PAKISTAN REPORTED NEAR ATOM ARMS PRODUCTION

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP90B01390R000100090019-0
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RIPPUB
Original Classification: 
T
Document Page Count: 
11
Document Creation Date: 
December 22, 2016
Document Release Date: 
November 7, 2012
Sequence Number: 
19
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Publication Date: 
November 4, 1986
Content Type: 
MEMO
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25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Next 4 Page(s) In Document Denied Iq Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 W. , pa (v Pakistan Reported Near Atom Arms Production Acquisition of Weapon Could Halt U.S. Aid By Bob Woodward Wa.Yiaytoe Poet SW writ' r President Reagan certified to Congress last week that Pakistan currently "does not possess a nu- clear explosive device," although according to intelligence reports considered reliable inside the ad- ministration, the country has re- cently made dramatic progress to- ward production of a nuclear weap- on. Presidential certification is ' re-. quired by Congress as a condition of continued U.S. aid to Pakistan, which receives approximately $600 million a year in military and eco- nomic assistance. Pakistan has co- operated with clandestine U.S. aid to Afghan guerrillas fighting the Soviet occupation of their country, and has provided facilities for U.S. intelligence-gathering near the So- viet Union. According to a classified Defense Intelligence Agency report, Pakis- tan detonated a high explosive de- vice between Sept. 18 and Sept. 21 as part of its continuing efforts to build an implosion-type nuclear weapon, sources said. It was * Pakistan's second such test this year, according to the sources, who said the Pakistanis have been conducting the tests for years in trying to perfect a nuclear weapons triggering package. Intelligence reports also show that Pakistan has enriched uranium to 93.5 percent at its atomic plant at 'Kahuta, according to authorita- tive sources. A 90-percent level is normally needed to make a bomb. President Reagan in.late 1984 told Pakistani President Mohammed Zia ul-Haq in a .top-secret letter that 5 percent would be the highest en- richment level acceptable to the United States. In July, the White House warnt?d Pakistan has repeatedly denied that it is developing nuclear weap- ons. But a Special National Intelli- gence Estimate * (SNIE) completed earlier this year by U.S. intelligence agencies cited numerous activities totally inconsistent with those as- surances, according to sources. The SNIE concluded that Pakistan would have a small nuclear weapon at a future, unspecified date. Charles E. Redman, the State Department spokesman, said yes- terday that Reagan signed the Pakistani certification Oct. 27. He added, however, that the Reagan administration still has "serious con- cerns" about the future and said the current certification should "not be interpreted as implying any U.S. approval of the Pakistani nuclear program." He declined to comment on any intelligence reports. There is disagreement among intelligence and nuclear nonprolif- eration experts about the exact sta- tus of the Pakistani program. One senior Reagan administration offi- cial confirmed that the program is advancing aggressively, but said that a new, multibillion-dollar U.S. assistance proposal would provide leverage to deter actual construc- tion of a bomb. Another official said Pakistan could assemble a bomb within two weeks. Another well-informed source said it could be done in a shorter time and, in practical terms, Pakistan is only "two screwdriver turns" from having a fully assem- bled bomb. Pakistani Prime Minister %1,,. hammed Khan Junejo during tua visit here that acquiring a nuclear weapon would result in the end of U.S. comic and military assist- ance... I --I Despite this evidence, sources said, keeping Pakistan from obtain- ing a bomb is a low priority on the list of administration foreign policy goals. Said one senior official direct- ly involved in monitoring the pro- gram, "This administration wouldn't come down on Pakistan if we found a bomb in Zia's basement" The reason, the sources said, is Pakistan's willingness to help the administration by acting as the pipeline for the hundreds of millions of dollars in CIA covert assistance that is provided the Afghanistan rebels-a top priority for Reagan and his administration. At the time of Junejo's visit last summer to Washington, Reagan said that Pak- istan was a "front line" against "the brutal Soviet occupation of Afghan- istan." Pakistan also cooperates with U.S. intelligence agencies in high- priority electronic intelligence gath- ering near the Soviet Union and in