Abstract
This essay concentrates on the hitherto unknown origins of Iran-Contra. Through a series of interviews with participants and access to previously private papers, the essay establishes the role played by the U.S. and Israel in initiating arms deals with Iran before any hostage taking in Lebanon. Therefore, it corrects the proposition advanced by Special Prosecutor Walsh and others who linked the clandestine sale of weapons to Iran with the deteriorating situation in Lebanon.
Besides, the overhead expenses of a trafficker in what is considered a fair way of business are enormous. There are always false birth, marriage and death certificates to be obtained and travelling expenses and bribes to pay quite apart from the cost of maintaining several identities. You have no idea of the cost of forged documents Mr. Latimer…The point is that a trafficker needs plentyof capital. If he is known there are always plenty of people willing to provide it, but they expect fantastic dividends. It is better to have one’s own capital.
(Eric Ambler, A Coffin For Dimitrios, 1939)
Originally prepared for “Grand Crossings,” a symposium honoring the life and work of Professor Alexander Saxton, UCLA and the Clark Library, September 25–26, 1998.
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Notes
Originally prepared for “Grand Crossings,” a symposium honoring the life and work of Professor Alexander Saxton, UCLA and the Clark Library, September 25–26, 1998.
Harold Hongju Koh, The National Security Constitution: Sharing Power After the IranContra Affair (New Haven: Yale University Press, 1990), pp. 56–57.
Ibid., p. 54.
Theodore Draper, A Very Thin Line: The Iran-Contra Affairs (New York: Touchstone, 1992).
President’s Special Review Board, The Tower Commission Report (New York: Bantam Books and Times Books, 1987), p. 16.
For a while Khashoggi was something of a mystery man whose name was linked in the mid-1970s “in the U.S. to the overseas payoff scandals of Northrop and Lockheed,” who was wanted for questioning by a federal Grand Jury and the Securities and Exchange Commission, and whose companies were held together by holding corporations “slithering between national tax jurisdictions.” He survived the scandals of the 1970s and remained around the top of the arms world for another decade at least becoming intimately involved in the Iran arms deal. See my “The Khashoggi Papers,” in Contemporary Crises: Law, Crime and Social Policy 1988, 13: 1.
The National Security Archive, The Chronology: The Documented Day-by-Day Account of the Secret Military Assistance to Iran and the Contras (Warner Books, 1987), p. 58.
Ibid., p. 72.
Ibid., p. 62.
Ibid., pp. 72–73.
Ibid., p. 77.
Ibid.
Ibid., p. 78.
Ibid., p. 69.
Richard M. Preece, Foreign Affairs and National Defense Division, Congressional Research Service, the Library of Congress, “The Iran-Iraq War: Implications for U.S. Policy,” Issue Brief Number IB84016, updated 08/03/84, date originated 01/23/84, p. 25.
See Peter Mantius, Shell Game: A True Story of Banking, Spies, Lies, Politics — and the Arming of Saddam Hussein (New York: St. Martin’s Press, 1995).
See, James C. McKay, “Part Seven, Aqaba Pipeline Project,” in Edwin Meese III (ed.), Report of Independent Counsel (Washington, D.C.: Government Printing Office, July 5 1988).
Lawrence E. Walsh, Independent Counsel, Iran-Contra: the Final Report (Times Books, 1994), p. xv.
Ibid., p. 10.
Ibid.
Ibid., p. 11.
Lawrence E. Walsh, Firewall: The Iran-Contra Conspiracy and Cover-up (New York: W. W. Norton, 1997), p. 9.
I was writing a paper dealing with the Wilson case, among other issues, that I called “Spies and Lies: The Serious Crime Community,” for presentation at the annual meeting of the American Society of Criminology in San Diego, 1997.
Lyn Bixby, “Head of Iran Hostage Probe Linked to Arms Deal,” Hartford Courant, May 29, 1992, p. Al.
