Israel Believed to Be the First Country U.S. Officials Asked to Help Fund the Contras

Israel is believed to be the first country United States officials approached to help fund the Contras in Nicaragua.

Former National Security Advisor Robert McFarlane, testifying for the first day in the Senate-House Select Committee’s hearing on the Iran/Contra affair, said Monday that he approached a representative of “country one” in February or March 1984 to discuss funding and training of the Contras. Congress stopped military aid to the Contras in October 1984.

This country was interested in participating in development programs in the Caribbean that could be arranged for such assistance, McFarlane said. Senate General Counsel Arthur Liman read a memo in which McFarlane instructed an aide not to “press them (“country one”) on the question of assistance, but to try to win their support. It was not said which Israeli official would have received the request. McFarlane added a postscript to the note: “Destroy this memo.”

“Country one” however turned down the request. Funds were provided by Saudi Arabia which contributed more than $25 million to the Contras.

McFarlane revealed that President Reagan held meetings with Saudi officials prior to the payments. After one meeting in May 1984, the Saudis decided to sharply increase their donations. Shortly after, the Reagan Administration sold the Saudis 400 Stinger anti-aircraft missiles.

McFarlane also testified that President Reagan gave Israel authorization to sell U.S. Tow antitank missiles arms to Iran that would be replaced.

McFarlane said Reagan told him that Israel could sell the weapons “as long as they did not affect the balance of the (Iran/Iraq) War and that they not be sold to terrorists.” The weapons were sent to Iran in September 1985.