Southeast Asia, the sources said. On June 21 the Soviets issued a strongly worded, unusual warning to Zia charging that Pakistan had achieved the capability to build nu- clear weapons, which Moscow said it would not tolerate, according to sources. Within two days, the Reagan ad- ministration replied with its own protest, in effect telling Moscow to keep "hands off" Pakistan. This in effect made the administration a protector of the Pakistani program, and two sources said that the Pakis- tanis may have interpreted the ad- minstration's remarks as approval. A senior administration official disputed this interpretation, how- ever, saying the White House made clear last summer to Junejo that a single bomb would result in termi- nation of all U.S. aid. The intelligence report that ura- nium has been enriched at levels in excess of 90 percent has alarmed nuclear weapons experts most. Leonard S. Spector, a nuclear pro- liferation expert at the Carnegie Endowment for International Peace, said yesterday that, if true, "it would be the last important step in the Pakistani program. It was the one outstanding gap in their pro- gram and could be a terrible set- back to worldwide efforts to curtail the spread of nuclear weapons." Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 &CDA Aide Faulted on -1 0 Jecuri1 'A A-/ By Bob Woodward Wu g,. es, swr writer Administration officials re seeking permanently to ft the security clearances I an employe of the U.S. arms Control and Disarma- tent Agency who allegedly mishandled about 500 doc- ments, including some of to U.S. government's most ensitive top-secret intel- gence about Pakistan's ef- >rts to build a nuclear omb. The employe, Kathleen trang, improperly removed '-e documents from a stor- ge vault at the State De- artment, repeatedly left tam overnight in an open ife accessible to dozens of eople without security earances and then ignored !veral warnings from su- ervisors over a period of ionths, according to por- ons of an internal investi- itive report filed in a re- ted suit in U.S. District Duct here. Strang said she had com- iitted only a technical in- action of regulations and t harm had resulted, ac- -rding to sources familiar ith the case. . U.S. - security officials we no evidence that any- -e saw or took any docu- ents from Strang's safe. it the internal investiga- re file alleges that she we portions of some sen- tive documents to officials the South Korean govern- ent in September 1984, ~parently hoping to prove at Pakistan was develop- g a nuclear bomb and thus u:ourage the South Ko- ans from providing any chnical assistance that ght aid the Pakistanis. rang said she gave only classified material to the uth Koreans, sources id. In July 1985, U.S. officials See ACDA, A16, Col 3 U.S. Aide Faces Disciplining on Security ACDA, From Al removed Strang's safe from her fourth-floor office at the State De- partment and then spent months conducting a damage assessment. Inside the safe, sources said, the officials found documents bearing the code-words UMBRA and MO- RAY-terms used for highly sen- sitive communications intercepts gathered by the National Security Agency. They also found computer floppy disks with other documents stored on them. The investigative file alleges that Strang used a sec- retary without a proper security clearance to transcribe classified information onto the disks. When Lt. Gen. William E. Odom, director of the National Security Agency, heard about the matter, he sent a handwritten letter to ACDA's director, Kenneth L. Adel- man, calling what the investigators found one of the worst security vi- olations he had ever seen, accord- ing to sources. Odom threatened to cut off ACDA's access to sensitive intelligence unless immediate and severe steps were taken, the sources said. The case has caused particular concern among U.S. intelligence officials, who said someone with accesstathe documents could draw a full portrait of the methods and techniques used by U.S. intelli- gence agencies to monitor nuclear tests and weapons developments in other countries, including the So- viet Union. "Other than early warning intel- ligence on a surprise attack, it's the most vital function we perform," said a senior Reagan administration intelligence official. Disclosure of an allegedly serious breach of internal security inside the ACDA came after several high- ly publicized efforts by the admpin- istration to block leaks of classified information, including a threat by Odom and CIA Director William J. Casey to prosecute news organiza- tions that disclose secret "commu- nications intelligence." Much of the material in Strang's safe was based on communications intercepts, ac- cording to sources. At the time Strang's safe was seized, her security clearances