
·S3 E4
Iran Contra: Episode 4 - Diverted
Episode Transcript
Pushkin.
Oliver North had no formal training in covert operations.
He had never seriously studied diplomacy either, or international relations or political science.
He was a soldier.
So when he found himself in charge of two top secret foreign policy programs, one in Nicaragua, the other in Iran, he kind of had to make it up as he went along.
In Nicaragua, North was counting on Contra rebel leaders to allocate the millions of dollars he was raising on their behalf.
Remember, the CIA had been forced by Congress to stop helping the Contras.
Now in their absence, it seemed like a lot of money was being wasted or worse stolen.
Speaker 2The problem was the Contress didn't know how to run their war.
They were very bad managers.
Speaker 1This is journalist Doyle McManus.
You've heard from him before.
He covered the Contra war for the Los Angeles Times and co authored a book about the Reagan administration called Landslide.
Speaker 2The weapons were piling up in warehouses in Miami.
The Contress had no reliable way to ship them to the battlefield, and there were persistent reports that there was corruption going on, that the Contras were either taking kickbacks from arms, merchants or just skimming money off the top.
Speaker 1Oliver North and his superiors needed more control in Nicaragua, and they no longer wanted to rely on people they couldn't trust, so they enlisted the help of someone they could count on and who had the experience that North lacked.
His name was Richard Seacord.
Speaker 2Richard Seacord had precisely the expertise that Ali North and the Contra needed.
He knew how to move equipment from one country to another in airplanes secretly.
Speaker 1Richard Seacord was a retired Air Force general.
He was known for his extensive experience with covert operations and as a strong believer in giving the president broad powers to undertake them.
For his master's thesis at the Naval War College, Seacord wrote that when it came to covert ops, quote, bureaucratic obstacles should be dismissed out of hand.
After carrying out secret missions in Vietnam and Laos, Seacords served in the Department of Defense.
Then in nineteen eighty three he was forced to retire from government service under a cloud of scandal when one of his associates was convicted of illegally selling plastic explosives to Muimar Kadafi.
Speaker 3Of interest to the Grand Jury.
Sources say Major General Richard Seacord, a deputy Assistant Secretary of Defense.
Speaker 1With his career in Washington cut short.
Seacord went into the private sector fascination, and while some of his former colleagues and government viewed him with suspicion due to the Kadafi scandal, there were those who felt he had been unfairly tarnished by it.
Among them was the director of the CIA, who suggested to Oliver North that he brings Seacord in to help with the Contra war.
Speaker 4I was asked if I could help out logistically keeping the contras in the field resupplied.
Speaker 1I interviewed Major General Richard Seacoord in Florida in twenty nineteen.
He died in twenty twenty four.
Speaker 4They were next to Despert, you know, they knew that I knew Air and so forth, and so that was the beginning of it.
Speaker 1In the summer of nineteen eighty five, about a year after Congress forced the CIA to stop funding the contras, Seacord and a business partner created a Swiss bank account to hold money being donated to the Contra cause.
Using that money, Sea Court set about building a resupply operation for the Contras from scratch.
That meant putting together what was essentially a mini CIA, or at least a mini airline.
The operation required Seacord to buy a fleet of small planes and organize a network of airstrips near the Nicaraguan border.
He jokingly called it Air Contra.
It wasn't action hero type work, but it was exactly the kind of work Seacord was good at.
Speaker 4Logistics are the senews of war military history writers going back.
I know is far as Napoleon's time, right about that, but people tend to forget it because it's not very glamorous.
The logistics is the chore.
It's the long pole in that tent.
Speaker 1A few months after Seacord started working with the Contras, Oliver North came to him for help with another matter, the White House's secret program to sell arms to Iran.
As you heard in episode two, Ronald Reagan had approved the sale of missiles to Iran as part of an effort to free American hostages in Beirut.
The administration was relying on Israel to serve as a go between, meaning Israel would sell American made weapons to Iran and then get their stocks replenished by the US Department of Defense.
But the Israelis were making mistakes.
In November of nineteen eighty five, a shipment of missiles to Iran had ended in disaster after Israel fumbled just about every aspect of the delivery.
Here's Doyle McManus again.
Speaker 2The Israeli plane got stuck in Portugal.
The Portuguese couldn't figure out what this shipment was or why they should let it go through.
A CIA plane had to be called in to take the arms to Iran.
And when the Iranians opened the shipment, they were very unhappy because there weren't as many missiles as they expected.
They were the wrong model, and some of the missiles even had the Israeli Star of David on them, and so the Iranians erupted in fury and refused to release any hostages at all.
