MEMO TO THOMAS K. LATIMER FROM DAVE GRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00004R000500160023-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 23, 2016
• Document Release Date: August 23, 2011
• Sequence Number: 23
• Publication Date: February 2, 1987
• Content Type: MEMO

Sanitized Copy Approved for Release 2011/08/23: CIA-RDP90M00004R000500160023-1
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ENTRAL ANTE LICENCE AGENCY
Director of Congressional Affairs
OCA 87-0312
02 February 1987
NOTE FOR: Mr. Thomas K. Latimer
Staff Director
Permanent Select Committee on
Intelligence
STAT
Per your request.
Enclosure (AP - Official says Shults testimony misrep.)
Distribution:
Orig. - Addressee (w/enc)
1 - D/OCA Chrono
1 - OCA Record
1 - DD/HA/OCA
1 - OCA Chrono (w/o enc)
D/OCA:DDGries C-](2 Feb 87)
STAT
Sanitized Copy Approved for Release 2011/08/23: CIA-RDP90M00004R000500160023-1
 Sanitized Copy Approved for Release 2011/08/23: CIA-RDP90M00004R000500160023-1
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A top State Department official-Friday night disputed news reports sugqL
that the CIA held contacts last month with Iranian officials about futures
sales to that country In violation of stated policy.
The official said the news accounts had misrepresented Shultz's testimony lri
closed
session Wednesday before the House Foreign Affairs Committee.
According to the official, who asked not to be identified, State Department
and CIA officials Met with Iranian representatives I
G
n
eneva on Dec. 13 to
Inform them that the United States had no intention of continuing arms sales to
Iran,
The Iranians were informed, the official said, that the United States wanted
a new relationship with Iran consistent with its status as a strategically
important country.
Alluding to the changed policy in testimony Friday before the Senate Budget
Committee, Shultz said the Iran affair has served as a valuable lesson. "It has
reinforced the correctness of a policy that says let's not make trades for
hostages or give in to terrorists,' he said.
The source said the lrartians responded to the American presentation in Geneva
by producing a nine-point agenda that Included a recommendation that American
arms sales to Iran continue.
When Shultz was informed of the Iranian agenda, he arranged for a meeting
with President Reagan the following day, Dec. 14, the official said.
Reagan authorized Shultz "unequivocally" to reject the Iranian proposal and
to proceed on the basis of the policy as set forth during the meeting in Geneva,
the official said.
He added that the CIA representative remained on in Geneva "for family
reasons" and was contacted by the Iranians on Dec. 15.
When Shultz learned of the contact, he had the impression that the CIA
official was acting improperly because the dicussions were being held in the
absence of State Department officials, according to the sources.
Shultz's concerns about the contact that Monday were eased when he was
informed that the CIA official did not deviate from the policy outlined two
days earlier.
In a brief statement Friday night, the State Department said the CIA and
the department are working cooperatively on Iran policy.
It said that Shultz, had been concerned about the unauthorized contact on Dec_
15 with the CIA official but added that "this issue has been
resolved ."Congressional sources were reported to have said that Shultz told the
House committee on Wednesday that the CIA had continued discussions with the
Iranians in December about arms sales despite the policy change and the lead
role given to the State Department in carrying out Iran policy.
The State Department statement Friday night said Shultz was pleased with the
CIA's cooperation on Iran policy and believed it Is "being conducted In a
coherent and fully satisfactory manner."
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