Disturbing History - Ronald Reagan: Presidency Off the Books

Episode Date: May 20, 2026

In the late afternoon of November twenty-first, 1986, Marine Lieutenant Colonel Oliver North and his secretary Fawn Hall stood inside an office a short walk from the Oval Office and fed classified doc...uments into a shredder. They jammed the machine. They smuggled pages out in her boots. They were trying to outrun a federal investigation that was already moving down the hallway toward them.What they were destroying was the paper trail of what investigators would later call a parallel government, a secret apparatus running an off-the-books foreign policy out of the Reagan White House, in defiance of an act of Congress and in contradiction of every public statement the President of the United States had made about negotiating with terrorists. In this episode of Disturbing History, host Brian unpacks the Iran-Contra affair, the biggest American political scandal since Watergate, and the moment the modern presidency learned how to operate off the books and survive.This is the story of how the Reagan administration secretly sold American TOW and Hawk missiles to the Islamic Republic of Iran through Israeli intermediaries beginning in August of 1985, despite the President's repeated public claims that the United States would never negotiate with hostage takers. It is also the story of how the same administration funneled the profits from those Iranian arms sales, through Swiss bank accounts controlled by retired Air Force General Richard Secord and Iranian-American businessman Albert Hakim, to support the Contra rebels in Nicaragua, after the United States Congress had passed the Boland Amendments in 1982 and 1984 explicitly prohibiting that exact kind of support.Two scandals, one architecture, one continuous criminal conspiracy stitched together inside the National Security Council under the direction of Lieutenant Colonel Oliver North, National Security Adviser Robert McFarlane, his successor John Poindexter, and CIA Director William Casey, with the knowledge or willful blindness of President Ronald Reagan and Vice President George H.W. Bush.The episode traces every thread in detail.It begins with Reagan's carefully constructed public persona of optimism, patriotism, and certainty, the General Electric Theater years, the 1984 reelection landslide, the image of the friendly grandfather that made the country reluctant to believe what was happening underneath. It moves through the 1979 Sandinista revolution in Nicaragua, the rise of Daniel Ortega, the Reagan administration's decision to back the Contras, the CIA mining of Nicaraguan harbors, the World Court case, and Congress's eventual push to cut off funding through the Boland Amendments.From there, the story crosses the world to Beirut, where CIA station chief William Buckley was kidnapped in March of 1984 and tortured to death by Hezbollah, where journalists like Terry Anderson, clergy like Reverend Benjamin Weir and Father Lawrence Jenco, and academics like Thomas Sutherland and David Jacobsen were taken hostage, and where Reagan's private anguish over American captives became the lever that Saudi arms dealer Adnan Khashoggi and Iranian middleman Manucher Ghorbanifar would use to open the secret arms channel.The epsiode covers the bizarre May 1986 trip to Tehran, when Robert McFarlane traveled under a false passport carrying a Bible inscribed by Ronald Reagan and a chocolate cake shaped like a key. It covers the October 5, 1986 shootdown of the cargo plane carrying Eugene Hasenfus over Nicaragua, the loose thread that began unraveling the entire Enterprise.We get into the November 3, 1986 Al-Shiraa magazine story out of Lebanon that broke the news of the arms sales, Reagan's failed November 13, 1986 Oval Office denial, Attorney General Edwin Meese's stunning November 25, 1986 announcement of the diversion of funds to the Contras, the Tower Commission report of February 1987, the joint congressional Iran-Contra hearings of summer 1987, Oliver North's six days of televised testimony in his Marine dress uniform, Fawn Hall's defense that sometimes you have to go above the written law, and John Poindexter's claim that the buck stopped with him.It covers the aftermath. CIA Director William Casey's brain tumor and convenient inability to testify before his death in May of 1987. Independent Counsel Lawrence Walsh's seven-year investigation. The convictions of Oliver North and John Poindexter, later overturned on immunity grounds. The misdemeanor plea by Robert McFarlane. The indictment of Caspar Weinberger. And, on Christmas Eve of 1992, the lame-duck pardons issued by outgoing President George H.W. Bush for Weinberger, McFarlane, Elliott Abrams, and three CIA officials, pardons that ended any chance of a courtroom reckoning over what Bush himself had known as Vice President.Drawing on the National Security Archive's documentation, the findings of the Tower Commission, the joint congressional hearings, and Lawrence Walsh's final report, this episode lays out the architecture of deniability that defined the Reagan-era national security state. It explains how cutouts, shell companies, third-country donors, private operators, and Swiss bank accounts allowed a President to authorize a policy his own Secretary of State and Secretary of Defense had warned him against. It examines the psychological gap between Ronald Reagan's public image and the machinery operating beneath it. And it asks the question that hangs over the entire affair and over every presidency that has followed: when an executive branch decides that its mission matters more than the law, what actually constrains it? Brian, drawing on his sixteen years of law enforcement experience, closes the episode with a sober reflection on what Iran-Contra normalized, what it taught future administrations they could get away with, and why a country that quietly accepted the Christmas Eve pardons of 1992 is still living with the consequences today. This is the Iran-Contra scandal as it actually happened, told in full, with the disturbing details most people have never heard.Have a forgotten historical mystery, disturbing event, unsolved crime, or hidden conspiracy you think deserves investigation?Send your suggestions to brian@paranormalworldproductions.com.Disturbing History is a dark history podcast exploring unsolved mysteries, secret societies, historical conspiracies, lost civilizations, and the shadowy stories buried beneath the surface of the past.Follow the show and enable automatic downloads so you never miss a deep dive into history’s most unsettling secrets.Because sometimes the truth is darker than fiction.

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Starting point is 00:00:56 Gofundme.com. This is a commercial message brought to you, I go fund me. My entire life, I've been fascinated by mysteries. Mostly true crime, but in general, stories that have no ending. In 2015, armed with nothing more than a years of experience working in libraries and a $10 microphone, I launched my podcast Unresolved. Join me, Michael Weillan, as I dive deep into some of the most interesting, unique,
Starting point is 00:01:22 horrifying, tragic, and oftentimes obscure rabbit holes, some of which you've heard of, many of which you probably haven't. Listen or subscribe to Unresolved on Apple Music, Spotify, or wherever you get your podcast. Some stories were never meant to be told. Others were buried on purpose. This podcast digs them all up. Disturbing history peels back the layers of the past to uncover the strange, the sinister, and the stories that were never supposed to survive.
Starting point is 00:01:54 From shadowy presidential secrets to government experiments that sound more fiction, in fact. This is history they hoped you'd forget. I'm Brian, investigator, author, and your guide through the dark corners of our collective memory. Each week I'll narrate some of the most chilling and little-known tales from history that will make you question everything you thought you knew. And here's the twist. Sometimes the history is disturbing to us, and sometimes we have to disturb history itself just to get to the truth. If you like your facts with the side of fear, if you're not afraid to pull at threads, others leave alone. You're in the right place. History isn't just written by the victors. Sometimes, it's rewritten by the disturbed.
