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Iran/Arms Transaction: 12/07/1985, Meeting (3)
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Iran/Arms Transaction: 12/07/1985, Meeting (3)
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Culvahouse, Arthur B.: Files Folder Title: Iran/Arms Transaction: 12/07/1985, Meeting (3) Box: CFOA 1131 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ WITHDRAWAL SHEET Ronald Reagan Library Collection Name CULVAHOUSE, ARTHUR B. FILES Withdrawer DLB 4/1/2014 File Folder IRAN/ARMS TRANSACTION: DECEMBER 7, 1985 FOIA MEETING (3 OF 3) S643 Box Number CFOA 1131 SYSTEMATIC 118 ID Doc Type Document Description No of Doc Date Restrictions Pages 164661 PAPER TOWER BOARD INTERVIEW OF 4 12/18/1986 B1 RICHARD ARMITAGE P. 5-7 The above documents were not referred for declassification review at time of processing Freedom of Information Act - [5 U.S.C. 552(b)] B-1 National security classified information [(b)(1) of the FOIA] B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA] B-3 Release would violate a Federal statute [(b)(3) of the FOIA] B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA] B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA] B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of gift. 12 2 STENOGRAPHIC MINUTES Unrevised and Unedited Not for Quotation or Duplication JOINT HEARINGS ON THE IRAN-CONTRA INVESTIGATION Testimony of John M. Poindexter Wednesday, July 15, 1987 House Select Committee to Investigate Covert Arms Transactions with Iran and Senate Select Committee on Secret Military Assistance to Iran and the Nicaraguan Opposition Washington, D.C. Joint Hearings of the Select Committee to Select Committee on Investigate Covert Arms Secret Military Assistance Transactions with Iran to Iran and the Nicaraguan Opposition U.S. HOUSE OF REPRESENTATIVES UNITED STATES SENATE OFFICE OF THE CLERK Office of Official Reporters NAME: HIR196000 PAGE 57 1304 Mr. LIMAN. Let's go to the on December 7, 1985, after 1305 finding had been signed by the President, there was a 1306 meeting, was there not, between the principals of the 1307 National Security Council? 1308 Mr. POINDEXTER. Yes, there was. 1309 Mr. LIMAN. And do you recall Mr. Weinberger was there an 1310 Secretary Shultz was there, Don Regan was there, Mr. McMahon 1311 of the CIA was there; do you recall that? 1312 Mr. POINDEXTER. Yes, I do. 1313 Mr. LIMAN. There has been testimony about this. The only 1314 reason I am going to ask you about this is because there 1315 were certain perceptions in the Tower Report as to whether 1316 the Secretary of State or the Secretary of Defense really 1317 expressed their views forcefully. 1318 Would you tell us, Admiral, will the--at that meeting, 1319 there was a discussion again or there was a discussion of 1320 the Iran initiative, is that so? You have to say yes or no. 1321 Mr. POINDEXTER. Yes, there was. 1322 This December 7th meeting was the first opportunity that I 1323 can recall that I had to hear the President personally, the 1324 Secretary of State, the Secretary of Defense talk about 1325 their feelings about this initiative that had been proposed 1326 by the Israelis. 1327 Mr. LIMAN. And the subject on the table was an Israeli 1328 initiative under which the Israelis would ship arms to the NAME: HIR196000 PAGE 58 1329 Iranians and we would replenish the arms, hopefully there 1330 would be better relations with Iran, and as a token of good 1331 faith, the American hostages would be released; is that a 1332 fair summary? 1333 Mr. POINDEXTER. Well, I think it is a partial summary. 1334 Mr. LIMAN. Why don't you complete it. 1335 [Counse] conferring with witness. ] 1336 Mr. POINDEXTER. We had been concerned in the National 1337 Security Council for some period of time with the situation 1338 in Iran. Unfortunately, we have very poor intelligence on 1339 what is happening in Iran. 1340 The National Security Council staff had prepared a draft 1341 finding earlier in '85 to try to get the government focused 1342 on what we saw as a very significant, looming problem in 1343 Iran as Ayatollah Khomeini eventually passed from the scene 1344 and it was some sort of succession. We didn't want a repeat 1345 of the '70s when things were happening in Iran that we 1346 weren't aware of, and eventually went out of our control and 1347 out of the control of the government there. We wanted to 1348 preclude the possibility in the future, and we felt that we 1349 needed to take an initiative to get closer to people in the 1350 Iranian government so that we could find out what is 1351 happening and hopefully have some influence in the future, 1352 or at least have information on which to base the United 1353 States policy. NAME: HIR196000 PAGE 59 1354 Mr. LIMAN. Admiral, see if this part is correct, that 1355 currency for trying to get that influence that was being 1356 demanded, as reported by the Israelis, involved arms? 1357 Mr. POINDEXTER. That is often the currency of any sort of 1358 business in the Middle East. 1359 Mr. LIMAN. And in this case, that was the currency being 1360 demanded? 