The Center for Grassroots Oversight

This page can be viewed at http://www.historycommons.org/entity.jsp?entity=george_shultz


Profile: George Shultz

Positions that George Shultz has held:

George Shultz was a participant or observer in the following events:

After a tirade about how humiliated and angry he was when he was investigated and audited by the IRS, President Nixon demands that the same kinds of investigations be performed on the Democratic presidential candidate, George McGovern, and his campaign staff and financiers. “What in the name of God are we doing on this one?” he asks. “What are we doing about the financial contributors?… Are we looking over the financial contributors to the Democratic National Committee? Are we running their income tax returns? Is the Justice Department checking to see whether or not there are any antitrust suits (see July 31, 1971)?… We have all this power and we aren’t using it. Now what the Christ is the matter?” Nixon particularly wants the tax returns of businessman Henry Kimmelman, one of the largest financial backers of the McGovern campaign, but the new Secretary of the Treasury, George Shultz, is reluctant to use the IRS for political purposes. Nixon cannot understand Shultz’s hesitation. “What’s he trying to do, say that we can’t play politics with IRS?… Just tell George he should do it.” Nixon has Kimmelman’s tax returns within three days. By the same time, IRS audits of McGovern’s campaign and senior officials are well underway. (Reeves 2001, pp. 519-521)

Richard Allen.Richard Allen. [Source: David Hume Kennerly / Getty Images]After Ronald Reagan takes office, he appoints 33 members of the powerful, far-right Committee on the Present Danger (see 1976) to his administration, 20 of them in national security positions. Reagan himself is a member, as is:
bullet Kenneth Adelman, the US’s deputy representative to the UN;
bullet Richard Allen, Reagan’s assistant for National Security Affairs;
bullet William Casey, director of the CIA;
bullet John Connally, a member of the Foreign Intelligence Advisory Board;
bullet Jeane Kirkpatrick, US ambassador to the UN;
bullet John Lehman, Secretary of the Navy;
bullet Michael Novak, the US representative on the UN’s Human Rights Commission;
bullet Richard Perle, Assistant Secretary of Defense for International Security Policy;
bullet Eugene Rostow, director of the Arms Control and Disarmament Agency;
bullet George Shultz, Secretary of State.
The CPD members in the Reagan administration are able to convince large portions of the American public that the US faces a grave and imminent threat from the Soviet Union, even though the Soviet Union is on the verge of dissolution. CIA official Melvin Goodman, who will resign in 1990 over the increasingly blatant politicization of intelligence on the Soviet Union, will say that the tremendously exaggerated estimates of the Soviet Union’s military strength “meant that the policy community was completely surprised by the Soviet collapse, and missed numerous negotiating opportunities with Moscow.” An extensive study by the General Accounting Office (GAO) will show that military officials consistently exaggerate the Soviet threat in order to get Congress to fund the largest defense buildup in the nation’s history. (Unger 2007, pp. 58-59)

In conjunction with his huge peacetime military buildup (see Early 1981 and After), President Reagan strongly opposes any sort of arms control or limitation discussions with the Soviet Union.
Rostow to ACDA - As a member of the Committee on the Present Danger (CPD—see 1976), Reagan had spoken out against the SALT II arms control treaty with the USSR (see June 18, 1979-Winter 1979), calling it “fatally flawed.” He has opposed every significant arms limitation agreement since 1963, no matter whether it was negotiated by Republican or Democratic administrations. To continue his opposition, Reagan appoints Eugene Rostow to head the Arms Control and Disarmament Agency (ACDA). Rostow, a fellow CPD member, is flatly opposed to any sort of arms control or disarmament agreement with the Soviet Union, and had led the CPD fight against the SALT II agreement. “Arms control thinking drives out sound thinking,” he told the Senate. (Scoblic 2008, pp. 118-120) During his confirmation hearings, Rostow tells Senate questioners that the US could certainly survive a nuclear war, and gives World War II-era Japan as an example—that nation “not only survived but flourished after a nuclear attack.” When asked if the world could survive a full nuclear attack of thousands of nuclear warheads instead of the two that Japan had weathered, Rostow says that even though the casualties might be between “ten million… and one hundred million… [t]he human race is very resilient.” (Scoblic 2008, pp. 126) Rostow’s aide at the ACDA, Colin Gray, says that “victory is possible” in a nuclear war provided the US is prepared to fight. (Scoblic 2008, pp. 127)
Burt to State Department - Reagan names Richard Burt to head the State Department’s Bureau of Politico-Military Affairs, the State Department’s primary liaison with the Defense Department. Burt, a former New York Times reporter, is one of the few journalists synpathetic to the CPD, and recently called the SALT agreement “a favor to the Russians.” Just before joining the Reagan administration, Burt called for reductions in nuclear arms controls: “Arms control has developed the same kind of mindless momentum associated with other large-scale government pursuits. Conceptual notions of limited durability, such as the doctrine of mutual assured destruction [MAD], have gained bureaucratic constituencies and have thus been prolonged beyond their usefulness. There are strong reasons for believing that arms control is unlikely to possess much utility in the coming decade.” (Scoblic 2008, pp. 118-120; US Department of State 2008)
Perle to Defense Department - Perhaps the most outspoken opponent of arms control is neoconservative Richard Perle, named as assistant defense secretary for international security affairs. Perle, until recently the national security adviser to Senator Henry “Scoop” Jackson (D-WA—see Early 1970s), will quickly become, in author J. Peter Scoblic’s words, “the administration’s chief arms control obstructionist, dubbed ‘the Prince of Darkness’ by his enemies.” Perle once said: “The sense that we and the Russians could compose our differences, reduce them to treaty constraints… and then rely on compliance to produce a safer world. I don’t agree with any of that.” Now Perle is poised to act on his beliefs. (Scoblic 2008, pp. 118-120)
Vice President Bush - Although seen as a pragmatist and not a hardline conservative (see January 1981 and After), Vice President George H. W. Bush is also optimistic about the chances of the US coming out on top after a nuclear exchange with the Soviet Union. During the 1980 campaign, he told a reporter: “You have a survivability of command and control, survivability of industrial potential, protection of a percentage of your citizens, and you have a capability that inflicts more damage on the opposition tham it inflicts on you. That’s the way you can have a winner.” (Scoblic 2008, pp. 126-127)
Other Appointees - Perle’s immediate supervisor in Defense is Fred Ikle, who headed ACDA in 1973 and helped battle back part of the original SALT agreement. Ikle will be primarily responsible for the Pentagon’s “five-year plan” that envisions a “protracted nuclear war” as a viable option (see March 1982). Defense Secretary Caspar Weinberger considers the standoff between the US and the Soviet Union akin to the situation between Britain and Nazi Germany in 1938, with himself and his ideological confreres as Britain’s Winston Churchill and any attempt at arms control as nothing but appeasement. Energy Secretary James B. Edwards says of a hypothetical nuclear war, “I want to come out of it number one, not number two.” Pentagon official Thomas Jones tells a reporter that the US could handily survive a nuclear exchange, and fully recover within two to four years, if the populace digs plenty of holes, cover them with wooden doors, and bury the structures under three feet of dirt. “If there are enough shovels to go around, everybody’s going to make it,” he says. Reagan’s second National Security Adviser, William Clark, will, according to Reagan official and future Secretary of State George Shultz, “categorically oppos[e] US-Soviet contacts” of any kind. Some of the administration’s more pragmatic members, such as Reagan’s first Secretary of State Alexander Haig, will have limited access to Reagan and be cut off from many policy-making processes by Reagan’s more hardline senior officials and staffers. (Scoblic 2008, pp. 118-120, 127; Halloran 3/2008)

