REAGAN SEEKS SPECIAL COUNSEL, NAMES CARLUCCI SECURITY AIDE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000403850009-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: July 16, 2010
• Sequence Number: 9
• Publication Date: December 3, 1986
• Content Type: OPEN SOURCE

STAT Sanitized Copy Approved for Release 2010/07/16: CIA-RDP90-00552R000403850009-4
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WASHINGTON POST
3 December 1986
Reagan Seeks Special Counsel,
Names Carlucci Security Aide
? r
By David Hoffman and Lou Cannon
Washington Post Staff Writers
STAT
President Reagan yesterday called for
the appointment of an independent counsel
to investigate charges that the administra-
tion illegally diverted money from the Iran
weapons sales to the Nicaraguan rebels, and
he appointed Frank C. Carlucci, a former
deputy defense secretary and deputy CIA
director, as his fifth national security advis-
er.
If illegal acts were undertaken, those
who did so will be brought to justice," Rea-
gan said in a four-minute nationally tele-
vised address from the Oval Office, his
fourth attempt in as many weeks to respond
publicly to the intensifying political crisis.
Attorney General Edwin Meese III an-
nounced that the Justice Department inves-
tigation had turned up enough evidence to
warrant an application to the U.S. Court of
Appeals here for an independent counsel.
Reagan's announcement brought sighs of
relief from congressional Republicans who
have grown increasingly concerned about
the controversy, but leaders in both parties
said their own independent inquiries will
move ahead regardless of the special coun-
sel or White House personnel moves. Rea-
gan endorsed the idea of a consolidated,
Watergate-style congressional investiga-
tion. The Republican leaders told Reagan
they could not defend him unless they knew
the full story, sources said, and they are re-
turning to the White House for another
meeting with the president today.
The president's brief speech yesterday
followed a flurry of debate among senior
White House officials about what he should
say. Informed administration sources said
that aides loyal to the embattled chief of
staff, Donald T. Regan, sought to include
language in the president's address to the
effect that Regan did not have any prior
knowledge that money was diverted to the
Nicaraguan rebels. However, the language
was not included in the final speech.
The choice of Carlucci also followed a
struggle within the administration in which
Regan was apparently isolated. As recently
as Monday, the chief of staff told aides Car-
lucci was not a serious candidate for the
post. Carlucci was backed by CIA or
William J. Casey, Defense Secretary Caspar
Weinberger and creta of State
George P. Shultz sources said.
The sources said it was the first time in
nearly two years that the president made an
important personnel choice that was not ad-
vocated by Regan. But sources close to
Regan claimed, after the decision, that Car-
lucci was acceptable to the chief of staff.
Regan indicated to Republican congres-
sional leaders yesterday that he intends to
resist demands that he resign in the after-
math of disclosures that $10 million to $30
million from Iran weapons sales was fun-
neled to the contras through Swiss bank
accounts. Regan told the leaders that the
need to maintain continuity in the presi-
dent's program requires him to remain on
the job.
Sen. Alan K. Simpson (R-Wyo.), the out-
going majority leader, said after seeing the
chief of staff: "I don't see how you
can possibly leave the president
with a coming session, a State of
the Union address, budget consid-
erations, Gramm-Rudman-Hollings
and other things. You can't
[leave him alone to do that. And it's
very important, I think, for stability,
and I think you're going to see ev-
erything come up, and that's the
,key." House Minority leader Robert
H. Michel (R-Ill.) quoted Regan as
saying there would be a "delay" in
Reagan's program if he left.
However, another influential Re-
publican, outgoing Senate Foreign
.Relations chairman Richard .. C,.
Lugar (R-Ind.), called for Regan and
Casey to resign.
Sources inside and outside the
administration said Reagan had
come to the conclusion over the
weekend that he needed to call for
an independent counsel investiga-
tion, and on Monday he said he
would "welcome" one if the justice
Department found it warranted. Af-
ter learning that Meese was pre-
pared to seek an independent coun-
sel, Reagan said he "immediately
urged" Meese on Tuesday to do so.
Reagan noted his own special re-
view board's inquiry into the func-
tions of the National Security Coun-
cil and said it would, along with the
independent counsel, provide "a
dual system for assuring a thorough
review of all aspects of this matter."
He did not mention Congress as
part of this "dual system," but added
in the speech that "I recognize fully
the interest of Congress" in the se-
cret operations. "We will cooperate
filly with these inquiries," he said.