Starting point is 00:02:50 It's late November of 1986. Washington is about to learn what's been happening inside some of the quietest rooms in the West Wing. And inside one of those rooms, a Marine Lieutenant Colonel is feeding paper into a shredder. His name is Oliver North. He works for the National Security Council, which means he answers to the President of the United States. The office is just a short walk from the Oval. His secretary, a young woman named Fawn Hall, is helping him. They're not cleaning up. They're not tidying files for the weekend. They're trying to outrun an investigation that's already moving down the hallway toward them. There are stories from inside that room that have stuck around for decades. Stories about documents jammed so hard into the shredder that the machine choked.
Starting point is 00:03:37 They called a technician to come fix it. Stories about haul slipping pages into her boots and into the back of her blouse so she could walk them past the federal investigators waiting outside. Stories about North, standing there in his uniform. Calm enough that anyone watching might think he was sorting through old memos. He wasn't. He was destroying the paper trail of a parallel government. That's not a phrase I'm using for effect. That's what investigators ended up calling it.
Starting point is 00:04:04 A parallel government. A small group of people inside and adjacent to the Reagan administration who decided, somewhere along the way, that the laws passed by the United States Congress didn't apply to the work they thought needed to be done. Most of what those investigators were looking for that afternoon was already gone. Some of it had been altered. Some of it had been moved off-site. Some of it had been so carefully designed not to exist in the first place that there was nothing on paper to destroy. The whole operation, by design, had been built to leave as few fingerprints as possible.
Starting point is 00:04:40 The Shredder was the last line of defense, not the first. So before we get to the speeches and the hearings and the famous testimony, before we get to Reagan looking pale on television and saying, A few months ago, I told the American people I did not trade arms for hostages. My heart and my best intentions still tell me that's true, but the facts and the evidence tell me it is not. Before any of that, hold on to the image of the shredder. Because that's where this story really lives.
Starting point is 00:05:10 This is what a government looks like when it's trying to erase itself in real time. This is disturbing history. And today we're talking about Ronald Reagan, the Iran-Contra affair. And what happens when the most powerful office in the world decides to operate off the books? To understand how Iran-Contra was even possible, you have to understand who Ronald Reagan was to the country in 19-19. Not who he was to historians, or to his critics, or to the people who worked closest to him. Who he was to the average American watching television in their living room.
Starting point is 00:05:45 Reagan was warmth. He was reassurance. He was a man who'd been an actor for most of his working life and knew exactly what to do with a camera. After the long, grim stretch of the late 70s, after Vietnam, after Watergate, after the gas lines and the inflation and the hostages in Tehran. He showed up on the national stage like a man who'd never had a bad day in his life. He said it was morning again in America. And a lot of people wanted that to be true. So badly, they didn't care whether it was or wasn't.
Starting point is 00:06:17 He won the presidency in 1980 against Jimmy Carter. And then he won re-election in 1984 by carrying 49 of the 50 states. Walter Mondale only won his home state of Minnesota. And just barely. Reagan walked into his second term with a kind of political authority that doesn't really exist anymore. People called him the great communicator, and they meant it. The image was simple, and that was the point. America was strong. America was good. America was on the side of freedom against the Soviets, who were on the side of tyranny.
Starting point is 00:06:52 The economy was waking up. Patriotism was respectable again. The flag meant something. Reagan stood in front of a microphone and said all of that with a half smile and a slight tilt of the head. and millions of people believed every word. He'd had a long apprenticeship for that role. Before politics, he'd been a sports broadcaster in Iowa, then a contract actor at Warner Brothers, then the host of General Electric Theater, which sent him traveling around the country for years,
Starting point is 00:07:21 giving the same kind of optimistic, anti-communist, pro-business speech to plant workers in town after town. By the time he ran for governor of California in 1966, he'd spent more than a decade refining the way he talked to ordinary Americans. He knew where to pause. He knew when to laugh at himself. He knew how to look at a camera lens like it was a friend across the kitchen table. That training mattered.
Starting point is 00:07:46 It meant that even when the policies underneath his presidency got complicated and dirty, the man on the screen never did. He always looked like the same easygoing storyteller he'd been in Des Moines. And that made it almost impossible for the country to picture him sitting in a back room signing off on covert operations. The face didn't match the act, so people assumed the act wasn't really happening, or that if it was, it was happening somewhere far away from him. That public image is important for one reason.
Starting point is 00:08:16 It explains why so much of what was happening in private went unquestioned for so long. When you have a president who looks like a friendly grandfather, who tells you he loves the country, who walks out of helicopters and waves at the press, you don't naturally assume that some the people working three offices down the hall are running secret arms deals with the Islamic Republic of Iran and funneling the profits to an army in the jungles of Central America. You don't assume that, but you should, because that's exactly what was happening. To get to the why, we have to take a trip to Central America, specifically to Nicaragua. In 1979, a revolutionary movement called the Sandinista National Liberation Front over through the Somoza
Starting point is 00:09:00 dynasty. The Somozes had ruled Nicaragua for more than four decades, propped up for most of that time by the United States, and they were a textbook example of the kind of regime the U.S. government in the Cold War era was willing to tolerate as long as they were sufficiently anti-communist. They were corrupt. They were brutal. They stole from their own people. But they were on our side, and for a long time, that was enough. When the Sandinistas finally pushed Anastasio Somosa out and took power, the new government, led by a man named Daniel Ortega, leaned left. They built relationships with Cuba. They built relationships with the Soviet Union. They embraced socialist policies. To the average Nicaraguan, especially the poor and rural population,
Starting point is 00:09:48 this looked like liberation. To officials in Washington, and especially to the incoming Reagan administration, this looked like a Soviet beachhead a few hundred miles from the Texas border. The Sandinistas weren't angels. They jailed opponents. They cracked down on the press. They built a security apparatus modeled in part on Cuba's, with all the abuses that came with it. There were real human rights problems under their government,
Starting point is 00:10:13 and a lot of Nicaraguan's who cheered the revolution at first were souring on it by the early 80s. None of that on its own is the same thing as being an existential threat to the United States, but it gave the Reagan administration plenty of material to work with when they made their case to the American public. You have to remember the worldview Reagan brought into office. He saw the world as a moral contest between freedom and communism. He believed the Soviets were on the move,
Starting point is 00:10:42 expanding wherever they thought they could get away with it. He thought Jimmy Carter had been too soft, too willing to negotiate, too willing to let America's adversaries chip away at the global balance of power. Reagan's foreign policy team was determined to push back, and they were going to push back hard. Nicaragua became a focal point. The Reagan administration started organizing and supporting an armed opposition to the Sandinista government. These fighters were called the contras, short for the Spanish word contra-revolutionarios,
Starting point is 00:11:14 counter-revolutionaries. Some of them were former members of Somoza's National Guard, men with deeply ugly histories. Others were peasants and former Sandinistas who had soured on the new government. The Contras were a mixed group with mixed motives, but to Reagan and his inner circle, they were freedom fighters. He famously called them the moral equivalent of our founding fathers. That phrase did not age well. The CIA got involved early. We're talking about training, weapons, money, intelligence support, the works.