were suspended and she was placed on leave, with pay, from her job in charge of monitoring the Pakistani nuclear program. LT. GEN. WILLIAM E. ODOM ... threatened to end ACDA's access An internal ACDA panel recom- mended that her clearances be re- voked permanently. She has ap- pealed that decision to Adelman. and he held a closed-door five-hour hearing on her appeal yesterday but made no final decision, sources said. Strang also filed a lawsuit under the Freedom of Information and Priva- cy acts, seeking monetary damages and demanding-deletions-from- her personnel file; this lawsuit resulted in the placement of portions of the investigative file in court records. Strang declined to comment on the case. ACDA security chief Berne In- dahl, who conducted an internal in- vestigation, said in a memorandum that "all the material in her safe, marked or unmarked, was consid- ered by State's (intelligence divi- sion) to be compromised. Classified material was taken home, to meet- ings and overseas. Classified ma- terial was provided to foreign gov- ernments without proper author- ization." Indahl's memo is contained in the court papers. In response to questions, the ACDA released a brief statement confirming that a safe was "seques- tered" on July 1, 1985, as part of a security investigation of an un- named employe. Strict regulations govern the use of classified material by federal of- ficials, in part because intelligence officials assume that hostile coun- tries attempt to place agents in jan- itorial, secretarial or other routine jobs at certain federal agencies. As the agency that is responsible for all arms control issues, the ACDA receives sensitive informa- tion from all over the government: policy papers from the White House, intelligence reports from NSA and the CIA, technical data on nuclear technology from the De- partment of Energy. The most sensitive data is code- worded and is supposed to be avail- able only to those with a need to know. At the State Department, such code-word material is kept in a sixth-floor vault where authorized officials can read it, but not remove One of Strang's coworkers, who was not identified by name, was quoted in the investigative file as saying: "During mid-1984 to mid- 1985 she had almost total contempt for routine security procedures. I was usually the first one in the of- fice in the mornings. Many times I would find her safe not only un- locked but wide open .... I asked her about this situation. Her re- sponse was to the effect that if I wanted her safe locked I should do it myself." The investigative file also out- lined the circumstances surround- ing the South Korean incident. Carl- ton B. Stoiber, a former ACDA of- ficial, said that during a September 1984 arms control meeting in Seoul, Strang "gave classified infor- mation to the Korean government that was not cleared. It was very unsettling .... I was shocked and upset at her conduct. I swore I would never. send or have her on a delegation again." Another person at the same meeting said, "I was amazed she passed out the classified informa- tion to the Koreans. I was wonder- ing how much damage this may have caused and whether or not I should rudely take from the Ko- reans the papers she had just passed out." Stoiber reported the incident by cable to the State Department when it occurred, one official said. According to sources. Strang and her attorney have said that some of her fellow workers have a personal grudge against her and this ac- counts, in part, for the allegations. Staff researchers Ferman Patterson and Barbara Feinman contributed to this report. Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Next 15 Page(s) In Document Denied Iq Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 THE NEW YORK TIMES, WEDNESDAY, OCTOBER 15, 1986': A14 Summit Aftermath: The Futuristic Weapons Experts Say soviet Has Conducted Space Tests on Anti-Missile Weapons By WILLIAM J. BROAD Experts on Soviet technology said yesterday that the Soviet Union had ap- parently conducted weapon tests in space of the type that would be re- stricted by the 10-year ban on "Star Wars" testing proposed by the Rus- sians In Iceland. The American experts said a laser being developed as an antimissile weapon has been fired from a research station at Sary Shagan in Kazakhstan at a manned Soviet spacecraft, with Soviet astronauts wearing special gles to protect them from the beam. The overall Soviet program, how?e- vever, is seen as crude compared to the American "Star Wars" program, known officially as the Strategic De- fense Initiative. This relative backwardness. experts say, is a primary reason why the Soviet Union wants a ban on further testing outside of laboratories. The Soviet Union, although about even with the United