President Reagan, recuperating from surgery to remove an assassin’s bullet, tells bedside visitor Terence Cardinal Cooke that God spared his life so that he might “reduce the threat of nuclear war.”
Censored Letter to Brezhnev - The day after his conversation with Cooke, Reagan pens a letter to Soviet Premier Leonid Brezhnev calling for “disarmament” and a “world without nuclear weapons.” Brezhnev does not read Reagan’s words; Reagan’s aides, horrified at the letter, rewrite it and strip out all the phrases calling for a reduction in nuclear weapons before sending it to Brezhnev.
Aides Refuse to Draw up Plans for Disarmament - In the following weeks, Reagan will call nuclear weapons “horrible” and “inherently evil,” and order his aides to draw up plans for their elimination. His aides will refuse to deliver those plans; one adviser, Richard Burt (see Early 1981 and After), will exclaim: “He can’t have a world without nuclear weapons! Doesn’t he understand the realities?”
Wants to Stop Nuclear Armageddon - Reagan believes in the literal Biblical story of Armageddon—the End Times—and believes that it will come about through the use of nuclear weapons. Unlike some conservative Christians (and some of his advisers), he does not relish the prospect, and in fact believes it is his task to prevent it from happening.
Plans to Reduce Nuclear Arms Based on Prescience, Ignorance - Author J. Peter Scoblic will note it is difficult to reconcile the view of Reagan as an advocate of nuclear disarmament with the confrontational, sometimes apocalyptic rhetoric and actions by him and his administration (see Early 1981 and After, Early 1981 and After, September 1981 through November 1983, March 1982, and Spring 1982), but Scoblic will write: “Each of these efforts, however, can also be interpreted as a sincere, if misguided, product of Reagan’s hatred of nuclear weapons. Reagan believed that the Soviets would reduce their atomic arsenal only if they were faced with the prospect of an arms race.” Reagan realizes—ahead of many of his advisers—that the USSR was moving towards a calamitous economic crisis, and believes that the Soviets will choose to step back from further rounds of escalation in order to save their economy from complete collapse. He also believes, with some apparent conflict in logic, that the only way to reduce US nuclear arms is to increase the nation’s military arsenal. “Reagan emphasized time and again, that the aim of his arms build-up was to attain deep cuts in nuclear weapons,” biographer Paul Lettow will write. “[M]ost people did not listen to what he was actually saying.” Scoblic cites what he calls Reagan’s profound ignorance of nuclear strategy and tactical capabilities as another driving force behind Reagan’s vision of nuclear disarmament. He is not aware that submarines and long-range bombers carry nuclear missiles; he believes that submarine-based nuclear missiles can be called back once in flight. Both ideas are wrong. He tells foreign policy adviser Brent Scowcroft that he did not realize the primary threat from the Soviet Union was that its gigantic arsenal of ICBMs might obliterate the US’s own ICBM stockpile. When journalists ask him how the MX missile program (see 1981) that he has asserted will rectify the threat to American ICBMs, as he has asserted, he confesses that he does not know. And he honestly does not seem to understand that his administration’s confrontational, sometimes overtly belligerent actions (see May 1982 and After, June 8, 1982, March 23, 1983, and November 2-11, 1983) cause apprehension and even panic among the Soviet military and political leadership. Scoblic will write that like other hardline conservatives, “Reagan could not believe that anyone could perceive the United States as anything but righteous.”
'Subject to Manipulation' - Reagan’s desire for a reduction in nuclear arms is not matched by any depth of understanding of the nuclear weapons issues. Therefore, Scoblic will observe, “[h]e was susceptible to manipulation by advisers who shared his militant anti-communism but not his distaste for nuclear deterrence and who wanted neither arms reduction nor arms control.” When he names George Shultz as his secretary of state in mid-1982, he gains a key ally in his plans for nuclear reduction and a counterweight to arms-race advocates such as Defense Secretary Caspar Weinberger and other hardliners who have worked (and continue to work) to sabotage the administration’s arms negotiations with the Soviet Union. He gains another ally when he replaces National Security Adviser William Clark with the more pragmatic Robert McFarlane. Both Shultz and McFarlane will support Reagan’s desire to begin sincere negotiations with the USSR on reducing nuclear arms, as does his wife, Nancy Reagan, who wants her husband to be remembered by history as reducing, not increasing, the risk of nuclear war. (Scoblic 2008, pp. 136-138)

Secretary of Commerce Howard Baldridge and Secretary of State George Shultz successfully lobby the National Security Council (NSC) adviser to approve the sale of 10 Bell helicopters to Iraq in spite of objections from other NSC members. It is claimed that the helicopters will be used for crop spraying. These same helicopters are later used in 1988 to deploy poison gas against Iranians and possibly Iraqi Kurds (see March 1988). (Auerbach 3/11/1991; Phythian 1997, pp. 37-38)

Korean Airlines Flight 007 before takeoff.Korean Airlines Flight 007 before takeoff. [Source: Check-Six (.org)]A Soviet Su-15 fighter plane fires two missiles into a Korean Airlines 747 passenger plane, KAL 007. The plane, en route from Alaska to Seoul, South Korea, had strayed into Soviet air space, had not responded to radio communications, and had either ignored or not seen warning shots fired at it. The 747 crashes into the Sea of Japan, killing all 269 passengers, including conservative House Representative Larry McDonald (D-GA) and 62 other Americans. The Soviets insist that the passenger plane was deliberately sent into their airspace to test their military readiness; later investigation shows that a US spy plane had just left the area, agitating Soviet radar units, and, according to their own radio transmissions, the Soviets had honestly believed the 747 was another spy plane, most likely an American RC-135. Though it has definitely strayed into Soviet airspace at least twice, and flown over a sensitive Soviet airbase on the Kamchatka Peninsula, it is most likely shot down in international airspace. (Fischer 3/19/2007; Scoblic 2008, pp. 131)
Angry White House Officials Respond - Reagan administration officials are furious. Secretary of State George Shultz, dubbed “The Sphinx” by journalists for his remote demeanor, rails at the Soviets in a press conference called just four hours after the White House learns of the incident. (Scoblic 2008, pp. 131) Four days later, Reagan will denounce the Soviets in a primetime televised speech (see September 5, 1983).
Massive PR Campaign against USSR - The US will use the shootdown to mount a tremendous public relations campaign against the Soviets, focusing on the Soviet civilian leadership as well as Soviet international business interests; for example, the US will demand a global boycott of the Soviet airline Aeroflot. According to a memo issued to the Politburo by the Defense Ministry and the KGB, the Soviets well understood the political ramifications of the shootdown: “We are dealing with a major, dual-purpose political provocation carefully organized by the US special services. The first purpose was to use the incursion of the intruder aircraft into Soviet airspace to create a favorable situation for the gathering of defense data on our air defense system in the Far East, involving the most diverse systems including the Ferret satellite. Second, they envisaged, if this flight were terminated by us, [the US would use] that fact to mount a global anti-Soviet campaign to discredit the Soviet Union.” In its own counter-propaganda efforts, Soviet leader Yuri Andropov will say that an “outrageous military psychosis” has taken over US foreign policy. He adds, “[T]he Reagan administration, in its imperial ambitions, goes so far that one begins to doubt whether Washington has any brakes at all preventing it from crossing the point at which any sober-minded person must stop.” (Fischer 3/19/2007)
Exacerbating Tensions - After the shootdown and its aftermath, according to the Soviet ambassador to the US, Anatoly Dobrynin, both sides go “a little crazy.” The shootdown gives the US hard evidence of its worst-case assumptions about the Soviets. For the Soviets, the US reaction gives them hard evidence of their own assumptions about the US’s attempts to provoke the USSR into some sort of confrontation (see 1981-1983) and to embarrass the Soviet Union in the eyes of the world. Reagan’s use of the KAL 007 incident to ask Congress for more defense funding is, in the Soviets’ eyes, proof that the entire incident was engineered by the Americans for just such an outcome. (Fischer 3/19/2007)
Alternative Accounts - A number of alternative accounts about the incident spring up, in particular concerning McDonald. (Maier 4/16/2001)

A week after President Reagan publicly denounced the Soviet Union for shooting down a Korean Airlines passenger jet (see September 1, 1983 and September 5, 1983), Secretary of State George Shultz meets with Soviet Foreign Minister Andrei Gromyko. Gromyko later recalls the conversation as “the sharpest exchange I ever had with an American secretary of state, and I have had talks with 14 of them.” The Reagan administration will deny Gromyko permission to fly into New York City, where he is scheduled to attend the opening session of the United Nations General Assembly. (Scoblic 2008, pp. 131)

