Poindexter will challenge Reagan’s story — “Post”

Press, 10 March 1987, Page 6

Poindexter will challenge Reagan’s story — “Post”

NZPA-Reuter Washington President Ronald Reagan’s denial that he knew proceeds from Iran arms sales were diverted to Nicaraguan contra rebels might be challenged by his former National Security Adviser, according to the "Washington Post.” The paper said yesterday that Admiral John Poindexter, who resigned last November when the illegal transfer of up to SUS2O million ($36 million) was disclosed, was ready to break the silence he has so far maintained over the affair. The “Post” said Admiral Poindexter might tell a special Senate committee investigating the Iran scandal that he told Mr Reagan twice in 1986 that money from Iran sales was being used for aid to the contras. It said the panel was considering granting Admiral Poindexter immunity from prosecution over the fund diversion,, which was illegal under a

Congressional ban in force at the time against aid for the contras. Admiral Poindexter has so far invoked the Fifth Amendment to the Constitution that protects people from giving evidence that could be self-incriminat-ing. Mr Reagan has said he authorised the sale of arms to Iran in the hope of establishing links with Iranian moderates, but has knowing that

proceeds were channelled to Nicaraguan rebels. A White House spokesman had no comment on the “Post” story, but Mr David Abshire, who is coordinating White House handling of the affair, said Mr Reagan would never approve any illegal action. Mr Abshire, on the C.B.S. television show "Face the Nation,” did not comment directly on the “Post” story, but said: “He (Mr Reagan) is deeply honest; he is deeply dedicated; he tells the truth and when he says he has no knowledge, he has no knowledge.” The “Post” quoted a source close to Mr Reagan as saying the White House expected that Admiral Poindexter “will say he had direction and authority, directly or indirectly,” from the President for the diversion of funds. The paper said the former National Security Adviser’s testimony could damage the President’s claim that he was una- -

ware of the funds diversion.

It quoted a legal source as saying that Admiral Poindexter and his lawyers planned to contend that twice in 1986 he told Mr Reagan that the arms sales were generating money for the “contras.” The paper quoted the source as saying that Admiral Poindexter did not tell Mr Reagan there was an illegal diversion of funds, but that help for the contras was “an ancillary benefit” of the sales. The “Post’s” sources also said the Senate committee could grant immunity from prosecution this month to LieutenantColonel Oliver North, who was fired from the National Security Council on the same day that Admiral Poindexter resigned. Colonel North, who is alleged to have masterminded the diversion, has also cited the Fifth Amendment in refusing to testify.