Speaker 1Oliver North briefed his boss, John Poindexter on what had gone wrong.
Poindexter was Reagan's new National security advisor.
In a memo, North acknowledged that the Iran initiative was a mess, but he argued we are now so far down the road that stopping could have even more serious repercussions.
In a follow up memo to Poindexter titled Next Steps, North proposed they cut Israel out of the deal and sell the weapons to Iran themselves, bringing in Richard Seacord as the middleman.
So that's what they did.
Speaker 4We're running a successful air up down there.
Why not this one?
Yeah?
And I guess point to extra figured that good old Dick Secord, the can't do guy.
He'll get her done.
Speaker 5With that.
Speaker 1Seacord's responsibilities expanded.
In addition to managing money and supplies for the Contras, this private citizen would now also be facilitating the sale of American weapons to Iran.
This was the moment when the twin Engine scandal, now known as Iran Contra took off.
I'm Leon Nahan from Prologue Projects and Pushkin Industries.
This is fiasco Iran Contra.
Speaker 6The issue is back paid for the Contras fighting the Nicaraguan government.
Speaker 7North was very excited he had pulled it off.
Speaker 2His secret visit to TAYHRANI.
Speaker 3These kinds of escapades.
Speaker 7He and had suicide pills and I had nothing.
Speaker 8I was very convinced the President would agree it was the right thing to do.
Speaker 6The President has thrown himself into this battle.
Speaker 9I was going to go ahead and tell them my story.
Speaker 1Episode four diverted, how Oliver North and Richard Seacord put the hyphen in Iran Contra, and how North ended up on a plane to Tehran.
Speaker 4We'll be right back.
Speaker 1In order to build the resupply operation for the Contras, Richard Seacord needed to hire a crew of airmen who could fly planes and knew how to make air drops.
In December of nineteen eighty five, the word reached Ian Crawford, a soft spoken twenty nine year old who had served as part of the Army's elite Delta Force Unit.
Crawford had recently returned to civilian life in Fayetteville, North Carolina, and he had started a business sowing custom vests, backpacks, and other military.
Speaker 9Equipment and out of the field blue.
At a New Year's Eve party, somebody is talking to my mother in law, of all people, and this person said that they needed to find some ex military people with a parachute background.
Speaker 1Crawford just happened to be a certified parachute specialist, so his mother in law put him in touch with the guy from the party, who in turn put him in touch with a guy in Washington who worked for Richard Seacoord.
That guy offered Crawford a job.
Speaker 9He told me, I was going to air drop equipment to a newly formed group somewhere in the world he wouldn't tell me, and that I was being hired for my parachute and air drop specialties.
Speaker 1A few months later, Crawford boarded a southbound plane packed with military fatigues, jungle boots, and tents.
When the plane landed, he found himself standing on a dirt airstrip in Honduras.
He had arrived at Aguacat, a bare bones military encampment that was being used as part of Secord's new resupply operation.
Speaker 9When we finally landed in Awacati, Honduras, we knew that we were in a contract camp.
It was a confined, primitive and secret base.
The Hondurans knew about it, but they didn't want to advertise that they were allowing the contries to be on their side of the border.
Speaker 1When Crawford first got to Aguacata, there was just one plane available to fly missions.
It was a C seven Cariboo cargo plane, the same kind that was used in Vietnam.
Speaker 10Soon you will be flying the C seven a Cariboo in remote, underdeveloped areas of the world.
Speaker 1Crawford's job was to help the contras pack supplies into bundles and load them onto the Cariboo.
Inside the bundles was a mix of food, ammunition, grenades, rockets, mortar shells, and AK forty sevens.
Crawford would use a forklift to get them into the Cariboo, then line them up side by side and attach parachutes to them.
Then he would take a seat as the plane took off for Nicaragua.
Speaker 10Short primitive runways hacked from the jungle and desolate terrain make these parts of the world Cariboo country.
Speaker 9I would fly in the back of the aircraft.
We'd fly for twenty or thirty minutes to a drop zone.
Speaker 1The pilot flying the Cariboo would get down as low as possible over the drop zones, which were located over sandbars in the Rio Cocoa.
Contraforces would then pick up the supplies.
Speaker 10If no airstrip exists or it is under enemy fire, a personnel drop maybe the only way to reinforce a Special Forces camp, and.
Speaker 9I'd take a very large knife and cut a nylon strap that was holding these bundles back, and the pilot would raise the aircraft nose up and the bundles would roll out the back of the aircraft.