1361 Mr. POINDEXTER. Yes. That is correct. 1362 Mr. LIMAN. And it is also true that we did not want to 1363 authorize arms shipments to the Iranians unless we were 1364 assured of getting our hostages back; is that so? 1365 [Counsel conferring with witness. ] 1366 Mr. POINDEXTER. As I was trying to lay out a moment ago, 1367 what our concerns were, what our major objective was, the 1368 President was clearly also concerned about the hostages. 1369 The President is a very sensitive person, and he is 1370 concerned about individuals when they are in difficulty. 1371 And 50 he, just as a human being, was concerned about the 1372 hostages. 1373 I don't think that the President was overly concerned 1374 about them, but he recognized that we did have an 1375 opportunity here to try to get the hostages back, and there 1376 was no way that we could carry on discussions with Iranian 1377 officials about broader objectives until we got over the 1378 first obstacle and the first obstacle was to get the NAME: HIR196000 PAGE 60 1379 hostages back. And the President felt that that it was 1380 worth taking some risk here. 1381 Mr. LIMAN. Did the Secretary of State and the Secretary 1382 of Defense express objections? 1383 Mr. POINDEXTER. They expressed, as opposed to some 1384 reports, very strong, vociferous objection, and clearly laid 1385 out for the President the other side of the issue. 1386 Mr. LIMAN. And without going into undue detail, could you 1387 just tick off the points they made? 1388 Mr. POINDEXTER. Well, they are the obvious points that 1389 have been made since this all has become public. Secretary 1390 Shultz was concerned about our operation to staunch the flow 1391 of arms into Iran, which is one of the methods that we are 1392 using to try to stop the war between Iran and Iraq. 1393 After all, our policy objective there is to stop the war. 1394 The policy objective is not to have an arms embargo. You 1395 don't just go out and have an arms embargo for nothing. The 1396 reason we have an arms embargo against Iran is because we 1397 want to try to influence the end of the war, but in its 1398 simplest terms, what was being proposed here was not in 1399 accordance with that particular method that we were using. 1400 He was concerned that if the European countries found out 1401 about it, that it would lessen their willingness to 1402 cooperate. In reality, though, in my opinion, we have never 1403 had good cooperation from anybody on Operation Staunch. The NAME: HIR196000 PAGE 61 1404 European countries continued to send military equipment and 1405 supplies into Iran. Iran has been able to carry on a war 1406 for six, going on seven years now, I guess. 1407 Other objections were that it was contrary to the Arms 1408 Export Control Aot. Secretary Weinberger had slightly 1409 different reasons, but they are generally along the same 1410 lines. 1411 Mr. LIMAN. And there is no doubt in your mind that the 1412 President listened to and understood those objections? 1413 Mr. POINDEXTER. I have a very vivid recollection of that 1414 meeting, and it was in the residence. The President pulled 1415 a footstool up to the coffee table and sat there very 1416 quietly, as is his nature, listening to all of the 1417 discussion up to that point, listening to Secretary Shultz, 1418 to Secretary Weinberger, Mr. McFarlane. I had very little 1419 comment. And I don't recall the Chief of Staff saying very 1420 much. 1421 Mr. McMahon was there and commented a little bit about 1422 some of the technical aspects of the initiative. I had 1423 spoken to Director Casey about the meeting before it took 1424 place, and knew at that point that Director Casey was in 1425 favor of the idea. 1426 And the President listened to all this very carefully, and 1427 at the end of the discussion, at least the first round, he 1428 sat back and he said something to the effect-and this is not NAME: HIR196000 PAGE 62 1429 a direct quote, but it was something to the effect that "I 1430 don't feel we can leave any stone unturned in trying to get 1431 the hostages back. We clearly have a situation here where 1432 there are larger strategic interests, but it is also an 1433 opportunity to get the hostages back, and I think that we 1434 ought to at least take the next step. " 1435 Chairman HAMILTON. Counsel, is this an appropriate time 1436 for recess? 1437 Mr. LIMAN. Yes, Mr. Chairman. 