Iran-Contra affair: The Tower Commission rebukes President Ronald Reagan for not controlling his national security staff.

The Iran–Contra affair, a political firestorm that gripped the United States during the second term of President Ronald Reagan’s administration, remains one of the most significant scandals in modern American history. Often simply known as Iran–Contra, or sometimes referred to as the McFarlane affair in Iran, this complex web of covert operations unfolded between 1981 and 1986. At its core, the scandal involved senior U.S. administration officials secretly facilitating the sale of arms to the revolutionary Khomeini government of the Islamic Republic of Iran, a nation under a strict U.S. arms embargo. The ultimate goal, or at least a significant part of it, was to use the proceeds from these illicit arms sales to fund the Contras, a right-wing rebel group fighting the socialist Sandinista government in Nicaragua—an act explicitly prohibited by the U.S. Congress under the Boland Amendment.

The Dual Facets of a Covert Operation: Arms for Hostages and Funding the Contras

The official rationale put forth for these clandestine arms shipments was humanitarian: they were presented as part of an elaborate scheme to secure the release of seven American hostages held in Lebanon by Hezbollah, a powerful paramilitary organization with deep ties to Iran and its Islamic Revolutionary Guard Corps. The controversial "arms for hostages" concept was reportedly first floated by Manucher Ghorbanifar, an Iranian expatriate and arms dealer. While some within the Reagan administration genuinely hoped these sales would leverage Iran to influence Hezbollah, it's a critical detail that the initial arms sales authorized to Iran actually predated the taking of these specific American hostages in Lebanon in 1981, suggesting a more complex, perhaps strategic, initial motivation.

However, the affair escalated dramatically in late 1985 when Lieutenant Colonel Oliver North, a prominent figure on the National Security Council (NSC) staff, diverted a substantial portion of the profits from these Iranian weapon sales. This money was then funneled directly to the Contras in Nicaragua, bolstering their insurgency against the fiercely anti-American Sandinista government. North later claimed that it was Ghorbanifar who had planted the idea of redirecting profits from TOW and HAWK missile sales to the Nicaraguan rebels. President Reagan, a staunch anti-communist and vocal champion of the Contra cause, publicly supported their fight against what he perceived as a Soviet-backed threat in America’s backyard. Yet, the question of whether he personally authorized this illegal diversion of funds remained—and still remains—a hotly debated point.

Reagan's Awareness and Public Response

Evidence suggests President Reagan was indeed aware of certain aspects of the operation. Handwritten notes from December 7, 1985, penned by then-Defense Secretary Caspar Weinberger, clearly indicate Reagan's knowledge of potential hostage transfers with Iran, alongside the sale of HAWK and TOW missiles to "moderate elements" within the country. Weinberger’s notes even record Reagan’s revealing sentiment: that he "could answer to charges of illegality but couldn't answer to the charge that 'big strong President Reagan passed up a chance to free the hostages.'"

When the weapon sales became public knowledge in November 1986, it ignited a national scandal. President Reagan appeared on national television, initially acknowledging the transfers but emphatically denying any "arms for hostages" trade. However, the subsequent investigations were severely hampered by a systematic effort by Reagan administration officials to destroy or withhold vast quantities of documents pertinent to the affair. Facing mounting pressure, Reagan delivered another televised address on March 4, 1987. In this speech, he took full responsibility for the affair, admitting that "what began as a strategic opening to Iran deteriorated, in its implementation, into trading arms for hostages," a significant shift from his earlier denials.

The Investigations and Lingering Questions

The Iran–Contra affair triggered a series of intense and wide-ranging investigations, both within the executive branch and by Congress, aiming to uncover the full truth and hold those responsible accountable. These probes shone a harsh light on the inner workings of the Reagan White House and challenged the very principles of constitutional governance.

The Tower Commission Report

President Reagan himself, on December 1, 1986, established a special presidential review board known as the Tower Commission. Comprising eminent figures like former Senator John Tower of Texas, former Secretary of State Edmund Muskie, and former National Security Advisor Brent Scowcroft, the commission was tasked with scrutinizing the role of the National Security Council (NSC) staff in national security operations, particularly concerning the arms transfers to Iran. Their report, published on February 27, 1987, was critical, concluding that CIA Director William Casey, a strong proponent of the Iran-Contra arrangement, should have exerted greater control over the operation, ensured the President was fully briefed on the risks, and legally notified Congress. The Commission's findings laid much of the blame for the procedural failings on the NSC and top administration officials.

Congressional Inquiries and the Independent Counsel

Parallel to the Tower Commission, two congressional investigative committees were formed in January 1987, conducting extensive hearings that captivated the nation. Meanwhile, in December 1986, Deputy Attorney General Lawrence Walsh was appointed as the Independent Counsel, tasked with a rigorous criminal investigation into potential illegal activities by those involved in the scheme. Walsh’s tenacious investigation led to the indictment of several dozen administration officials, including the former Secretary of Defense, Caspar Weinberger. Eleven convictions were secured, though some were later vacated on appeal.

The Bush Pardons and Their Aftermath

The saga reached a controversial conclusion in the waning days of President George H. W. Bush’s presidency. Bush, who had served as Vice President during the Iran-Contra affair, issued pardons for all those indicted or convicted, including Caspar Weinberger. This move sparked significant outrage and raised further questions about accountability at the highest levels of government. Independent Counsel Lawrence Walsh, in his final report submitted on August 4, 1993, and later in his book Firewall: The Iran-Contra Conspiracy and Cover-Up, strongly criticized Bush’s pardons. Walsh suggested that Bush appeared to be preempting his own potential implication by evidence emerging during the Weinberger trial, noting a disturbing pattern of "deception and obstruction" by Bush, Weinberger, and other senior Reagan administration officials.

Frequently Asked Questions About the Iran-Contra Affair

What was the Iran-Contra affair?
It was a political scandal during the Reagan Administration involving the secret sale of arms to Iran (under an embargo) in exchange for American hostages, with some proceeds illegally diverted to fund the Contras in Nicaragua (against congressional prohibition).
When did the Iran-Contra affair take place?
The covert operations occurred between 1981 and 1986, with the public scandal unfolding in November 1986 and subsequent investigations lasting for years.
Who were the key figures involved?
Key figures included President Ronald Reagan, National Security Council staffer Lt. Col. Oliver North, Defense Secretary Caspar Weinberger, CIA Director William Casey, Iranian arms dealer Manucher Ghorbanifar, and Independent Counsel Lawrence Walsh, among others.
What was the "arms for hostages" aspect?
This refers to the administration's justification that arms were sold to Iran in hopes of securing the release of American hostages held by Hezbollah in Lebanon. However, initial sales predated some hostage takings, suggesting other motives.
Why were funds diverted to the Contras?
Funds from the arms sales were diverted to the Contras in Nicaragua to support their fight against the socialist Sandinista government, an act that violated the Boland Amendment which prohibited U.S. government funding for the Contras.
What were the major outcomes of the investigations?
Investigations by the Tower Commission, Congressional committees, and Independent Counsel Lawrence Walsh led to indictments and convictions of several administration officials. However, President George H. W. Bush later pardoned those convicted, drawing strong criticism and raising questions about accountability and obstruction of justice.