Speaker 1Sometimes as the caribou flew over the jungle, Crawford would sit with his legs dangling from the back of the aircraft and watch for Sandinista helicopters.
It was dangerous work.
The threat of being shot down was real, but Crawford and his crew were also worried about their own plane giving out on them.
Speaker 9And there were actually holes in the dashboard where gauges had been taken out and sent back for maintenance, and we were all kind of shocked at the level of maintenance that the aircraft actually needed.
Speaker 1Crawford chucked this up to penny pinching by the operation's top brass, and he wasn't happy about it.
Speaker 9Management was trying to cut corners, spend the least amount of money to get whatever mission done the cheapest possible.
Speaker 1When I asked Seacort about this, he flatly rejected the notion that his planes were in poor condition.
Speaker 4Those airplanes were well equipped and being operated by a professional airmen who knew what the hell they were doing, which is why we had him.
Speaker 1That's at least half true, as Seacoorts top operations manager would later testify, the airmen's Seacorts Company had recruited were fortunately the kinds of guys that could put together an operating aircraft with baling wire and chewing gum.
In any event, there's no question that Seacord's budget was modest.
As far as he was concerned, the resupply operation was only viable as a short term proposition.
At some point the CIA would have to step back into the role it played before the Boland Amendment made it illegal.
Speaker 4My belief was it was just a short term, a stopgap operation, a bridging operation.
It became a bridge too far.
Speaker 1Oliver North was feeling the pressure too.
I'm not complaining, and you know that I love the work, he wrote to John Poindexter, but we have to lift some of this onto the CIA so that I can get more than two or three hours of sleep at night.
Unfortunately for North, the CIA could not step back into Nicaragua unless Congress changed its mind about funding the Contras, and that didn't seem like it was in the cards, at least not yet.
By the end of nineteen eighty five, the Contra aid program and the Iran weapons program were being managed by the same group of people.
Oliver North was running the day to day with supervision from that security advisor John Poindexter, and Richard Seacord, the Air Force general turned arms deer, was overseeing logistics, procuring the weapons, and moving the money.
All three of them had their own set of motivations, particularly when it came to Iran.
North, by his own account, was dead set on bringing the hostages back from Beirut because he knew how strongly the President felt about it.
North declined to be interviewed for this podcast, but here's how he explained himself.
In nineteen eighty seven.
Speaker 11The President very clearly articulated in the meetings I was in with him in the Oval Office on this issue.
It was very clear that the President wanted as many Americans home, all of them home, as fast as possible.
Speaker 1Richard Seacord had more personal reasons for getting involved.
One of them was surely financial.
He and his partner stood to make millions of dollars and commissions.
But there was something else too.
Remember, Seacord's career in the intelligence community had been cut short by scandal.
He thought that helping out with the operation could help him get back in the fold.
Speaker 4I was thinking about the possibility of taking over the CIA, no question about that.
That was the right age, They had the right background.
I would not have taken a job by than the director, but they needed some operator to run that place, and not a bunch of shoe clerks.
Speaker 1So that's at least part of what was driving sea Cord.
Then there was John Poindexter, who inherited the Iran initiative from his predecessor, Bud McFarlane.
Poindexter's reasons for continuing to pursue the program have remained remarkably consistent over time.
As he told me in late twenty nineteen, he saw the decision to sell weapons to Iran as part of the Reagan administration's plan to win the Cold War.
Speaker 8I ran, from a geographic standpoint, occupies a very important position in the Middle East.
Speaker 1This is John Poindexter.
Speaker 8There on the east side of the what used to be called the Persian Gulf, and at the end the south end of the Gulf are the straits of Hormus, which is a very narrow body of water that connects the Gulf to the Indian Ocean.
So the Soviet Union has always wanted access to the Indian Ocean, and one way for them to get that is to develop a cooperative relationship with Iran.
Speaker 1Poindexter believed that in the long run, Iran would probably end up aligning itself with either the United States or the Soviet Union.
Even though the Komanian regime was fiercely anti American, Establishing a diplomatic opening with more moderate elements in the Iranian government was a way to make sure the United States came out on top in a post Komani world.
Speaker 8We always thought that eventually there would be some kind of transition in Iran as Amede whenever he died, and it would have been foolish for us to think that the Soviet Union was not also interested in some future transition of the Iranian government.
And it has never been in our strategic interest that the Soviet Union would gain that foothold in the Middle East.