States in basic antimissile re- search, lags badly behind America -n advanced technologies needed to i u' lasers, particle beams and other de vices into effective weapons. The kev deficiencies include less powerful com- puters and a huge lag in the miniaturi- zation of arms. Pentagon View of Soviet Effort This view is sharply at odds with that of the Pentagon, which has maintained that antimissile systems the Russians zlready have in place represent a real threat to the West. The issue arose last weekend when Soviet officials proposed at the Iceland summit talks that all but laboratory re- search, testing and development of an- timissile systems be halted for 10 years. Dr. Simon Kassel, a senior scientist with the Rand Corporation who has v. ritten serveral reports for the Penta- gon on Soviet beam weaponry, said yesterday that in Iceland, the Russians were basically trying to buy time to catch up with the West. "It's one thing to do basic research, and have a lot of different *concepts going, and another to translate it into weapons," he said in an interview. "In that they face considerable difficul- ites." He continued: "Their technology Lase is not as rich as ours. People don't realize how bad it is. We tend to put them in the same class with us. They're not. The only reason we talk to them is that they have nuclear weapons." Changes in Strategic Doctrine Dr. Kassel said the Russians were frightened by the sweeping changes 'in strategic doctrine that lie at the heart of President Reagan's antimissile plan. "What was suggested in Iceland is that we shift the competition from building nuclear weapons, which they have mastered, to a competition in exotic technolgies," he said. "They're playing for time. So far, the technological lag has been tolerable for them beause it was confined to traditional techologies that they have mastered." He added that an example of a key technology in which the Soviet Union lags is computers, which are consid- ered critical for a "Star Wars" system. "Their situation in the computer field is very bad," Dr. Kassel said. In contrast to such views, the Penta- gon says Russian antimissile work has a very long history and is very aggres- sive and threatening. "Soviet efforts in most phases of strategic defense have long been far more extensive than those of the United States," according tq "Soviet Strategic Defense Pro- grams," a publication of the Defense Department. It said the Soviet Union is conducting advanced work in lasers, particle beams and kinetic-energy weapons. At Sary Shagan in Kazakhstan, it said, the Soviet Union has set up a large ground-based laser that today can fire at satellites and in the future could "possibly" play a role in an antimissile system. It also noted that Moscow has the world's only operational antisatel- lite weapon. 'Beyond Technical Research' "Unlike the U.S.," it said, "the U.S.S.R. had now progressed in some cases beyond technical research. It al- ready has ground-based lasers that could be used to interfere with U.S. satellites, and could have prototype space-based antisatellite laser weap- ons by the end of the decade." . Some experts outside the Govern- ment said the Soviet Union has already apparently conducted weapon tests in space. . "In. 1982 Soviet cosmonauts were; asked if they had on their goggles on as they went over Sary Shagan," said James E. Oberg, an expert on the Soviet space program who is author of "Red Star in Orbit." "The implication is that their spacecraft was a target for a ground-based laser." Dr. Gerold Yonas, former chief scientist of the Pentagon's Strategic Defense Initiative program and now vice president of Titan Corporation in La Jolla, Calif., said that Moscow made up for backwardness in some areas of antimissile technology by sheer prag- matism. "They get their equipment out in the field and learn by doing," he said. "In some cases they are able to deploy de. vices even before we do, even though we had the technology first." An exam- ple in the area of antimissile systems, he said, was the Soviet rocket-intercep- tor system that rings Moscow. "I don't think you can over-emphasize the i-n- portance of a warm production line in terms of operational experience." he said. Dr. Roy D. Woodruff, a senior scien- tist at the Lawrence Livermore Na. tional Laboratory in California who has studied Soviet antimissile work, said the Russians had gone far beyond ' laboratory' testing, as defined in Ice- land. "Sary Shagan is an enormous fact. tiv." Dr. Woodruff said. "You have to ask questions about what they're doing there. Before any agreement is signed, they're going to have to be much more open about this stuff. It's a closed soci. ety. Even with all the classified infor- mation, we still don't have a very good idea