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Answer: We will not abandon our hostages. said that we are willing to talk to any one. to any group to ,any government about their safe release. That continues : be our policy. But what we have not done, and will neve: do, is to give in to terrorist demands. To do so would only invite more terrorism. ::ecognize that there are risks in this policy. But in the long run a firm policy of refusing to give in to terrorisa will be safer for American citizens and a better quarantor of American interests.

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Jerry

UNCLASSIFIED

EXHIBIT GPS-45

"We found some individuals (ran) that le signe se possible for us to deal with.... There are tactions

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- Those with whom we were dealing were unscrupulous and untrustworthy. They are advocates and practitioners of that very scourge we are fighting elsewhere in the world

cerrorism. Our eva primary contacts for the operation veta Gorbanifar and

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#136

EXHIBIT

S 3917

The direct linkage netween Israeli and .S. supply is snown ay the fact that, in early 1986, we supplied 508 COWS : :s:10: to replace those it had sent to tran in September 1985.

--Sill Casey's testimony for tomorrow reveals that in November 1985 the CIA helped Israel transfer Hawk missiles by Israel :3 Iran at the NSC state's request. Shockingly, the SC staff denies having made this request.

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-opening a channel of comunications to Iran could basten that end. The supply of arms, even in the context you described, will only sake Eran more Latransigent and sore set on Prosecuting the war. me Iranian leadership is convinced it has smaged a major breakthrough, and other arms suppliers will now disregard Operation staunch efforts. Everyone with experience in tren and dealing with Iranians firmly believes thec ve have Langthered the war because of the psychological and political boost we have giver to those who successfully goe BESTE CUE OF US. DE a November 20 speech, Aystallak Khomeini has told his nation that the last fouse representatives presented themselves seekly and humbly at the door of this nacion, wishing to establish relations. They wish to apologize for their mistake, but our nation rejects them."

6 May 1987:

3919 6. here is a gistaken percepcion that we have been exénanging arms for hostages.

- It is very clear to the Iranians that we were exchanging arms for hostages. Mcfarlane informed the Secretary that Kinche reported that hostages would be released on November 20, 1985 and that Israel planned to fly 130 Hawk missiles from

Israel, and subsequently to Iran 18 the hostages were Karetsed. (In the event, the shipments were sent via a Coa proprietary and were delivered to Ican despite the fact that no hostages were released.)

— on several occasions, Nepazlane and Poindexter descrised the operation to c2, md Ollie North described it to others, as being arms for hostages, and in some cases as money for hostages. Every cise a bostage was released, it was preceded by a shipment of arms to Iran. Regardless of our statements to the contrary, we are convinced that the Iranian leadership believes that it was involved in aras-for-hostages exchanges.

7. "Key Cabinet members were consulted throughout, and our policy objectives vece mevar iz dispute."

— This is not true. The Sematary of state vas told on al

least four occasions that die apoczELOR vas completely turned aff. The last suck tine vaš ta Dina (E. Ekis Mås. The Secretary vas never shove the Piading; ke vasinet informed of Referime's bly en Teneza, and be was unaware of the CIA role in transferring these vespons. Back the Secretaries of state and Defense veže firmly oupased to the supply of arms and continued to make their opposition knową to the President.

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6 May 1987

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