William Eagleton, the chief of the US-interests section in Baghdad, writes a memo that asserts the US can secretly supply arms to Iraq for use against Iran through third-party nations. “We can selectively lift restrictions on third party transfers of US-licensed military equipment to Iraq,” he writes. Although Eagleton is not the architect of this policy—that is primarily Defense Secretary Caspar Weinberger, Secretary of State George Shultz, and Shultz’s assistant, Richard Murphy, who fear that Iran will lead a rise of Islamic fundamentalism throughout the region—Eagleton’s memo heralds the onset of US arms transfers to Iraq through several regional countries, including Jordan, Saudi Arabia, Kuwait, and Egypt. The arms transfers are almost certainly illegal, a direct violation of the Arms Export Control Act, which directs the president to inform Congress if any such third-party arms transfers are enacted. Reagan officials decide not to inform Congress because they know Congress will never approve the arms transfers, particularly in light of the US’s stated policy of neutrality towards the Iran-Iraq War. Congress also knows nothing of the Reagan administration’s secret supplying of arms to Iran (see 1981). (Waas and Unger 11/2/1992)

US State Department official Jonathan T. Howe tells Secretary of State George P. Shultz that intelligence reports indicate that Saddam Hussein’s troops are resorting to “almost daily use of CW [Chemical Weapons]” against their Iranian adversaries. (US Department of State 11/1/1983 pdf file; Dobbs 12/30/2002; arsenal 12/31/2002)

Test firing of a US Pershing II IRBM.Test firing of a US Pershing II IRBM. [Source: US Army / Public domain]The US and its NATO allies carry out a military exercise called “Able Archer,” or “Able Archer 83,” designed to simulate the use of nuclear weapons in an assault against the Soviet Union, and to test command and control procedures. The military exercise comes perilously close to touching off a real nuclear exchange with the USSR. The exercise—not the first of its kind, but the most expansive—is huge, spanning Europe from Turkey to Scandinavia; it involves the heads of state of countries like Great Britain and Germany; and, perhaps most alarmingly for the Soviets, involves NATO forces escalating their military alert levels to DEFCON-1, at which point NATO nuclear weapons have their safeguards disabled and are ready for launch. The Soviet’s VRYAN program to detect a possible assault (see May 1981) is extremely active. On November 8, Moscow sends high-priority telegrams to its KGB stations in Western Europe demanding information about a possible surprise first attack on the USSR. Though little actual evidence exists, some sources erroneously tell Moscow that NATO ground forces are mobilizing. The KGB concludes that “Able Archer” is a cover for a real military assault; Warsaw Pact fighter units armed with nuclear weapons are put on alert in East Germany and Poland. (Scoblic 2008, pp. 134-135; Miloudi 11/10/2008)
'Frighteningly Close' to Nuclear War, Says Soviet Intelligence Official - Oleg Gordievsky, the intelligence chief of the Soviet embassy in London and a British double agent, warns the British that the West is entering what he calls a “danger zone.” The Daily Telegraph will later write, “It was on Nov. 8-9 that the Kremlin had pressed what came close to a panic button.” (Washington Post 10/16/1988) In his memoirs, Gordievsky will write: “In the tense atmosphere generated by the crises and rhetoric of the past few months, the KGB concluded that American forces had been placed on alert—and might even have begun the countdown to war.… [D]uring ABLE ARCHER 83 it had, without realizing it, come frighteningly close—certainly closer than at any time since the Cuban missile crisis of 1962.” (Fischer 3/19/2007)
Reagan 'Shocked' at Soviet Reaction - The exercise ends without incident, but National Security Adviser Robert McFarlane will later admit, “The situation was very grave.” Secretary of State George Shultz terms the exercise “a close call” and “quite sobering.” In early 1984, when the CIA reports that the Soviets had been convinced that the US was readying a nuclear strike, President Reagan will be, in author J. Peter Scoblic’s words, “shocked” to realize that he and his administration “had nearly started a nuclear war.” Reagan, in McFarlane’s recollection, will show “genuine anxiety” and begin talking about the concept of Armageddon—the Biblical end times—with his advisers. (Fischer 3/19/2007; Scoblic 2008, pp. 134-135)

Poster for ‘The Day After.’Poster for ‘The Day After.’ [Source: MGM]The made-for-TV movie The Day After airs on ABC. It tells the story of a group of Americans in Lawrence, Kansas—the geographical center of the continental United States—who survive a nuclear exchange between the US and the Soviet Union, and the harrowing days and weeks of their existence afterwards, as they slowly die from radiation poisoning and a lack of food and water. “Bootleged” copies of the movie have been available for months, adding to the anticipation and the controversy surrounding it.
Concerns of 'Anti-Nuclear Bias' from White House - The movie, described by Museum of Broadcast Communications reviewer Susan Emmanuel as “starkly realistic,” caused concern in the White House because of what it saw as its “anti-nuclear bias.” (The production had taken place without the cooperation of the Defense Department, which had insisted on emphasizing that the Soviet Union had started the exchange depicted in the movie. The filmmakers did not want to take a political stance, and preferred to leave that question unclear.) To address the White House’s concerns, ABC distributed a half-million viewers’ guides to schools, libraries, and civic and religious groups, and organized discussion groups around the country. It will also conduct extensive social research after the broadcast to judge the reactions among children and adults. A discussion group featuring Secretary of State George Shultz takes place immediately after the broadcast. Its original broadcast is viewed by roughly 100 million viewers, an unprecedented audience. It is shown three weeks later on Britain’s ITV network as part of a Campaign for Nuclear Disarmament recruitment drive. Emmanuel will later write, “Not since then has the hybrid between entertainment and information, between a popular genre like disaster, and the address to the enlightened citizen, been as successfully attempted by a network in a single media event. ” (Lometti 1992; Scoblic 2008, pp. 133; Emmanuel 1/26/2008) Even though the filmmakers tried to remain politically neutral—director Nicholas Meyer says his film “does not advocate disarmament, build-down, buildup, or freeze”—proponents of the “nuclear freeze” movement hail the movie and conservatives call it a “two hour commercial for disarmament.” (ABC’s social research later shows that the film does not have a strong impact on viewers either for or against nuclear disarmament.) Conservative evangelist Jerry Falwell threatens, but does not execute, a boycott of the commercial sponsors of the film. Some Congressional Democrats ask that the movie be made available for broadcast in the Soviet Union. (Lometti 1992)
Powerful Impact on President Reagan - The movie has a powerful impact on one viewer: President Reagan. He will reflect in his memoirs that the film leaves him “greatly depressed” and makes him “aware of the need for the world to step back from the nuclear precipice.” Author J. Peter Scoblic will later write: “If it seems vaguely ridiculous for a Cold War president to reach this conclusion only after watching a made-for-TV movie, remember that Reagan biographers have long noted that his connection to film was often stronger than his connection to reality. He also became far more intellectually and emotionally engaged when presented with issues framed as personal stories, rather than as policy proposals.” Reagan’s visceral reaction to the film heralds a fundamental shift in his approach to the US-Soviet nuclear arms race. (Scoblic 2008, pp. 133)

Secretary of State George P. Shultz will later recall that reports of Iraq using chemical weapons against Iranian military personnel “drifted in” at about this time (see, e.g., November 1, 1983). (Schultz 1993, pp. 238; Jentleson 1994, pp. 48; Cole 1997, pp. 87)

The US State Department invites Bechtel officials to Washington to discuss plans for constructing the proposed Iraq-Jordan Aqaba oil pipeline. Former Bechtel president George Shultz is US Secretary of State at this time. (Vallette 3/24/2003)