of what's going on. We don't known what the quality is. My guess is that it 'isn't very good. But who knows?" Jeffrey T. Richelson, a aerospace ex- pert at American University in Wash- ington, D.C., said the Pentagon had a tendency to make overly bold asser- tions about Soviet antimissile ad- vances. An example, he said, was the repeated Pentagon assertion that 10,000 Soviet scientists are working on antimissile weaponry. "Their esti- mates are often more confident than they should be" and sometimes based on "dubious methodology," he said. "Uncertain estimates are all too often taken as literal truth" Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Next 5 Page(s) In Document Denied Iq Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 11, WEDNESDAY, NOVEMBER 26,1986 Iran Arms Profits Were Diverted to Contras; Poindexter Resigns, NSC's North Is Fired By David Hoffman w-11:91- Ee.t wf President Reagan yesterday announced he resignation of national security adviser Vice Adm. John M. Poindexter and the fir- ng of a key deputy, Lt. Col. Oliver L. North, following the disclosure of a clandes- tine web of financial transactions in which )rofds from the sale of American weapons :o Iran were diverted to help rebels fighting he Nicaraguan government. A shaken and grim-faced Reagan. con- 'ronting the most serious crisis of his pres- dency, told reporters "I was not fully in- 'ormed" about "one of the activities under- aken" in the secret weapons shipments to ran. "This action raises serious questions >f propriety," he said. Attorney General Edwin Meese III an- >ounced that $10 million to $30 million in >rofits from weapons shipped to Israel and whsequently sold to Iran were deposited in Swiss bank accounts and 'made available to the forces in Central America' fighting the Sandinista government of Nicaragua. The money was diverted during a period in which Congress had cut off U.S. military aid and prohibited American officials from help- ing the rebels. Administration sources said that Justice Department officials discovered the di- verted funds late last week when they were attempting to piece together a chronology of events in the Iran arms shipments. Ac- cording to an adminisbation account of the discovery. a secret intelligence Intercept" quoted Iranians and perhaps others discuss- ing the price of the weapons in amounts that appeared to be far greater than their, actual value, triggering a search for the profits and the reason they were diverted, the sources said. The departures of Poindexter and North occurred on a day of deepening contradic- tions and disappointment at the White House. where officials were reeling from three weeks of disclosures about the secret Iran operation that have seriously damaged Reagan's credibility and set the stage for renewed confrontation with Congress. Congressional leaders said they would conduct their own investigations into the Iran and Nicaraguan operations, and some said Reagan's foreign policy is in "total dis- array." Meese said he would also pursue his investigation. and Reagan announced he would create a special review board to ex- amine the role and procedures of the Na- tional Security Council staff. Sources said former Senate Armed Services Committee chairman John Tower (R-Tex.) would be named today to chair the panel. The statements by Meese and others rekindled questions about how aware Rea- gan was of the activities of his administra- tion's senior officials. Meese repeatedly said Reagan knew nothing about the oper- See PRESIDENT, A6, Col. I Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 lt an r unus were Inverted; Poindexter, North Out PHE.SIDENT, From Al ation. Meese said North was the only person in the U.S. government who "knew precisely" of the trans- actions, but added that Poindexter "did know that something of this na- ture was occurring, but he did not look into it further." Meese said lat- er-_that "there may have been others who may have been Working in some capacity" with North. Meese also-said that Poindexter acknowl- edged to him on Monday that he knew some aspects of the Ni- caraguan operation and told Meese then that he intended to resign. Meese said former national se- curity adviser Robert C. McFar- lane. Poindexter's predecessor, also knew of the operation. , In London, where he was making a speech, McFarlane said in a state- ment that, "in May of this year. in connection with a mission to. Iran I was advised by Col. North in gen- eriii"terms that such a [transfer] half taken place after my departure fr&W government Based upon -the summary account I took it to have been a matter of approved policy safhttioned by highrtr authority. These transfers were reported. to have taken place this year. At. no time was it raised or considered