Fiasco, Episode 2: Iran Contra – Trade Secrets

Introduction

In the second episode of Fiasco, titled "Iran Contra: Trade Secrets," host Leon Nayfak delves deep into one of the most controversial episodes of the Reagan administration—the Iran-Contra affair. This episode meticulously unpacks the intricate web of political maneuvering, covert operations, and personal dilemmas that defined this dark chapter in American history.

Background: The Iran Hostage Crisis

The episode opens with a vivid recounting of the Iran hostage crisis, setting the stage for the ensuing drama. On January 20, 1981, as Ronald Reagan was being inaugurated, more than 50 American citizens remained held captive in the U.S. Embassy in Tehran, Iran. These hostages had been held for over a year by Iranian radicals following the Iranian Revolution, which ousted the U.S.-backed Shah and brought the Ayatollah Ruhollah Khomeini to power.

“Reagan may be the first president who won't be the day's top news story on his Inauguration Day. There's anxiety that hangs over everything.” [02:22]

President Jimmy Carter's attempts to resolve the crisis, including cutting diplomatic ties and authorizing a secret rescue mission, ultimately failed, casting a shadow over his presidency. The prolonged hostage situation became a significant political liability, contributing to Carter's defeat in the 1980 election.

Reagan's Administration and the Hostage Fallout

As Reagan took office, the hope was that the hostage crisis would soon come to an end. However, frustration lingered as the hostages were not released until after Reagan's inauguration.

“The hostages are out. Responded saying, not yet. Not yet.” [05:56]

Once the hostages were finally released in a carefully timed ceremony, Reagan's administration found itself navigating the complex aftermath of a deal that had both resolved a humanitarian crisis and ignited a series of clandestine operations aiming to leverage similar negotiations for broader political objectives.

Key Figures: Robert Bud McFarlane and Oliver North

At the heart of the Iran-Contra affair was Robert Bud McFarlane, Reagan's National Security Advisor and a protege of Henry Kissinger. McFarlane believed that Iran was vulnerable to internal coup and saw an opportunity to influence regime change from within. His deputy, Lieutenant Colonel Oliver North, played a pivotal role in implementing these covert strategies.

“Remorse doesn't quite capture it. I’d failed my country.” [12:31]

The Arms for Hostages Deal

In July 1985, McFarlane received promising news from Israeli diplomat David Kimke about Iranian military dissidents willing to collaborate with the U.S. The proposed deal involved trading 100 American-made anti-tank missiles for the release of seven American hostages held in Lebanon.

“The deal would violate American policy in at least two ways. First, it would break the Reagan administration's rule against negotiating with terrorists. Second, it would undermine the international effort to stop weapons sales to Iran that the US itself had introduced.” [15:24]

Despite objections from key officials like Secretary of State George Shultz and Secretary of Defense Caspar Weinberger, Reagan was captivated by the potential to rescue the hostages and push forward his foreign policy agenda.

Negotiations and Failure of the Deal

The first shipment of 96 missiles, covertly transported via Israel, failed to secure the release of any hostages. Instead, the Iranians demanded more weapons, escalating the situation into a perilous cycle of negotiation and betrayal.

“The more I heard about Orbanifar, the lower my confidence that this had any plausibility.” [44:59]

McFarlane's skepticism grew as it became clear that the intermediary, Manucher Gorbanifar, lacked credibility. Despite his reservations, Reagan authorized a second shipment of over 400 missiles, hoping against hope for a breakthrough.

McFarlane's Resignation and the Implosion of the Plan

As the deal unraveled, McFarlane faced mounting pressure and moral quandaries. By November 1985, exhausted and disillusioned, he resigned from his position, warning that the Iran initiative was "doomed to failure."

“I consider that I had failed our country in retiring. At that point, the only person that could have stopped it was me, and I didn't do it.” [48:33]

Aftermath and Reflection

The episode concludes by reflecting on the profound personal and political costs of the Iran-Contra affair. McFarlane's departure marked a significant turning point, yet the administration's entanglement in covert operations continued to haunt Reagan's legacy.

“If I had to do again, I would not have let it go on. But I did. And there's no changing the facts.” [50:00]

Conclusion

Fiasco Episode 2 offers a gripping exploration of the Iran-Contra affair, highlighting the intricate balance between diplomatic ideals and the shadowy undertones of political expediency. Through detailed narratives and poignant quotes, Leon Nayfak paints a comprehensive picture of a pivotal moment in U.S. history, making it accessible and engaging for listeners new to the subject.

Notable Quotes

• “Reagan may be the first president who won't be the day's top news story on his Inauguration Day. There's anxiety that hangs over everything.” — Historical Expert [02:22]

• “Remorse doesn't quite capture it. I’d failed my country.” — Bud McFarlane [12:31]

• “The deal would violate American policy in at least two ways. First, it would break the Reagan administration's rule against negotiating with terrorists. Second, it would undermine the international effort to stop weapons sales to Iran that the US itself had introduced.” — Historical Expert [15:24]

• “I consider that I had failed our country in retiring. At that point, the only person that could have stopped it was me, and I didn't do it.” — Bud McFarlane [48:33]

• “If I had to do again, I would not have let it go on. But I did. And there's no changing the facts.” — Bud McFarlane [50:00]

Key Takeaways

• Political Stakes: The Iran-Contra affair was not just a covert operation but a high-stakes game that tested the ethical and political boundaries of the Reagan administration.

• Personal Accountability: Bud McFarlane’s reflections underscore the personal toll and moral dilemmas faced by those in power during such crises.

• Legacy of Reagan: The episode highlights how Reagan's ambitions and decisions during this period have left a lasting imprint on his presidential legacy and U.S. foreign policy.

Final Thoughts

Fiasco effectively unravels the complex layers of the Iran-Contra affair, providing listeners with an in-depth understanding of the events, motivations, and repercussions. Through engaging storytelling and insightful analysis, the episode serves as a valuable resource for anyone seeking to comprehend the intricacies of this historical fiasco.