Speaker 1Later, when the Iran Contra scandal exploded into public view, Poindexter's high minded rationale for the weapons sales was buried under the simpler, more unsavory explanation that the White House had been trying to buy back hostages by paying ransom to terrorists, which explanation you believe comes down to how much credit you're willing to give the Reagan administration.
But as even Poindexter concedes, the person who authorized the arm shipments, the only person who had the power to do so, was pretty clear about what was driving him.
Speaker 8The President was probably more interested in the short term objectives than the long term objectives.
So I've convinced that he believed in what we were trying to do, but he probably, in hindsight, did put more emphasis on the hostages.
Speaker 1This question of who was motivated by what takes on even more significance when you consider how badly the Iran initiative was going By the start of nineteen eighty six.
The White House's key Iranian contact, Minuture Garboni Phar, had revealed himself to be erratic and unreliable.
The moderates Gorbonifar was supposedly speaking for had given no indication that they even existed.
On multiple occasions, the US had sent Iran weapons, only to have the terms of the deal change in the middle and yet the negotiations continued, just as Bud McFarlane had feared they would.
From the outside, and with the benefit of hindsight, you look at all these red flags and think, how could this have continued?
How could Poindexter and North and Reagan all have convinced themselves that this was a good idea?
I think the answer probably lies and what drove each of them to pursue it in the first place.
Whatever it was, it seems to have made them all either giddy with optimism or deluded by desperation.
Not long into John Poindexter's tenure as National Security Advisor, the determination was made that the US needed to speak directly with the Iranian moderates that Manuchaerir Gurbanifhar claimed to represent.
After months of negotiation, North and Gurbanifhar finalized plans for an in person meeting between senior American officials and a group of high ranking members of the Iranian government.
The meeting would take place in a hotel room in Tehran.
Speaker 8Because of the importance of establishing some kind of working, real life relationship with Iran, it made sense to send a delegation to Tehran to try to meet with people that we hoped would be moderate and began a dialogue.
Speaker 1Poindexter's understanding was that this would be the final exchange of weapons for hostages.
As North explained the agreement to Poindexter in a memo, the US delegation would bring a load of spare missile parts to Tehran, and the Iranians would bring about the release of the hostages still being held in Beirut.
The American delegation to Tehran would include Oliver North, a CIA officer who could serve as a translator, and strangely enough, former National Security Advisor Bud McFarlan.
McFarlan had been out of government for months at this point, and as you heard in episode two, he had profound misgivings about the Iran initiative.
But when Poindexter asked him to go to Tehran, McFarlan accepted.
Speaker 8You know, he sort of was a secret emissary.
He wasn't in government.
He had been a former senior government official, so he had credentials and it would be clear to the Iranians that this was a presidentially approved mission.
So Bud was a logical person to go, and so we sent him.
Speaker 1Also along for the trip was a senior staffer from the National Security Council named Howard Titcher, an expert on the Middle East.
Like Poindexter, Tycher saw the arm sales as a path to improving relations with Iran in a way that would serve the US's long term goal of protecting the Middle East from Soviet influence.
Speaker 7Actually was exciting, you know, this was the chance to change the course of history and protect American interest in a very fundamental way.
And you know, so this was a risk worth taking.
Speaker 1Tycher's wife was more apprehensive.
She was a lawyer in the State Department, and based on what her husband was telling her, she suspected that the arms deal might be illegal.
She also thought it was possible, if not downright likely, that in their quest to free the hostages, her husband and the other members of the delegation would end up getting kidnapped themselves, you know.
Speaker 7And I talked to Colonel North about this and he said, I want you to know everything's taken care of.
And I said, so there's a plan, And all he would say was, don't worry, everything's taken care of.
So he did his best to assure me that that was a case.
That there was some rescue plan in the event that we were not allowed to leave, and in the circumstances I later learned that he and McFarlane had suicide pills and I had nothing.
So I presume that was the plan, that they would take their lives and the rest of us would be left to deal with the Iranians.
Speaker 1According to Oliver North's memoir, he actually had enough suicide pills for everyone, and he got them directly from the head of the CIA.
That underscore is just how big a risk the administration was taking.
Who knew what was waiting for North, farl And and Titcher in Tehran.
There was no longer an American embassy there.
The country was a black box.
All the Americans had to go on was the word of Manuture or Bonifi, and so far that had not proven to be worth very much.
Speaker 8We hadn't had any kind of a diplomatic approach to Iran up to that point that I'm aware of today, and so it was momentus to decide to send a mission.
You know, the odds were not in our favor of it working out, but we thought because of the importance of returning Iran to a more constructive physician, it was worth.
Speaker 1The risk, as it happened.