Starting point is 00:11:48 The agency ran operations to mine Nicaraguan harbors, which led to international outrage and a case at the World Court that the United States eventually lost. There were credible reports of Contra atrocities against Nicaraguan civilians, of attacks on clinics and schools, of executions, of torture. Human rights groups documented massacres. A CIA-produced manual surfaced in 1984 titled, In English Translation, Psychological Operations in Gorilla Warfare. It included instructions on neutralizing local officials. The agency tried to walk it back, but the doctor. document was real, and the picture of the Contras that came back from journalists on the ground did not look much like the founding fathers, and the American public was not on board. Polling
Starting point is 00:12:38 consistently showed that a majority of Americans did not want their government funding an undeclared war in Central America. They had just lived through Vietnam. They had no interest in another long, messy foreign conflict, especially not one where their own government was lying to them about what was actually happening on the ground. This is where Congress steps in. In December of 1982, Congress passed something called the Boland Amendment. It was named after Edward Boland, a Democratic congressman from Massachusetts who chaired the House Intelligence Committee. The amendment was tucked into a larger spending bill, and it said that no funds from the Defense Department or the CIA could be used for the purpose of overthrowing the government of Nicaragua. The Reagan
Starting point is 00:13:25 administration didn't like it, but they accepted it publicly and tried to work around it privately. They said, sure, we're not trying to overthrow Nicaragua. We're just supporting the Contras as a deterrent. We're just trying to interdict the flow of weapons from Nicaragua to leftist rebels in El Salvador. They reframed the mission so it could keep going on paper. Congress saw what was happening, and in October of 1984, they passed a second, stronger version of the Boland Amendment. This one was much harder to dodge. It said, in plain language, that no agency of the United States government involved in intelligence activities could spend any money in support of the Contras. Not for weapons.
Starting point is 00:14:06 Not for training. Not for logistics. Nothing. The door was closed. Congress had spoken, and it had spoken specifically. Most administrations faced with a clear act of Congress like that would either change course or come back and try to get the law. changed through legitimate channels. The Reagan administration did neither. Inside the White House, the response was something closer to a strategy session about how to keep going while looking like
Starting point is 00:14:33 they'd stopped. There are notes from National Security Council meetings during this period in which staff openly discussed the need to keep the Contras alive, in their phrase, body and soul, through the period when the law cut off official funding. The phrase that came up over and over was third country assistance. If the United States government couldn't legally fund the Contras, maybe other governments could be persuaded to step in, with a wink and a handshake from Washington. Saudi Arabia eventually agreed to put up something on the order of $32 million over the course of the off-the-books period. The Sultan of Brunei, the one whose $10 million went missing for a while, was another donor. Israel helped in various ways. Taiwan was approached, South Africa was approached,
Starting point is 00:15:20 The administration was, in effect, shopping a war around the world, looking for sponsors. Instead, a small group inside the administration decided that the work would continue, just outside the normal chain of command and outside the reach of the law. The thinking, as far as we can reconstruct it from the testimony and the documents, went something like this. Congress was wrong. Congress was being short-sighted. Congress was abandoning brave freedom fighters to communist tyranny. And if Congress wouldn't fund the cause, well, somebody else would have to. That's the moment the parallel government starts to take shape.
Starting point is 00:15:59 That's the moment when a handful of people inside the National Security Council and the CIA decide that their mission matters more than the law. CIA Director William Casey was a key figure here. He had run intelligence operations during World War II, and he had a certain freebooter spirit about him. He liked off the book's work. He had a famously low opinion of Congress. He was close to Reagan personally and had a lot of room to operate.
Starting point is 00:16:25 National Security Advisor Robert McFarlane was another. McFarland was a former Marine, a serious man, a believer in the cause. And working under McFarlane on the NSC staff was that lieutenant colonel we already met at the Shredder. Oliver North. Stay tuned for more disturbing history. We'll be back after these messages. North was a true believer. He was a Vietnam veteran.
Starting point is 00:16:53 He had a chest full of medals. He was patriotic in a way that felt almost theatrical, and he was utterly convinced that the Sandinistas were a threat to the United States. He took the contra mission as personal. He started building a network, private donors, foreign governments, wealthy conservatives who wanted to help, the Sultan of Brunei, Saudi Arabia, a retired Air Force General named Richard Saccord and his business partner Albert Hakeem,
Starting point is 00:17:21 who set up shell companies and Swiss bank accounts to handle the money. They called this whole apparatus, only half jokingly, the Enterprise. For a while, the Enterprise was just about keeping the Contras alive, buying them weapons, paying for supplies, flying things into Central America on planes that no one was supposed to be able to trace back to the United States government. North coordinated all of it from his office in the old executive office building, a stone's throw from the president's desk, on a salary paid by the American taxpayer, while the Boland Amendment was the law of the land.
Starting point is 00:17:57 That alone is a scandal. That alone would have been enough to bring down careers and maybe an administration if it had been the only thing. But it wasn't the only thing. Because while all this was unfolding in Central America, a completely separate problem was eating away at the Reagan presidents, and that problem was in the Middle East. In the early to mid-80s, a militant group in Lebanon,
Starting point is 00:18:20 eventually known to the world as Hezbollah, started kidnapping Americans, American journalists, American academics, American clergy, American businessmen, and one American whose abduction mattered more than all the others combined. His name was William Buckley, and he was the CIA station chief in Beirut. Buckley was kidnapped in March of 19,
Starting point is 00:18:43 and the United States government quickly understood that this was a catastrophe. A station chief carries a lifetime of operational knowledge. He knows names. He knows networks. He knows methods. If he's tortured and they assumed he would be, the damage could last decades. Bill Casey, the CIA director, was reportedly devastated. Buckley was his man.
Starting point is 00:19:09 Casey is said to have walked the halls of Langley like a man personally wounded, and the urgency of getting Buckley back colored a lot of the decisions that followed. We learned later that Buckley was tortured for months. Videos of him and captivity surfaced, gaunt and broken. He eventually died in his captor's hands, probably sometime in 1985,
Starting point is 00:19:30 though the United States would not officially confirm it for a long time. Other Americans were being taken too. Terry Anderson, the Associated Press Bureau Chief, who would end up spending nearly seven years, years in captivity. The Reverend Benjamin Weir, a Presbyterian minister, Father Lawrence Jenko, a Catholic priest, David Jacobson, the director of the American University Hospital, Thomas Sutherland, the Dean of Agriculture at the American University of Beirut. Eventually more than a half dozen Americans were being held by groups tied to Hezbollah, and Hezbollah was backed by Iran.
