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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.

It was ostensibly a private sector operation, but in fact was controlled by the NSC.

At the same time, the openly declared goal of Ayatollah Khomeini to export his Islamic revolution all over the Middle East and overthrow the governments of Iraq, Kuwait, Saudi Arabia and the other Persian Gulf states led to the Americans perceiving Khomeini as a major threat to the United States.

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Handwritten notes taken by Defense Secretary Caspar Weinberger on December 7, 1985, indicate that Reagan was aware of potential hostage transfers with Iran, as well as the sale of Hawk and TOW missiles to "moderate elements" within that country.

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.

To fund "the Enterprise", the Reagan administration was constantly on the look-out for funds that came from outside the U. government in order 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.

Dynamic political evolution is taking place inside Iran. to exploit and benefit from any power struggle that results in changes from the Iranian regime... S should encourage Western allies and friends to help Iran meet its import requirements so as to reduce the attractiveness of Soviet assistance...

Having talked to an Israeli diplomat David Kicmche and Leeden, Mc Farlane learned that the Iranians were prepared to have Hezbollah release American hostages in Lebanon in exchange for Israelis shipping Iran American weapons.

to the Islamic republic as a way of aiding a supposedly moderate, politically influential faction within the regime of Ayatollah Khomeini who was believed to be seeking a rapprochement with the United States; after the transaction, the United States would reimburse Israel with the same weapons, while receiving monetary benefits.The broader constitutional question at stake was the power of Congress vs. The Reagan administration argued that because the constitution assigned the right to conduct foreign policy to the executive, its efforts to overthrow the government of Nicaragua were a presidential prerogative that Congress had no right to try to halt via the Boland amendments.By contrast congressional leaders argued that the constitution had assigned Congress control of the budget, and Congress had every right to use that power not to fund projects like attempting to overthrow the government of Nicaragua that they disapproved of.or the Iran–Contra scandal, was a political scandal in the United States that occurred during the second term of the Reagan Administration.Senior administration officials secretly facilitated the sale of arms to Iran, which was the subject of an arms embargo. Under the Boland Amendment, further funding of the Contras by the government had been prohibited by Congress.The Iranian recipients promised to do everything in their power to achieve the release of the hostages.

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