COVER STORIES THE 8IRANSCAM 8TRAIL8 This chronology of the Reagan Administration's involvement in arms sales to Iran and the secret funding of the Nicaraguan CONTRAS is based on testimony by public officials, details that sources have disclosed to TIME, and reliable newspaper and television reports.
Early 1984
Following congressional restrictions on contra funding, NSC Aide Oliver North reportedly devises a plan to use private U.S. citizens and other countries to funnel aid to the Nicaraguan rebel forces. President Reagan is said to approve the plan, although former National Security Adviser Robert McFarlane last week denied the existence of such a plot.
Oct. 10
Congress strengthens the Boland Amendment by banning any U.S. agency from supporting the contra war.
November
Iranian Arms Dealer Manucher Ghorbanifar contacts former CIA Officer Theodore Shackley in West Germany, according to the New York Times. Ghorbanifar proposes selling U.S. arms to Iran as a swap for hostages in Lebanon. Shackley passes the proposal to U.S. officials.
May-June 1985
The CIA reportedly suggests that the U.S. encourage allies to sell arms to Iran as a way of bettering relations. Defense Secretary Caspar Weinberger bristles, "This is absurd."
Summer
In London, Saudi Billionaire Adnan Khashoggi arranges a meeting between Ghorbanifar and Israeli arms dealers.
July
McFarlane meets with David Kimche of the Israeli Foreign Ministry
to discuss ways
of improving
relations with
Iran. McFarlane discusses the idea of arms sales with the President. Reagan expresses misgivings but feels it is
important to open negotiations. McFarlane tells Kimche that
the U.S. is interested.
July 26
Congress agrees to supply the contras with $27 million in nonmilitary humanitarian aid.
Aug. 6 or 7
At a pivotal meeting with Reagan, Secretary of State George Shultz, Chief of Staff Donald Regan, NSC Assistant John Poindexter and the CIA's John McMahon, McFarlane says the Israelis want U.S. approval to ship arms to Iran.
Shultz and Weinberger are strongly opposed, but the group reluctantly agrees to give Israel the green light to proceed.
Aug.-Sept.
Israel ships two planeloads of U.S. weapons to Iran. Bank documents show that Ghorbanifar writes two checks totaling $5 million to Khashoggi. Hostage Benjamin Weir is released on Sept. 14. The Administration, hoping other hostages will be freed, delays announcing the release for four days.
November
Israel ships missiles to Iran on planes supplied by the CIA, with Khashoggi bridge-financing the deal.
Dec. 4
McFarlane announces his resignation and is replaced by Poindexter.
Dec. 6
The President and his advisers agree that the U.S. should pursue channels to Iran, but cannot sanction further arms sales.
Dec. 8
McFarlane and North meet with Kimche and Ghorbanifar in London. The
Iranian pushes
hard for more
arms deals but
the Americans stand firmly by Reagan's instructions.
Jan. 17, 1986