'ONE-TWO PUNCH' FOR CONTRA AID

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000605090002-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 23, 2016
• Document Release Date: February 21, 2013
• Sequence Number: 2
• Publication Date: May 22, 1987
• Content Type: OPEN SOURCE

>5-22-87 FR I 08:47 BURREL_LES NEW CLIPS
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WASH c4GTON POST
MAY 22198'!
Ay>Q ~
7~ .
Three contra donors standing, from left, Joseph Coors, Elks Gsrwoad and Wiliam O'Boylr, counsel Duneaa Osborn Naiad.
`One-Two. Punch' four
rth cave Pitch; Channels
'sect d, Contributors Testify
T o wea
forts er Whi
er rI R. (
in s liciting
cunt ns afte
Office Build
of viet bo
dev tating
o" yle tot
Nor Also
"seclet plan
ARerwar
meetings at
arms or ant
tion.,O'[luyl
tifiel that C
it Iii of cnnt
tail lunge
Dan Morgan and Wf f'in~xtet`r
WA dl..du -,I 1%),I
by contributors yesterday, described how
Boise aide Oliver L. North and fund-rnis-
itz) Channell worked as n "orte-two punch"
Congress cut off aid in Octobe
r in the White House and Old Executive
g, Marine Lt. Col. North painted for po-
William B. O'Boyle a threatening picture
bers landing at a Nicaraguan air base after I
the Iran-contra investigating contmittees,
nfided, O'Boyle added, the exists oce of it
for the contras to oust the Sandinistas
of a ti,S. Navy blockade.
at intimate private dinners or small c
legant hotels, Channel! followed up with a ,
y to provide the contras with equipment,
unition through his "tax-exempt" fouuda?
said he eventually gave $ 160,000.
melt. in the company of North, gave her
a needs in a side rump adjoining the cock-
the Flay Adams Hotel, Listed were such
ntra Aid
TB TI T, From A 1
contra needs as hand grenades, bul.
lets, cartridge belts and "poeafbly
surface-to-air.missiles."
Taking to heart North's warning
that the contras "might cease, to
exist if something weren't done
about these various needs," Gar-
wood testified, she contributed $2.4
million to Channel's National En-
dowment for the Preservation' of
Liberty (NKPL) in the next two
months.
"Where I come from, we call that
'the old one-two punch,"' com-
mented Sen. Warren B. Rudman
(R-N.N.), the Serrate committee
vice chairman.
A third witnesa, Colorado indal~ts-
triatiat Joseph Coors, described, a-f
different one-two punch.
In t June 1985. when he told his
longtime friend William I. Ca
who was then CIA director that
wanted to aid the contras Case said
he couldn't do anything, ut "to
point-blank," Coors ndded Caw
told him Ilie North's the guy to
see."
Casey, who was in his office at
the Executive Office -Building. ar-
ranged or oars to step around the
',~Isfttse!
I At I 'Pr-
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z.
corner and visit North who con-
vinced him to give $65,000 to ur-
chase an aircraft Of the kinc t
.contras needed for light condo arrcl
short runways in Ilondunm
North's direct dealings with
Coors contrasted to the accounts of
Garwood and O'Boyle, who teati(ieii
that Channel usually solicited mon-
ey after North had left, North sub.
sequently provided Coors with the
name and number of Lake Res
sources, the Swiss bank aceounlt
controlled by retired Air Force nta.
jor general Richard V. Second, and
in August 1985, Coors trnnaferrct
the money to that account,
The committee not only provided
details of how private money was
raised domestically for the con,
tras--using the prestige of Ithe
but also raised queetiotn~t about
donated funds were us$,
Coors, for example, t ld the m-
ittittee that he believed the $65 00
would purchase a Maulgaircraf or
use by the contras, a even d
that North showed him a pictu of
it in the jungles of Illondsras, ca ng
Two weeks ago, however, Se rd
testified that the Maule lad bec e
part of the assets of his 'en r.
prise.' which was running a pri to
airlift to resupply the dotntras, le
acknowledged the plane had In
uments show came from Coors.
