STATEMENT OF WILLIAM H. WEBSTER REGARDING THE IRAN-CONTRA MATTER

• Document Type: FOIA
• Keywords: INVESTIGATION
• Keywords: IRAN CONTRA
• Keywords: GHORBANIFAR MANUCHER
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0001001267
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: June 22, 2015
• Document Release Date: June 9, 2009
• Case Number: F-1992-00896
• Publication Date: December 17, 1987

87 7217428 ASO PAGE 001
TOT: 170226Z DEC 87
S E`c. R E T
STAFF\170226Z DIRECTOR 810337
TO: IMMEDIATE WWSB.
APPROVED FOR
RELEASE^DATE:
16-Dec-2008
SUBJECT: STATEMENT OF WILLIAM H. WEBSTER REGARDING THE
IRAN-CONTRA MATTER
I HAVE COMPLETED MY STUDY OF A REPORT PREPARED BY A
SPECIAL COUNSEL APPOINTED BY ME TO REVIEW THE ROLE OF THE
AGENCY AND AGENCY PERSONNEL IN THE IRAN-CONTRA MATTER. THE
FOLLOWING IS A SUMMARY OF THE REPORT'S CONCLUSIONS.
1. THE AGENCY'S FIRST INVOLVEMENT IN THE IRANIAN
INITIATIVE OCCURRED IN THE FALL OF~1985 WHEN THE AGENCY
INCREASED INTELLIGENCE COLLECTION ON CERTAIN IRANIAN TARGETS AT
THE REQUEST OF THE NSC STAFF. THIS ASSISTANCE DID NOT VIOLATE
ANY STATUTORY PROVISIONS OR AGENCY REGULATIONS.
2. IN NOVEMBER 1985, AN AGENCY PROPRIETARY TRANSPORTED
HAWK MISSILES FROM ISRAEL TO IRAN. AGENCY ASSISTANCE IN
CONNECTION WITH THIS FLIGHT WAS IN VIOLATION OF AN AGENCY
REGULATION THAT REQUIRES DCI APPROVAL IN ADVANCE OF ASSISTANCE
TO THE WHITE HOUSE STAFF. MOREOVER, THIS ASSISTANCE SHOULD NOT
HAVE BEEN UNDERTAKEN IN THE ABSENCE OF A PRESIDENTIAL FINDING.
3. IN EARLY DECEMBER 1985, THE AGENCY MADE KNOWN, TO THE
WHITE HOUSE ITS NEGATIVE VIEWS OF(MANUCHER GHORBANIFA '
RELIABILITY AND TRUSTWORTHINESS, AND QUESTIONED PURPORTED
EXISTENCE OF A MODERATE FACTION IN IRAN. GHORBANIFAR
SUBSEQUENTLY WAS POLYGRAPHED BY THE AGENCY AND SHOWED DECEPTION
TO VIRTUALLY ALL QUESTIONS. THESE RESULTS WERE REPORTED TO
OLIVER NORTH IN JANUARY 1986.
SPEC E`
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I ~ AFTER A PRESIDENTIAL.FINDING WAS.SI.GNED, THE AGENCY:.
PROVIDED LOGISTICAL AND OTHER ASSISTANCE IN CONNECTION WITH THE
TRANSFER OF TOW MISSILES AND HAWK MISSILE SPARE PARTS TO IRAN
AND IN CONNECTION WITH A NUMBER OF MEETINGS BETWEEN U.S.
GOVERNMENT OFFICIALS AND-REPRESENTATIVES OF IRAN. THIS
ASSISTANCE WAS APPROPRIATELY AUTHORIZED BY THE FINDING. THE
FINDING INSTRUCTED THAT THE AGENCY NOT NOTIFY CONGRESS OF THESE
ACTIVITIES.
5. AGENCY OFFICERS HEARD REFERENCES TO A POSSIBLE
DIVERSION OF FUNDS TO THE CONTRAS AS EARLY AS JANUARY 1986.