United States District Court, District of Connecticut, United States of America, Plaintiff, vs. Arif Durrani, Defendant, “Deposition of Barbara Studley,” Civil B-90–090, Crim. B86–59, August 9, 1991, p. 51.
Ibid.
Bixby.
Ibid.
Taylor Branch and Eugene M. Propper, Labyrinth (New York: Viking Press, 1982), pp. 6 09—6 l 0.
Author’s interview with former FBI agent Al Seddon, November 1997.
U.S., House of Representatives, Select Committee to Investigate Covert Arms Transactions with Iran, and U.S. Senate Select Committee on Secret Military Assistance to Iran and the Nicaraguan Opposition, “Deposition of Mark M. Richard,” August 19, 1987.
Oliver North, Reply to note of 08/31/85 13:26, SECRET — Subject: “PRIVATE BLANK CHECK.” This document is in Tom Blanton (ed.), White House E-Mail: The Top Secret Computer Messages The Reagan/Bush White House Tried to Destroy (New York: The New Press, A National Security Archive Documents Reader, 1995), Chapter 5.
Ibid.
Reply to note of 08/31/85 13:26 — SECRET —NOTE FROM: OLIVER NORTH, Subject: PRIVATE BLANK CHECK, Wrap Up as of 2030 EDT., in White House E-Mail, Chapter 11.
United States District Court, District of Connecticut, United States of America, Plaintiff versus Arif Durrani, Defendant, Civil B-90–090 (TFGD), Crim. B-86–59 (TFGD), “Sworn Statement of Ron Harel,” March 21, 1992, in Montreal, Quebec, Canada, C.L. Klein, Official Court Reporter, p. 56. Hereafter noted as Roh Harel, “Sworn Statement.”
T. Van De Meerssche, Manager airfreight/Comexas, to Honorable T.F.G. Daly, Chief Judge, U.S. District Court, Bridgeport, CT., “Subject: Proces Verbal B 827/86 vo 400 Dated Nov. 13th 1987, Fax Nbr 00/1/818/8892363, sent to Judge Daly on 29 December 1989 from Comexas N.V., Zaventem, Belgium.
Interestingly enough, in Joan Didion’s review of Dinesh D’ Sousa’s Ronald Reagan: How an Ordinary Man Became an Extraordinary Leader, she writes “Yet D” Sousa’s vignette casts Lt. Col. North, whose several code names included “Mr. Goode” and “Mr. White: ” New York Review of Books, December 18, 1997, p. 19.
Lawrence Lifschultz, Steven Galster, Rabia Ali, Bordering On Treason? The Trial and Conviction of Arif Durrani (East Haven, Connecticut: The Pamphleteer’s Press, 1991), p. 40.
There is no doubt that the U.S. and Israel were in the business of supplying spare Hawk parts to the Iranians. Indeed, President Reagan “specifically authorized delivery of HAWK missile parts to Iran,” on July 30, 1986. Early in August, the U.S. sent a dozen pallets of spare parts to Israel which then moved them to Iran. However, the shipment was still incomplete. There were approximately 170 parts still absent. Among the many proofs of the U.S. role in the Hawk spare parts shipments consider the following: On November 11, 1986, Robert L. Earl, a Marine Lieutenant Colonel who had been on Vice President Bush’s Task Force on Terrorism and subsequently moved to the NSC in the spring of 1986 to work in North’s office as a Deputy Director of the Political-Military Affairs Directorate, compiled a list of the “the weight and cube of everything shipped” to Iran. “TOWS and HAWK spare parts [my emphasis] was 215,464 lbs and 18,782 cu.ft. The capacity of a C-5 is 291,000 lbs and 34,734 cu.ft. Ergo,” he wrote, “ room to spare” And he added, “All of the above remains SECRET, of course. CIA is reporting this info in greater detail to the SSCI [Senate Select Committee on Intelligence]” MSG FROM: NSRLE — CPUA TO: NSRKS — CPUA 11/25/86 11:14:55, To: NSRKS — CPUA, NOTE FROM: Robert L. Earl, SUBJECT: SUPPLIES cc: NSCPC — CPUA, in White House E-Mail, Chapter 6.