"I have already taken the unprec-
edented step of permitting two of
my former national security advis-
ers to testify" before Congress.
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Reagan was referring to Vice
Adm. John M. Poindexter, who re-
signed last week, and his predeces-
h
sor, Robert C. McFarlane, w
made a secret trip to Tehran on
mission delivering weapons las
McFarlane has testifed exten
May
.
lively before the enate Intelli-
gence ommittee -this week, but
Poindexter yester ay reportedly
refused to answer questions.
Another key figure in the clan-
destine operations, former National
Security Council staff member Lt.
Col. Oliver L. North, also refused to
answer questions, invoking his Fifth
Amendment privilege against self-
incrimination before the Senate
panel.
The president said congressional
inquiries "should continue" but as-
serted that Congress could conduct
the probe "without disrupting the
orderly conduct of a vital part of
this nation's government." Reagan
said he supported the idea of out-
going Senate Majority leader Rob-
ert J. Dole (R-Kan.) that the con-
gressional probe be consolidated
into one bipartisan panel.
"If the investigative processes
now set in motion are given an op-
portunity to work, all the facts con-
cerning Iran and the transfer of
funds to assist the anti-Sandinista
forces will shortly be made public,"'
Reagan said. "Then the American
people, you, will be the final arbit-
ers of this controversy."
A source present at the meeting
between Reagan and the congres.
sional leaders said the lawmakers
sought to impress on him the seri-
ous nature of the controversy.
"Gradually, over time, the pres-
ident is acquiring a realization of
how serious his problem is," said
the source. "The president is angry
at the whole situation, he's angry at
the press and the Republicans in
Congress for not defending him. We
tried to convey to him that there
was a risk in defending him unless
we knew the whole story."
The president's actions were
hailed by Democrats as well as Re-
publicans on Capitol Hill, although
leaders continued to press ahead
with plans for one or more congres-
sional probes of the affair, and some
lawmakers of both parties called for
further action by the administra.
tion.
"The president has taken some
very positive steps. He could take
more," including "cleaning house
around him and saying to the Amer-
ican people he recognizes, even
with the benefit of hindsight, he has
made a mistake,' said senate L)em-
ocratic leader Robert C. Byrd (D-
W.Va.).
House Majority Leader James C.
_Wri htht Jr. (D-Tex.) said Reagan
made "two steps in the right direc-
tion" by calling for appointment of a
special counsel and naming Carlucci
as national security adviser. But he
said there are unanswered ques-
tions about violation of laws, includ-
ing those involving arms sales and
aid to the Nicaraguan contras, that
still need to be addressed by the
administration.
Dole said, "He's come a long way
.... Now it's up to Congress to get
a mechanism and go to work, not
wait till next January and drag this
all into next spring and summer."
Several Democrats and Repub-
licans said they anticipate a further
shake-up of top-level personnel
within the administration. "I sus-
pect that will be forced on the pres-
ident ... by public opinion," said
Sen. J. James Exon (D-Neb.).
Congressional leaders remained
at odds over how to proceed with
congressional inquiries, but it be-
came increasingly apparent that a
Watergate-style select committee
could be named in the Senate if not
the House, or by the two houses
acting jointly.
Wright said he had "no particular
prejudice" against consolidating
House committee probes under the
umbrella of a select committee but
wanted to confer with other House
leaders before coming to a decision.
Byrd, who will take over as majority
leader when Congress reconvenes
next month, said he favored cre-
ation of a Senate investigative com-
mittee but did not rule out the joint
House-Senate probe favored by
Dole.
Byrd said he hoped to consult
with Dole and Wright on the issue
shortly and plans to introduce leg-
islation to create a Senate panel as
a first order of business when Con-
gress convenes Jan. 6.
Byrd said he envisioned a bipar-
tisan committee of no more than 11
members and has already recruited
a large number of volunteers to
serve on it. Asked whether he
thought this response indicates a
Democratic zeal to go after the
Reagan administration, Byrd said
no, adding that Dole also is getting
a "plethora" of volunteers from the
Republican side of the aisle.
Also yesterday, Democrats on
the Senate Judiciary Committee
said administration and White
House officials may have broken at
least six criminal laws in the clan-
destine operations, and urged the
appointment of the independent
counsel.
Staff writer Helen Dewar
contributed to this report.
JL
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