1438 Chairman HAMILTON. The joint committees will stand in 1439 recess. 1440 [Recess. ] NAME: HIR196000 PAGE 63 1441 DCMN MILTON 1442 1443 Chairman HAMILTON. The select committees will resume 1444 sitting. 1445 Mr. Liman, you may proceed. 1446 Mr. LIMAN. Thank you, Mr. Chairman. 1447 Admiral, at the December 7th meeting, was there any 1448 discussion of the November Hawk shipment? 1449 Mr. POINDEXTER. Mr. Liman, I can't recall that. I would 1450 be surprised if there weren't, but frankly I'm not sure. 1451 Mr. LIMAN. Is the same thing true with respect to the TOW 1452 shipment that took place in September by the Israelis? 1453 Mr. POINDEXTER. Yes. I'm reasonably sure in hindsight 1454 that it was probably covered, but my recollection of Mr. 1455 McFarlane's introduction to the issue was that he probably 1456 provided a review of what had happened up to that point. 1457 But frankly I can't remember that review very well. 1458 Mr. LIMAN. As I understand your testimony, the bottom 1459 line of the December 7th meeting was that the President 1460 listened to the objections, listened to the arguments for 1461 this, recognized the risk, said he was prepared to take that 1462 risk, and made a decision that at the very least Mr. 1463 McFarlane should go to London. Fair? 1464 Mr. POINDEXTER. Yes, that is fair. 1465 [Counsel conferring with witness. ] NAME: HIR196000 PAGE 04 1466 Mr. POINDEXTER. And I don't want to leave the impression 1467 that this was a stilted meeting. In other words, it wasn't 1468 a situation where, as you probably have seen from some of 1469 the agenda for NSC or NSPG meetings, where each Cabinet 1470 officer had so much time and Mr. McFarlane provided a 1471 summary. This was a very free-wheeling discussion, and 1472 frankly my experience is that if you want to have a 1473 discussion like that, which was what you wanted, you have it 1474 at the residence in a less formal setting where everybody 1475 could be comfortable. You only have principals in 1476 attendance, not a lot of staff around, and everybody feels 1477 free to express their view without it being published in the 1478 Washington Post the following day. 1479 So this was a very free-wheeling discussion. Everybody 1480 spoke very frankly. Secretary Shultz and Secretary 1481 Weinberger spoke more than once. There was a lot of give 1482 and take in the discussion. 1483 But in the end, the President decided that Mr. McFarlane 1484 should make the trip to London to check out this Israeli 1485 channel so that we could, the President could take a 1486 decision based on firsthand information. 13 WITHDRAWAL SHEET Ronald Reagan Library Collection Name Withdrawer CULVAHOUSE, ARTHUR .:FILES DLB 4/1/2014 File Folder FOIA IRAN/ARMS TRANSACTION: DECEMBER 7, 1985 MEETING S643 (3 OF 3) SYSTEMATIC Box Number CFOA 1131 118 ID Document Type No of Doc Date Restric- Document Description pages tions 164661 PAPER 4 12/18/1986 B1 TOWER BOARD INTERVIEW OF RICHARD ARMITAGE P. 5-7 The above documents were not referred for declassification review at time of processing Freedom of Information Act - [5 U.S.C. 552(b)] B-1 National security classified information [(b)(1) of the FOIA] B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA] B-3 Release would violate a Federal statute [(b)(3) of the FOIA] B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA] B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA] B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of gift. 14 SRB report Next Steps: The Iranians, the Israelis, and the longer range goals. Additional meet- our U.S. businessman plan to meet in ings with the Iranians would be arranged London on Saturday, December 6 to dis- to further our objectives without requiring cuss whether or not to proceed with the such large scale sales/deliveries by the Is- sale of the TOWs and HAWKs. The Israeli raelis. government has informally told us that if they can be assured of "prompt" resupply, Approval is now required for us to take the they will sell the quantities requested from next steps on Saturday. After carefully con- their prepositioned war reserve. 