Richard Murphy.Richard Murphy. [Source: Richard W Murphy.org]Assistant Secretary of State Richard Murphy writes a potentially explosive classified memo about arming Iraq. Murphy, along with his boss George Shultz and Defense Secretary Caspar Weinberger, are strong proponents of supporting Iraq in its war with Iran (National Security Adviser Robert McFarlane and two of his staffers, Howard Teicher and Oliver North, support arming Iran; the argument is causing deep divides within the administration). Murphy’s memo is so sensitive that its recipients are ordered to destroy it and to keep records of its destruction. Murphy suggests that the US can arm Iraq with “dual use” items—nominally civilian items that also have military use, such as heavy trucks, armored ambulances, and communications gear. Murphy also advocates helping Iraq build a new oil pipeline that will pump oil to the Jordanian port of Aqaba, on the Israeli border, which will allow Iraq to circumvent the Iranian blockade of Iraq’s Persian Gulf ports. Murphy also mentions the State Department’s desire to fund a number of projects in Iraq through the US Export-Import bank (EXIM), chaired by Reagan appointee William Draper. Murphy writes, in part: “Liberalizing export controls on Iraq: we are considering revising present policy to permit virtually all sales of non-munitions list dual use equipment to Iraq…. Egyptian tank sales: in the context of recommending ways to improve our relations with Iraq, Egypt has suggested that we provide it additional M-60 tanks beyond those we are now providing under FMS [Foreign Military Sales]. Egypt would use the additional M-60s to replace used Soviet T-63s, which it would sell to Iraq…. EXIM financing: [Under-Secretary of State Lawrence] Eagleburger has written EXIM director Draper to urge EXIM financing of US exports to and projects in Iraq…. Such major EXIM financing could boost Iraq’s credit rating, leading to increased commercial financing for Iraq. However, EXIM does not favor involvement in Iraq.” Murphy warns that Congress might begin sniffing around the State Department’s secret policy of arming Iraq. He advocates fobbing off Congress with background briefings that emphasize “our efforts to deter escalation and bring about a cessation of hostilities.” (Waas and Unger 11/2/1992)

Secretary of State George Shultz announces that the State Department has designated Iran as a state sponsor of international terrorism. (PBS 2000) As of mid-2008, Iran is still designated as a terrorism sponsor.

George Shultz.George Shultz. [Source: Massachusetts Institute of Technology]US Secretary of Defense Lawrence Eagleburger meets with Iraqi diplomat Ismet Kattani to minimize the damage that the State Department’s March 5 condemnation (see March 5, 1984) of Iraqi chemical warfare has caused to US-Iraqi relations. Secretary of State George Shultz is also present and later sends a cable to embassies in the Middle East with a summary of the meeting. “Eagleburger began the discussion by taking Kittani aside to emphasize the central message he wanted him to take back: our policy of firm opposition to the prohibited use of CW [chemical weapons] wherever it occurs necessitated our March 5 statement condemning Iraq’s use of CW,” the note explains. “The statement was not intended to provide fuel for Khomeini’s propaganda war, nor to imply a shift in US policy toward Iran and Iraq. The US will continue its efforts to help prevent an Iranian victory, and earnestly wishes to continue the progress in its relations with Iraq. The Secretary [Shultz] then entered and reiterated these points.” (US Department of State 3/1984 pdf file; Marquis 12/23/2003)

The US State Department briefs Donald Rumsfeld, who is preparing to make another visit to Baghdad (see March 26, 1984). In a memo to Rumsfeld, Secretary of State George Shultz laments that relations with Iraq have soured because of the State Department’s March 5 condemnation (see March 5, 1984) of Iraq’s use of chemical weapons and expresses considerable concern over the future of the Aqaba pipeline project [to be built by Bechtel (see December 2, 1983)] which the US is pushing. Shultz writes: “Two event have worsened the atmosphere in Baghdad since your last stop there in December: (1) Iraq has only partly repulsed the initial thrust of a massive Iranian invasion, losing the strategically significant Majnun Island oil fields and accepting heavy casualties; (2) Bilateral relations were sharply set back by our March 5 condemnation of Iraq for CW [chemical weapons] use, despite our repeated warnings that this issue would emerge [as a public issue] sooner or later. Given its wartime preoccupations and its distress at our CW statement, the Iraqi leadership probably will have little interest in discussing Lebanon, the Arab-Israeli conflict, or other matters except as they may impinge on Iraq’s increasingly desperate struggle for survival. If Saddam or Tariq Aziz receives you against consider, and to reject, a pending application from Westinghouse to participate in a $160 million portion of a $1 billion Hyundai thermal power plant project in Iraq, this decision will only confirm Iraqi perceptions that ExIm [Export-Import Bank] financing for the Aqaba pipeline is out of the question. Eagleburger tried to put this perception to a rest, however, emphasizing to Kittani the administration’s firm support for the line (see March 15, 1984). The door is not yet closed to ExIm or other USG [US government] financial assistance to this project….” At the very end of the cable, it is noted that “Iraq officials have professed to be at a loss to explain our actions as measured against our stated objectives. As with our CW statement, their temptation is to give up rational analysis and retreat to the line that US policies are basically anti-Arab and hostage to the desires of Israel.” (US Department of State 3/24/1984 pdf file; Vallette 3/24/2003)

US Secretary of State George Shultz successfully convinces Rep. Howard Berman (D-CA) to drop a House bill that would have put Iraq back on the State Department’s list of states that sponsor terrorism. Shultz’s argument is that the United States is actively engaged in “diplomatic dialogue on this and other sensitive issues.” He asserts that “Iraq has effectively distanced itself from international terrorism” and insists that if the US discovers any evidence implicating Iraq in the support of terrorist groups, the US government “would promptly return Iraq to the list.” (Jentleson 1994, pp. 54)

Secretary of State George Shultz offers prominent neoconservative and State Department official Elliott Abrams (see Early 1970s) the position of assistant secretary of state for inter-American affairs (ARA), overseeing the department’s South and Central American issues and initiatives, as well as those for the Caribbean. Abrams accepts and, according to State Department notes of the meeting, promises to “manage the emergence of EA [Abrams] as King of LA [Latin America].” Abrams begins his duties in July 1985, and quickly becomes one of the State Department’s most vocal supporters of Nicaragua’s Contra movement, often appearing before Congress as an emissary of the Reagan administration to ask for funds for the insurgent group. (Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986 8/4/1993)

Graham Fuller.Graham Fuller. [Source: Ohio University]The US tilts ever more sharply towards Iraq in the Iran-Iraq war, even though the Reagan administration continues to maintain a posture of overt neutrality in the conflict. The administration has provided covert military aid for both sides in the struggle (see 1981 and October 1983), and has been divided over which regime to support (see January 14, 1984). It is already involved in “Operation Staunch,” a program designed by Secretary of State George Shultz to stem the flow of weapons to Iran. Now, some officials are arguing that it is time to reverse that course. Graham Fuller, the CIA’s national intelligence officer for the Middle East, writes two controversial secret memos advocating that the administration begin providing support for Iran against Iraq. Fuller is presenting a position long held by national security director Robert McFarlane and two of McFarlane’s aides, Oliver North and Howard Teicher. This pro-Iran group has recently been joined by CIA director William Casey. Both McFarlane and Casey are supportive of Fuller’s memo. Fuller writes in a May 17 memo, “Our tilt to Iraq was timely when Iraq was against the ropes and the Islamic revolution was on a roll. The time may now have to come to tilt back.” Fuller argues that the US should once again authorize Israel to ship US arms to Iran. Ironically, this is the mirror image of Defense Secretary Caspar Weinberger’s argument in favor of supporting Iraq: the US must counter one covert policy with another (see Early 1982). The pro-Iranian coalition within the administration gives scant consideration to the hostage-taking of seven Americans by Hezbollah, a Lebanese Shi’ite militant group with strong ties to Iran’s theocratic regime. On May 20, Fuller circulates a second memo, called a “Special National Intelligence Estimate” (SNIE), that is only read by a handful of senior White House officials (Ronald Reagan is one of the recipients; George Bush is not). Fuller’s memo is written almost entirely for Reagan’s benefit, and in its arguments, becomes a basis for renewed arms sales to Iran and the resulting Iran-Contra scandal. Fuller evokes one of Reagan’s favorite themes, the trouncing of the Soviet Union in the global arena: “We know that the USSR views Iran as ‘the prize’ in the Gulf. Moscow will improve relations when and where it can… until it gains major influence in that state. The disturbing possibility is that the USSR is far more likely than the US to be first in finding opportunities to improve its ties to Iran.” Interestingly, in 1991, during Robert Gates’s Senate hearings on becoming the director of the CIA, it is learned that Fuller’s memo contradicts the views of career Soviet analysts at the agency, who believe that the Soviet Union has no real hope of making inroads into the Iranian regime. The USSR is the chief arms supplier for Iraq, Iran’s bitter enemy and current opponent in a long and bloody war. Iran is arming the Afghan mujaheddin, the Islamist resistance fighters viewed as a threat by Saddam Hussein. Several CIA analysts will later testify that they believe Fuller deliberately slanted his memo for political reasons. In 1992, Fuller himself will admit that he was wrong, but will deny any politicization. Regardless, Fuller’s memo becomes a critical document shaping the Reagan policy to arm Iran. It is not clear whether Vice President Bush ever saw the memo, but whether he did or not, beginning in 1985 he takes part in numerous White House meetings where the arming of Iran is discussed. If he has objections to the policy, he never voices them. (Church 11/17/1986; Waas and Unger 11/2/1992)

