http://www.pbs.org/wgbh/amex/reagan/peopleevents/pande08.htmlThe Iran-Contra Affair
Ronald Reagan's efforts to eradicate Communism spanned the globe, but the insurgent Contras' cause in Nicaragua was particularly dear to him. Battling the Cuban-backed Sandinistas, the Contras were, according to Reagan, "the moral equivalent of our Founding Fathers." Under the so-called Reagan Doctrine, the CIA trained and assisted this and other anti-Communist insurgencies worldwide.
Assisting involved supplying financial support, a difficult task politically after the Democratic sweep of congressional elections in November 1982. First Democrats passed the Boland Amendment, which restricted CIA and Department of Defense operations in Nicaragua specifically; in 1984, a strengthened Boland Amendment made support almost impossible. A determined, unyielding Reagan told National Security Adviser Robert McFarlane, "I want you to do whatever you have to do to help these people keep body and soul together."
What followed would alter the public's perception of the president dramatically. How "Iran" and "Contra" came to be said in the same breath was the result of complicated covert activities, all carried out, the players said, in the name of democracy.
In 1985, while Iran and Iraq were at war, Iran made a secret request to buy weapons from the United States. McFarlane sought Reagan's approval, in spite of the embargo against selling arms to Iran. McFarlane explained that the sale of arms would not only improve U.S. relations with Iran, but might in turn lead to improved relations with Lebanon, increasing U.S. influence in the troubled Middle East. Reagan was driven by a different obsession. He had become frustrated at his inability to secure the release of the seven American hostages being held by Iranian terrorists in Lebanon. As president, Reagan felt that "he had the duty to bring those Americans home," and he convinced himself that he was not negotiating with terrorists. While shipping arms to Iran violated the embargo, dealing with terrorists violated Reagan's campaign promise never to do so. Reagan had always been admired for his honesty.
The arms-for-hostages proposal divided the administration. Longtime policy adversaries Secretary of Defense Caspar Weinberger and Secretary of State George Shultz opposed the deal, but Reagan, McFarlane and CIA director William Casey supported it. With the backing of the president, the plan progressed. By the time the sales were discovered, more than 1,500 missiles had been shipped to Iran. Three hostages had been released, only to be replaced with three more, in what Secretary of State George Shultz called "a hostage bazaar."