3,300 sidering the liabilities inherent in this plan, TOWs represents [sic] [a significant pro- it would appear that we must make one portion] their available supplies. last try or we will risk condemning some or all of the hostages to death and undergo- The U.S. businessman has arranged for the ing a renewed wave of Islamic Jihad terror- charter of two non-U.S. registered aircraft ism. While the risks of proceeding are sig- for use in the deliveries. The total delivery nificant, the risks of not trying are even would be conducted in 5 flights from Tel greater. Aviv to Tabriz, Iran via interim airfields in Europe. Each delivery is to result in ([North], "Special Project Re Iran," 12/5/85) the release of a specified number of hos- The President met his principal national se- tages. Arrangements for the interim air- curity advisors on December 7 in his residence. fields, overflight rights, and flight plans The President, Secretaries of State and De- have been made, some with the help of the fense, Deputy Director of the CIA, McFarlane, CIA. A communications code to preserve Poindexter, and the President's Chief of Staff operational security is available for use by attended. (Ellen M. Jones, Presidential Diarist, all parties. All aircraft would be inspected to Jay M. Stephens, 1/24/87 (information from by an Iranian at one of the transient loca- the Presidential Calender, which apparently is tions between Tel Aviv and Tabriz. The called a Diary)) entire evolution is designed to be complet- Recollections of the meeting vary. In his ed in a 24 hour period. It can be stopped meeting with the Board on January 26, 1987, at any point if the Iranians fail to deliver. the President said he recalled discussing a com- The greatest operational security concern plex Iranian proposal for weapons delivered by is that of replenishing Israeli stocks. The the Israelis in installments prior to the release Israelis have identified a means of transfer- of the hostages. The President said that Secre- ring the Iranian provided funds to an Is- tary Shultz and Secretary Weinberger objected raeli Defense Force (IDF) account, which to the plan, and that this was the first time he will be used for purchasing items not nec- "noted down" their opposition. The President essarily covered by FMS. They will have to said that the discussion at the meeting pro- purchase the replenishment items from the duced a stalemate. U.S. in FMS transaction from U.S. stocks. The Attorney General remembered attend- [sic] Both the number of weapons and the ing; he did not think McFarlane was present, size of the cash transfer could draw atten- and thought that Fortier probably attended. tion. If a single transaction is more than (Meese 4) The subject of the meeting-the Iran $14.9 M, we would normally have to notify transactions-was announced in advance, and Congress. The Israelis are prepared to jus- the principals had time to prepare. (Shultz, tify the large quantity and urgency based SRB, 31; Armitage, 5) According to the Secre- on damage caused to the equipment in tary of State, storage. Poindexter suggested that Mr. McFarlane could contact the Iranians in London to If this process achieves the release of the ask them to release the hostages without hostages and proves the credibility of the getting equipment. If they would do so, Iranian contacts in Europe, Bud McFarlane we, then, would be prepared for a better would then step in to supervise achieving relationship with them. -42 I fully supported this proposal. nians involved, I think Ghorbanifar or Vice Admiral Poindexter suggested that some such name, but a more formal pres- Mr. McFarlane should be authorized to ask entation was now made by McFarlane the British to sell arms to Israel [?Iran] if about what could be accomplished with the Iranians rejected his first proposal. I this and points with respect to getting a opposed this idea. I said it was still U.S. better relationship with Iran as well as arms, that it was a more complicated deal hopes that they might have a favorable that would make us even more vulnerable. effect on the release of the hostages. Other views were expressed. Again, I opposed it very strongly and said No decision was made, however, at that I thought really it was a terrible idea and meeting, as far as I could see. that the transfer of arms which was part of On December 7, Vice Admiral Poindexter the plan which was to be done to establish told me privately that the project had the good faith of the negotiators-I think I made some comment about what about the fallen apart during Thanksgiving week. That is thinking back to that period. He good faith of the Iranian negotiators, and said he had recommended to the President why-went through a whole catalogue of that we disengage, but that the President things which didn't require any gift of did not want to. prophecy as to what would happen if this became public. [T]he advice I gave in I felt in the meeting that there were views this case was as firm as I could do it, obvi- opposed, some in favor, and the President ously not persuasive enough but as persua- didn't really take a position, but he seemed sive as I could do it, that all kinds of very to, he was in favor of this project somehow unfortunate effects would result if this took or other. And, of course, by now he has place, that we were pleading with a large said publicly that he was in favor of work- number of countries not to do this, that