Coors said yesterday tjnat he $
"surprised and shocked to I n
this. And O'Boyle, who had s f-
tribution to Channell's foundat
for two Mauler, went further:
didn't give this money to Gen.
cord. I_gave it to the freedom
Channel pleaded guilt a rem
ago to conspiring to d raud t e
government by using f fro min
chase weapons.- North wits Hain
as a coconspirator.
The committees also Are pur
.
it'll what happened to lame cunt
butions such as the ones Garw
records, on April 15 and. May I
deposits to NEPL obtaine'I by TI
Washington Post does no list co
tributious In the amnuniM nm.A I
Garwood's documents show
she transferred money or ock t
toeing just over $2 million o NE
on April 15. The acre rev'
does list a deposit of $1,256,000
May 8, 1986, and a su~ae
transfer of that amount t~ agCA
man Islands spelt company that p
vided funds to the contras On 19
However, contra records made
available to the committees show
the Nicaraguan rebels receiving
less than $1 million from that
source during the entire year of
1986.
Garwood raised the question of
how much the Channel operation
deducted for costs and overhead in.
An anecdoti.
She said Channell had solicited
$10,000 from her last December
for a fund to cover legal costs and
children's education for North. Af?
ter she contributed, however, she
was called by a North friend also
raising money for North's defense,
"Do you know Mr. Channell takes
35 percent for his own organitn-
tion's overhead?" the friend asked.
After confronting Channell and get-
ting no denial, she took the money
back and seat it to the "officiar do.
tense fund.
In other testimony that touched
on fund raising, the committees also
finished hearing testimony from
retired Army major general John K.
Singlaub. [to testified Wednesday
that in early 1986 he visited Assist-
ant Secretary of State Elliott Ab.
rams prior to traveling to two na-
tions-identified by sources as Tai-
wan and South Korea-with the
intention of soliciting aid for the
COMM
Singlaub said Wednesday that
Abrams had approved his plait and
would send a;"signal" to those gov.
ernments that the administration
supported his private initiative.
Yesterday,'Singlaub said he was
surprised to learn that Abrams did
not tell the 'Cower review board
that he offerer to send a signal. The
former general, however, stuck by
his story, pointing out that without
the signal of administration backing
he did not believe the countries
would agree to contribute,
Singlaub also repeated testimony
given Wednesday that Abrams had
called him while he was in "Country
Three"---Taiwhn, according to oth-
er sources-arid told him to bold off
on his "extract rricular activity" bt?
cause the mat er would be handled
"at the highest level," which he took
to mean the White House.
An aide to Abrams said yester-
day. "Elliott as probably not as
straight with Singlaub as be could
have been .... There was a lot of
doubt about whether we (Mittel
could be involved." The department
ultimately decided it could not as-
sist Singlaub, and Abrams so ad-
vwed him, the aide reported.
An added source of confusion, the
aids said, was Abrams' belie( that
any signal would come from the
department rather than him.
During the questioning of Sin-
glaub, Rudman again raised the
natter of price differentials be-
tween arms and munitions sold to
the contras by the two retired gen-
erals, Sim" and Second.
The contras would have re-
ceived two weapons for aVery ono
that they received under Secord's
prices, is that correct?" Rudman
asked.
'That is correct," said Singisub,
who told the joint House and Senate
investigating committees that he
had provided training and military
advice, not only to the contras Ibut
to anticommunist resistance g ps
a$ over the world. However, he
pointed out that there were "o r
factors" that might explain Nor 's
dtcision to keep buying co tra
weapons from Second.
.Singlaub said he had worked hard
in 1986 trying to raise money or
the contras, not knowing that
card's "enterprise" was aecunnu "
ing millions of dollars in S 'q
batiks through profits on the sa of
US. arms to Iran.
if I had any knowledge that t t
money had been in the bank
wbs available, I would be even m e
fujious." said Singlaub.
The North-Channel fund-roes
operation unveiled yesterday
pleaded heavily on North's vivid -
tions of Soviet penetration it to
WL~w
hemisphere and the dire
cu ances of the Nicaragtin
"f edom fighters."
it an April 1986 meeting c s-
qo~
a.aX~
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3.