THESE REFERENCES WERE THOUGHT TO BE IMPLAUSIBLE. DURING THE
SUMMER OF 1986, THESE OFFICERS WERE ALSO AWARE OF IRANIAN
COMPLAINTS THAT THEY HAD BEEN OVERCHARGED FOR THE MISSILES.
THESE COMPLAINTS RAISED CONCERNS .THAT THE IRANIANS. MIGHT CANCEL
THE OPERATION. IN THE FALL OF 1986, FURTHER INFORMATION CAME
TO THE.ATTENTION OF THE OFFICERS WORKING ON THE INITIATIVE.
THIS INFORMAT-ION.WAS BROUGHT TO'THE'.ATTENTION'OF'THE NATIONAL-,
SECURITY ADVISOR. THE EVIDENCE WAS NOT SO STRONG THAT ANYONE
CONCLUDED A DIVERSION HAD OCCURRED.
6. TWO AGENCY FIELD MANAGERS ENGAGED IN IMPROPER
ACTIVITIES BETWEEN SEPTEMBER 1985 AND FEBRUARY 1987 IN
CONNECTION WITH ASSISTANCE TO THE CONTRAS. THE IMPROPER
ACTIVITIES INCLUDED ASSISTANCE IN CONNECTION WITH PRIVATE
BENEFACTOR RESUPPLY FLIGHTS, TRANSPORTING CONTRA SUPPLIES AND
EQUIPMENT IN AGENCY HELICOPTERS, AND OTHER LOGISTICAL
ASSISTANCE UNDERTAKEN AT A TIME WHEN SUCH ASSISTANCE WAS
PROHIBITED BY AGENCY POLICY OR LEGAL GUIDANCE. ONE AGENCY
FIELD MANAGER AUTHORIZED HIS SUBORDINATES TO ENGAGE IN THESE
IMPROPER ACTIVITIES. THE OTHER FIELD MANAGER UNDERTOOK THE
ACTIVITIES ON HIS OWN. THERE IS NO EVIDENCE IN THE RECORD,
HOWEVER. THAT ANY IMPROPER ACTIVITIES WERE ENGAGED IN BY THE
OVERWHELMING MAJORITY OF AGENCY EMPLOYEES INVOLVED IN THE
CONTRA PROGRAM. MOREOVER, HQS HAD NO KNOWLEDGE THAT THESE
ACTIVITIES WERE TAKING PLACE.
7. DESPITE THE COMPLEXITIES CAUSED BY SEVEN DIFFERENT
PIECES OF LEGISLATION DEALING WITH CONTRA ASSISTANCE DURING A
FIVE YEAR PERIOD, HQS GUIDANCE WITH RESPECT TO THESE STATUTORY
RESTRICTIONS GENERALLY WAS CLEAR AND OFTEN MORE CONSERVATIVE
THAN REQUIRED BY THE APPLICABLE STATUTES.
8. T1O AGENCY HQS MANAGERS TESTIFIED TO CONGRESS IN A
MANNER THAT WAS NOT CANDID OR FORTHCOMING WITH RESPECT TO THEIR
KNOWLEDGE OF ASSISTANCE TO THE CONTRAS.
9. A NUMBER OF AGENCY EMPLOYEES WERE NOT COOPERATIVE WITH
OR WERE NOT CANDID IN PROVIDING INFORMATION DURING AN INSPECTOR
GENERAL'S INVESTIGATION OF THESE MATTERS. MOREOVER, AN AGENCY
FIELD MANAGER WAS NOT CANDID WITH TOWER BOARD INVESTIGATORS.
