(2 of 3)
At the CIA's urging, Reagan reverses himself and signs a secret intelligence "finding" authorizing direct U.S. arms transactions with Iran. He instructs Casey to conceal the project from Congress. Shultz and Weinberger are not notified.
Late January
Amiram Nir, an Israeli government counterterrorism expert, meets in Washington with North and other White House officials. Nir says North has set the price for weapons to Iran at three to four times book value. North tells Nir of a Swiss bank account where the money should be deposited. Nir passes the account number to the Iranians.
February
In the first direct shipment of weapons from the U.S. to Iran, the Pentagon transfers 500 TOW antitank missiles to the CIA, which flies them to Israel. They are then flown to Tehran. Money from the sale is deposited in a Swiss bank account set up by the CIA. Khashoggi is the middleman, collecting $10 million from the Iranians and reimbursing the U.S. perhaps $3.75 million.
Spring
The contras receive increased supplies of weapons and other materiel. Flight crews for the airdrops are primarily made up of former CIA operatives. Attorney General Edwin Meese later reveals that profits from arms sales to Iran were funneled to the contra supply network.
April 14
The U.S. bombs Libya to retaliate for Muammar Gaddafi's terrorist activities.
May
The U.S. sends two more planeloads of weapons to Tehran via Tel Aviv.
May 25
North asks Texas Billionaire H. Ross Perot to send $2 million to Cyprus in what proves to be a fruitless attempt to ransom more hostages.
May 28
McFarlane and North fly to Iran aboard a plane loaded with spare parts for Hawk antiaircraft-missile batteries. McFarlane expects all the remaining U.S. hostages to be released before he lands in Tehran, but no hostages are freed. On the return flight, North tells McFarlane that profits from the arms sales are going to the contras.
June
The U.S. refuses to send a second shipment it had promised as part of the McFarlane trip. The Iranians respond by holding back payment for the previous delivery. As the standoff continues, Khashoggi and two Canadian partners, who have put up $15 million, get no return for their money.
June 25
The House approves $100 million in military and humanitarian aid to the contras.
July 26
Hostage
Lawrence Jenco is released.
July-August
The Iranians finally produce partial payment. Khashoggi arranges two new deliveries that
are supposed to
lead to the
release of more hostages.
August
Khashoggi's reported shipments produce no additional hostages, and the U.S. threatens to halt the arms deals. Iran responds by withholding payment for Khashoggi's recent deliveries. Khashoggi and his Canadian associates are left in the lurch.
Oct. 5
A C-123K cargo plane delivering arms to the contras is shot down over Nicaragua.
The sole surviving crew member, Eugene Hasenfus, is tried and
convicted in a Sandinista court. Sentence:
30 years in
prison.
Oct. 7