Days before North and his team embarked on their trip, French officials were working to free their citizens who had been kidnapped in Lebanon by Islamic militants.
According to news report Sort, France was negotiating with the Iranians.
Speaker 5US officials fear of the French willingness to negotiate will only harden the kidnappers resolve and encourage others to kidnap for ransom.
Speaker 1The journey to Tehran began Washington's Dallas Airport on May twenty third, nineteen eighty six.
It would involve multiple legs, with stops at an air Force base in Frankfurt and in Tel Aviv.
Everyone in the group carried fake passports.
The plan was that if anyone asked, they would say they were part of a trade delegation from Ireland.
Here's Howard Titcher again.
Speaker 7That was the cover, they decided.
And so I was asked to come up with a legend that, you know, I could remember about being born in Ireland.
So if somebody in iranset, so why are you here?
I'm Irish traders?
Where are you from?
Are you from Dingle Oh?
I never went to Dingle.
What's it like in Dingle?
You know?
So I became Tim mcgahann and that became the the Irish passport.
Speaker 1Titcher asked the obvious question, would they have to use fake Irish accents?
The answer was eh.
Speaker 7They told us that they didn't think anybody who we were going to encounter would have any idea what an Irish accent sounded like.
Speaker 1In Tel Aviv, the delegation with rendezvous with Richard Seacord, who, as usual, would be in charge of logistics.
It was not an easy assignment.
Seacord had to ensure that the trip was one hundred percent secret.
Speaker 4We borrowed an airplane from Israel.
Speaker 1Here's Seacord again, one of.
Speaker 4Their VIP airplanes, and sanitized it.
We went over every bit of that airplane and anything that would indicate it was Israeli, an aeroplane with the marks or stars of David or whatever.
We got rid of it.
Speaker 1Seacord himself was not going to Tehran.
He would stay in his hotel room in Tel Aviv, managing the trip remotely and staying in touch with the pilots through a secure communications rig set up in his window.
The plane was set to take off at midnight from Ben Gurion Airport.
In addition to its human cargo, it would also be carrying some, but not all, the spare missile parts the Americans had promised the Iranians.
As soon as the hostages were freed, Secord would send a second plane to Iran with the rest of the weapons parts.
Before takeoff, North decided he wanted to bring some kind of gift to Tehran.
As Tyer understood it, North wanted something that would break the ice and serve as a gesture of goodwill.
Speaker 7At one point, North had said to Gorbani far what should we bring, you know, as a gift, and he goes, oh, bring the weapons and bring a cake.
It is a tradition among Persians when you've had us a feud or a or a spat with your girlfriend or friends, you make up by bringing each other pastries.
Speaker 1So, according to Titcher, North boarded the plane carrying a chocolate cake purchased from an Israeli bakery.
He decorated the cake with a key intended to represent the opening of relations between the US and Iran.
Speaker 7North was, you know, very excited again.
You know, he had started this process some months before.
You know, and he had had a couple of probably dodgy meetings with you know this arms merchant Manu shark or Banifhar, and now he had pulled it off.
Speaker 1North's jubilation was premature, which became obvious almost as soon as the plane landed in Tehran.
He was a little after seven in the morning on May twenty fifth, but when North, McFarlane, and Tycher got off the plane, the only person there to greet them was an airport worker who didn't know who they were.
Finally, Gorbanifar showed up, apologizing for the delay.
He led the delegation to a caravan of old, beat up cars that were waiting outside the airport.
The cars were driven by armed revolutionary guards.
In his memoir, North described the vehicle's belching blue and black smoke from their exhaust pipes.
As they drove through Tehran, they passed landmarks once associated with the Shah that were now covered in graffiti praising the Iyatola Comani.
After half an hour, the cars pulled up to the entrance of the Independence Hotel and the Americans were taken to a suite on the fifteenth floor.
Gorbanifhar did not make a powerful first impression on Howard tier.
Speaker 7He struck me as someone in his early fifties, early to mid fifties, very nondescript, balding, no tie, sort of typical Iranian garbed, you know, suit shirt, no tie, overweight.
He didn't come across like the people we see in movies of these vicious evil arms merchants, you know, with giant mustaches and bandoliers.
I mean, he looked like a business person.
Speaker 1It seemed like Gorbanifard just wanted to make everyone happy.
At one point, when it turned out the hotel was short on food, he had his mother cook the group an elaborate Persian feast.
But hospitality was not what the Americans were worried about.
As morning turned to afternoon on their first day in Tehran, there was no sign of any high ranking Iranian officials.
