Ronald Reagan

Timeline Tags: Iran-Contra Affair

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]

Entity Tags: Hassanal Bolkiah, Elliott Abrams, John Poindexter, Oliver North

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

Eugene Hasenfus sits among the weapons captured from his downed cargo plane. His Sandinista captors surround him.Eugene Hasenfus sits among the weapons captured from his downed cargo plane. His Sandinista captors surround him. [Source: Nancy McGirr / Reuters / Corbis]A CIA C-123 transport plane (see November 19, 1985) is shot down in southern Nicaragua by a Sandinista soldier wielding a surface-to-air missile. The transport plane left an airfield in El Salvador with arms and other supplies intended for the Nicaraguan Contras. Three crew members—US pilots William Cooper and Wallace Sawyer, Jr, and an unidentified Latin American—die in the crash, but one, a “cargo kicker” named Eugene Hasenfus, ignores CIA orders and parachutes to safety—and capture by the Sandinistas. Hasenfus is a construction worker from Wisconsin who signed on to do temporary work with CIA contractors, and has no intention of “going down with the plane.” The next day, newspapers around the world run stories with Hasenfus’s face peering out from their front pages.
Reveals US's Arming of Contras - The Hasenfus shoot-down will break the news of the Reagan administration’s secret arming of the Contras in their attempt to bring down the democratically elected Socialist government of Nicaragua. [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; Dubose and Bernstein, 2006, pp. 64]
Damage Control - Assistant Secretary of State Elliott Abrams (see Late 1985 and After) is the designated US spokesman on the Hasenfus shootdown. Abrams coordinates with his fellow Contra supporters, the NSC’s Oliver North and the CIA’s Alan Fiers, and with the US Ambassador to El Salvador, Edwin Corr, on how to handle the situation. Between the three, they coordinate a denial from the Salvadoran military about any Salvadoran or US involvement in the Hasenfus flight. As for themselves, they agree not to flatly lie about anything, because they cannot be sure of what Hasenfus will say, but they agree to remain as quiet as possible and hope the media sensation surrounding Hasenfus dies down with little long-term effect. According to notes taken by Corr during one meeting, everyone knows that a leak—“eventually someone in USG [the US government] will finally acknowledge some ‘winking.’ Salv role now more public”—is inevitable. It is eventually decided that the Contras themselves will take all responsibility for the flight. Fiers worries that the flight will be connected to previous humanitarian aid supplied to the Contras (see October 1985). They also confirm that Felix Rodriguez, North’s liaison to the Contras in Central America (see Mid-September 1985), is in Miami, hiding from the press. Hasenfus will later acknowledge making at least ten supply flights into Nicaragua (see October 9, 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: Eugene Hasenfus, Central Intelligence Agency, Elliott Abrams, Contras, Reagan administration

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

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]

Entity Tags: Elliott Abrams, Alan Fiers, Contras, Felix Rodriguez, House Intelligence Committee, Senate Foreign Relations Committee, Lawrence E. Walsh

Timeline Tags: Iran-Contra Affair

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