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TOP SECRET

UNCLASSIFIED

N 5656

13

In support of this Finding and at the direction of the President, the CIA provided the following operational assistance:

Sterile overseas bank accounts for financial transactions.

A secure transhipment point

Panshipment of mifreary items from the U.S. to Israel.

Communications and intelligence support for the meetings with Iranian officials and the McFarlane trip to Tehran in May.

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commitment to iranian territorial integrity and served to support those in Iran interested in opening a strategic relationship with the U.S. They have also furthered U.S. efforts over the last 18 months have had tangible results on Iranian policy:

The Rafsanjani/Velayati intervention on behalf of the TWA 1847 passengers (June 1985).

Iranian direction that the hijacked Pan Am 73 would not be received in Iranian territory if it left Karachi.

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The release of three American and at least two French
hostages.

The initiation of an Iranian dialogue with their regional
neighbors.

The Iranian "final offensive."

TOP SECRET

TOP SECRET

UNCLASSIFIED

N 5657

Finally, it must also be noted that the U.S. arms embargo notwithstanding, West European nations have provided $500 million a year in military equipment to Iran. Most of these transfers were accomplished with government knowledge and/or acquiescence. All appropriate Cabinet Officers have been apprised throughout. The Congress was not briefed on the covert action Finding due to the extraordinary sensitivity of our Iranian contacts and the potential consequences for our strategic position in Southwest Asia. Finally, our efforts to achieve the release of the hostages in Lebanon must continue to rely on discreet contacts and intermediaries who cannot perform if they are revealed.

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EXHIBIT EM-31

UNCLASSIFIED

STAFF MEETING 19 Nov 86

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