during my service in government:':; Many other; inside the adminig., tration and outside questioned Meese's statement that the Ni- caraguan operation was kept secret from other senior polk:ymakers in the government and from the U.S. intelligence community. In an inter- view with NBC. News last night, former secretary of state Henry A. Kissinger said, "I cannot imagine a lieutenant colonel or even an admi- ral like Poindexter doing this with- 3ut somebody knowing." The administration sources said a ending candidate to replace Poin- lexter is Navy Secretary John F. ehman Jr. Other candidates are slid to include former NATO am- ossador David Abshirc; former Jnited Nations ambassador Jeane J. Cirkpatrick and Undersecretary of Mate for Political Affairs Michael I. Armacost. ,Reagan pledged that "future for- eign and national security policy ini,~iatives will proceed only in ac- cordance with my authorization." His decision to create the special review board appeared to be a re- sponse to growing questions from senior State Department officials and members of Congress about whether the White House had over- stepped the proper function of the National Security Council by run- ning covert operations out of its basement offices in the West Wing. Shortly after Reagan's announce- ments. State Department spokes- man Charles E. Redman announced that Secretary of State George P. Shultz had prevailed in his effort to gain control of future U.S. policy toward Iran. Shultz designated Ar- macost to take charge of the de- partment's effort to revamp the Iran'' initiative and seek release of Americans held in Lebanon. Shultz has been the subject of intense speculation that he would leave the administration because of hi- opposition to the covert Iran artpq sales, but yesterday he de- clared his support for Reagan's pol- icy.to reach out to factions in Iran,. and''said he intended to be ."very. M4 a part of they effort to bring` the* to fruition.'.. Reagan promised to make:public theresults of the administration investigation, and continued to'in- sist that his basic policy toward Iran was not flawed. "I'm deeply troubled that the im- plementation of a policy aimed at resolving 'a truly tragic situation in the Middle East hat resulted in such controversy," Reagan said. "As I've stated previously, I believe our policy goals toward Iran were well- founded. However, the information brought to my attention yesterday convinced me that in one aspect. implementation of that policy was seriously flawed." After first saying that North "has been relieved of his duties" on the National Security Council staff, Reagan then said that "no one was let go; they chose to go." Meese said North may retire from the Ma- rine Corps. According to one source who was present, when the con- gressional leaders were told that North was returning to the Ma- rines, 'Secretary of Defense Caspar W. Weinberger announced imme- diately that he was not. . Meese announced that Poindex- ter's deputy, Alton G. Keel Jr., would' assume the post- of acting national security adviser, until a su- cessor is choosen. Keel immediately took over the duties, ping yes- terday over a.bigh-level meeting ou arpts control.. ' rovtd- ed yesterday by tion sources, Justice Dept aisles on Thursday were going over doc- uments, on the Iran attas sales in Administration - officials said that-,:.. Justice Department officials' discovered the diverted funds late last week when they were attempt- ing to piece together a chronol- ogy of events in the Iran arms shipment. preparation for testimony to con- gressional intelligence panels by Director of Central Intelligence William J. Casey. After they found the intelligence intercepts indicat- ing that money was diverted from the arms sales-which went through Israel-Meese went to Reagan on Friday and said he was concerned about the controversy. Reagan told Meese to pursue it, and the attorney general and other Jus- tice Department aides interviewed North extensively over the week- end, officials said. Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 On Monday. Meese talkrvi ,ti, e.. --- Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B0l390R000100090019-0 --~-- - --?es-.,.