ing at the Iranian operation and being will- Jordan and Egypt regarded Iran as at least ing to sell arms as a signal, as he has now as much of a great Satan as they regarded put it. us, and that it would be a very bad thing in (Shultz, SRB, 31-32) every way to do, and that it wouldn't ac- When the Secretary of State returned to his complish anything, and that they would un- office, he told his staff that Secretary Wein- doubtedly continue to milk us. berger and Regan also strongly opposed the At this time again, the Israeli connection initiative. The Secretary of Defense spoke for or the Israeli support of such a transaction thirty minutes. The Secretary told his staff he I guess is the better way to put it, was ad- felt that he perhaps should have barged in ear- vanced by McFarlane. And I said that an- lier and confronted the President. The prob- other of the problems that I thought with lem, he felt, was that McFarland did not tell it was that doing anything of this kind and him the whole story. attempting to keep it on a clandestine basis The Secretary of Defense had a different would leave us open to blackmail of the recollection of the meeting, which he remem- very most elementary kind by the people bered as taking place in the Oval Office. who knew about it, that is, the Israelis and [T]here was a quite specific, more detailed also Iranians, and that any time they proposal that there had indeed been nego- weren't getting what they wanted, they tiations and discussions between somebody could in one way or another, in Mideast representing McFarlane's office and some fashion, go public with it and cause all Iranians who were reported to be moder- kinds of problems with it, that there was ates. I think at that meeting John McMa- no way that I ever felt I could talk with hon was there. I'm not sure. Bill Casey [moderate Arab States] again if we were may have been, or they both may have supplying arms to [a] bitter enemy when been. But there were some adverse com- we wouldn't supply arms to him et cetera, ments passed about the veracity of the Ira- et cetera, just a whole series of arguments. B-4 George Shultz made some very strong ar- through how things had gone, and they guments along the same line A very hadn't gone very well. strong, very persuasive argument. And again, my impression pretty clearly was The idea originally of us getting in direct communication with Iranian officials hadn't that the President agreed that this couldn't be done, that it might be a good thing to happened, and instead this imperfect dem- achieve these objectives but it wouldn't onstration of bona fides had been imper- work, and that this was not a good way to fect, rather dramatically, and had become do it. their priority, with a very clear lack of good faith, I thought. And I said to the Presi- (Weinberger 9-12) Armitage remembered the dent after thinking about it, and I went Secretary of Defense saying that he and Secre- down to Santa Barbara and we talked, both tary Shultz "thought they had 'strangled the about my resignation but then about the baby in the cradle' (Armitage 6) results of this program. And I believe it oc- In his first interview with the Board, McFar- curred in the Century Plaza Hotel on a lane recalled suggesting to the President on morning. December 1 that the negotiations with the Ira- And I said that it seems to me that we nians "seemed to be getting skewed towards arms going that way and hostages coming this ought to try to reorient it to its original way. I thought we ought to seek a meet- purpose. Mr. President, and that is for us ing directly with the Iranians and discontinue to avoid dealing through intermediaries any kind of sponsorship of arms transfers." and to talk to Iranians directly, and he (McFarlane (1) 25) In this interview, McFarlane agreed with that. And he said convene the remembered the President's suggesting an NSC NSC-the Secretary of State and Defense- meeting to consider it. (Id.) At the meeting. and let's talk it over when we get back. So that is what led me to then do two things- we went through the record of what had convene a meeting and tentatively ask Ad- occurred since August in terms of Israeli miral Poindexter, I believe, to have a meet- transfers and the absence of meetings, and ing with the Iranian intermediary set up in at consensus, the unanimous view of all of London. his advisors, the President decided: All right, you go to London, McFarlane, and So with that prelude a meeting was con- you meet with the Iranians and make clear vened on December 7 of the NSC, and I that we remain open to the political dis- would, I believe, have presided because I course, and here it is. And there were was still sitting in the chair. What I am about four generic areas that we