Starting point is 00:20:08 That last detail is where everything starts to collide. Iran, in the middle of the middle of 80s was a country the United States had no formal relationship with. The Islamic Revolution had overthrown the Shah in 1979. Iranian students had stormed the American embassy in Tehran later that year and held 52 Americans hostage for 444 days. Those hostages had only been released the day Reagan was inaugurated and the wound was still fresh. On top of that, Iran was at war with Iraq. The Iran-Iraq war was one of the bloodiest conflicts of the 20th century, an eight-year meat grinder that killed hundreds of thousands of people. The United States
Starting point is 00:20:49 was officially neutral, but in practice, the Reagan administration was tilting towards Saddam Hussein and Iraq, sharing intelligence, encouraging allies to sell weapons. In 1983, Donald Rumsfeld, who was then a private citizen acting as a presidential envoy, traveled to Baghdad to shake Saddam's hand on television. We were helping Iraq fight Iran, so when the same administration started quietly selling missiles to Tehran, you weren't just looking at a betrayal of our public policy on terrorism. You were looking at us secretly arming both sides of a war. Iran was, by every public measure, an enemy state. Reagan stood at podiums and said the United States would never negotiate with terrorists. He said it over and over. He said it after every hijacking,
Starting point is 00:21:38 After every kidnapping, after every public outrage. After the TWA flight 847 hijacking in June of 1985, when Hezbollah-linked gunmen seized a plane full of Americans and murdered a Navy diver named Robert Stetham and dumped his body on the tarmac in Beirut, Reagan went on television and said the United States would not yield to terrorist demands. The policy was crystal clear, at least in front of the cameras. In private, the policy was something else entirely.
Starting point is 00:22:08 Sometime in the middle of 1985, an idea began to take shape inside the National Security Council. The Israelis were involved early. The Israelis had their own relationship with Iran, complicated and quiet, and they argued that there were moderate factions inside the Iranian government that the United States could open a channel to. A wealthy Saudi arms dealer named Adnan Khashoggi helped facilitate the conversation. So did an Iranian middleman named Monitor Gorbonifar. who the CIA itself had assessed as a fabricator and a con man,
Starting point is 00:22:43 somebody who had failed the agency's own polygraph. American intelligence professionals warned that Gorbonifar was untrustworthy. The deals went forward anyway, because the people running the operation had decided they needed him. The pitch went something like this. We sell Iran some American-made weapons through Israeli intermediaries, not because we're rewarding them, because we're building a relationship with the moderates we believe are going to be in charge eventually.
Starting point is 00:23:11 And along the way, those moderates use their influence with Hezbollah to get our hostages out of Lebanon. If you say it that way, it sounds almost reasonable. A strategic opening. An indirect negotiation. A long game. If you say it more plainly, it sounds like what it was. We sold weapons to Iran in exchange for hostages. Reagan, by every reliable account, was a lot of, haunted by those hostages. People who worked with him say he carried a list of their names in his pocket. He met with the families. He looked them in the eye. The idea of American suffering,
Starting point is 00:23:47 especially after the failure to rescue the embassy hostages back in 1980, weighed on him in a way that overrode the abstract principle of not negotiating with terrorists. To him, this wasn't a betrayal of the principle. This was a president trying to bring his people home. His secretary of George Schultz was opposed. His Secretary of Defense, Casper Weinberger, was opposed. Both of them said, in meeting after meeting, that this was a terrible idea, both morally and strategically. They warned that it would leak. They warned that it would undermine American credibility. They warned that it would invite more kidnappings, because once you've paid for one hostage, you've put a price tag on every American abroad. Reagan listened, and then he approved it anyway.
Starting point is 00:24:35 The first shipment went out in August of 1985. Israel sent 96 American-made tau anti-tank missiles to Iran. A second-tow shipment followed in September. Hawk anti-aircraft missiles followed in November. The shipments came with all kinds of complications, including a moment when the wrong missiles got sent, and Iran was furious. But the basic structure held. American weapons flowed to Iran.
Starting point is 00:25:02 Hostages occasionally trickled out of Lebanon. Reverend Weir was released in September of 1985. Father Jenko was released in July of 1986. David Jacobson was released in November. For every hostage released, though, the kidnappers in Lebanon grabbed someone else. The math never quite worked. We were paying ransom into a system that was always going to take more hostages, because we'd just shown the world that taking Americans was profitable.
Starting point is 00:25:31 Three more Americans were kidnapped in Beirut in September, and October of 1986, right in the middle of the arms for hostages window. The deal we'd made to free our people was, in real time, generating more captives. Reagan's own diary entries from this period are revealing. He wrote in his diary in January of 1986 that he had approved the plan, and he described it in terms that made it sound like a strategic opening rather than a hostage trade, while in the next breath linking it directly to the release of the Americans in Lebanon. He could see both versions of the story at once, and he seemed to genuinely believe both.
Starting point is 00:26:10 That kind of double vision shows up in a lot of his statements from this period. He'd say one thing was happening. The facts said another. He didn't seem to register the contradiction. In May of 1986, the absurdity of the whole operation reached its peak. National Security Advisor Robert McFarlane, by then retired from his official position, but still working secretly on the Iran Channel. flew to Tehran. He went in person. He traveled under a fake passport, posing as part of an Irish
Starting point is 00:26:40 flight crew. He brought gifts, a Bible inscribed by Ronald Reagan. A chocolate cake shaped like a key, meant to symbolize the opening of a new relationship. Oliver North was on the trip with him, so was a CIA officer. They flew in on an unmarked plane carrying spare parts for Iran's Hawk missiles as a kind of opening down payment. Picture that for a second. A former national security advisor of the United States sneaking into the capital of a country the United States considered an enemy, carrying a Bible and a cake, to negotiate with people who were arming and funding the men who were holding American hostages. The Iranians left them sitting in a hotel for days. The senior officials McFarlane had been told he'd be meeting never
Starting point is 00:27:27 showed. The talks went nowhere. The Iranians kept some of the cake. McFarlane and his team flew home humiliated, but the arms kept flowing. And then, somewhere in this mess, somebody had what Oliver North would later call a neat idea. Iran was paying for these weapons. The CIA was supplying the weapons at one price. The middlemen, including Sikord and Hakeem and others in the enterprise, were charging Iran a much higher price. The difference was profit. Where was that profit going? Why should that profit just sit in a Swiss bank account? What if you took the money you made selling weapons to Iran, and you used it to fund the Contras in Nicaragua? That was the diversion. That was the connection.
Starting point is 00:28:13 That was the moment two separate, scandalous operations crashed into each other and became something even worse than the sum of their parts. Because now you had an American administration breaking its own public policy on terrorism in the Middle East and using the proceeds to break a specific act of Congress in Central America. Two felonies for the price of one. The numbers, as best as investigators ever pieced them together, were not actually that large in the context of a Pentagon budget. Investigators eventually concluded that something on the order of $3.5 million was diverted from the Iran arms sales to support the Contras.
Starting point is 00:28:52 There were also millions more raised from third countries and private donors and parked in Swiss accounts under the control of Richard Saccord and Albert Haqim. money came in from Saudi Arabia, from the Sultan of Brunei, from a small army of wealthy American conservatives whom Oliver North and his colleagues solicited at fundraising events that doubled as briefings. They'd bring potential donors into a room, give them a slideshow about the Contra cause, and walk them through how to write a check that would never appear in any government ledger. The Brunei contribution is one of the funnier and stupider footnotes of the whole affair. The Sultan of Brunei agreed to give $10 million to the cause. Somebody on the American side transposed a
Starting point is 00:29:36 couple of digits on the Swiss account number and the money got wired to the wrong account, where it sat in the bank account of some lucky Swiss shipping executive until it eventually had to be retrieved. That kind of slapstick keeps showing up in this story. People at the highest levels of the United States government, running secret operations off the books, like a couple of guys who'd never balanced a checkbook. The diversion is what makes Iran-Contra Iran-Contra. Without it, you've got two separate scandals. With it, you've got a single architecture, a single operation, a single set of fingerprints on both ends, and the man whose fingerprints were everywhere was Oliver North. I want to spend some time on North, because he's the character most people remember from this story,
Starting point is 00:30:21 and the way we remember him says a lot about how scandals work in this country. North was 42 years old when Iran-Contra blew open. Marine Corps, Naval Academy graduate, decorated Vietnam veteran, a man who genuinely believed in what he was doing. He didn't take payoffs. He didn't enrich himself. By every account I've ever read, he wasn't in it for money. He was in it for the cause. He believed the Sandinistas were a Soviet outpost. He believed Congress was wrong. He believed the president of the United States needed someone willing to do the hard, dirty work that polite Washington wouldn't touch. He worked out of a small office in the old executive office building, which sits next to the White House. He had a safe. He had a stack of phones. He had spiral
Starting point is 00:31:10 notebooks where he wrote down, in his own handwriting, the details of operations that were never supposed to see the light of day. He coordinated armed shipments. He coordinated meetings with foreign intermediaries. He coordinated the movement of money. He kept the Contras alive through periods when, by law, they were supposed to be on their own. He also had a flare for the dramatic. He loved the operational side of it. He loved the code names. He loved the secret meetings and hotel rooms in Europe. He loved the sense of being on the inside of something that mattered. And he was, by all accounts, very good at his job. Stay tuned for more disturbing history. We'll be back after these messages. The whole thing depended on something called plausible deniability. That phrase had been around
Starting point is 00:32:00 in intelligent circles for decades. The idea is simple. You structure an operation so that the people at the top can honestly say, or at least credibly say, that they didn't know about it. You use cutouts. You use private actors. You use foreign intermediaries. You make sure that nothing in writing connects the president to the operation. You keep the chain of command fuzzy enough. You keep the chain of command fuzzy enough. that if it all blows up, there's somebody lower down who can take the fall. The architecture of deniability is older than Reagan and bigger than him. It's a feature of how intelligent services operate everywhere. But Iran-Contra is one of the cleanest, ugliest examples of it in American history,
Starting point is 00:32:42 because it shows what happens when that architecture gets pointed inward, at the American constitutional system itself. North and his colleagues weren't just hiding what they were doing from the Sandinistas, or the Iranians. They were hiding it from the United States Congress. They were hiding it from the American people. They were hiding it in some cases from their own colleagues in the executive branch. And the whole structure was designed to make sure that even if the truth ever came out,
Starting point is 00:33:10 Ronald Reagan could stand at a podium and say, with a clear conscience, I didn't know. Whether he actually didn't know is a question we still can't fully answer. We'll come back to that. In the fall of 1986, the whole structure started to fall apart. It started in the jungle. On October 5th of 1986, a Sandinista soldier shot down a cargo plane flying through Nicaraguan airspace. The plane was loaded with weapons.
Starting point is 00:33:38 It was crewed by Americans. One of those Americans, a man named Eugene Hazenfus, parachuted out and was captured. He was a former Marine from Wisconsin, a working class guy who'd hired on with what what he thought was a private outfit running supplies. The Sandinistas paraded him on television. He admitted he was working for the CIA, even though, technically, he wasn't, because by law the CIA wasn't supposed to be involved.
Starting point is 00:34:05 He was working for the enterprise, the off-the-book's operation, which is to say he was working for an American government program that didn't officially exist. That was the loose thread. American reporters started pulling on it. where had Hasenfus come from? Who paid him?
Starting point is 00:34:23 Who owned the plane? The plane had records on it. The plane had been registered through a chain of shell companies that led eventually, back to the people around Oliver North. Documents found on the dead crewmen pointed at the same network. The cover story collapsed within days. The administration tried to insist that this was a private operation with no government connection. Nobody who was paying attention believed it.
Starting point is 00:34:48 And then, less than a month later, on November 3rd of 1986, a small Lebanese magazine called Al-Shira, published a story claiming that the United States had been secretly selling weapons to Iran. The story was sourced, at least partly, to Iranian factions who were unhappy with the deals and wanted to embarrass the American officials they thought were lying to them. The story landed like a bomb in Washington and around the world. For a few weeks, the administration tried to contain it. Reagan went on television on November 13th of 1986 and gave an address from the Oval Office. He looked into the camera and told the American people, in plain words, that the rumors about an arms for hostages deal were false. He said the United States had not, repeat not, traded weapons or anything else for hostages, nor would it. He acknowledged that there had been some kind of small exploratory contact with Iran, but he insisted it had been about strategic dialogue,
Starting point is 00:35:48 Not about ransom. That was not true. And by then, Attorney General Edwin Meese knew it was not true, or at least suspected it strongly enough that he ordered an internal review. On November 21st of 1986, Meese and a small team of lawyers went into Oliver North's office. That's when North and Fawn Hall went to work on the shredder. Hall would later testify in front of the whole country
Starting point is 00:36:12 that she helped North destroy and alter documents. She'd later described slipping pages in the same. into her boots and under her clothes to get them out past investigators. She'd defend it by saying, sometimes you have to go above the written law. That single sentence is one of the most chilling distillations of the entire Iran-Contra mindset, and it came out of the mouth of a young secretary who genuinely believed she was helping protect the country. Four days after the shredding, on November 25th of 1986, Edwin Meese went to a press conference and dropped the second half of the story on the American people. He told them that some of the money from the secret arms sales to
Starting point is 00:36:52 Iran had been diverted to support the Contras in Nicaragua. He said the president had not been aware of the diversion. He named Oliver North as the responsible party. North had already been fired. National Security Advisor John Poindexter, who had taken over from McFarland, had resigned that morning. That was the day Iran Contra, as the country came to know it, was born. I want you to picture the country watching that press conference. People were stunned. The two scandals on their own would have been bad. Selling arms to Iran was bad. Funding the Contras after Congress had said no was bad. But the diversion, the connection between the two, was something else. It looked like a deliberate, organized, secret foreign policy being run out of the basement of the executive branch,
Starting point is 00:37:40 behind the back of Congress and the American public. This is when the comparisons to Watergate started, didn't come out of nowhere. The National Security Archive, an organization that has spent decades digging through declassified documents on this period, has described Iran-Contra as the biggest scandal since Watergate. They focused specifically on two things, the illegal backing of the Contras, and the illicit weapon sales to Iran. That summary is dry, but it captures the essentials. Both halves were illegal. Both halves had been hidden from the American people, and the FBI investigation that followed, along with the appointment of an independent council named Lawrence Walsh, would eventually produce a record that confirmed how deep it all went.
Starting point is 00:38:26 Reagan, for his part, did not seem to be in command of the situation. He looked older than he had a few weeks before. He stumbled. He hedged. He said he didn't recall a lot of things. The First Tower Commission appointed by his own administration to investigate, headed by former Senator John Tower along with former Senator Edmund Muskie, and former National Security Advisor Brent Scowcroft came back with a report in February of 1987
Starting point is 00:38:52 that was about as harsh as a report from inside the same administration could be, without using the word criminal. The Tower Commission said Reagan had been lax. They said he had not exercised proper control over his National Security Council staff. They said he had allowed a small group of people, including North and Poindexter, to operate without supervision. They said he had been confused about basic facts and had let his desire for the hostages to be freed, override good judgment. They stopped short of saying he had ordered the diversion himself.
Starting point is 00:39:26 They suggested between the lines that he might genuinely not have known, but only because he had created an environment where he didn't have to know. The report itself runs to several hundred pages and reads like a study in management failure dressed up as a national security review. Reagan, in their telling, had set the tone and walked away. Everything else followed from that. When John Poindexter eventually testified in front of Congress, his version of events answered some of the Tower Commission's open questions in a particular way. Poindexter said, plainly, that he had decided on his own,
Starting point is 00:40:02 without telling the President to authorize the diversion of funds to the Contras. He said he had done it because he thought it was what the President would have wanted, and because he wanted to give Reagan deniability. His phrase was, The buck stops here with me. It was an extraordinary moment. The president's own national security advisor was sitting in front of the country
Starting point is 00:40:22 and falling on a sword to protect his boss. Whether you believed him or not, depended on what you already thought about how that White House operated. To Reagan's defenders, it was confirmation that the president really had been out of the loop. To his critics,
Starting point is 00:40:37 it sounded exactly like what plausible deniability is supposed to sound like when it's working. In March of 1987, Reagan went back on television. This time he gave a different speech. He didn't fully confess, but he didn't fully deny either. He said the line I quoted earlier. A few months ago, I told the American people I did not trade arms for hostages.
Starting point is 00:41:00 My heart and my best intentions still tell me that's true. But the facts and the evidence tell me it is not. That sentence is a small masterpiece of damage control. He's not quite admitting he lied. He's saying his heart still believes the old story, while accepting that the facts have moved on without him. Half of the country accepted it. Half of the country didn't.
Starting point is 00:41:24 His approval ratings cratered, dropped by something like 20 points almost overnight, the steepest one-month drop in modern presidential history at that point. Reagan, the Teflon president, finally had something stick. He never fully got it back. He recovered some of his standing over the next. next year, partly because the country wanted to believe he hadn't been part of it, partly because the economy held up, partly because the Soviet relationship was beginning to thaw, and there were
Starting point is 00:41:51 better stories to tell. But there's a measurable difference in how he came across in his last two years compared to his first six. He looked older. He looked thinner. He stumbled more in press conferences. The people closest to him have written and spoken about how shaken he was, how much the whole thing wore on him. He had genuinely believed in some part of himself that what he'd authorized was a strategic opening rather than a hostage trade, and watching the country and the historical record decide otherwise was something he never quite came to terms with. In the summer of 1987, the joint congressional hearings began. They were televised. They were enormous. They ran for weeks, and they introduced the country to the supporting cast of this story in a way that no newspaper
Starting point is 00:42:39 article ever could. Fawn Hall testified about the shredding. She had a kind of pained, almost defiant calm about her on the stand. The line about going above the written law came from those hearings. She would describe slipping pages into her boots and under her clothes to get them out past investigators. She framed it as loyalty. She framed it as protecting people she cared about. Some viewers were sympathetic, plenty weren't. But what's striking looking back is how unself-conscious she was about it. She didn't seem to think she'd done anything that required a defense beyond the one she gave. The mindset that had let the operation run for years, that mindset where loyalty to a cause overrides the rules around you, was visible in her testimony in real time. Then Oliver North took
Starting point is 00:43:28 the witness chair. North showed up in his Marine dress uniform, chest full of ribbon, jaw set. He raised his right hand. He took the oath. And then, over six days of testimony, he delivered one of the most theatrical performances in the history of congressional hearings. He didn't apologize. He didn't grovel. He looked the senators and congressmen in the eye and told them, essentially, that he had done what he had done because he loved his country, and they had failed it. He defended the Contras. He defended the armed sales. He defended the secret operations. He said he had assumed his superiors approved of everything. He said he had been a loyal soldier carrying out the wishes of his commanders.
Starting point is 00:44:11 His lawyer, Brendan Sullivan, sat next to him, and at one point, when one of the committee members tried to talk to North directly, snapped at the senator that he wasn't a potted plant. That line ran in the newspapers the next day. It became a kind of cultural touchstone for North's whole defense, the idea that the people questioning him were the ones with something to apologize for. The strange thing is, a lot of Americans loved it. Public opinions split sharply during those hearings.
Starting point is 00:44:40 A lot of people who'd never heard of Oliver North before suddenly thought he was a hero. They saw a man in uniform standing up to a bunch of politicians, and they cheered. There were Ali North bumper stickers. There were Ali North T-shirts. He became a folk hero to a chunk of the conservative movement, and he would later parlay that fame into a radio show, a television show, and a long career in conservative media. That reaction is worth sitting with for a minute.
Starting point is 00:45:09 Because part of what Iran-Contra revealed isn't just about the Reagan administration. It's about how a country reacts when it discovers that its own government has been operating outside the law. A lot of Americans, when faced with that knowledge, didn't want it punished. They wanted it celebrated. They saw North not as a man who broke the law, but as a man who'd been brave enough to do what needed to be done while everyone else worried about paperwork. That instinct, that willingness to forgive secret illegal action when it's wrapped in patriotism doesn't go away after these hearings.