-.......... k v1J IuIKa, r nere I - ..vux urnciais sattl 'low 119 of the operation and not telling the president, and he told Meese he would probably have to resign. Meese then reported what he had found to Reagan and Vice President Bush, sources said. Yesterday, Meese arrived in the White House West Wing for an ear- ly meeting with Reagan, chief of staff Donald T. Regan and Bush. Shortly thereafter word that "this is resignation day," as one aide put it. spread through the building be- cause the president's**? sc eduled meetings were spddenlycanceled. After receiving Poindeader's res- .,lgnstioni(: Reagan summoned can-,, gressional leaders to inform them, and described Poindexter as '"like.. the captain of a ship w+Iio ' b not at, the helm when the ship hits the sand bar`he?stfU.'asasimes-respon. sibility." Meese portrayed the president yesterday as having not been i 4 formed of key aspects in the Iran operation. Meese said the president -' "knew. nod ' about the transfer ? of funds to Nicaragua. He said Rea- gan 'd dnl have complete informa- Israel to Iran in November, ,1985. He **id Reagan was informed "after the fact" that Israel had. shipped weapons to Iran in August 1985, just 'before the release of the. Rev. Benlamut Weir. Who was being held Meese also raised as many ques- teon- wbe answered about the pre- cise nature of the transactiori in whiclr'the Nicaraguan. rebels, also knowni as ic*tras, benefited, .'He suggested that' the weapons were taken front ?t:S. stockpiles and shippe4 _to Israel, where: some Is- caelis* ion did not identify, then saa them to Iran at an inifirated costa The U.S. 8vernment was then reimbursed blt Israel tfrrou the Central Intelligence Agency for the real cost of the weapons,, while the profit was diverted to the Swiss bank accounts. Administration of- ficials have said previously that about $12 million in TOW antitank missiles and Hawk antiaircraft mis- sile parts were transferred to Iran. and Meese reiterated that estimate yesterday. Three weeks after the secret Iran arms shipments were first dis- closed by a pro-Syrian Lebanese magazine, Meese-offered a picture r)f the administration still struggling to find out what had occurred in the )lwration. than we had already put together , he said. And it was a matter, then, of the president requesting me to talk with everyone who had any participation at all, because one agency was doing one thing, anoth- er agency. was doing another thing, there was very little. paper work Meese was vague. in responding to questions about the Iran and Nic- aragua operations, stating frequent- ly who was not told and what was not known. but skirting details about what his- investigators had uncovered in interrogating North over the weekend. A A 1YILf Meese. "k b4 l Void the .ong. erati .,o?-? ...+lu . ue gUes ' iaott at; t,copgs. sionat htatiag ;Friday. Meese. 'es-, terday " gingerly; answered some - questioi that could figure in future legal proceedings: such as congres- sional and criminal probes, For example; .referring to, the.:, profits tl t. emapp Hy used to?- help the Nlc$aEuana rebels. Mess. said, "We have no control over that money. It was never United States, funds, it was never. the. property of United States official, so we have . no control over that , Whatsoever." Meese said his'tthew would.at-. tempt to determinq. whether the secret transfer of furldq;;to, the Ni--? caraguan rebels hW-'rciolated -.the.; congressional ban on aiding the con-. tras, which was ref+ently fifted'when Congress approved4100'million in military and other aid,` Whether the law was violated "deponrb on two things: he said, 'pre isely what was done and preceiy'who did it. in terms of what people are United States officials, or United States citizens. actually partidpated, and what their conduct 'was.: That's what we're still looking at." Asked how the administration would try to restore its credibility with Congress, Meese said it would "tell them exactly what happened" and added, "I don't think anyone can he responsible if someone on the lower echelons of government does something that we don't feel ... or that objectively viewed is not cor_ rect." fie called the Nicaraguan connection an "aberration" from the policy Reagan had set toward Iran. "nut an inherent part of anything h; Rani' tiw if,) with t1.? ,,I,' . If-.If - Isclosures. "Flabbergasted " V , one aide said. "What a mess," another sighed. Chief of staff Regan, who sought to exert control over most aspects of White House operations during the entire time that the Iran and Nicaraguan operations unfolded, remained out of the limelight yes- terday. Poindexter could not be reached for comment yesterday. Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B0l390R000100090019-0 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 THE WASHMCM Posy TRANSCRIPT OF ATTORNEY GENERAL MEESE'S NEWS CONFERENCE How did it come to your attention? ?- In the course of a thorough review of a number of in- tercepts, and other materials, this-the hint of a possi- bility that there was some monies being made available for some other purpose came to our attention, and then we pursued that with the individuals involved. Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0 Declassified in Part - Sanitized Copy Approved for Release 2012/11/07: CIA-RDP90B01390R000100090019-0