'... is more going to got an incredible as ,pint of malt from charitsbW orpT aitstio.s
scribed by O'Boyle, North showed
photographs of the recently built
Nicaragua airport that would be
used not only It receive Soviet
bombers, but also] to station Soviet
planes that have 'kind of large de-
vice on the outside to fly up and
down the West mast* and eaves-
rap on the Unite4 States.
North described an intercepted
easage from the Soviet KGB to
Nicaraguan delegation to the
Wiled Nations--evidence that
ussians manage Nicaraguan diplo-
cy--and showed a picture indi-
ting Nicaraguan government of-
Is were "involved in dope trans-
ions," O'Boyle said.
O'Boyle was later told by North
t the rebels needed Blowpipe mis-
s to down helicopters-but that
ey were "$20,000 apiece and had
be purchased in packs of 10."
O'Boyle also told of a subsequent
ieeting in North's office at which
National Security Council offe-
r told him of a "very, very secret
" After refusing at first to de-
claim for pre
.8 mill on by film
an insurance company out of
utors for allegedly defraud-
O'Boyle was recently charged
th a felony by New York City
By giving up.
t and the U.S. Navy blockading
country, with the Sandinistas
bushing a provisional govern-
a piece of Nicaraguan territory,
Daniel K. Inouye (D-Hawaii).
plan involved the contras seiz-
g it with Senate committee chair-
revealed its outlines after clear.
it in public because of his
omise to North to "tell nobody,"
Michael McMan
a false insur-
, according
an assistant
Manus said the statues were
asually worth about $200,000. .
cManus, who staid he recog:
timony, said the criminal charge
rela
- -
as ..-
t Contras. O'Boyl has pleaded
n guilty and is aw4iting trial. Hie
terdav's hearing. f
st j water Jas Pwhim le
c ribited to this report
SEN. WARREN 8. RUDMAN
Apparent North?Walsh fast
To Go on Public Record
The U.S. Court of Appeals
yesterday ordered that briefs be
filed publicly in a legal dispute
that sources say is between Lt.
CoL Oliver L. North and inde-
pendent counsel Lawrence E.
Walsh.
Yesterday's public order
seems to indicate that at feast
part of the dispute involves an
unspecified challenge North In
making to Walsh's investigation.
In its order, the court said it is
calling for briefs "solely with
respect to the (Northi challenge
to the legal authorities of
(Walsh) to proceed with his ip-
vestigation before the grand ju-
ry.
"
'The court further orders .. ,
that all aspects of this case, in-
cluding the remaining issues on
appeal and all proceedings tht
Nye occurred in the case
date, remain under seal,` as
the ruling, handed down by
threejudge panel.
The first brief is due late t
day, and oral arguments in
matter were scheduled for !
2.
I Two weeks ago, North aap.~
geared at the federal court
boat in connection with a
ties of closed court proceeding
that culminated with a hearin
before a three-judge panel
the Court of Appeals. At t
union, the panel announce
t it had issued orders on'
salad matters,"
Earlier this year, North
y sought to hal
i to the Iran-contra affair.
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Joseph
. Coors
Joseph Coors, a Colorado
beer executive and longtime
contributor to conservative
causes, said that his concern
about the "meady oppression"
Of the Nicaraguan Sandinista
government caused him to ap-
proach William J. Casey, then
the director of the Central In-
telligence Agency, about help-
ing the contras.
"Bill Casey was ri good friend
of mine," said Coors, the for-
mer chief operating officer of
the Adolph Coors Co. Coors is
also a friend and strong sup-
porter of President Reagan.
!:Ara told the congressional
ra -contra panels that asey
referred him to Lt of Oltver
L. North, who convinced him
to. contribute $65,000 to puu-
chase a small short-tale off.
and-landing plane called a
Maule, for the contras. Coors
said he wired his donation to a
Swiss bank account whose
number was provided by
North.
Coors has been a chief finan-
cial supporter of the Heritage
Foundation, a conservative
think tank, and also contrib-
uted to the Mountain States
Legal Foundation, which fames
G. Watt headed before becom-
ing Interior Secretary.