Secretary of State George Shultz writes to National Security Adviser Robert McFarlane that “Israel’s record of dealings with Iran since the fall of the Shah and during the hostage crisis [shows] that Israel’s agenda is not the same as ours.” Referring to the plan concocted by NSC staffer Oliver North and North’s consultant, neoconservative and likely Israeli spy Michael Ledeen (see 1983), to seek Israeli help in freeing the American hostages in Lebanon (see Late 1984 and April 9, 1985), Shultz writes, “Consequently doubt whether an intelligence relationship such as what Ledeen has in mind would be one which we could fully rely upon and it could seriously skew our own perception and analysis of the Iranian scene.” (Green 2/28/2004)

Tensions between the pro-Iran and pro-Iraq factions in the White House (see January 14, 1984) come to a head after Robert McFarlane’s National Security Council staff drafts a presidential directive advocating that the US help Iran obtain weapons. The opposing faction, led by Secretary of State George Shultz and Defense Secretary Caspar Weinberger, protest angrily, with Weinberger calling the proposal “almost too absurd to comment on….” But the arms-for-hostage deal will go forward over Shultz’s and Weinberger’s objections (see July 3, 1985). (Waas and Unger 11/2/1992)

A major meeting to codify the arms-for-hostage deal with Iran takes place in Ronald Reagan’s private White House quarters, after Iranian officials sent requests to open negotiations with the US through backchannel sources. Reagan, recovering from intestinal surgery and wearing pajamas and a bathrobe, is joined by Vice President Bush, Secretary of State George Shultz, Defense Secretary Caspar Weinberger, White House chief of staff Donald Regan, and National Security Adviser Robert McFarlane. McFarlane, passing along information he has received from Israel (see 1981), says the Iranians will see to it that Hezbollah releases four American hostages in return for US and Israeli arms. McFarlane has long supported arms sales to Iran, and is most supportive of the deal; Weinberger and Shultz, who support dealing with Iraq, are firmly against it. But the deal will go through (see September 15, 1985). (Church 11/17/1986; Waas and Unger 11/2/1992)

Newly ensconsced Assistant Secretary of State Elliott Abrams (see April 19, 1985 and After) meets with Secretary of State George Shultz, Shultz’s executive assistant Charles Hill, and Shultz’s executive secretary Nicholas Platt. In this meeting, Abrams learns that National Security Council official Oliver North is conducting covert actions to support the Nicaraguan Contras (see December 6, 1985 and April 4, 1986). According to Abrams’s notes from the meeting, Shultz tasks him to “monitor Ollie.” Abrams will later testify to the Iran-Contra investigative committee (see May 5, 1987) about this meeting, saying that he asks, “All these accusations about Colonel North, you want me to try to find out whether they are true and what he is up to, or do you want me to sort of leave?” Shultz replies, “No, you have got to know.” During the meeting, Abrams notes that Shultz does not want White House officials to know too much about North’s activities in funding the Contras. Abrams notes that Shultz says to him: “We don’t want to be in the dark. You [are] suppose[d] to be mgr [manager] of overall CA [Central America] picture. Contras are integral part of it. So y[ou] need to know how they [are] getting arms. So don’t just say go see the WH [White House]. It’s very risky for WH.” Platt, too, takes notes of the meeting. According to his notes, Shultz says: “What is happening on other support for Contras for lethal aid etc.—E. Abrams doesn’t have the answer. Stayed away let Ollie North do it. Fundraising continuing—weapons stocks are high. We have had nothing to do with private aid. Should we continue? Hate to be in position, [Shultz] says, of not knowing what’s going on. You are supposed to be managing overall Central American picture. Ollie can go on doing his thing, but you, [Abrams], should know what’s happening.” The notes from Abrams and Platt, and Abrams’s own testimony all confirm that Abrams is aware of North’s activities by September 1985, though he will subsequently lie to Congress about possessing such knowledge (see November 25-28, 1986). Abrams will later testifz that he has a very good idea about North’s activities from working with North in an interagency group (see Late 1985 and After). (Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986 8/4/1993)

President Reagan, Secretary of State George Shultz, Defense Secretary Caspar Weinberger, outgoing National Security Adviser Robert McFarlane, and McFarlane’s replacement, John Poindexter, all meet at the White House to discuss the government’s arms sales to Iran. Later statements by the participants conflict on key details. Some will say that a consensus is reached to end arms sales to Iran, but Deputy CIA Director John McMahon will recall that no such consensus is reached. (New York Times 11/19/1987)

John Poindexter.John Poindexter. [Source: US Navy]In a meeting between President Ronald Reagan, Vice President George Bush, Secretary of State George Shultz, Secretary of Defense Caspar Weinberger, CIA Director William Casey, and new National Security Adviser John Poindexter, the participants discuss whether to sell 4,000 Israeli-owned, US-made antitank missiles to Iran as another arms-for-hostages deal (see September 15, 1985). Shultz and Weinberger, as they have before, oppose any dealings with Iran. Bush, according to records of the meeting, fails to express any views at all, but Shultz will recall Bush supporting the deal. In 1988, Bush will tell a reporter that he doesn’t remember any such conflict over the arms sales, saying, “I never really heard them that clearly. And the reason is that the machinery broke down—it never worked as it should. The key players with the experience weren’t ever called together… to review the decisions that were made at a lower level.” It is hard to imagine any higher levels of the executive branch of government than what is represented in this meeting. In 1987, Bush will tell the Tower Commission investigating the deal that he didn’t know enough about the arms-for-hostages deals to be able to express an informed opinion about the decision to make the deals, and doesn’t remember the meeting as a “showdown session,” testimony contradicted by both Weinberger and Shultz in their own statements to the commission. (Waas and Unger 11/2/1992)

Albert Hakim.Albert Hakim. [Source: Bettmann / Corbis]During a morning intelligence briefing, President Ronald Reagan signs the authorization for the US to allow Israel to sell Iran 4,000 US-made antitank missiles (see January 7, 1986). As they have consistently done before, Defense Secretary Caspar Weinberger and Secretary of State George Shultz register their opposition to the arms deals with Iran. National Security Adviser John Poindexter notes in a February 1986 e-mail that Vice President George Bush supports the arms-for-hostages deals with Iran, writing that the “President and VP are solid in taking the position that we have to try.” The reasons the various administration officials have for agreeing to sell arms to Iran are complex. Reagan is motivated by his belief that supporting Iran thwarts Soviet plans for Middle East domination (see May 1985), and by his own personal sorrow over the plight of the hostages. Others have more overtly political motives primarily fueled by the upcoming midterm elections. If, as in 1980, the American hostages currently held by Islamist radicals can be freed before the elections, the Republicans would likely reap the political benefits. Iranian-born arms merchant Albert Hakim, who is involved in the arms deals, will later tell Congress’s Iran-Contra committee, “We had to meet a deadline in releasing hostages, because the elections were coming up.” Even National Security Council aide Oliver North, one of the chief facilitators of the deals with Iran, will admit to the committee, “There are political concerns.” The US insists that before it deliver any of the antitank missiles, all of the hostages must be released. Iran refuses, and a deadlock ensues that will last for months. (Waas and Unger 11/2/1992)