10. ON THE BASIS OF MY REVIEW, I HAVE TAKEN DISCIPLINARY
ACTIONS AGAINST SEVEN AGENCY EMPLOYEES. ONE SENIOR AGENCY HOS
OFFICER HAS BEEN DEMOTED AND REPRIMANDED FORFAILING TO TESTIFY
CANDIDLY WHEN APPEARING BEFORE CONGRESSIONAL COMMITTEES AND FOR
CONDUCTING COVERT ACTIVITIES IN ASSISTANCE TO THE NATIONAL
SECURITY COUNCIL STAFF WITHOUT APPROPRIATE AUTHORIZATIONS. ONE
SENIOR AGENCY HEADQUARTERS OFFICER HAS BEEN REPRIMANDED FOR
FAILING TO TESTIFY CANDIDLY ND FOR FAILING ADEQUATELY TO
MONITOR THE ACTIVITIES OF AN A FIELD OFFICER WHO ACTED
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CONTRARY TO THE INSTRUCTIONS OF THE OFFICER. I HAVE
PROVISIONALLY SUSPENDED. THE IMPOSITION OF.DEMOTION..OF THIS
OFFICER IN LIGHT OF HIS ACKNOWLEDGING HIS LACK OF CANDOR AND
HIS OTHERWISE EXEMPLARY PERFORMANCE DURING THIS PERIOD AND IN
SUBSEQUENT MONTHS.
II. 'TWO SENIOR AGENCY FIELD OFFICERS HAVE BEEN DISMISSED,
EFFECTIVE DECEMBER 31, 1987, FOR ENGAGING IN IMPROPER
ACTIVITIES ON BEHALF OF THE NICARAGUAN RESISTANCE. THREE OTHER
AGENCY PERSONNEL HAVE BEEN REPRIMANDED FOR FAILING TO COOPERATE,
WITH THE IG'S INVESTIGATIONS OF 'THESE ACTIVITIES. TWO AGENCY
EMPLOYEES WERE COMMENDED FOR THEIR COOPERATION AND CANDOR IN
THE IG'S INVESTIGATIONS.
12. I HAVE INITIATED ACTIONS AIMED AT STRENGTHENING THE
ORGANIZATIONAL STRUCTURE OF THE AGENCY. THESE ACTIONS ARE
DESCRIBED IN A SECTION 'OF THE REPORT DEALING WITH REMEDIAL
MEASURES BY THE AGENCY TAKEN SINCE THE IRAN-CONTRA MATTER
BECAME PUBLIC...
13. IN PARTICULAR, STEPS HAVE BEEN TAKEN TO STRENGTHEN
THE FUNCTION AND EFFECTIVENESS OF THE OFFICE OF THE INSPECTOR
GENERAL (IG). THESE MEASURES INCLUDE ENSURING THAT THE IG'S
INSPECTION STAFF IS DRAUN FROM A CROSS-SECTION OF PEOPLE WITHIN
THE AGENCY. FURTHERMORE, ASSIGNMENT TO THE IG STAFF WILL
BECOME AN IMPORTANT CAREER DEVELOPMENT ASSIGNMENT ENROUTE TO
MORE SENIOR POSITIONS IN THE AGENCY. THE SIZE OF THE IG'.S
INVESTIGATIVE STAFF WILL BE INCREASED, AND THE 'TRAINING AND
SUPPORT' PROVIDED TO THAT STAFF WILL BE IMPROVED.
14. GUIDELINES HAVE BEEN DRAFTED TO GOVERN THE TESTIMONY
OF FUTURE AGENCY WITNESSES WHEN APPEARING BEFORE CONGRESSIONAL
COMMITTEES, BRIEFING INDIVIDUAL CONGRESSIONAL MEMBERS OR THEIR
STAFF, OR PROVIDING WRITTEN TESTIMONY TO CONGRESS. THE
GUIDELINES BALANCE THE PROTECTION OF SOURCES AND METHODS WITH
THE NEED TO BE CANDID AND COMPLETE IN ALL AGENCY DEALINGS WITH
CONGRESS.
