Iran-Contra Affair

The Contras

The plan went ahead, and proceeds from the arms sales went to the Contras, a right-wing guerilla organization engaged in an insurgency against the leftist Sandinista government of Nicaragua. The diversion was coordinated by Oliver North of the National Security Council. Supporting the Contras financially was an effort to assist them in their fight against the Nicaraguan government.

Both the sale of weapons to Iran and the funding of the Contras attempted to circumvent not only stated Administration policy, but also legislation passed by Congress known as the Boland Amendment. Administration officials argued that regardless of the Congress restricting the funds for the Contras, or any affair, the President (the administration) could carry on by seeking alternative means of funding such as private entities and foreign governments.[18]

The Contras were also involved in drug trafficking, as detailed in the "Drug money" section below. According to The Washington Post, some Central Americans criticize Reagan for his support of the Contras, saying he was an anti-communist zealot, blinded to human rights abuses, while others say he "saved Central America" and helped "nurture democratic governments and free-market systems across the region."[19] Daniel Ortega, Sandinista leader of Nicaragua from 1979 to 1990, said that he hoped God would forgive Reagan for his "dirty war against Nicaragua."[19]