"I had heard and talked with
n good number of people in re-
gard to the plight of the Ni-
caraguan freedom fighters ...
(and; I wanted to do something
about that," Coors said yester-
day.
Ellen
Garwood
Ellen St. John Garw an
outspoken anticommunist, has
been one of the Nicara n
rebels' largest donor,, con rib.
uting More than $2 mill' for.
She first received attention
when she contributed $65,000
through retired general john
K. Singlaub, a leading private
contra supporter, fora het'
ter that was named the " y
Ellen" in her honor.
But Garwood told the
gressional Iran-contra pa eta
yesterday that she gave
bulk of her contribut s
through conservative f -
raiser Carl R. (Spitz) Chan 11,
who recently pleaded guilty to
conspiring to supply millthry
equipment to the rebels funded
by tax-deductible donations.;
A spry woman in her Sf0s,
Garwood is the author of spv-
erat books, including a bio*'a-
phy of her father, William. L.
Clayton, a lifelong anticommu-
nist who served as undersec-
retary of state for econo is
affairs under Truman, In this
post, Clayton, who made a fpr-
tune in cotton trading, helped
devise the Marshall Plan to
rebuild Europe's economy If.
ter World War H.
Garwood, who is a wid ,
lives in Austin, Tex. "My -
ther wanted to stop the qpr*d
of communism, she once said
in an interview. "I think we're
got to keep freedom alive in
Central America, or we're 4o.
ing to lose our own freedom.;
William
O'Bdyle
William B. O'Boyle, an hair
to a Texas oil fortune, said he
agreed to donate $130,000 to
purchase two small planes for
the contras after Lt. Col. 01-
iver L. North Jr. explained that
Nicaragua was rapidly becom-
ing a Soviet "foothold" in Cen-
tral America.
O'Boyle, who . lives in New
York City, said -he was con-
tacted by an aide to conserve.
tive fund-raiser Carl R. (Spitz)
Channell after a friend had giv.
en his name to the group,
He told the congressional.
Iran-contra panels that North
and Channelt discussed with
him weapons the contras
needed, and he subsequently
agreed to provide $130,000 to
purchase two Mauler.
O'Boyle, who said he is a
private investor specialising in
oil and gas exploration, recent.
ly was charged in New York
City with .a felons for allegedly
defrauding an insurance com-
pany out of $1.8 million by fil-
ing a false insurance claim. Ml.
chael McManus,. an assistant
New York district attorney,
said the criminal charge is un-
related to O'Boyle's contra
activities, O'Boyle, who is in
his mid-40s, has pleaded not
guilty and is awaieing trial.
McManus said: that O'Boyle
has a $40 million trust fund.
The criminal case did not
come up at yesterday's hear-
ing.
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THE IHAN?CON TRA HEARINGS A-17
nay 11 of ti, 'e Testimony
"Cot Mort was concerned about Russian it tteligence services trying to discredit him. I
remeinbe wondering whether we were invc i4ved in the begin np! g of World War !i, hero
And to said, 'No, Russia would never go up against us to save Nicaragua.' "
Ew"P s of testimony by Ellen Garwood of AwatiK,
Tex., a eontributo- to on contras, in respon.w to Roam
staff coMnsel Tom Fryman about her meeting in April
19186 wiM fund-raitw Carl R. (Spin) Channel! and
Natiewr1 Steurity Council aide Lt. Col. Oliver L
A6rtlc
WILLIAM 8. O'8OYLE
Yes .... He described the sityation in Nicaragua,
He had photographs of an airport in Nicaragua that
had been recently built ... a die used military air.
port. One of the uses for which [itj was intended was
to recover the Russian Backfire bombers after they
made a nuclear attack on the U
it
n
ed States .. , He
What was said , .. about weapons? indicated how our security servioes had interce fed
the text of ,. .3b v.U. , , ~. ,. p
[They) spoke in
low
tones to each other and, ? . ?' 11 wires w ve to.~M tv H.? rl N.
after they had finished, Mr. Channell produced a list Thethe point being nt betg thhat it's that it's really ive to she U.N, , .. ,
of weapons that they needed, Tng t really the Russians who are
managt'ng the diplomacy of the Nicaraguans before
... And did Mr. Channall give you his list? the United Nations, He showed photographs which
Yea, he did. indicated that the Nicaraguan government officials
were them nl ollved in smuggling dope, showed pictures
What sort of Information was on Mt of
dope transactions ....