Lifschultz, p. 19.
T. Van De Meerssche. The 1989 fax memorializes the statement made by Van de Meerssche in 1987.
United States Government, Federal Correctional Institution, Phoenix, Arizona, Rick Stiff, Executive Assistant, MEMORANDUM, “Special Visit Authorization,” July 8, 1987.
Lifschultz, p. 34.
Ibid.
King’s statements about his team’s modus operandi were told to reporter Ric Eyerdam of the South Florida Business Journal.
Michael E. Timpani to Arif Durrani, “Letter” 12 February 1993.
Author’s interview with Barcella.
White House E-Mail, Chapter 7.
Arthur M. Schlesinger, Jr., Robert Kennedy and His Times (Boston: Houghton Mifflin Co., 1978), vol. 1, p. 477.
For non-specialists seeking to understand the recent history of Iran there are few studies in English more interesting than Manucher Farmanfarmaian and Roxanne Farmanfarmaian, Blood and Oil: Memoirs of a Persian Prince (New York: Random House, 1997), and on the era of the Shah and the revolution, Ryszard Kapuściński’s The Emperor: Downfall of an Autocrat (New York: Vintage Books, 1984) and his Shah of Shahs (New York: Vintage Books, 1986); additional, William Shawcross, The Shah’s Last Ride: The Fate of an Ally (New York: Touchstone, 1988). Robin Wright’s In the Name of God: The Khomeini Decade (New York: Touchstone, 1989) is enlightening.
Preece, p. 25.
Ibid.
State of Delaware, Office of Secretary of State, “Certificate of Incorporation of GeoMiliTech Consultants Corp.,” August 15, 1983.
GeoMiliTech Consultants Corporation, “Certified Copy of the Minutes of the Board of Directors of GeoMiliTech Consultants Corps.” a Delaware Corp., May 11, 1984.
Scot Anderson and Jon Lee Anderson, Inside The League: The Shocking Expose of How Terrorists, Nazis, and Latin American Death Squads Have Infiltrated the World AntiCommunist League (New York: Dodd, Mead & Company, 1986), pp. 150–152.
Ibid., p. 55.
One of Carbaugh’s duties for GMT was to ask South Korea’s “first Assistant Minister of Defense, General Park Choon Sik” about “providing 300,000 M-107 155mm empty shells and projectiles: ” Park responded that “these could only be for Iran and therefore he could not authorize such sales.” John E. Carbaugh, Jr. to Barbara Studley, President, GeoMiliTech Inc., “Memorandum: A Report of the Activities in Korea,” July 29, 1984.
Barbara Studley “letter to Mr. Ron Harel, MACED Marketing Consultancy & Development,” January 6, 1984.
On Schweitzer see, Michael Getler, “2 Ed-Aides to Haig Ger Key Posts on National Security,” Washington Post, January 22, 1981, p. A9; and “Pentagon Nominates OnceCriticized General,” New York Times, April 30, 1983, p. 5; and, Susan F. Rasky, “North Urged Leniency for Honduran Linked to Assassination Plot,” New York Times, February 23, 1987, p. 9.
John H. Davis, Mafia Kingfish: Carlos Marcello and the Assassination of John F. Kennedy (New York: McGraw-Hill, 1989), p. 425.
Ibid.
The information comes from I. Irving Davidson’s personal calendar once in the possession of a detective from the Washington Metropolitan Police.
See U.S. Government, Federal Bureau of Investigation, Special Agent William A. Vericker to SAC, New York, “Subject: NY 3936-C, Criminal Informant, Re: John Dioguardi,” NY 137–9495, September 16, 1963.