Instead, at five PM, a man entered the suite and introduced himself by a name the Americans didn't recognize.
He brought a disconcerting message, no hostages could be released until after the Americans handed over the spare weapons parts they had promised.
In fact, he said there was no certainty that Iran would be able to get the hostages released at all, but if all the weapons were delivered, they would be willing to try.
Speaker 7We now understood that the Iranian government had not committed to it, certainly not guaranteed that it was going to bring about the release of the hostages.
And yet we had shown up and we had given them a palette load half of the load of hawk spare parts.
And you know, we faced considerable embarrassment because you know, we were not going to succeed.
Speaker 1Bud McFarlane was furious.
It was now clear that the Iranian emissaries who had been sent to meet the American delegation were not nearly a senior as the officials Garbanifar had told North to expect.
Speaker 7North confronted Gorbani Phar, and he made him tell us, he goes, well, I basically, you know, exaggerated a little bit in order to you know, get you guys here.
And we were appalled.
Speaker 1So began a standoff that would last three long days over the course of several torturous meetings.
McFarlane was uncompromising.
There would be no more weapons delivered to the Iranians until the hostages in Beirut were free.
Speaker 7Farland was just fed up and believe that the appropriate posture to take was you guys have misled us.
You did not deliver what you said.
You could say whatever you want about what we were going to do.
What Colonel North told or Bonnie faire we were going to do, we did it.
You didn't do what we were told you're going to do.
We're out of here.
Speaker 1Oliver North had a different read on the situation.
He thought there was still a chance for a positive outcome despite the false pretenses that had brought both parties to the table.
He really wanted the deal to work.
Speaker 7He and where Bonnie Faarr had similar interest.
Right, they both wanted it to work.
North was patient, right, he had worked months to get to this point.
You know, it's like, let's give him a little more time.
Speaker 1But McFarlane's patience was running out.
We'll be right back.
After three days of negotiation in Tehran Bud, McFarlane decided the time to cut bait.
He made arrangements for the American delegation to be taken to the airport and back to Tel Aviv.
One of the Iranian officials MacFarlane had been dealing with begged him to stay and work it out, but McFarlane was firm, it's too late.
He said, you're not keeping the agreement.
We are leaving.
When the Americans landed on the tarmac and Tel Aviv, North could tell that MacFarlane was disappointed.
According to North Spmoir, he tried to cheer McFarlane up.
Well, Bud, it's not a total loss.
North quotes himself saying part of the money from these transactions is going to help the Nicaraguin resistance.
McFarland would later testify that the comment left him a little startled, but as they made their way off the plane, he did not ask North to elaborate.
It's worth pausing here to talk about that offhand comment Oliver North made on the tarmac because the idea of taking money generated by the ear Ran weapons sales and spending it on the Contra war would end up becoming the single most explosive aspect of the Iran Contra scandal.
In fact, without it, there wouldn't be an Iran Contra scandal.
The money was the thing that joined the two operations together.
It came to be known simply as the diversion, and there are a few conflicting accounts of when and where the idea originated, but according to Oliver North, it happened in January of nineteen eighty six, five months before the Tehran trip.
In North's version of the story, he was in London for a meeting with Manuchair Gorbonifar aimed at getting the arms for Hostages deal back on track.
During that meeting, as part of a private conversation in a hotel bathroom, Gorbonifar suggested to North that he could use the profits from the arm sales to fund the Contras.
Gorbonifar made the comment in an apparent effort to convince North that continuing with the weapons sales would be worth the trouble, and it worked.
North was into it, and when he came back to the United States he put the idea in front of John Poindexter.
Speaker 8Ali suggested, since Dick was also running the logistics pipeline to the Contras, that Dick used those excess profits to provide funding for the Contra support program.
Would you think I thought it was a good idea.
Speaker 1You have to admit there's a certain elegance to it.
By combining their two covert operations, financially, the US would be able to take money they weren't supposed to be making in Iran and spend it on something they weren't supposed to be spending it on, the Contra war.
Speaker 8I knew it was going to be controversial, but I also didn't see anything illegal about it.
It was not US government money.
The Defense Department was being paid exactly what they asked for for the weapons, so that there was no cost to the US government, and so I thought it It was perfectly legal on the one hand.
But on the other hand, I knew the Democrats, if they found out about it, would object and claim all sorts of wild theories, which is typical of the Democrat Party.
Speaker 1Poindexter says this was why he made the decision not to tell the President about the diversion.
Speaker 8I was very convinced the President would agree that it was the right thing to do, but I thought it was better to keep him out of that direct loop.