Senior White House officials attend a National Security Planning Group (NSPG) meeting on the subject of Central America. Attending the meeting are President Reagan, Vice President Bush, Secretary of State George Shultz, Treasury Secretary James Baker, Defense Secretary Caspar Weinberger, CIA Director William Casey, and White House Chief of Staff Donald Regan. The interests of the Nicaraguan Contras are represented by Assistant Secretary of State Elliott Abrams (see September 4, 1985), NSC officer Oliver North (see December 6, 1985 and April 4, 1986), and senior CIA official Alan Fiers (see Late 1985 and After). According to minutes of the meeting, North reminds the group that under the 1986 Intelligence Authorization Bill, the State Department can legally approach other countries for non-military funding for the Contras. During the ensuing discussion, Reagan asks, according to the minutes: “What about the private groups who pay for ads for the contras? Have they been contacted? Can they do more than ads?” This indicates that Reagan is well aware of the private, illegal funding being channeled to the Contras. Fiers will later give a somewhat different version of events in his testimony to the Iran-Contra grand jury (see July 17, 1991), recalling Reagan asking about “Ollie’s people” working with the Contras and asking if they could help with funding. Fiers will recall the question causing tension among the group, and then someone quickly responding, “that’s being worked on.” After the meeting, North becomes more outspoken in his descriptions of his illegal funding of the Contras. (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)

Secretary of State George Shultz visits the oil-rich Sultan of Brunei, Hassanal Bolkiah. Shultz planned on asking the Sultan for a discreet donation of funds to the Nicaraguan Contras (see After May 16, 1986), but on the advice of the US Ambassador to Brunei, Barrington King, Shultz does not ask the Sultan for any such assistance. (Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986 8/4/1993)

A meeting of Oliver North’s Restricted Interagency Group (RIG—see Late 1985 and After) takes place in the office of Assistant Defense Secretary Richard Armitage. As in previous RIG meetings, North details the specific activities of the Contras, and asks for approval for each activity (see July 1986 and After). But in this meeting, North makes an extraordinary proposal. Panamanian dictator Manuel Noriega has offered to conduct sabotage inside Nicaragua on behalf of the Contras for $1 million in cash. According to later testimony from RIG member Alan Fiers, a senior CIA official (see July 17, 1991), it is clear that the $1 million will not come from duly appropriated US funds, but from North’s so-called “Project Democracy,” which collects private funds from US citizens and other governments to fund the Contras. The sabotage would be conducted by mercenaries. Assistant Secretary of State Elliott Abrams meets with two aides to Secretary of State George Shultz, M. Charles Hill and Nicholas Platt, to discuss the Noriega proposal. Hill’s notes of the meeting read in part: “Noriega offers to do some sabotage (electric pylons) that we training contras to do but which they can’t do for 18 mos. Wd [would] get us on the map fast—by Oct. [1986]. Do it via mercenaries who may not know who employers are. Brits. Wd do it for cash (not from USG [US government]). Wants our go-ahead. Ollie will meet him w/approval of Pdx. [John Poindexter, the head of the National Security Council].” Ultimately, the idea is rejected. (Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986 8/4/1993)

Terry Waite.Terry Waite. [Source: BBC]Negotiations between Iran and the US for more arms sales hit another snag, with the Iranians merely releasing some American hostages and kidnapping more (see September 19, 1986). CIA Director William Casey decides to reprise the earlier strategy of exhorting Iraq to escalate its air strikes against Iran, thus forcing Iran to turn to the US for more military aid (see July 23, 1986). Casey secretly meets with two high-level Iraqi officials, Foreign Minister Tariq Aziz and Iraq’s ambassador to the US, Nizaar Hamdoon, to urge that the Iraqis once again intensify their bombing runs deep into Iranian territory. The Iraqis comply. But the Iranians’ return to the bargaining table is complicated by the October 5 shooting down of a CIA transport plane in Nicaragua, and the capture by the Sandinistas of the lone survivor, a cargo hauler named Eugene Hasenfus, who tells his captors of the US involvement with the Nicaraguan Contras (see October 5, 1986). Soon after, the Iranians release a single American hostage, but the Hasenfus revelation is followed by that of the Iran-US arms-for-hostages deals by a Lebanese newspaper, Al Shiraa (see November 3, 1986), and similar reports by US news organizations. With the public now aware of these embarrassing and potentially criminal acts by the Reagan administration, support for Iran within the administration collapses, most of the pro-Iranian officials leave government service, and the pro-Iraqi wing of the executive branch, led by Defense Secretary Caspar Weinberger and Secretary of State George Shultz, wins out. The closing months of the Reagan administration will feature a marked tilt towards Iraq in the war between Iraq and Iran. The Reagan administration will, in coming months, provide Iraq with a remarkable amount of military and economic aid, including technology to develop long-range ballistic missiles, chemical weapons, and even nuclear weapons. (Waas and Unger 11/2/1992) Interestingly, one of the terrorist groups holding American hostages, the Islamic Jihad Organization (a group closely affiliated with Hezbollah and not the group led by Ayman al-Zawahiri), who released American captive David Jacobson in early November, urged the US to “proceed with current approaches that could lead, if continued, to a solution of the hostages issue.” Reagan officials publicly deny that anyone in the US government has made any “approaches” to Iran or anyone else. As a side note, the release of Jacobson also shows the efforts of Terry Waite, the Archbishop of Canterbury and a former hostage himself, to facilitate the release of the hostages in a different light. Waite’s untiring efforts have obviously been sincere, but never as effective as publicly portrayed. Instead, both the US and Iran have used Waite’s efforts as cover for their secret negotiations. One Israeli official calls Waite’s efforts the “cellophane wrapping” around the hostage releases. He says: “You cannot deliver a gift package unwrapped. That is why there will be no more hostage releases until he returns to the region.” (Waite has temporarily suspended his attempts to free the hostages, complaining about being used as a pawn in international power games.) (Church 11/17/1986)

Assistant Secretary of State Elliott Abrams (see Late 1985 and After and September 4, 1985) testifies three times to Congress that the Contra resupply operation, exposed by the downing of a CIA transport plane (see October 5, 1986 and October 9, 1986), is not a US government operation. There is no coordination whatsoever from any government official (see Summer 1985, Mid-September 1985, October 1985, Late 1985 and After, February 7-8, 1986, May 16, 1986, July 1986 and After, September 19-20, 1986, September 25, 1986, and January 9, 1986), and no one in the government knows who organized or paid for the transport flight that was shot down.
'Not Our Supply System' - Abrams tells the Senate Foreign Relations Committee that while he and other government officials are aware of the Contra resupply operation, “[i]t is not our supply system. It is one that grew up after we were forbidden from supplying the resistance, and we have been kind of careful not to get closely involved with it and to stay away from it.… We do not encourage people to do this. We don’t round up people, we don’t write letters, we don’t have conversations, we don’t tell them to do this, we don’t ask them to do it. But I think it is quite clear, from the attitude of the administration, the attitude of the administration is that these people are doing a very good thing, and if they think they are doing something that we like, then, in a general sense, they are right.” In testimony to the House Intelligence Committee, Abrams is asked by Chairman Lee Hamilton (D-IN), “Can anybody assure us that the United States government was not involved, indirectly or directly, in any way in supply of the contras?” Abrams responds: “I believe we have already done that, that is, I think, the president has done it, the secretary has done it [Secretary of State George Shultz], and I have done it.… Now again, this normal intelligence monitoring is there, but the answer to your question is yes.” Abrams and CIA officials Clair George and Alan Fiers tell the same falsehoods to a House Foreign Affairs subcommittee. “We don’t know,” Abrams asserts, “because we don’t track this kind of activity.”
No Knowledge of 'Gomez' - He also claims under questioning not to know the identity of “Max Gomez,” who he well knows is former CIA agent Felix Rodriguez (see Mid-September 1985). Senator John Kerry (D-MA) asks, “You don’t know whether or not [Gomez] reports to the vice president of the United States?” (see October 10, 1986). Both George and Abrams deny any such knowledge, though Abrams is highly aware of Rodriguez’s activities in El Salvador (he does not inform the committee of those activities). During the Congressional sessions, media reports identify Gomez as Rodriguez. (Final Report of the Independent Counsel for Iran/Contra Matters: Chapter 25: United States v. Elliott Abrams: November 1986 8/4/1993)