wanted to saying now is based upon routine and not talk to Iran about, our disagreements and notes from it. But I always started off by so forth. briefing the issue. Here we are today con- vened to talk about the Iranian program. And the second point is that we will not transfer nor encourage any other govern- Here is what has happened since the be- ment to transfer weapons to them. ginning and here is the return, the benefits and the liabilities of it, and the decision is (Id. at 26) what should we do or what should we do McFarlane gave the Board a fuller account in henceforth-continue as we have, change, his second interview. or something else. [R]ight after the summit, after I got back And then invite the comments of every- from debriefing the Holy Father and Mit- body around the table, usually start with terand and Prime Minister Thatcher, we the Secretary of State, then the Secretary had some time to look at other things, and of Defense, and around the table, and that I didn't even come to the office. I went di- would have led to the Director of the CIA, rectly from London to Washington to Cali- and any one of the other ad hoc members fornia but had two days before the Presi- that happened to be present. Usually it was dent got there to just kind of think Mr. Regan. B-44 And it was unanimous in the meeting that So I am not certain, but I think I probably this really had gone badly off course and also reflect for the most part the Presi- that we should yes, still be open to talking dent's view on that. to Iranian officials, authorities, and have a concrete political agenda to describe. And (Regan 14-15) we talked a little bit about that-our view John McMahon, who represented the CIA, of our interests in the area, how they were recalled that [t]here was no decision. We didn't threatened by Iran, disagreements we had walk away with any marching orders or any de- with them over terrorism and fundamental- cision at that moment." The President asked ists' crusade in the Middle East, and ulti- questions about strengthening moderates in mately perhaps even some common inter- Iran by selling weapons. McMahon "pointed est-Afghanistan and elsewhere. out that we had no knowledge of any moder- ates in Iran, that most of the moderates had But because of how things had gone up until then we ought to also tell them that been slaughtered when Khomeini took over." we were not going to transfer U.S. weap- (J. McMahon 11-12) He noted that any weap- ons, sell U.S. weapons. We were not going ons sold "would end up in the front, and that to allow or encourage anybody else to do would be to the detriment of the Iran-Iraq bal- ance." (Id. at 12) He did not know that McFar- so. And I don't recall anybody disagreeing with that at all. lane was about to leave for London. (Id.) After the meeting, McFarlane went to The President wasn't terribly-didn't inter- London, where he joined North. North had vene in the meeting, as I recall, very much traveled on December 6 to meet Kimche, on one side or the other, but at the end Secord, and Schwimmer "LO review all the ar- said well, okay. That's what you should rangements" in connection with the plan North say. And I left that evening and was in set forth in his note to Poindexter of December London the next morning, and we took off 4. (North PROF note to Poindexter, 12/4/85, from there. 02:02:55) On December 8, before meeting with (McFarlane (2) 45-47) Ghorbanifar, and Nimrodi, McFarlane privately reported his instructions to Kimche. Kimche Regan's recollection is somewhat different. He recalled that, although McMahan, for exam- was upset and he said: I think you're miss- ple, was informally dressed, ing a big opportunity; that you have to have some patience; that these movements the December meeting got to be more take time to consolidate; and these people formal because McMahon, among others, are delivering to us important items, infor- raised the question of, you know, what the mation basically; and that we see signs hell are we doing here. Arms are being from our intelligence that they're making sent. Where is the formal authority? You headway and beginning to lock up and know, what are we doing here? Is this arrest radical elements and put their own going to be policy? people in more responsible positions, and And as a result of that meeting and people the gradual evidence of their growing in- expressing views which now are commonly fluence and ability to act. known, such as State Department and De- And I said: Well, we don't see that; and fense opposed to this. CIA was in favor. further, we think it is being skewed off in NSC was in favor. And I must say that I fa- the wrong direction. So he said: Well, we vored it. I won't deny that I favored keep- disagree. ing the channel