The list had ... hand grenades, I remember, and Did Cat. Neelh make any raguset for any con.
bullets, cartridge belts, possibly surface-to-air
min-.M from the persons attending this meet.
siles. And there were quantities opposite each cate- lag...?
0.
gory and ... a sum of money that was needed, in or- No.
der to provide those weapons, that those weapons
would coat. Now did you haw any discussion with
Whet was the a Mr.Channslt that evsain
?.. pproxinats total anmount?
Over $1 mitliott. And I'm not sure just exact! Yes. Alta dinner. he came over and indicated that
y he heard that I was willing to make an especially large
what it was, over probably $1.5 million, something contribution with the idea of possibly supplying weap-
lilce that. ona or military equipment of some kind to the contras,
... Old Mr. Chapman ask you to make a em. He said that there was a small group of people in the
MMt10111 Utttted States that the president relied on to make
Mr. Channel) did, after Col. North left .... that kind of contribution, than this was a cause that
was very dear to the president's heart. And he
... Old you make a contrlbvtlon to NEPL thought that perhaps I might be interested in joining
[ 'e National ?ndowensnt for the Pus- .. (The next morning, Channell] said that, if one
a~Lihorty) In response to Mr. Chan- were to give approximately $300,000 or more,
Yes, sir. [Garwood said she contributed nearly $2 or i thank wouldhim meet with the minutes
million in April and May 1986.1 with him on an off-the-recor .kind of meeting and
Excerpts from testimony by William 0 Boyle, a thank him for the Contribution' he was making to the
Now York City oil and gas ex* atisc national security.
to
I
And what haprsteod after 10'6oylo' Initial Old he Medicate tha j between his first
mooting hers with ChaaneN and otherel; a stoatloel with that yott aee hhd been the op any kind carry kind o of th" oil to thorn of
[In March 1986]. the group went over to the Old Impalfy as 4 year
baekge+slMed and
flsatieNe for bel^g M this 1-oea' quail-
Executive Office Building ... to .A conference room gs!sup!
where we waited for Col. North td appear. Yes. He indicated the next morning that he had
Approahnatoy how large wale the group ... T
or so, 10, 12 people, something .. ' What did Mr. C"100011 say Aft 4W Cot.
About like that. 10 people
North arrtved [for breakfast that meneing)
... Col. North arrived ate the c5Mareuao
roses?
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Well, he introduced me as someone who was willing
to provide money for weapons ..... Col. North made
the point that he could not ask fbr money himself as a
government employe but that he could provide inform
oration . . . . He began to explain the type of weapons
which were needed.
of weapons did he Indicate
t
He talked about Blowpipe missiles, which were
$20,000 apiece, but which had to be purchased in
pac of 10 These were necessary to counteract the
H' he er gunahops, which the Russians had
bee supply g to the Sandinistas .... We also talked
... e also described a certain kind of air-
t Stin missiles. He described the ammunition
craft .... .
. Wh atnoant did you decide to contrib.
. $130 00.
who was this to be for?
T of th flight supplyl Maule aircraft.
1 did make this contribution?
I nd ered the check to Mr. Channel[ in
W ington few days later.
D you ave a further meeting with Mr.
Ch nell . 1. with Col. North?
Will, he . wed hen the check, and he indicated
And hat did Mr. Channsll say to Col.
aH'a a arrived?
that I'd made a contribution, and that's what he said.
And what was Col. North's response? .
fie acknowledged that I'd made the contribution.
Was there any further discussion of weapons
on this occasion?
Yes. Col. North had :essentially the same list that
we went over again, and ammunition ....
... In your aseetings with Col. North, did he
aver Indicate that he. was sharing classified in-
lsnnattoa with you?
Yea .... It was the second meeting that I went to
down in Washington where . . . he described the ad-
ministration's strategy in Nicaragua.