Gorbachev and Reagan at the Reykjavik summit.Gorbachev and Reagan at the Reykjavik summit. [Source: Ronald Reagan Library]President Reagan and Soviet Premier Mikhail Gorbachev meet in Reykjavik, Iceland, for a second summit, to follow on the success of their first meeting almost a year before (see November 16-19, 1985). They base their discussion on Gorbachev’s January proposals of deep cuts in the two nations’ nuclear arsenals (see January 1986).
Elimination of All Nuclear Weapons by 1996 - Gorbachev and his negotiators begin by reiterating Gorbachev’s proposals for a 50 percent cut in all nuclear weapons, deep reductions in Soviet ICBMs, and the elimination of all European-based intermediate nuclear weapons. Reagan and his negotiators counter with a proposal for both sides to destroy half of their nuclear ballistic missiles in the next five years, and the rest to be destroyed over the next five, leaving both sides with large arsenals of cruise missiles and bomber-based weapons. Gorbachev ups the ante, proposing that all nuclear weapons be destroyed within 10 years. Reagan responds that it would be fine with him “if we eliminated all nuclear weapons,” implicitly including all tactical nuclear weapons in Europe and everywhere else. Gorbachev says, “We can do that,” and Secretary of State George Shultz says, “Let’s do it.”
Agreement Founders on SDI - The heady moment is lost when the two sides fail to reach an agreement on SDI—the Americans’ “Star Wars” missile defense system (see March 23, 1983). Gorbachev cannot accept any major reductions in nuclear weapons if the US has a viable missile defense system; Reagan is convinced that SDI would allow both sides to eliminate their nuclear weapons, and offers the SDI technology to the Soviets. Gorbachev finds Reagan’s offer naive, since there is no guarantee that future presidents would honor the deal. Reagan, in another example of his ignorance of the mechanics of the US nuclear program (see April 1981 and After), does not seem to realize that even a completely effective SDI program would not defend against Soviet cruise missiles and long-range bombers, and therefore would not end the threat of nuclear destruction for either side. Author J. Peter Scoblic will later write, “[SDI] would have convinced the Soviet Union that the United States sought a first-strike capability, since the Americans were so far ahead in cruise missile and stealth bomber technology.” Gorbachev does not ask that the US abandon SDI entirely, but simply observe the terms of the 1972 Anti-Ballistic Missile treaty (see May 26, 1972) and confine SDI research to the laboratory. Reagan refuses. Gorbachev says that if this is the US’s position, then they would have to “forget everything they discussed.” Foreign Minister Eduard Shevardnadze breaks in, saying that the two nations are “so close” to making history that “if future generations read the minutes of these meetings, and saw how close we had come but how we did not use these opportunities, they would never forgive us.” But the agreement is not to be.
Participants' Reactions - As Shultz later says, “Reykjavik was too bold for the world.” Shultz tells reporters that he is “deeply disappointed” in the results, and no longer sees “any prospect” for a third summit. Gorbachev tells reporters that Reagan’s insistence on retaining SDI had “frustrated and scuttled” the opportunity for an agreement. Gorbachev says he told Reagan that the two countries “were missing a historic chance. Never had our positions been so close together.” Reagan says as he is leaving Iceland that “though we put on the table the most far-reaching arms control proposal in history, the general secretary [Gorbachev] rejected it.” Scoblic will later write, “In the end, ironically, it was Reagan’s utopianism, hitched as it was to a missile shield, that preserved the status quo.” (Cannon 10/13/1986; Scoblic 2008, pp. 140-142)
Hardline Sabotage - One element that contributes to the failure of the negotiations is the efforts to undermine the talks by hardline advisers Richard Perle and Ken Adelman, who tell Reagan that confining SDI to research facilities would destroy the program. Perle and Adelman are lying, but Reagan, not knowing any better, believes them, and insists that SDI remain in development. (Scoblic 2008, pp. 143-144)
Going Too Far? - Reagan’s negotiators, even the most ardent proponents of nuclear reduction, are shocked that he almost agreed to give up the US’s entire nuclear arsenal—with Shultz’s encouragement. British Prime Minister Margaret Thatcher and French President Francois Mitterand are horrified at the prospect, given that NATO’s nuclear arsenal in Europe is the only real counterweight to the huge Red Army so close to the borders of Western European nations. (Scoblic 2008, pp. 140-142)
Failure of Trust - The US-Soviet talks may well have foundered on an inability of either side to trust the other one to the extent necessary to implement the agreements. During the talks, Soviet aide Gyorgy Arbatov tells US negotiator Paul Nitze that the proposals would require “an exceptional level of trust.” Therefore, Arbatov says, “we cannot accept your position.” (Savranskaya and Blanton 3/12/2008)

Edvard Shevardnadze.Edvard Shevardnadze. [Source: US Defense Department]The Politburo of the Soviet Communist Party decides that the Soviet-Afghan War should end “within one year or two.” This follows on from a tentative and secret agreement within the Politburo the previous year to eventually withdraw from Afghanistan. The withdrawal will be formalized in an agreement signed in Geneva in April 1988 (see April 1988) and the last troops with leave Afghanistan in February 1989 (see February 15, 1989). Soviet Foreign Minister Edvard Shevardnadze will inform US Secretary of State George Shultz of the decision the year after it is taken and the CIA will learn of it by November 1987. (Levy and Scott-Clark 2007, pp. 132-3, 486)

Attorney General Edwin Meese.Attorney General Edwin Meese. [Source: Doug Mills / Bettman / Corbis]Attorney General Edwin Meese undertakes an internal fact-finding investigation focused on President Reagan’s involvement in the November 1985 sale of Hawk missiles to Iran (see 1985). Meese is apparently not interested in finding facts, because he refuses a request to assist from the FBI, and takes no notes during his interviews of administration officials.
'Shredding Party' - Additionally, during his investigation, National Security Council documents are altered or destroyed, including a presidential finding from December 1985 that retroactively authorized US missile sales to Iran (see November 24-25, 1985 and December 5, 1985); National Security Adviser John Poindexter will later admit to destroying this document. Lieutenant Colonel Oliver North holds what is later called a “shredding party,” destroying thousands of documents that would likely implicate White House officials in a criminal conspiracy to break the law (see November 21-23, 1986). The Iran-Contra investigative committee will later fault Meese for departing from “standard investigative techniques” during his investigation.
Document Linking Iran Arms Sales, Contra Supplies Survives - Meese also finds a potentially explosive document in the desk of North, the National Security Council staffer who managed the Iran arms deals. The document, an undated memorandum apparently from April 1986, outlined “a planned diversion of $12 million in proceeds from the Iran arms sales to the Nicaraguan contras” (see April 4, 1986). Meese’s investigation now diverges onto two tracks, one a continuation of the Hawk shipments, and the second an investigation into who knew about, and who had approved, the diversion.
Reagan Courting Impeachment? - Meese confirms from North that the $12 million had indeed been given to the Contras, and informs Reagan, Chief of Staff Donald Regan, and Vice President Bush. Reagan is reportedly shocked by the revelation, in part because he knows he could face impeachment for violating the Boland Amendment (see October 10, 1984). Meese informs the cabinet the next day. Apparently Meese does not want to know if any senior White House officials knew of the diversion, because he does not ask them about it. When Poindexter informs Meese that before December 1985, his predecessor Robert McFarlane handled the Iran arms sales “all alone” with “no documentation,” Meese accepts his word. Several White House officials present at the meeting—Reagan, Regan, Bush, Poindexter, Secretary of State George Shultz, and Secretary of Defense Caspar Weinberger—all know that Poindexter is lying, but none correct him. After the meeting, Shultz tells his aide, Charles Hill: “They may lay all this off on Bud [McFarlane].… They [are] rearranging the record.” Investigative counsel Lawrence Walsh will later write: “The Select Committees viewed this as an isolated error. It was not.”
'Case for Deniability' for Reagan - In Walsh’s opinion, Meese is not conducting an investigation at all, but instead is “building a case of deniability for his client-in-fact, President Reagan.” Walsh will characterize Meese’s actions as “an effort to obstruct a congressional inquiry.” In 2006, authors Lou Dubose and Jake Bernstein will write, “The two strands of an illegal policy came together in that memo.” The authors refer to the US arms sales to Iran and the diversion of the profits from those sales to the Contras. (New York Times 11/19/1987; United States Court of Appeals for the District of Columbia Circuit 8/4/1993; PBS 2000; Dubose and Bernstein 2006, pp. 66)

