By Chris Wogan
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Additional info for America and the New American Century
After the Atlanta-BNL raid, the CCC investigated ‘irregularities’ in the transactions conducted with Iraq through the BNL. These ‘irregularities’ heightened the cost of the transactions, thus using up the guarantees while exporting less than what was expected. Although the $1 billion guarantee was allowed for the year 1989, the CCC was forced to cut the 1990 amount down to just under $500 million, which Iraq took as an insult. Iraq was counting on the $1 billion, and receiving only half of the amount expected caused a major blow to Iraq and initiated the deterioration of US-Iraqi relations, which ultimately ended in war.
I guess sending Iran weapons in exchange for the release of hostages was not a demand of the terrorists… maybe just a bribe from our government. Only a month later, Reagan warmed up to National Security Advisor William McFarlane’s plan to assist Iran in its war against Iraq due to the prospect of freeing the hostages being held by Iranian terrorists. A week later it was decided that Israel would ship arms to Iran and the US would replace Israel’s stock. By the end of August 1985, 604 anti-tank missiles were shipped from Israel to Iran in two shipments without any hostages being released.
The arming of Iran came in two parts: the Arms for Hostages scandal in which the US government helped arm Iran in exchange for the release of kidnapped persons in several Arab nations; and the Iran Contra scandal in which the funds from the Arms for Hostages scandal were illegally diverted to aid the contras in Nicaragua in their bloodbath against the Nicaraguan government. Arms for Hostages Following the ouster of the Shah of Iran in 1979, the US banned trade with Iran and dissolved diplomatic relations with the new government.
America and the New American Century by Chris Wogan