Washington, D.C., Metropolitan Police Department, “Statement of Facts in Case of Prisoner Joseph Francis Nesline,” taken by Detective R.G. Kirby, D.C.P.D. 74798.
Federal Bureau of Narcotics, “Examination of Passport Office File of Charles Tourine, Sr.,” December 6, 1961.
“Ex-U.S. Attorney and 8 Others Indicted in Alaska Prostitution,” New York Times, August 9, 1976.
Direction de la Police Bureau Interpol, 47 Raamweg, La Haye to Interpol WASHINGTON, “Reference Your Letter No. 7522/LS of 5 April 1978 concerning Joseph Francis Nesline and others,” Mensaje Postal Condensado, No. 7.323/3465 D/PR, May 8, 1978.
INTERPOL WIESBADEN, BUNDESKRIMINALAMT to Interpol Washington, “Investigation Reports submitted by the Landeskriminalamt Hamburg and Kiel, Re: Joseph Nesline,” variously dated in 1977–78-79.
Interpol Teheran to Interpol Tokyo and copy to Interpol Washington-Rome, “Reference Radio-Message No: 386 of 6th June 78 regarding Dargahi Daviad dob. 5th Feb. 33 Iran,” September 11, 1978.
This last point opens yet another series of connections — Nesline and Tourine worked with Nigerian fighter and former world middleweight champion Dick Tiger in a casino in Nigeria, and Nesline bought an interest in light-heavyweight champion Bob Foster from the fighter’s manager Morris Salow a known bookmaker and loanshark. State of Connecticut, Department of State Police, Statewide Organized Crime Investigative Task Force, “Historical Data Sheet Re: Morris Joseph Salow,” sent to Department of Police, Montgomery County, Maryland, April 12, 1978.
Ron Harel, “Sworn Statement,” p. 16.
Ibid., p. 21.
Ibid., p. 21.
Richard Halloran, “Iran Said to Use F-14’s to Spot Targets,” New York Times, June 7, 1984, p. A3.
Richard Halloran, “Iran Rebuffed By U.S. In Bid For Parts for Its F-14’s,” New York Times, December 13, 1981, p. 14.
Harold J. Logan, “Grumman Seeking Pilots for F-14 Training in Iran,” Washington Post, April 11, 1977, p. A4.
Seymour M. Hersh, New York Times, September 11, 1976, p. 27.
William Branigin, “U.S. Firm’s Offices In Iran Bombed: Exodus Continues,” Washington Post, December 9, 1978, p. Al.
John F. Berry, “Iran Payoff Is Charged to Grumman,” Washington Post, January 5, 1979, p. C8.
Halloran, December 13, 1981.
Roh Harel, “Sworn Statement,” p. 23.
Barbara Studley to Ron Harel, “Re: Trip Report 13 September: Item 14,” September 19, 1984.
Bruce E. Herbert, Vice President, “Memorandum for Barbara F. Studley, President, Subject: Status Report — Washington Office,” July 24, 1984, p. 1.
Barbara Studley to Ron Harel, “Memorandum,” September 26, 1984, p. 1.
Ron Harel to Barbara Studley, “Trip Report and General Status/Information,” September 13, 1984, p. 2.
Studley to Harel, “Re: Trip Report: ’
Ron S. Harel, Executive Vice President to Mr. Werner Neumann, TRUVENTA A.G., Renweg 32, Basel, Switzerland, “Letter: The following is intended to summarize the various projects in which we are cooperatingldots”, September 13, 1984, p. 4.
Ibid.
Michael Austin, Chairman Austin Aerospace, “Telex” Ron Harel, GMT, November 20, 1984.
A couple of months prior to Michael Austin’s telex, another Iran weapons opportunity presented itself. Something called the European Consulting Service, registered in Panama, sent an inquiry to GMT for up to 5,000 TOW missiles, half with the improved warhead which had better armor piercing capabilities. Just to get into the game GMT had to come up with $500,00 and deposit it in a seller-designated bank. See, E.C.S. (European Consulting Service), Avenida Gusto Strosemena, Republic of Panama, “Quotation for TOW BGM 71A — Improved,” September 5, 1984.