Attorney General Edwin Meese announces the results of his internal “investigation” of US arms sales to Iran (see November 21-25, 1986). In the conference, Meese announces that President Reagan did not learn of the US shipments of Hawk anti-aircraft missiles (see 1985, November 24-25, 1985, and August 4, 1986) until February 1986. Investigators for Independent Counsel Lawrence Walsh will later conclude that Meese lied; not only did Meese never ask Reagan about his knowledge of the Hawk shipments, he ignored evidence and testimony that proved Reagan did indeed know of the shipments, such as a statement from Secretary of State George Shultz that Reagan had told him that he had known of the Hawk shipments in advance. But Meese will also, reluctantly, admit that the US had illegally diverted between $10 million and $30 million in funds from Iranian arms sales to the Nicaraguan Contras (see April 4, 1986). National Security Adviser John Poindexter immediately resigns, and Lieutenant Colonel Oliver North is fired from the National Security Council staff. (New York Times 11/19/1987; United States Court of Appeals for the District of Columbia Circuit 8/4/1993; PBS 2000)

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)

Faced with revelations of his possible involvement in the Iran-US arms-for-hostage deals (see November 3, 1986), Vice President George Bush, who has been heavily involved in the deals both with Iran and with its enemy Iraq (see July 23, 1986), denies knowing anything about anything. He tells the press that he knew nothing about any administration officials objecting to selling arms to Iran: “If I had sat there, and heard George Shultz and Cap [Caspar Weinberger] express it strongly, maybe I would have had a stronger view. But when you don’t know something it’s hard to react…. We were not in the loop.” Weinberger, the Secretary of Defense, telephones Shultz, the Secretary of State, and snaps, “He was on the other side [supporting the arms deals with Iran]. It’s on the record! Why did he say that?” Former National Security Council aide Howard Teicher, who was deeply involved in the arms-for-hostage deals with Iran, will say in 1992, “Bush definitely knew almost everything about the Iranian arms-sales initiative. I personally briefed him in great detail many times. Like so many others, he got premature Alzheimer’s after the arms sales became public.” (Waas and Unger 11/2/1992)

As the end of President Reagan’s final term approaches, conservatives and hardliners have radically changed their view of him. They originally saw him as one of their own—a crusader for good against evil, obstinately opposed to communism in general and to any sort of arms reduction agreement with the Soviet Union in specific. But recent events—Reagan’s recent moderation in rhetoric towards the Soviets (see December 1983 and After), the summits with Soviet Premier Mikhail Gorbachev (see November 16-19, 1985 and October 11-12, 1986), and the recent arms treaties with the Soviets (see Early 1985 and December 7-8, 1987) have soured them on Reagan. Hardliners had once held considerable power in the Reagan administration (see January 1981 and After and Early 1981 and After), but their influence has steadily waned, and their attempts to sabotage and undermine arms control negotiations (see April 1981 and After, September 1981 through November 1983, May 1982 and After, and April 1983-December 1983), initially quite successful, have grown less effective and more desperate (see Before November 16, 1985). Attempts by administration hardliners to get “soft” officials such as Secretary of State George Shultz fired do not succeed. Conservative pundits such as George Will and William Safire lambast Reagan, with Will accusing him of “moral disarmament” and Safire mocking Reagan’s rapport with Gorbachev: “He professed to see in Mr. Gorbachev’s eyes an end to the Soviet goal of world domination.” It will not be until after the collapse of the Soviet Union and the tearing down of the Berlin Wall (see November 9, 1989 and After) that conservatives will revise their opinion of Reagan, in the process revising much of history in the process. (Scoblic 2008, pp. 143-145)

The United Nations sends a delegation of experts to the Iraq-Iran War conflict zone to investigate Iraq’s use of chemical weapons. (Jentleson 1994, pp. 76) However, Baghdad refuses to cooperate and the US makes no serious attempt to press Baghdad to comply with the UN Security Council’s decision. US Secretary of State George Shultz downplays the charges against Iraq, arguing that interviews with Kurdish refugees in Turkey and “other sources” do not conclusively support the allegations being made against Saddam Hussein’s government. (Hiro 8/26/2002)

Former President Ronald Reagan in January 1992.Former President Ronald Reagan in January 1992. [Source: SGranitz / WireImage]Former President Ronald Reagan is questioned for a single day in court after his former secretary of defense, Caspar Weinberger, is subpoenaed in the ongoing Iran-Contra trials. Reagan’s Alzheimer’s disease is by now painfully apparent; not only can he not remember facts and figures, he has trouble remembering his former Secretary of State, George Shultz. (PBS 2000)

White House officials give the press a broad outline of President Obama’s ambitious arms-control agenda. Obama’s plan calls for dramatic cuts in both US and Russian nuclear arsenals, an end to a Bush administration plan for a more advanced nuclear warhead, the ratification of a global treaty banning underground nuclear testing, and a worldwide ban on the production of nuclear weapons material. The long-term goal, officials say, is “a world without nuclear weapons” in which the US leads by example. Obama’s plans are striking departures from the Bush administration agenda, which had little use for arms-control treaties (see May 24, 2002 and Late May 2005) and pulled out entirely from the anti-ballistic missile treaty with Russia (see December 13, 2001). Obama has said his plans are based in part on the work of the bipartisan Nuclear Security Project, headed by former Democratic Senator Sam Nunn, former Clinton administration Defense Secretary William Perry, and former Republican Secretaries of State Henry Kissinger and George Shultz.
Criticism - Some conservative organizations and members of the national security community warn that Obama’s proposals could weaken US security. Henry Sokolski, a member of the bipartisan US Commission on the Prevention of Weapons of Mass Destruction Proliferation and Terrorism and an advocate of limited arms reduction, says: “This brave new, nuclear world may be anything but peaceful. As the qualitative and quantitative differences between nuclear weapons states become smaller, rivalries are likely to become much more dangerous.” The Heritage Foundation’s Baker Strang says of the Obama administration: “The problem is that they are betting the physical survival of the US on nothing more than the hope that other nuclear-armed states and any states or non-state actors that join the nuclear club will follow suit by disarming. This gamble involves the highest possible stakes and has an exceedingly low likelihood of success.” And neoconservative Frank Gaffney, a Defense Department official during the Reagan administration and president of the Center for Security Policy, says, “Every other declared nuclear weapon state is modernizing its stockpile and the most dangerous wannabes—North Korea and Iran—are building up their offensive missile capabilities and acquiring as quickly as possible the arms to go atop them.” Obama may also face opposition from within his Cabinet; Defense Secretary Robert Gates, a Republican holdover from the Bush administration, wants to implement the Reliable Replacement Warhead program (see January 26, 2009), a nuclear warhead replacement program that Obama opposes.
Support - Obama’s plan has strong support among Congressional Democrats: Representative Ellen Tauscher (D-CA), who heads the House subcommittee overseeing US nuclear forces, says that reducing US and Russian arsenals, negotiating a treaty to end production of new nuclear weapons material, and ratifying the test ban pact “are all achievable goals. The debate is at a point where it is a question about when we achieve these goals, not if,” she says. Ultimately, achieving Obama’s goals will be difficult, says nonproliferation expert Joseph Cirincione. “It is going to require a herculean effort,” he says. “It is completely doable, but it will require the sustained attention of the president himself.” (Bender 2/22/2009)


Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike