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Previously on Fiasco...
President Reagan's national security advisor,
Robert "Bud" McFarlane,
begins negotiations with Iran
and agrees to exchange weapons
for the release of American hostages.
The deal generates millions of dollars
that Oliver North and Richard Secord
divert towards the Contra War.
But after many shipments of weapons,
only one hostage is released,
and McFarlane loses faith and abruptly resigns,
only to be called out of retirement
for a top secret, face-to-face meeting
with Iranian delegates in Tehran.
The trip is a disaster that leaves the Americans
frustrated, demoralized,
and desperate for a new strategy.
As you know by now, there are plenty of twists and turns
in the story Americans know as Iran-Contra.
There was one twist in particular
that caught everyone by surprise.
Hello?
This is Hassan Sabra,
and he's kind of responsible
for breaking Iran-Contra wide open.
He did it in the pages of a Lebanese magazine
called Ash-Shiraa.
In the fall of 1986,
two secret operatives came to Sabra's office
with a tip that would change his life.
The article appeared
in the Lebanese weekly Ash-Shiraa
published in Beirut.
The editor, Hassan Sabra, explained
what he thought the Iranians want.
The news that Ronald Reagan
secretly traded Iran military equipment for hostages
is only the latest.
Trouble is, secrets don't keep very well.
And when they come out,
the damage to an administration's credibility
can last a very long time.
How would Reagan's administration react
when a little-known magazine editor in Beirut
stumbled upon the secrets they had been trying to hide?
Mr. President, is it true that you authorized
sending military supplies to Iran?
I've never heard such dissemination
of misinformation
since I've been here
as has been going on in the last several days.
They wanted us also to help
with the freeing of other hostages.
What would happen to those who exposed
all those secrets and upset the carefully laid plans
of the powerful people involved?
I'm Leon Neyfakh.
This is Fiasco.
The story of Iran-Contra.
While members of his administration were in Tehran
negotiating the release of American hostages...
- Thank you.
Really is great to be back on the campaign trail.
It almost feels like 1980 all over again.
...Ronald Reagan focused on the home front.
We love Ron! We love Ron!
We love Ron!
The president spent the 1986 midterms
traveling around the country, rallying support
for Republicans running for Congress.
Ladies and gentlemen,
the president of the United States,
President Ronald Reagan.
I need a congressman who will support me
instead of someone who opposes me 60% of the time.
During the second midterm,
congressional election is very, very tough.
You're really worn out by then,
and the opposing party has a lot to say.
Write it down.
Next January there'll be 53 Democrats
in the United States Senate
and 47 Republicans.
But, you know,
this talking about political differences and all
reminds me of a story.
It was a Democratic fundraiser at a downtown hotel.
And when they came out of the fundraiser,
there was a kid with some puppies,
and he was selling them.
"Buy a Democrat puppy. Buy a Democrat puppy."
But two weeks later,
the Republicans held a fundraiser in the same place.
When they came out, the same kid was there--
"Buy a Republican puppy. Buy a Republican puppy."
Kid says, "Now they got their eyes open."
Reagan's team had struggled
to come up with a message to campaign on.
They found one in a star-studded crusade
spearheaded by the president's wife, Nancy.
See this cute little vial here?
It's crack, rock cocaine, the most addictive form.
You think it's the glamour drug of the '80s?
Well, that's the point of this friendly little reminder.
It can kill you.
Well, the...
the decision to run that campaign was not mine.
But the decision to work on that speech was.
I met with the Reagans in California to hear them out
and listen to what they wanted to say.
And it was very, very important to her
and very, very important to him
to get that message across.
Now you can see why drug abuse concerns every one of us,
all the American family.
With the crack epidemic
surging in America's cities,
Reagan's anti-drug message
struck a chord with his base of voters
who believed in God and family values.
Are you afraid when you go out on the street
- at night? - Yes.
Why?
There's a lot of drug dealers.
They be shooting.
Drugs take away the dream
from every child's heart and replace it with a nightmare.
Each of us has to put our principles
and consciences on the line.
There's no moral middle ground.
Indifference is not an option.
I can't help but see all the young people
who are here in the audience,
and I have a special message to you from my roommate.
She said to tell you,
"When it comes to drugs, please, for yourselves,
"for your families, for your future,
"and for your country,
just say no."
I mean, if the Reagan administration
had "just said no"
to Contra drug smuggling
and to cavorting and collaborating
with drug smugglers,
they would never have been tarred and feathered.
My name is Martha Honey.
My name is Tony Avrigan.
And we lived and reported out of Central America,
based in Costa Rica for the 1980s.
We went down to Costa Rica
and really fell in love with it.
It seemed like a good place
to raise our kids and...
And so we decided to move there.
The only thing we didn't know was
our moving there sort of coincided
almost exactly with the CIA's taking a look at Costa Rica
and saying, "Hmm."
Martha Honey and Tony Avrigan
started to notice the Nicaraguan rebel force,
the Contras, setting up shop in Costa Rica.
And I remember one night,
soon after we moved there,
driving through a neighborhood,
and you'd look in the front window,
and there would be a Costa Rican family
having dinner, and then the next one,
a Costa Rican family sitting around the television,
and then the next one,
all these guys in kind of partial military uniforms
standing over a mimeograph machine,
and that was a Contra operation going on.
There began to be reports in the local press
that the U.S. government was involved
in facilitating operations out of there.
But our editors were very skeptical and said,
"Well, that's not what the State Department's telling us.
"They are telling us that the U.S.
is not involved militarily in Costa Rica."
Something wasn't quite adding up.
The waning days of the last session of Congress,
we passed the Boland Amendment.
Remember the Boland Amendment?
The House Intelligence Committee today
voted to cut off U.S. funds
for secret intelligence activities in Nicaragua.
The vote reflects a growing concern in Congress
that CIA funds are being used to overthrow
the Sandinistan government in Nicaragua.
Since official funds couldn't flow to the Contras,
the administration funneled private money
to the rebel forces fighting the war.
Oliver North's whole secret re-supply operations,
all of it was focused on Nicaragua,
but it was operating out of Costa Rica.
The U.S. wasn't supposed
to be helping the Contras.
But Martha and Tony were receiving clear evidence
that they were.
We made frequent visits up
to the southern front into Nicaragua.
It's a pleasure.
And suddenly,
they started showing us mortars
and small artillery pieces painted
in desert camouflage colors in the rain forest.
And they wore always these huge-sized pants
and huge boots made for 6'6" Americans.
And so they had their pants sort of up to their chest.
And the Reagan administration vehemently denied
anything was going on, but as we quickly learned,
all you had to do was open your eyes.
And while weapons and uniforms
were going into Central America,
something else may have been going out.
It was a difficult story to really prove.
But we kept kind of running into the drug trafficking,
and it sort of became a story that we finally had to take on.
Drugs are menacing our society.
They are threatening our values
and undercutting our institutions.
They're killing our children.
Even as the Reagan administration
was telling Americans to just say no...
We can defeat this enemy.
...some of the President's beloved
Freedom Fighters, the Contras,
were smuggling drugs into the United States.
But we still have much to do.
Despite our best efforts,
illegal cocaine is coming into our country
at alarming levels.
Drug smuggling is just one of a long list
of kind of the dark, dirty side of many paramilitary wars.
And the Contra war was no exception.
When Oliver North started to build
this secret resupply operation,
he used pilots who had already
been convicted of drug smuggling.
Why?
Because they were readily available.
And we interviewed a number of these pilots
who began talking about their ties to the CIA
and how they would fly into, for instance,
Homestead Air Force Base which was outside of Miami.
As an extra added bonus,
we could freelance on the way back.
Meaning what?
Well, I mean, we could--we could bring back our own cargo
without ever having to worry about interception,
arrest or anything like this.
Everything was taken care of.
They would leave the plane, but it would not be inspected
as other planes coming in were because it had drugs on it.
Given your experience,
who do you figure arranged all of this?
What's your best guess?
Had to be someone in either the top four--
three slots of the CIA as I know their organization.
The U.S. said, "Well, of course these pilots are going to say
they're working for the CIA to try to protect themselves."
Had to be someone that high up. It'd have to be.
Why?
Because who else can you get that's gonna know,
number one, the inner working of everything
but who can pick up a phone and say, "Let this happen"?
I would say the majority of people
working with Oliver North
were not involved in drug smuggling,
but there were enough people who were involved.
And that's wrong. That's criminal.
And it was just among the priorities
that the Reagan administration set
where the health and security against drugs
of young people and communities of color
in this country was inconsequential
compared to the top priority--
overthrowing the Sandinista government.
In order to bolster the Contra forces,
the United States created a base of operations
in the demilitarized country of Costa Rica.
This was not well received by the locals.
Last week saw one of the biggest ever
demonstrations held in this 35-year-old democracy.
Thirty thousand people
protesting at American pressure
upon Costa Rica to abandon
its traditional position of neutrality.
We sort of felt an obligation to,
you know, be reporting on what was going on.
But exposing the illegal covert activities
that the U.S. was carrying out,
I mean, it is a dangerous story to cover.
In 1984,
Tony Avrigan traveled to the Nicaraguan jungle
for a press conference led by the southern Contra leader
Eden Pastora.
As the press conference got under way...
...a bomb went off.
Seven people were killed...
including three journalists.
Tony was among the injured.
It would later come out the attack
had been carried out by a Sandinista sympathizer.
As the reporting on the war
and drug trafficking progressed,
Martha and Tony felt like
they were being watched and threatened.
We were out one day, and we came back,
and our files had been gone through
and were in a bit of chaos.
We quickly learned that someone
sent down a CIA operative to spy on us.
Part of it was to intimidate us.
We would check under our Jeep every day to see
if there was a bomb placed under it.
The most scary incident
was when we were mailed a packet of cocaine
and arrested as drug traffickers.
It was the DEA and the CIA
that mailed us a package of cocaine--
two agents from there.
It came in a package
of two books with a letter that said,
"Tony and Martha, here's a sample
"of the latest shipment of cocaine
"that we want to send up to Miami,
"but we want you to test it first to see
if the quality is good enough."
And the next day,
there were stories with photos of us saying,
"Journalists arrested as cocaine traffickers."
It was awful, because as you can imagine,
you know, all of our kids' friends,
their parents wouldn't send them to play with our kids.
I mean, how do you prove that you're not a trafficker?
We had been for such a long time
uncovering these things that the rest of the world
was denying or the State Department was denying.
And eventually what began to happen was for us
and a couple of other journalists,
the U.S. officials began calling
whenever we were reporting and say,
"This is not correct.
"What they are reporting is not correct.
You should not be using them. You should fire them."
For several years, Oliver North and his cohort
had been successful in keeping their covert activities
out of American media.
And one day, I, you know,
remember turning on the television,
and this big kind of disheveled American
being led out by these little Nicaraguans.
I mean, this was the smoking gun.
Eugene Hasenfus, an American from Wisconsin,
was walked out of the jungle in southern Nicaragua today.
His captors, Nicaraguan soldiers,
claim they shot down a cargo plane
carrying the American and three others
with a Soviet made surface-to-air missile.
My name is Gene Hasenfus.
Marinette, Wisconsin.
I was shot out of the sky.
In October of 1986,
a story broke out of Nicaragua
that made the Reagan administration's
military alliance with the Contras hard to deny.
Eugene Hasenfus
really was a soldier of fortune.
He managed to get recruited
to work on one of these airplanes
and airdrop weapons to the Contras.
These planes, they were perfect
for airdropping pallets of equipment
because they flew relatively slowly.
The drawback, of course,
was that these planes flew low and flew slow.
That made them easier targets for Sandinista gunners.
Amid the smoldering gear,
the Sandinistas found the bodies of Hasenfus's team--
two American pilots and their radio man,
a 17-year-old Nicaraguan boy.
The next day, deep in the jungle,
a group of soldiers found Hasenfus asleep in a hammock
that he had made out of his parachute.
All of a sudden,
we had an American prisoner of war in Nicaragua
in a war we weren't even supposed to be fighting.
I was staffing the CBS office in Nicaragua.
And I remember the Sandinista press officials
coming over to me and saying, "What do we do with this guy?"
The Sandinistas paraded their new hostage
in front of the press.
And he was captured around noon on Monday the sixth.
Thank you.
For the first time,
the government made public
sensitive documents found in the crash.
Until now, the Sandinistas have kept secret
that among the papers in the plane
was a list of 13 Contra pilots and their code names.
The objectives of our flights into Nicaragua
were to resupply the Contras.
He started singing like a robin.
Of course, that led to the--
to the whole story coming apart.
Hasenfus says he was working for the CIA.
He told an amazing story,
which was that he was told not to wear a parachute
and that everybody on the planes was told not to wear parachutes
because they wanted them to die if the plane was shot down
so that they wouldn't live to be able to testify.
Nearly every day, Sandinista soldiers drill
in Managua and throughout the country
to prepare themselves for the American invasion
they've long been predicting,
an invasion they say is symbolized by Eugene Hasenfus.
I'm glad you asked. Absolutely none.
As Reagan's team continued
to deny their involvement in the Contra War,
the American media had more questions than answers.
Who is Eugene Hasenfus?
No one seems to know anything
about it in Marinette, Wisconsin,
the town along the Green Bay shore
where Eugene Hasenfus lives.
He grew up here, played on the high-school football team.
He and his wife, Sally, and their three children,
live in this lakeside house just outside town.
We know he is an American citizen,
an ex-marine, a soldier of fortune in the Vietnam War,
and we know his transport plane
was shot down over Nicaragua.
Hasenfus's father says he had no idea
Eugene was in Central America,
but he did leave town five months ago.
All's I know is that he was going to Florida
to go to work, construction work.
And that's all I know on that part.
Eugene's brother, Bill,
got a different version.
He said he got a job with an air transport outfit
out of Miami hauling cargo.
His basing job was a loadmaster, a crew chief.
The two brothers often skydive together.
The last time Bill saw his brother was Labor Day...
when Eugene borrowed a parachute from him.
Reagan! Reagan! Reagan! Reagan! Reagan!
The confusion seemed to inspire the press
to uncover the truth.
With the midterms less than a month away...
the Reagan administration needed a cover story.
Mr. Secretary, can you give me categorical assurance
that Hasenfus was not under the control,
the guidance, the direction or what have you
of anybody connected with the American government?
Absolutely. That would be illegal.
We are barred from doing that, and we are not doing it.
This was not in any sense a U.S. government operation. None.
Members of the National Security Council
held a meeting in order to coordinate a response.
According to notes taken
by one of the officials present that day,
the decision was made to ask the Contras
to assume responsibility for the flight.
The Contras agreed.
This is a private effort,
and in no way is it an effort of a government
or of any agency of this government.
The White House insisted
that Hasenfus was a lone pilot
working for a private company
supplying arms to the Contras, end of story.
Do you feel more optimistic
than you did a few days ago now that you've had a chance
to talk both to the defense attorney and with your husband?
I won't feel completely optimistic
until I get him home.
Last night, in prison,
Gene Hasenfus signaled his irritation
at being continually forced by his captors
to answer questions in public.
What do I think about right now?
I don't like sitting here. I don't even want to be here.
No.
I've been bounced around to these rooms
in front of lights and cameras so much, you can't believe.
And it's--I'm not used to it, and I don't care for it.
Hasenfus, it turned out,
was the one hostage in the story of Iran-Contra
whom Reagan didn't seem interested in saving.
But then a news report came out
linking the resupply operation back to Oliver North.
Hasenfus and the people he was working for
had not been especially careful
in covering their tracks.
And reporters were able to get all of the phone records
of the safe house that Eugene Hasenfus
had been seen at.
And that included phone calls to Ollie North's office.
We've got some people,
perhaps in the National Security Council
who have been watching too many Rambo movies.
I personally believe it's imperative that we hear
from the National Security Council.
I think we need to hear from Mr. Oliver North
under oath.
It felt a little bit like Watergate,
that moment in Watergate
when all of a sudden you realize
this is a bigger story than we realized.
A CIA operation, a CIA-operated plane,
CIA-paid people were caught red-handed.
Sorry to trouble you, sir.
Could you just tell us what the press--
Why don't you go back home where you belong?
Yes. Could you tell us, sir,
what has happened to the money?
All kinds of people called me--
North, McFarlane, etcetera.
And the whole thing just started to unravel.
My front yard was filled with reporters
faster than you can say your name.
Why were they dealing directly with Oliver North?
Where was this money coming from?
Who had paid for the airplane?
Who had paid for the shipment?
And the biggest question,
the overarching question, of course, was--
how deeply was
the Reagan administration involved in this?
Up until this point,
Project Democracy had yet to encounter a problem
that couldn't be fixed with a bit of PR.
When the airplane went down
that contained arms
that were intended for the Contras,
it basically proved the case
that we had every right to be concerned
that the administration was doing something
violating the Boland Amendment.
That has always been something that the White House
says will never happen.
And yet it happened yesterday
with three Americans dying.
This city is awash with rumor,
intrigue, treachery.
Laws have been broken.
At the very center of the White House,
there has been the most unbelievable revelations.
The number of times that Oliver North's superiors
were called up to the subcommittee
to testify about news reports
that they were secretly resupplying the Contras
in violation of congressional law.
And they just falsified the testimony.
They lied again and again and again.
What you realize is that
people are operating on their own
without any kind of supervision,
without any kind of rule of law.
Basically, you're dealing with,
you know, a group that feels
it's licensed to do whatever the hell they want.
The curtain had really been pulled back
on these illegal operations,
and the scandal literally started
to unravel right there.
And then just a couple weeks later,
the Iran side of it escalated.
Just weeks after the Hasenfus crash in Nicaragua,
two operatives from Iran arrived in Beirut.
They were on a secret mission
to find a trustworthy journalist
and leak him a story.
The operatives knew Hassan Sabra
was a supporter of the Iranian Revolution.
Sabra's magazine, Ash-Shiraa,
had been reporting on the Iran-Iraq war for years.
Iraq's 190,000-man army
has been lavishly equipped by the Soviet Union.
For the Iraqi, it is a conventional war.
For the Iranians, it is nonconventional.
It is guerrilla warfare.
Responding to the Ayatollah's call,
thousands of young Iranians
have taken up arms against the Iraqis.
It is these amateur soldiers
who will have the job of trying
to break through the lines of Iraqi tanks and guns.
For years, Iran had been holding its own
in the conflict,
but in recent months, something had shifted.
It seemed to Sabra
that Iran had gained a decisive advantage.
The men from Tehran who had shown up
at Hassan Sabra's office seemed to have an explanation.
They told him that representatives
of the Reagan White House had been in Iran
to negotiate an unthinkable deal.
And it was a really good story.
I mean, all kinds of journalistic bells
started ringing in my head.
I said, "This is a scoop.
I have got to write this story."
It was so outlandish, you know,
the key and the cake and the Bible
and the fact that it was the Reagan administration.
You know, we were cut off from what was going on
in the rest of the world.
There was no electricity, so we didn't watch CNN a lot.
So this was really a newsmaker for me.
This was a scoop.
I think I may have called him
when I was writing the story.
I wanted to see if there was a story behind the story.
And, actually, there was.
For me, working for an American newspaper,
it was, "Wow, you know, this puts
the administration on the spot."
And there were all these contradictory things, you know.
The Americans were going around the world
telling Europe and others, "Don't sell weapons to Iran,"
yet they were doing it.
And the fact that it was so intimately involved
with the fate of the hostages.
So it was this tapestry of intrigue.
I was investigating all of this stuff.
I was talking to people I knew in the government.
And even they told me
they couldn't put the pieces together.
So none of us quite got to the nub of the matter until,
to our shame as journalists,
a Lebanese magazine called Ash-Shiraa
got a terrific scoop.
I wrote a really detailed story,
and my foreign editor,
who was friends with Bud McFarlane,
called him up and said,
"I want you to be honest with me.
Were you in Tehran in September?"
And McFarlane said, "No."
It had all the other details of the story.
But, in fact, he had gone to Iran in May.
So they played down the story.
There have been reports that you were carrying a cake
that was shaped like a key, that you were carrying a Bible,
that you took personal revolvers
for Rafsanjani as well.
Any parts of those reports true?
Tom, you know me better than that.
I don't do business that way.
And then Rafsanjani
gave a press conference in Tehran
in which he detailed
the story, you know, how they had met
and the key and the cake and the whole enchilada.
We were told that
he was carrying some pistol
for the individual authorities in Iran
and a cake.
It was the most important scoop that year.
The whole world paid attention to it.
When the story broke about our trip,
my wife and I were actually celebrating her birthday,
and we had just finished a wonderful dinner
when I got paged--
we still had pagers in those days--
by the White House Situation Room
to tell me about the Ash-Shiraa story
that revealed that a U.S. delegation
had come to Iran to try to, you know,
bring about the release of the hostages,
and we had brought a cake in the shape of a key
and other things that weren't quite accurate.
But enough of it was true
so that I immediately understood
that the future was going to be very different for my life.
That these were
straight "arms for hostage" swaps
immediately set off a storm in Washington
because that was not the policy of the United States.
It was a policy that Ronald Reagan
and his secretary of state, George Shultz,
had said they would not follow.
It would have been illegal to do it.
So what was this about?
Could I suggest an appeal to all of you
in regard to this, that the speculation,
the commenting and all?
On a story that came out of the Middle East,
it has no foundation,
that all of that is making it more difficult for us
in our efforts to get the other hostages freed.
You could be clever with your words and say,
"Yeah, we weren't really negotiating with terrorists,"
but, effectively, we were.
We negotiated with Israel to help Israel decide
to do something that terrorists wanted,
and then the terrorists did what they said
they were going to do and released those hostages.
So sometimes it worked,
and violence was averted.
And sometimes it didn't.
And as far as Weinberger
and Secretary Shultz were concerned,
we were dealing with terrorists,
and it made them very uncomfortable.
When the news broke,
we were getting onto Air Force One,
and a correspondent shouted to Reagan
a question about Bud McFarlane
going to Iran--
and could you comment on it?
And Reagan did not answer the question.
November 4, 1986
was not a good day for Ronald Reagan.
Good evening. Virtually all the polls
have closed in all of the states now.
And what we know at this hour is that the Democrats
have taken control of the United States Senate,
and it may be by a significantly larger margin
than even they had anticipated in their wildest hopes.
Well, Jane, clearly the new numbers
mean it's going to be a different ball game
for President Ronald Reagan
from here on through the end of his term.
Standing by in our Washington studios this morning
is White House Chief of Staff Donald Regan.
- Good morning, Mr. Regan. - Good morning, Bryant.
In spite of his campaign blitz,
the president had failed to inspire the nation
to keep the Senate on his side.
For the first time in his six years as president,
Reagan would be working with a Congress
under Democratic control.
Wasn't this, Mr. Regan,
a personal rebuff for the president?
I mean, we can run down the laundry list,
and, frankly, it looks pretty bad.
To make matters worse for Reagan,
the press would not let up on the Iran story.
The White House scrambled
to get on top of the story, but they had a problem.
Very few of them knew exactly what had gone on.
But there were plenty of officials
who wanted to jump in and control the story.
And so officials began telling stories
that conflicted with each other.
They told stories that didn't make sense internally.
We rather quickly came to realize
there is something seriously amiss.
In November of 1986,
the president once again hosted a ceremony
in the White House Rose Garden for a recently released hostage.
By now, this was a familiar ritual.
Unlike the other ceremonies,
this one was occurring amid a very public scandal
about covert arms sales to a terrorist country.
Mr. President, the Iranians are saying
that if you'll release some of those weapons,
they'll intercede to free the rest of the hostages.
Will you?
The White House's
awkward public attempts at evasion
only added to the press's interest.
I'm not supposed to take questions,
but I will answer that one, Sam.
At00 tonight, tune in, and you'll hear all.
And so, on the evening of November 13th,
Reagan delivered his first full public statement
on the Iranian arms deal.
Good evening.
I know you've been reading, seeing,
and hearing a lot of stories the past several days.
A charge has been made that the United States
has shipped weapons to Iran as ransom payment
for the release of American hostages in Lebanon,
that the United States undercut its allies
and secretly violated American policy
against trafficking with terrorists.
Those charges are utterly false.
Relying on the advice of his trusted aide,
John Poindexter, Reagan insisted
that what the White House had done
was consistent with their policy.
There's a saying in Arabic that,
"They're not doing it for the blackness of your eyes,"
you know, or the beauty of your eyes.
There's some other interest, some other agenda.
...those who commit terrorist acts...
It signaled to me that, in politics,
there is no idealism, there are no ideals.
There are interests.
Sometimes they intersect.
And what is expedient is the policy of the day.
Good evening.
This is the CBS Evening News, Dan Rather reporting.
A new Los Angeles Times poll just released indicates
only 14% of the American people
believe what President Reagan has told them
about his weapons deals with Iran.
He obviously designed the 12 minutes
to mislead or to sort of obfuscate.
And Ronald Reagan doesn't come off very well
when he does that.
I still feel strongly as a White House watcher
that the most important thing to them was,
the heck with policy,
let's get these hostages home before the election.
The speech was widely regarded
as a disaster for the president.
I certainly wasn't excited about his performance.
I thought that it was not a good explanation
of all that we were trying to do.
It concerned me because I began to realize
that the president wasn't going to be able
to explain this well to the American people.
It was a watershed moment
in the Iran-Contra affair.
Reagan had now publicly adopted
an inaccurate version of events,
and not only did the public think he was lying,
some members of his own administration
were losing confidence, too.
Soon, Secretary of State George Shultz,
who had always opposed the weapons sales to Iran,
gave an interview that revealed the power struggle
going on within the White House.
I had not been willing to go
on any of the shows or whatever.
And then I was told that a decision had been made
to stop all arms sales.
So I agreed to go on Face the Nation.
And as I was getting ready to go over to the studio
on a Sunday morning,
I was told the decision had changed
and arms sales were gonna continue.
But I was on the hook to go.
So Lesley, toward the end of her show,
said...
I'll ask it again--will there be any more arms shipments
to Iran, either directly by the United States
or through any third parties?
Under the circumstances of Iran's war with Iraq,
its pursuit of terrorism,
its association with those holding our hostages,
I would certainly say, as far as I'm concerned, no.
Do you have the authority to speak
for the entire administration?
No.
And I went back to my office
and I told my staff, "When I get back,
I won't be secretary of state anymore."
When the secretary of state
goes public with his lack of confidence
and his disagreements with the president,
it is an unusual event in Washington
and a sign something is deeply wrong.
I do have the sense
that we are witnessing the disintegration
of this administration's foreign policy.
Your presidency is tottering.
Do you realize this?
It can be saved, but only you can save it
and only if you will talk with us, the Congress.
And it seemed that Congress
now had plans of its own.
And in Congress, there is a mixture of astonishment
and outrage in both parties tonight.
NBC's John Dancy reports now that there were accusations
that the White House had broken the law.
It's like a very, very gigantic jigsaw puzzle
that's got a puzzle on both sides
and is three-dimensional.
So if you don't have great structural vision,
you're gonna have--
Yeah, a Rubik's cube is a better example.
You know, it was too much for the press
to try to uncover all of this.
There needed to be independent investigations.
We needed the subpoena power
that can come through congressional investigations.
The administration was awash in scandal.
But the biggest bombshell of all,
the illegal diversion of profits from the Iran deal
to the Contras, had yet to be discovered.
Ronald Reagan,
who was used to basking in the glow of stage lights,
suddenly found their glare to be a little too bright.
Meanwhile, with investigations looming,
one loyal foot soldier was preparing himself
to take the fall.
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