Ron Harel to Scandinavian Commodity, Telex, July 25, 1984.
Ron Harel, Maced Marketing Consultancy & Development to Barbara Studley, GeoMiliTech Consultants Corp., Miami Lakes, Florida, “Letter,” March 15, 1984.
The original telex was sent to Mr. Schmitz, the head of Scandinavian Commodity, by a representative of the Radford Arsenal, and a copy sent to Ron Harel, May 9, 1984.
Zvi Reuter, Director, State of Israel, Ministry of Defense, Foreign Defense Assistance & Defense Export, to M/G (R) Jack Singlaub, GMT, Washington, “Letter: I hereby prolong the option described in my letter No. 2581 of 20.3.85 until the 31st Dec., 1985,” August 13, 1985.
Benny Morris, “Israel denies it is selling arms to Iran,” Jerusalem Post, December 3, 1987, p. 1.
Meeting of the Subscriber to the Memorandum and Articles of Association, Terence Donegan QC, held on 10th December 1984, at the Fortress, Pond Street, Grand Turk, Consulentia Limited, number E2414.
Barbara Studley to Ron Harel, “Letter,” December 13, 1984.
United States District Court, Southern District of New York, Securities and Exchange Commission, Plaintiff, — against — Robert L. Vesco, et al., Defendants, Report of Investigation By Special Counsel, David M Butowsky, Special Counsel, 72 Civ. 5001 (CES),. November 23, 1977, p. 291.
Ibid.
Ibid., p. 307.
Ibid., pp., 321, 324.
Ibid., pp. 322–323.
Ron Harel ,“Sworn Statement” n. 7.
Barbara F. Studley to Mr. Eddy Maisonneuve, telex number: 904278 GMT Wash DC, May 16, 1985.
Ron Harel, GeoMiliTech Consultants Corporation, Asia House, Tel Aviv, Israel, to Mr. Paul Husser, Bank Leu, Pelikanplatz 15, Zurich, “Subj.: Acct. LEWISTOWN 9020–404180,” May 31, 1985.
Anders Gyllenhaal and David Satterfield, “Shake-up at bank as U.S. investigates link to arms supplier,” Orange County Register, June 11, 1987, p. Al2.
Rick Eyerdam, “Loans That Sunk Bayshore Subject of New Investigation,” South Florida Business Journal, October 14, 1991, p. 1.
Ibid.
Brett Davis, “Iran-Contra figures help James lobby for system,” Huntsville Times, August 15, 1998, p. Al.
General Aviation Corporation Ltd, Bahamas Central Files #18,906/72. This file is part of a collection of Bahamian documents secured by IRS operatives, resident in The Bahamas, who were part of a secret undercover operation dubbed Tradewinds. See my Masters of Paradise: Organized Crime and the Internal Revenue Service in The Bahamas (New Brunswick, New Jersey: Transaction Books, 1998).
One of the EATSCO principals was former CIA officer Tom Clines. According to a memorandum prepared for the CIA’s Inspector General on February 10, 1982, following an interview with Tom Clines by two members of the Inspector General’s Office, Barcella “sent a letter to Salem and Clines’ other Egyptian colleagues stating that Clines was cooperative on the Wilson/Libya matter. This was to enable Clines to placate his Egyptian colleagues who were disturbed by Clines’ media attention. Clines believes that Barcella sent a copy of this letter to CIA’s OGC [Office of General Counsel] .(COMMENT: OGC has provided OIG [Office of Inspector General] with a copy of this letter which is filed in the Wilson/Terpil/Clines soft file.)”
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Block, A.A. (2000). The origins of Iran-Contra: Lessons from the Durrani Affair. In: Phythian, M. (eds) Under the Counter and over the Border. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-9335-9_2
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