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They hoped, thereby, to fund the Contras in Nicaragua while at the same time negotiating the release of several U. The scandal began as an operation to free seven American hostages being held in Lebanon by Hezbollah, a paramilitary group with Iranian ties connected to the Army of the Guardians of the Islamic Revolution.

As part of the effort to circumvent the Boland amendment, the NSC established "the Enterprise", an arms-smuggling network headed by a retired U. Air Force officer turned arms dealer Richard Secord that supplied arms to the Contras that was ostensibly a private sector operation, but in fact was controlled by the NSC.

To fund "the Enterprise", the Reagan administration was constantly on the look-out for funds that came from outside the U. government as not to explicitly violate the letter of the Boland amendment, though the efforts to find alternative funding for the Contras violated the spirit of the Boland amendment.

A group of senior Reagan administration officials in the Senior Interdepartmental Group conducted a secret study on 21 July 1981, which concluded that the arms embargo was ineffective as Iran could always buy arms and spare parts for its American weapons elsewhere, while at the same time the arms embargo opened the door for Iran to fall into the Soviet sphere of influence as the Kremlin could sell Iran weapons if the United States would not.

After the weapon sales were revealed in November 1986, Reagan appeared on national television and stated that the weapons transfers had indeed occurred, but that the United States did not trade arms for hostages. Congress and the three-person, Reagan-appointed Tower Commission.

Those charges, however, were later dropped because the administration refused to declassify certain documents.

The indicted conspirators faced various lesser charges instead.

In early July 1985, the historian Michael Ledeen, a consultant of National Security Adviser Robert Mc Farlane, requested assistance from Israeli Prime Minister Shimon Peres for help in the sale of arms to Iran.