Starting point is 00:45:43 It becomes part of the political water. There's another piece of the hearings that doesn't get talked about as much, and it's the testimony of the cabinet officials. George Schultz testified about the meetings where he'd warned Reagan that the deal was a mistake. Casper Weinberger said he'd opposed it from the start. Both of them tried to put distance between themselves and the operation. The trouble was that other testimony and notebooks that surfaced later told a more complicated story. Weinberger had taken extensive personal notes during the period. Notes he claimed for years didn't exist, and when those notes finally turned up in the Library of Congress, they showed he'd been more aware of more meetings, with more participants than he'd admitted to
Starting point is 00:46:27 investigators. And then there's the question that hangs over everything. What did Reagan know? And when? Stay tuned for more disturbing history. We'll be back after these messages. The official answer, the one he gave in testimony and his vice president eventually echoed, was something along the lines of, I don't recall. Reagan used that phrase or a close variation of it, more than a hundred times in his sworn deposition. I don't recall. I don't remember. I have no memory of that meeting. By that point, he was in the early stages of what would eventually be diagnosed publicly as Alzheimer's disease, which made it almost impossible to separate genuine forgetfulness from convenient forgetfulness. But the people who worked with him during the years in
Starting point is 00:47:16 question described a president who was engaged on the question of the hostages, who asked about them, who pushed for action. The notion that he had no idea what his own National Security Council was doing on his behalf is hard to take it face value. Meanwhile, the people the operation had supposedly been designed to save were still in cells in Lebanon. Terry Anderson would not be released until December of 1991, more than five years after Iran-Contra blew open, and more than six years after he was first taken. Thomas Sutherland, the Agricultural Dean, got out in November of 1991. Some of the kidnapped Americans never came home at all.
Starting point is 00:47:55 William Buckley, the CIA station chief whose abduction had set so much of this in motion, had been dead in his captor's hands for years by the time the world learned what had been done to try to bring him out. The hostage crisis that Reagan said haunted him kept on going, longer than his presidency, and the secret arms deals he'd approved didn't end it. The hostages came home eventually for reasons that had more to do with the end of the Iran-Iraq war, the collapse of the Soviet Union and shifting Iranian internal politics than with anything a chocolate cake delivered to Tehran ever accomplished. The investigations dragged on for years.
Starting point is 00:48:36 Lawrence Walsh, the Independent Council appointed in December of 1986, ran an operation that lasted longer than the Reagan presidency itself. He pursued criminal cases against more than a dozen people. Before any of those cases went forward, though, one of the central figures in the entire affair was already gone. CIA director William Casey, the man who had presided over the agency through both halves of the operation, collapsed in his office in December of 1986, days before he was scheduled to testify before Congress about Iran-Contra. Doctors discovered a malignant brain tumor.
Starting point is 00:49:13 He had emergency surgery. He never returned to work. He died in May of 1987. There are people who have spent the rest of their lives wondering exactly what Casey knew. and exactly what he would have said if he'd live to take the stand. A reporter named Bob Woodward later claimed in a book that he'd snuck into Casey's hospital room and gotten a deathbed admission of guilt about the contra diversion. People close to Casey denied it ever happened. We'll probably never know.
Starting point is 00:49:42 What we do know is that one of the men at the center of the operation conveniently lost the ability to talk just as investigators started knocking on doors. North was convicted in May of 1989 on three felony counts, including obstruction and document destruction. His convictions were later overturned on appeal because his testimony to Congress had been granted immunity, and the appeals court ruled that immunized testimony had tainted the trial. Poindexter was convicted in April of 1990. His convictions were also overturned on appeal, on similar grounds. Robert McFarlane pleaded guilty to misdemeanor charges,
Starting point is 00:50:20 of withholding information from Congress. He attempted suicide while the scandal was at its peak. He survived. Casper Weinberger, the Secretary of Defense who'd opposed the deal from the inside, was indicted in 1992 for lying about what he knew. His personal notes from the period had finally surfaced, and they suggested he'd known more about the arms deals and the president's involvement than he'd let on an earlier testimony.
Starting point is 00:50:46 He never stood trial. Weinberger had been scheduled to face a jury in, in January of 1993. Documents from his own notebooks would have been entered into evidence. He would have been cross-examined on what he'd told earlier investigators versus what his own handwriting said. The reporters waiting outside that courthouse expected one of the most revealing public proceedings in modern presidential history.
Starting point is 00:51:10 None of it happened. Because on December 24th of 1992, on Christmas Eve, with weeks to go before he handed the office over to Bill Clinton, President George H.W. Bush issued pardons for Weinberger and five other Iran-Contra figures. McFarlane was pardoned. Former Assistant Secretary of State Elliott Abrams was pardoned. Three CIA officials were pardoned. The pardons effectively ended the criminal accountability phase of the scandal. Bush, who had been Reagan's vice president throughout the entire period, claimed for years that he had been out of the loop on Iran-Contra. The pardons made that claim a lot harder to take serious.
Starting point is 00:51:50 seriously. Lawrence Walsh, the independent counsel, was furious. He had been preparing to bring Weinberger to trial, and he believed Weinberger's testimony might finally have answered some of the questions about what Bush himself had known and when he had known it. The pardons ensured that those questions would never be answered in a courtroom. There's something worth saying plainly about that timing. Bush had just lost re-election to Bill Clinton a few weeks earlier. He was a lame duck. He had nothing left to lose at the ballot box, and he used the last few weeks of his presidency to extinguish a set of criminal cases that included at least one defendant, whose trial would almost certainly have touched on Bush's own conduct as vice president. You can argue, and his
Starting point is 00:52:34 defenders did argue, that the pardons were an act of mercy for men who had served the country and been chewed up by an overzealous prosecutor. You can also argue that they were an act of self-protection by an outgoing administration that knew exactly what the next round of testimony was going to produce. Both arguments live in the record. Most of the people who study this period believe the truth is some uncomfortable mix of the two. Walsh's final report when it came out in 1993 was bleak and unforgiving. He concluded that the Iran arms sales and the contra diversion had not been the work of a few rogue staffers. He concluded that they had been ongoing operations approved at the highest level of the Reagan administration, and that senior officials, including the president and the vice president,
Starting point is 00:53:21 had then participated in efforts to cover up the truth. He couldn't prove a criminal case against Reagan himself. He acknowledged as much. Reagan's age, his apparent confusion in interviews, his early signs of what would eventually be diagnosed as Alzheimer's disease, all of that made a prosecution practically impossible even if it had been politically conceivable. Wall stopped short of recommending one, but the report is clear. The president knew about the armed sales. The president wanted them to continue. Whether he knew the specific mechanics of the diversion to the Contras,
Starting point is 00:53:56 whether he understood exactly which dollar in Geneva was going to which rifle in Honduras, is something we'll probably never know for certain. But the broader picture, the architecture of a foreign policy operating around Congress and around the law that he authorized. That happened on his watch, and he authorized the conditions that made it possible. The American public, by the end of all this, was exhausted. Reagan left office in January of 1989 with his approval ratings recovered and his place in conservative memory secure. He was honored, lionized, written into the founding myths of the Republican Party. The country mostly moved on. Iran-Contra became a thing people half-remembered,
Starting point is 00:54:39 a phrase from the 80s that they couldn't quite explain. That's part of why I wanted to do this episode. Because most people, if you stop them on the street, can tell you that Watergate involved a break-in and a cover-up. They can tell you that Nixon resigned. They can give you a rough sketch of the scandal. Iran-Contra, they can't tell you. They've heard the name.
