IRAN PANELS GET SWISS BANK DATA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000504550018-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: February 9, 2012
• Sequence Number: 18
• Publication Date: April 24, 1987
• Content Type: OPEN SOURCE

Si Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000504550018-7
AM M
am P
24 April 1987
Iran Panels Get Swiss Bank Data
Senators Describe Breakthrough in Probe of Arms-Sale Funds
By Dan Morgan and Walter Pincus
Washington Post Staff Writers
The congressional committees investigating the Iran-
contra affair obtained Swiss bank records in Paris on
Monday that should enable them to trace where mil-
lions of dollars used in the operations came from and
how most of the money was spent, sources on Capitol
Hill said yesterday.
Senate select committee Chairman Daniel K. Inouye
(D-Hawaii) and Vice Chairman Warren B. Rudman (R-
N.H.) confirmed during a luncheon with reporters and
editors at The Washington Post yesterday that there
had been a breakthrough in solving the money puzzle.
Until now, efforts to reconstruct the chain of financial
transactions had been blocked by inability to gain ac-
cess to the Swiss accounts.
"I think we have enough in documents to follow a
clear paper trail," Inouye said.
"I don't know about [having) 100 percent," said Rud-
man, "but you will know where the money went and
largely the amounts."
The two senators also said:
^ The investigation has raised the prospect that U.S.
government funds, appropriated for another purpose,
may have been used to aid the contras militarily after a
congressional ban on such assistance.
^ Some money involved in the Iranian and contra op-
erations may have been pocketed by individuals. "It is
likely that before these hearings are over there will be
evidence that not all of the money from both sources
went for the purpose it was intended," Rudman said. He
said he was referring to money aside from that which
may represent reasonable commissions and profits.
^ The investigation shows the administration was "in-
ept." Rudman said, "It is a classic story of the gang that
couldn't shoot straight .... It is comical and pathetic,
and there are no Republicans who can change that, and
there are no Democrats who can make it worse than it
^ The Tower review board's characterization of Pres-
ident Reagan as out of touch will prove to be "a little bit
erroneous," based on excerpts of Reagan's diary that
are being made available to the committees. The pres-
ident, in his diary, comes across as being "very vigor-
ous, very dedicated to the cause of
the hostages, ... being very much
involved in it [the Iran initiative],"
Rudman said. The diary could
"cause some embarrassment," Inou-
ye added.
^ Congressional investigators have
managed to reconstruct much of
the material shredded by Lt. Col.
Oliver L. North, the former Nation-
al Security Council aide, and his
secretary Fawn Hall on the day be-
fore Attorney General Edwin
Meese III began his inquiry last No-
vember.
Congressional sources last night
said records show that money from
the Iranian arms sales was diverted
to the Nicaraguan contras. Rudman
said earlier that "the exact amount
[diverted] is one of the last things"
the select committees expect to un-
cover.
Monday's breakthrough in solv-
ing the money puzzle occurred'
when Iranian-American business-
man Albert A. Hakim provided
Swiss bank records and other doc-
uments to two committee members
and the legal staff at a meeting in
Paris, according to a congressional
source. Another Capitol Hill source
described the material as "very ex-
tensive financial information."
Hakim, who was involved in both
the contra and Iran activities, had
been given limited immunity by the
congressional committees. He sur-
rendered bank accounts and other
documents believed to show how
money moved into various Swiss ac-
counts and then was distributed.
Hakim's business partner, retired
Air Force major general Richard V.
Secord, managed the contra and
Iran operations for the White
[louse, but so far has refused to tes-
tify on grounds of possible self-
incrimination. Yesterday, however,
Inouye told a news conference on
Capitol Hill that there was "a real
possibility" Secord might reverse
his position and voluntarily testify.
Inouye, who nearly 14 years ago
served on the Senate Watergate
Committee, said he believed the
Iran-contra affair is "much more
profound in its effect" on U.S. pol-
icies than Watergate.
"It will affect many nations. It
may affect the health of [foreign[
governments .. It will have
some effect on the people of the
United States on the matter of
trust."
Rudman said that nobody will be
able to put a "spin" on the facts as
they come out during the upcoming
public hearings because they will be
based on examination of 100,000
documents and questioning of 300
witnesses. "These facts are bad
enough," he added. "They speak
very poorly of this administration."
Inouye said the president's diary
might improve Reagan's image by
showing that he was "rather knowl-
edgeable of what happened." But he
also said "there are some passages
in there that may cause some em-
barrassment and some injury to
persons .... For the president, it
will be a mixed bag."
The embarrassment, the senator
added, would be because "remarks
are made about people and recol-
lections of certain dealings with
people ... which they thought
were off the record."
The committees are currently
negotiating with the White House
to determine how much of the pres-
ident's diary can be made public,
Inouye said.
Asked whether any evidence had
yet been turned up to contradict
Reagan's categorical statement that
he knew nothing about a diversion
of funds from U.S.-Iranian arms
sales to the contras, Rudman re-
sponded, "We don't know. We will
not know until after we interview
[former national security adviser
Rear Adm. John M.[ Poindexter. As
of now we have no reason to think
that's not accurate." That initial,
closed-door interview by the com-
mittee counsels is expected to take
place next week.
Congressional investigators ex-
amining the role of the CIA have
spent hours interviewing agency
officials, but have been stymied in
e orts to learn t o u extent o
ormer erector William a es
ey s
involvement. Aske w et erne
Fe-
"paper r tr tral' vefope_"y tFie-Sn-
Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000504550018-7
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000504550018-7 1~.
awe committee covers Casey's ac-
tivities, Rudman replied: "Probably
not."
Another issue the two senators
touched on yesterday was conjec-
ture about a possible administration
cover-up after the public exposure
of the Iran arms dealings.
"If there was an attempt at a cov-
er-up at all-and I'm not sure .. .
you'd call [it] a criminal cover-up,
[but] at least a public relations cov-
er-up-it would be in trying to alter
the chronologies in a way to make
their actions look better," said Rud-
man. He was referring to several
White House chronologies produced
last November, which the Tower
board said were an attempt to limit
public knowledge of Reagan's role.
Commenting on Meese's inquiry
in late November, which turned up
the first clue to a possible diversion
of funds from the arms sales to the
secret contra war, Rudman said:
"There were so many things that
were done in my view in an inept
way that if anybody were trying to
do a cover-up, I think they would
have done things a lot different."
Until now, public attention has
focused on the diversion of Iranian,
arms money to the contras, as well-
as donations from individuals and ?
foreign governments. However,
Inouye said yesterday that "we are'
looking into the possibility of [U.S.]'
government funds other than those
from the Iran sale having been
used" to support the contras.
Aside from saying that some
money may have gone to the Ni-
caraguan rebels but was "appropri-
ated [by Congress] for a different
purpose; Inouye declined to elab -
orate.
But no evidence has emerged'
that any of the money was diverted,
to U.S. political campaigns, as some
have speculated, Rudman said.
Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000504550018-7