It was a judgment called on my part, and I wanted to give the President some deniability of authorizing it.
Speaker 1In the end, investigators concluded that at least three point six million dollars were diverted from the Iran weapons sales to the Contras.
It was a modest sum in the grand scheme of things, But for Richard Seabord, who was struggling to keep the Contra resupply operation going, it was a welcome bit of additional funding at a time when resources were running low.
It was May of nineteen eighty six, about a year had passed since Seacourt accepted the Contra aid assignment, and he was getting fed up.
One flight to Nicaragua's southern border had ended with a plane getting stuck in the mud.
Another faltered due to unexpected fog, which caused the pilot to clip the top of a tree and knock out one of his plane's engines.
The operation needed more money, and soon, luckily, the Reagan White House was gearing up to persuade Congress to lift the Bowland Amendment and allow the administration to once again start funding the Contras.
Speaker 6The issue is back aid for the contrast fighting the Nicaraguan government.
President Reagan reported he has decided that the CIA should have day to day's supervision of the renewed and widened, undeclared war against Nicaragua.
Speaker 1As John Poindexter wrote in a memo to NSC staff in May of nineteen eighty six, the President is ready to confront the Congress on the constitutional question of who controlled foreign policy.
Speaker 6The President has thrown himself into this battle, claiming that a defeat will mean the establishment of a Soviet military beachhead within the defense perimeter of the United States.
Speaker 1More than a year had passed since Congress forced the CIA to stop helping the Contras.
In that time, the situation in Nicaragua had changed.
The Sandinista government had become increasingly repressive against suspected Contra sympathizers.
The Sandinistas also seemed to be growing closer to the Soviet Union.
President Don yell Ortega had recently visited Moscow and the Nicaraguan army was receiving Soviet made weapons.
By the summer of nineteen eighty six, Congress had become more receptive to the idea of supporting the Contras.
Sensing an opportunity, the administration asked for one hundred million dollars in aid and the issue went up for a vote.
Speaker 6The President's men feel aid to the Contras as a top priority, and in the coming congressional battle, they'll use every advantage they can.
Speaker 1The stakes for the Contras were high.
If the US pumped one hundred million dollars worth of guns, grenades, and food to the rebels.
It would be a huge boost to the anti Sandinist to movement.
Also, getting a green light from Congress would mean the US Contra aid operation could be taken over by the actual government again instead of a network of private citizens recruited by Oliver North.
Just before Congress was set to vote, Reagan gave a televised dress from the White House imploring Congress to back the Contras.
Speaker 12My fellow citizens, Members of the House, let us not take the path of least resistance in Central America again.
Let us keep faith with these brave people struggling for their freedom.
Give them, give me your support.
Let us send this message to the world that America is still a beacon of hope, still alight under the nations.
Thank you, God, bless you.
Speaker 1On June twenty fifth, nineteen eighty six, the House voted on the President's proposal.
Speaker 6The House of Representative has approved one hundred million dollars in additional American aid for the Contras.
Speaker 1The aid package passed the House two hundred and twenty one to two hundred and nine, with fifty one Democrats voting.
The President's way.
Speaker 6The vote was a political triumph for President Reagan.
Speaker 1The era of the Bowlan Amendment was coming to an end.
For Richard Seacord.
That meant he could finally disentangle himself from the mess in Central America.
As soon as the new funding was approved, sea Court started pushing for the CIA to take over the resupply operation he had built.
How this handoff was supposed to work is a matter of some disagreement.
One of Seacord's associates testified before Congress that Seacord wanted the CIA to buy his assets in Central America.
The assets were valued at around four million dollars that consisted of five airplanes, an airstrip in Costa Rica, and a ship.
It was all stuff sea Court had bought using money either donated to the Contract Cause or generated through this sale of weapons to Iran.
Seacord has always held firm that he was desperate to hand everything over to the CIA as soon as possible, free of charge.
Speaker 4We never proposed to sell it to see.
I proposed to give it to him.
The bowl And Amendment was repealed in the summer of eighty six.
Time marches on the CIA can't get their act together to take over my operation.
They were just dilly dow ain't around.
They could have if they wanted to, they really motivated, were ordered to, they could have taken over my operation in a day or two.
Speaker 1The reason Seacord sounds upset when he talks about this is that he can still picture an alternate reality in which the CIA did take over the contrary supply as soon as Congress restored the AID, And in that alternate reality, it's possible that Seacord and the White House could have avoided what happened next.