15. I ALSO HAVE INITIATED ACTIONS TO STRENGTHEN SENIOR
MANAGEMENT REVIEW OF COURT ACTIVITIES. THE COVERT ACTION
REVIEW PROCESS WILL BE INSTITUTIONALIZED IN AGENCY HEADQUARTERS
REGULATIONS. THE AGENCY'S SENIOR MANAGEMENT MUST MEET TO
REVIEW ALL PROPOSED FINDINGS AND RELATED DOCUMENTS THAT ARE TO
BE FORWARDED TO THE NATIONAL SECURITY COUNCIL. SENIOR
MANAGEMENT ALSO CONDUCTS A SEMI-ANNUAL REVIEW OF EACH COVERT
ACTION PROGRAM. ADDITIONALLY, STEPS HAVE BEEN TAKEN TO
STRENGTHEN SENIOR MANAGEMENT OVERSIGHT OF THE USE OF AGENCY
PROPRIETARIES.
16. OTHER ACTIONS TAKEN INCLUDE THE ISSUANCE OF
GUIDELINES FOR INTERAGENCY INTELLIGENCE PRODUCTION INTENDED TO
FOSTER AN ENVIRONMENT FOR THE MAXIMUM OBJECTIVITY OF
INTELLIGENCE ASSESSMENTS AND TO HELP INSULATE INTELLIGENCE
ANALYSIS FROM POLITICAL INFLUENCE. ADDITIONALLY, PERIODIC
REPORTS OF ONGOING ASSISTANCE TO THE WHITE HOUSE WILL BE
PROVIDED TO A SENIOR AGENCY OFFICIAL TO ENSURE THAT SUCH
REQUESTS STAY WITHIN THEIR APPROVED SCOPE.
17.. THE SPECIAL COUNSEL COMMENCED HIS REVIEW SEPTEMBER I,
1987. IN COMPILING THE REPORT, THE SPECIAL COUNSEL REVIEWED
THE FINDINGS OF THE TOWER COMMISSION, THE SENATE SELECT
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COMMITTEE. ON-_I NTE_LL.I.GENCE, .THE.-?CONGRESSIONA.L:.I.RAN-CONTRA . .
COMMITTEES, AND RELEVANT REPORTS OF-THE INSPECTOR GENERAL. THE
SPECIAL COUNSEL.DID NOT HAVE-ACCESS TO ANY MATERIALS.OR
INFORMATION"D-EVELOPED - :DURINGTHE COURSE"'OF THE INVESTIGATION
BEING-CONDUCTED BY INDEPENDENT-COUNSEL LAWRENCE WALSH.
18.. THE REPORT OF THE SPECIAL COUNSEL, WHICH-IS
CLASSIFIED, WILL BE FURNISHED IN ITS ENTIRETY TO THE HOUSE
:PERMANENT. -.SELECT.:COMMITTEE. ON..I.NTE.LLIGENC.E-.AND. THE SENATE
SELECT COMMITTEE"ON INTELLIGENCE.
19. THIS HAS BEEN A TESTING CHAPTER IN THE HISTORY OF THE
CIA. A NUMBER OF PEOPLE WHO ENGAGED IN ACTIVITIES DETERMINED
TO BE IMPROPER HAVE BEEN DISCIPLINED. ON THE OTHER HAND, I AM
PROUD TO NOTE THAT..EVIDENCE.IN-THE RECORD. SUGGESTS THAT THE
OVERWHELMING MAJORITY OF OUR EMPLOYEES ACTED IN A PROFESSIONAL
AND COMPETENT MANNER WITHIN THE POLICY AND LEGAL GUIDANCE WITH
..WH I-CH..'THEY:'-WERE .PROVIDED.. - `I* -.HOPE! THAT THE 'ACTI.ONS,-I "HAVE`-
ANNOUNCED TODAY WILL PUT THIS CHAPTER BEHIND US, WILL
STRENGTHEN US AS AN ORGANIZATION AND, WITH LESSONS LEARNED,
WILL ENABLE US TO CONTINUE TO CONDUCT OUR IMPORTANT MISSION FOR
THE AMERICAN PEOPLE.
20. NO FILE. DECL OADR DRV HUM 4-82. ALL ftTl T.>
ORIG: DCI (WEBSTER) ; AUTH: REL: DCI (WEB TER)