Starting point is 00:55:01 They might know Oliver North's face. But the actual machinery, the way two scandals on opposite sides of the planet got stitched together into a single secret operation. the way the architecture of deniability was built and tended and protected. That's not common knowledge, and it should be. Part of why Watergate sits in the national memory so much more sharply is because it ended with a resignation.
Starting point is 00:55:26 There's a final image, Nixon waving from the helicopter on the south lawn. There's a sense of resolution, even if the resolution is just embarrassment. Iran-Contra doesn't have that. There's no resignation. There's no impeachment vote. There are pardons handed out on a holiday, and then everyone goes home. The story trails off rather than ending, and when stories trail off, they don't lodge the same way in a country's memory. People stop telling them. The lessons get forgotten. The next generation grows up thinking
Starting point is 00:55:58 Iran-Contra is one of those gray, complicated old scandals nobody can quite explain, instead of what it actually was, which is one of the clearest examples in American history, of an executive branch deciding to operate outside the law and getting away with it. Because here's what Iran-Contra actually did. It taught the executive branch how to operate off the books and survive. Think about what didn't happen. Nobody at the top of the food chain went to prison. The convictions of the operational people, North and Poindexter,
Starting point is 00:56:29 were overturned on technicalities. The cabinet officials who were finally facing trial were pardoned. The president himself was never serious. held to account and his successor pardoned the rest. The investigative reports were filed away. The hearings ended. The country moved on. What got established in a way that's never really been undone is that a president can, with the right legal advisors and the right structure, run a parallel foreign policy. He can use private actors. He can use foreign governments. He can use intelligence cutouts. He can route money through Swiss accounts
Starting point is 00:57:06 and shell companies. He can solicit funds from monarchies and arms dealers. And if it all comes apart, he can claim he didn't know, fire the people who did, and ride out the storm. That's a lesson. It's been quietly absorbed by every administration that has come after, in different ways and with different operations. Some of those have come to light. Most of them haven't. The point isn't that every president since Reagan has been running in Iran-Contra. The point is that the option exists now. in a way that, in the Watergate aftermath, people thought had been closed off. Iran-Contra reopened the door. You can see the architecture of deniability show up again and again after this,
Starting point is 00:57:48 in different uniforms, with different code names, under presidents of both parties. The use of private contractors to do work that 20 years earlier would have been done by uniform soldiers or sworn government employees. The blossoming of intelligence partnerships with foreign governments who can do things on our behalf that our own laws forbid. The routine classification of decisions that, in a different era, would have been debated in public. The whole structure of executive action got more comfortable with the idea that the rules are flexible if the stakes are high enough, and the stakes always seem high enough.
Starting point is 00:58:25 There's one more piece of this I want to leave you with, because it's the part that haunts me as somebody who spent a long time in law enforcement before I started doing this work. The thing that makes a constitutional system function is not just the rules on paper. The rules on paper only matter if the people in power agree to be bound by them. If the President of the United States and his closest advisors decide that a particular law is wrong, and they decide to ignore it, the only thing that brings them back into compliance is the willingness of other institutions to push back. Congress has to push back. The courts have to push back. The press has to push back.
Starting point is 00:59:04 The voters have to push back. In Iran-Contra, all of those institutions did some pushing back, and not enough. Congress held hearings, but it didn't impeach. The courts handed down convictions, but they were overturned. The press uncovered the story, but the country didn't demand a deeper reckoning. The voters elected Reagan's vice president the following year and gave him the chance to issue the Christmas Eve pardons. You can read that as a failure. You can also read it as a kind of accommodation.
Starting point is 00:59:35 As a country, faced with the choice of fully confronting what its own government had done, we chose, more or less, to let it go. And by letting it go, we taught future administrations what they could get away with. I spent 16 years in law enforcement. Part of what that career teaches you, if you pay attention, is that the difference between a system that works and a system that doesn't isn't always about the laws on the books. It's about whether the people responsible for enforcing them actually do.
Starting point is 01:00:06 You can have the cleanest statute ever drafted, and if the people on top decide it doesn't apply to them, and nobody else is willing to push hard enough to change their minds. The statute is just paper. That's what Iran-Contra shows. The Boland Amendment was clear. The statutes against unlicensed arms exports were clear. The reporting requirements to the Congressional Intelligence Committees were clear.
Starting point is 01:00:29 and almost none of it mattered, because at every junction, the people who were supposed to enforce the rules decided, for one reason or another, that this case was special. That's the disturbing part. Not just that this happened. Not just that arms went to Iran and money went to the Contras, and laws got broken, and documents got shredded. The disturbing part is that we, the country, decided we were okay with it, or at least okay enough to keep moving. The shredder ran, The hearings ended. The pardons came down on Christmas Eve, and the country kept going,
Starting point is 01:01:04 with the president's image as the friendly grandfather still mostly intact, while the machinery underneath was quietly, permanently changed. Reagan died in 2004. His funeral was a national event. His name is on an airport in Washington and a federal office building and an aircraft carrier. He is remembered by a lot of Americans as one of the great presidents of the 20th century. None of that is wrong exactly.
Starting point is 01:01:31 He was a consequential man. He shaped the end of the Cold War. He defined modern conservatism. His effect on this country was enormous, but the Reagan years also included this. They included a president sitting in the Oval Office, signing off on weapons going to a country he had publicly called part of a global terror network,
Starting point is 01:01:52 while his staff routed the profits to a guerrilla army that Congress had explicitly forbidden him to fund, while Marine officers in the basement of his administration shredded the evidence in the middle of the day. That happened. That's the historical record. It's not a conspiracy theory. It's not a partisan attack.
Starting point is 01:02:11 It's the conclusion of multiple investigations, multiple commissions, multiple courtrooms, and a years-long independent counsel inquiry. The Reagan presidency built one of the most polished public images in American political history, and it built underneath that image a working model of how a government can operate off the books and walk away mostly intact.
Starting point is 01:02:33 Both things are true. Both things are part of the legacy. And if we want to be honest about what kind of country we are and what kind of presidency we've allowed to evolve, we have to be willing to hold both of them in our heads at the same time. The shredder running in the old executive office building in the late afternoon of November 21st, 1986. A young woman tucking pages into her boots. a Marine in uniform feeding documents into the blades, a president a few hundred feet away who said he didn't know,
Starting point is 01:03:04 who maybe didn't know, who built the world in which he wouldn't have to know. That's where Iran-Contra lives, and that's where this country lives too in a way. Every time we ask what really constrains a presidency, and we don't like the answer we get back. Thanks for being with me. We'll see you next time.

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