open, if necessary selling a modest amount of arms, in order to make And we went ahead and met with this Mr. certain that we were having contacts with Ghorbanifar, and in the course of about Iran and at the same time, if as a result of three hours I covered my instructions. And this they could influence the Hizballah, as he said: Well, I understand the political they had in the case of Benjamin Weir, dialogue, and our people in Iran are very why not. much open to that; and so, the point is B-4! THE WHITE HOUSE WASHINGTON July 20, 1987 MEMORANDUM FOR HOWARD H. BAKER, JR. CHIEF OF STAFF TO THE PRESIDENT FROM: WILLIAM B. LYTTON III DEPUTY SPECIAL COUNSELLOR TO THE PRESIDENT SUBJECT: Briefing of the President Concerning the December 7, 1985, Meeting I. Background Meeting: December 7, 1985 Residence 10:00 a.m. - 11:58 a.m. Present: President (in pajamas and a bathrobe) Secretary Shultz Secretary Weinberger DDCI John McMahon Robert McFarlane John Poindexter Donald Regan Subject: Status of strategic opening to Iran; Focus was on U.S. supplying arms to Iran, either directly or through Israel, to obtain the release of the hostages. Discussion: Strong opposition by Secretary Shultz, Secretary Weinberger and Don Regan to the transfer of U.S. weapons to Iran; McFarlane, Poindexter and President favored the arms transfers. Legal Issue: Either Secretary Shultz or Secretary Weinberger raised the legal issue that the transfer of U.S. arms by Israel to Iran violated the Arms Export Control Act. Resolution: The President directed McFarlane to go to London to meet with Ghorbanifar. The President noted in his Diary for that day that there was disagreement among the group and that no decisions were made; they were at "stalemate." The diary entry does not discuss the legal issue. II. The Charles Hill Notes While no contemporaneous notes were taken, to our knowledge, at this meeting, Secretary Shultz followed his usual pattern of "backbriefing" his close aide, Charles Hill, who in turn made copious notes. In addition, Secretary Weinberger discussed the meeting with Richard Armitage, who passed along Weinberger's recollection to a State Department aide, and these recollections also were the subject of a note. A. Charles Hill's notes reflect that Shultz, Weinberger and Don Regan strongly opposed the arms transfers, followed by the note, "Against the law. McFarlane, Poindexter, and the President are listed as "in favor. There is a further note: "no decision yet." There is then a discussion of McFarlane going to London, followed by, "[the President] said American people won't understand if 4 hostages died because I did not break the law." B. Chris Ross' notes reflect Arnie Rafel's discussion with Armitage of Weinberger's recollection: On the legal issue, the President has said that the American people would understand if he broke the law to get the hostages back; they would not understand it if four hostages died because he refused to break the law. The President said, "they" could impeach him if they wanted; visiting hours in prison were on Thursdays. Weinberger pointed out that, in such a case, the President would not be alone. III. Context of Discussions A. This was an intensely candid and private exchange of views by and among the President's closest advisors. B. In this nearly two-hour conversation, positions were stated very forcefully, and obviously with hyperbole. C. Everyone knew that the lives of hostages were at stake. D. No useful purpose was served by writing down the rhetorical flourishes of the participants in such a candid discussion. IV. Potential Impact A. Partisans will try to take this comment out of context -- ignoring the fact that no decision on the arms transfers was made that day and that thereafter the Attorney General's advice was sought and the arms sales were carried out in accordance with the law. B. The political impact could focus on a tone allegedly set at that meeting. C. If the President and his advisers cannot speak absolutely candidly in these types of meetings, without the fear of selective words and phrases being publicly disclosed months or years later, then the quality of that type of debate will deteriorate to merely posturing. The result will be a dimunition in the value of the advice the President receives. Both the substance and the style in which it is given will be affected out of a concern as to how it will be portrayed at a later date. D. A lesson learned is that notes of candid con- versations with the President, if made at all, should not be passed around to subordinates and should not be turned over to Congressional Committees. E. Because of the potential impact, both the President and the First Lady need to be alerted to the full context of this matter and its possible impact.