That was ... M his office. .
.
0 That's right ....
The following are GQrwood's responses to Hoarse
chief minority counsel George Van Clews:
I wondered If you could tell the commit.
too the story concerning your contribution to
[the Oliver North legal defense fund} .... As I
2.
to it, it starts out In early Dsoamber
lip
you talked to Bpits Chatrsep abort
t
ossi nisi- of making such a ceutrlbs-
. .
hant
I said over the phone that Col. North
had.
resit
or had been ed from the govern-
need
perhaps, legal defense, and he also
Mr.
hannell said, some ... some hinds for
g hii
children .... And he said, Can you
0,00:
And I said, "...11 will ask my husband
II let
4accu
did, i
Net, did
that bell
and I
percen
he ask
W
for his
1d, "Nt
... N. told
ling sts perest
ganIsatlets?
Channel
his orgy
and that
too .. .
ame
was t
$5,000... , " And so that's what I
get a phone can from (contra
heeds= aboat that sans arh-
me to give a donation for the (fund),
you know that Mr. Channel( takes 35
n organisations. for his overhead?
t that's what he had heard, that
ng 35 percent of donations given to
for his own overhead and expenses
high amount .... I thought it was,
You MdAmpt w anything about that prevt.
ously. yen?
P haps I should have inquired more but I
didn't .. . I sa' .. You are raising an official
rnarine-ba' ked le I fund to defend Col. North." And
he said h was .. and I said, "Well" I shall ask Mr.
Channel) send ck what I sent t; him. and I will
send, ipad out t the North Legal Defense Fund, a
&.."."A ^.a 4V1 VVV11 - . .
1 i
Yes, .. ;Hew disappointed. I told him that 1 had
heard he w$s taki 35 percent f donations for
his overhead and t ought that was ra$her large and I
thought he;should eve told me that, And he said,
"Where did this?' And I told him that Andy
Messing ha4 told . And he said, "Well, I think we
conservativ sh all cooperate with each other.
I'm very su ised t the would tell you that ....
Did he d the be was doing 0
He didn't wail y it, as I remdmber. But he
did consent o send
$10,000 back'.to me, and I
said I prefer to ma i it out to an offtci$ North Legal
Defense Fu did.
The fdlowi}tp are (
rammittee C trman
Foyles rr nsrs to Senate arfect
pianid K. Inouye (DHawaii).
Declassified in Part - Sanitized Copy Approved for Release 2013/02/21 : CIA-RDP90-00965R000605090002-3
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Declassified in Part - Sanitized Copy Approved for Release 2013/02/21 : CIA-RDP90-00965R000605090002-3
MY -1Mr NWM~t, cleared to Mail"
Col. North didn't characterize it exactly as the
classified information which I am now giving yon,
teltanybody about thij~." And I took that to meat- else
far
fr'oejs year dapo,NhM ... 'His
1 Indicated that our hst.rl....-. =aryic--
vl Nent p& Ic.J to the Nieara.n-s? $ ,~
a tee the ~NMed Natlans." pfd he No* t
t
sd
'
euuss
't recall if
h
ed that exact word.
did you use the word --op go,
U. that's my best recollection.
you said that you had elearawe. once
fallowing arv O'BoA s mspo* s to R# A Louie
St /Q0AW:
You had jaskodj Mr. North as to what
was plan for Nkaragus .... Na thON said
to sa?etIINg to. the effect that ha would
It with you but it was. really a saorot. is
that t
Y He sa ... there were two
plans .. One would implemented if Congress
ap the money la$t year for the contras. One
ongress did not ; .. They involved the coq..
tras . . establishing a pitovisional capital, a provision-
al go at, and the U.S. Navy ... preventing the
supp coming in from Cuba ... , If Congress did
appr the money, thi would happen on a slower
time tale, giving the contras more time to consoli-
date r position. If they did not approve the money,
it ha n on a Maker time scale. which would
be . , kind of a last.ditc effort ... [by] the contras.
That 4s the plan.
7(g
Declassified in Part - Sanitized Copy Approved for Release 2013/02/21 : CIA-RDP90-00965R000605090002-3