-Also, even if the deal had worked as planned, it would have been yet further evidence that we condone trading hostages for arms. We understand that among the activities attempted last week was the transfer of additional aERS & & Svecaner for the release of more hostages. If this had worked, it would have conclusively shown that the price for getting the additional two hostages released was arma.som -Although one say be able to argue that Americans were not as intensely targetted by the Iranians during 1965 as CAST VECT formerly, there is no douse that Iran has not reduced in any way its support for internacional cerrorism and our ends and allies, as well as the three new American hostages in Casason, continue to suffer. 6 May 1987 11. "I was not breaking any law.... I have the right under the law to defer reporting to Congress.. - serious legal questions arise for two reasons: A a) We knew of and evidently requiesced in Israeli shipments to fran seaths before the January 1986 Sinding was sigued. central issue is how ve Lace Gue knowledge and appareat acceptance of such shipments vins the fact that, over & year Later, we have still nee informed Congress of a third party transfer as we are required ca de under the ABS Export Control AGR. b) At least one shipment of T.S. I may have left the 0.8. for tran after August 1986, when Congress passed a law prohibiting all transfers to tran. While a strong argument can be made that the Finding can wphorize transfers prohibited by the ABCA's general provisions, that argument became more Heficis is the faces of the specific prohibirica in Auguies. overall, this action could lead to further restrictions on the President's legal authority. (May 1987 11/20/16 AG: Nov. Hank apride Partially Declassified/Relzzzzód oil 25 June 198: during Genera summit - after 20 Sany's meeting + said Ma. to Ir. on a complex deal was underway -- shipment of (may have said Hanks) would: ammption that hatagen would be releed The Iranian's would know bound of the plane, but what was Hill: Mond plane would so from it wode Isn to Tran would be by adve adrized through hostages released -to Iss •hostages released) 6.S. said very land idea, didn't think it. work was consulted, not for aprove 6.5. thought it then't happen, hostages reversed العيد نام INCLASSIFIEDA recally described, perhaps at J__ 7 see P. stand за UNCLASSIFIED + sand the up Some of statents won't 6.5. adviced that M. Come to G.S. & told 8 deal it but didn't underst part of Pred said he knew I like but a 6.5. rested com Geneva conversation to C. Hill Family group meeting at residence 8 500 Tows Isn→ Iran. M. advice 6.5. duinly recalls Ang meeting re this subject, but doesn't recall anything transfer of Tows or re a completed anything's 65. doin't recall leany in Sept of Any Haney Dec. 7. meeting 6.§.+ Cap firimly argued ago; the whole enterprise. Casey Jan 16 AG. net w/ Poin & basis of finding. were dealing w/. of Poin told 6.5. from time-to-time of the sleazy people One late-Mayth Someone walked into London Embury + told Iran? of lange ams dealers doing business in fine Chas. Price - Embassy sent cable to 6.5. in Tokyo GS. again implored Regan to stop UNCLASSIFIED In Imeth told by Casey & Poin, that it has worked out + In Out leamed of hostage release, & had secure |