Speaker 6Who is cargo plane carrying ammunition to the anti government countries were shot down I inside Nicaraguay yesterday.
Speaker 1On the afternoon of October fifth, nineteen eighty six, a young Sandinista soldier patrolling the jungles of southern Nicaragua looked up at the sky and saw a plane covered in camouflage paint.
He raised his Essay seven rocket launcher, took aim and fired.
The plane went down in flames, killing three of the four people aboard.
The lone survivor was taken prisoner by the Sandinistas, who quickly determined that he was an American.
Speaker 6Market camera crews were taken to the crash site.
They were shown a loan survivor who was identified as Eugene Haw.
Speaker 1His name was Eugene Hasenfuss.
He was forty five years old and he was originally from Wisconsin.
Speaker 3The man captured by the Sandinista is it from Marinette, Wisconsin and apparently joined the mercenary operation this summer.
Speaker 1Hassenphuss was paraded in front of reporters.
Speaker 3My name is Jeen Hausenfuss.
Speaker 7When I was captured.
Speaker 1Yesterday, Hassenfuss said that he had been delivering weapons to the Contras as part of an operation overseen by US government officials.
Speaker 3Eugene Hassenfuss said today he was paid three thousand dollars a month to smuggle arms to the Nicaraguan control rebels.
Speaker 1The Reagan White House categorically denied that Hastenfuss had any connection to the government.
They maintained this stance even as the Sandinistas charged Hastenfuss with terrorism and threatened him with a thirty year prison sentence.
As American journalists scrambled to find out anything they could about Hassenfuss, the young parachute rigger Ian Crawford received a phone call in his sewing shop in Fayetteville, North Carolina.
Speaker 9I pick up the phone and the guy started asking me all these questions about who I was, how I had a connection to Eugene Haussenfuss, and such like that.
I ended up hanging up the phone.
Speaker 1Crawford had quit working for Richard Seacord's resupply operation just a few months earlier.
Crawford says Hassenpfuss had replaced him, and as it turned out, he'd kept Crawford's business card in his wallet.
Soon more reporters tracked Crawford down, and he came around to sharing with them what he knew.
Speaker 9I decided I was going to go ahead and tell them my story.
Speaker 3Ian Crawford is a master parachute rigger, a former member of Delta Force, and one of the first men hired for the covert effort to fly guns to the Contras.
Speaker 5There were three individuals who I later recognized as being Colonel North and Richard Seacourd, and a third member I still haven't recognized.
Speaker 1The shootdown of Eugene Hasenphuss's plane had exposed Ronald Reagan's secret war in Nicaragua again, and it had happened just days before one hundred million dollars in federal aid money was supposed to start flowing legally to the Contras.
But before the issue could provoke yet another round of debate in Congress, something else happened.
A month after the Hassenphuss crash, one of the remaining American hostages in Beirut was released.
The very next day, a Lebanese magazine called Chirau published a stunning article.
It revealed that the US had sold missiles to Iran and that former National Security Advisor Bud McFarlane had recently traveled to Tehran as part of a diplomatic mission.
Speaker 3In a bizarre tale worthy of a thriller, Robert McFarlane, President Reagan's former national security advisor, recently made a secret visit to Tayarai.
Speaker 1When American newspapers picked up the al Cherral report, they made no mention of the Contra War, because at this point, no one had any clue the two stories were connected.
That was about to change.
Up Next on Fiasco, a special bonus episode featuring two journalists, Martha Honey and her husband Tony Avrigan, who found themselves in the crossfire of the Contra War.
Speaker 12Anybody who had their mouth close that the moment of glass went off had their ear drums punctured because of the force.
Speaker 1For a list of books, articles and documentaries we used in our research, follow the link in the show notes.
Fiasco is a production of Prolog Projects and it's distributed by Pushkin Industries.
The show is produced by Andrew Parsons, Madeline kaplan Ula Culpa and me Leon Mayfock.
Our editor was Camilla Hammer.
Our researcher was Francis Carr, with additional archival research from Caitlin Nicholas.
Our music is by Nick Sylvester.
Our theme song is by Spatial Relations.
Our artwork is by Teddy Blanks at Chips and y Audio, mixed by Rob Buyers, Michael Rayfield and Johnny Vince Evans.
Copyright council provided by Peter Yassi at Yassi Butler PLC.
Thanks to Malcolm Byrne, Shane Harris, Kathy Hoyt, Richard Murphy, Paul Richter, An Rowe, as well as Sam Graham Felsen, Sireya Shockley and Katcha kum Kova.
Special thanks to Luminary and thank you for listening.
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