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$Unique_ID{bob01021}
$Pretitle{}
$Title{Iran-Contra Affair: The Report
Chapter 4B Channell-Miller Network - The Beginnings}
$Subtitle{}
$Author{Various}
$Affiliation{}
$Subject{miller
north
channell
contras
ramsey
gomez
nepl
ibc
money
calero}
$Date{1987}
$Log{}
Title: Iran-Contra Affair: The Report
Author: Various
Date: 1987
Chapter 4B Channell-Miller Network - The Beginnings
In late March or early April 1985, Channell, Conrad, Miller, and to a
significantly lesser degree, Gomez, embarked on an effort to assist the cause
of the Contras. Their joint efforts would extend into the latter portion of
1986. According to Miller, Channell initially offered to IBC a retainer of
$15,000 per month, which IBC accepted.
In exchange for this retainer, IBC was to handle media relations,
political analysis, research, advertising copy, film production, and other
public relations functions. There was never any written agreement, however,
reflecting the arrangement between NEPL and IBC.
At first, IBC lent support to the American Conservative Trust and NEPL in
their efforts to educate the public on the Nicaraguan issue. Very quickly,
however, Channell expressed to Miller an interest in raising money for the
Contras. Because of their prior contact with the Contras' organization and
leaders, Miller and Gomez believed that they could be of assistance. One of
Channell's first steps, with IBC help, was to secure a letter from Adolfo
Calero authorizing NEPL to solicit contributions on behalf of his
organizations. This letter,, dated April 10, 1985, opened "Dear Spitz," and
read in part:
Please help us to achieve our dream, a free and democratic Nicaragua, not tied
to a hostile Soviet threat but to a peaceful democratic American tradition.
All resources you can raise will be appreciated. We can put all of them to
good purposes.
Richard Miller and Frank Gomez can keep you informed of our progress and serve
as our contact point in the United States.
The Initial Solicitations
In early April 1985, Channell spoke with one of his prior contributors,
John Ramsey of Wichita Falls, Texas, who Channell felt might be interested in
contributing to support the Contras. Ramsey seemed receptive to the idea, but
wanted to meet Calero in person to ensure that any money he contributed would,
in fact, be used to support the Contras.
Channell scheduled a dinner for himself, Conrad, Miller, Gomez, Ramsey,
and Calero in Washington, D.C., on April 10, 1985. At the last minute,
however, Calero was unable to attend and the dinner went forward without him.
Going into the dinner, Channell had told Miller and Gomez that Ramsey was a
"tough cookie" who probably would be most interested in the Contras' need for
arms and other lethal supplies.
At the dinner, in a private room at the Hay-Adams Hotel, Miller and Gomez
spoke at length about the Contras' need for supplies, both lethal and
non-lethal. Gomez showed Ramsey a book of photographs taken during a recent
trip Gomez had made to various Contra bases in Central America. This
collection included pictures of Contra fighters, mortars, and machine guns.
Conrad openly tape-recorded the conversation during dinner, supposedly
because he was learning new information about the Contras and wanted to
preserve it. The transcript of the tape, as further interpreted by Channell,
Conrad, and Miller during depositions, confirms that Channell, Miller, and
Gomez discussed the Contras' military and non-military needs at length, often
in response to questions from Ramsey. At one point, Miller deflected a
suggestion by Ramsey that people be solicited to send used shotguns to the
Contras:
RAMSEY: "The best I can tell, a shotgun is the best thing to use in
jungle warfare."
GOMEZ(?): "Or a very rapid fire machine gun. That's why the AK-47s and
the M-16's are the best weapons."
MILLER: "The M-16 fires a 22.5 caliber bullet."
RAMSEY: "I bet I could get 10,000 people to give their old shotguns to
this."
MILLER: "Only one problem. You can't export guns without a license."
Shortly after this exchange, the subject turned to methods of
counteracting Soviet-supplied HIND helicopters:
GOMEZ or MILLER: "Calero has said publicly, so that the Sandinistas
could hear on secret radio communications in the field saying we have red
eyes [missiles]. It's a big lie."
UNKNOWN: "They're playing a psychological war against the Sandinistas."
MILLER(?): "The more sophisticated of the shoulder-held missiles, the
red eyes. There's 2 different kinds. One that's a little less expensive and
there's one that's $8,000. It can take it out."
Later, Channell itemized some of Calero's needs:
CHANNELL: "Calero wants those red eye missiles. He wants boots. He
wants back packs. He wants AK-47 rounds which you can get on the
international market. He wants communications equipment."
Ramsey, however, returned again to his suggestion to provide the Contras
with donated arms, which is not what Channell and Miller had in mind:
RAMSEY: "We're going to call it the Shotgun Drive. And we're going to
get Remington to put up the amo [sic]. Dupont owns Remington.
"We're going to start on CBs. We're not even going to invoke the electronic
media until we get support or we have about three semis going north on Tobacco
Road out of North Carolina full.
"And they keep calling on another semi.
"We got an empty semi out there? Somebody got an 18-wheeler empty can come
down and help liberate Central America?"
Near the end of the transcript, the Channell-Miller group succeeded in
turning the discussion back to missiles and money:
UNKNOWN: "Between now and May 1 the red eye missiles could be the entire
key.
"Because if they succeed at this point in launching an offensive including
tanks and M124 helicopters into that region and go for the cans . . . .
"There's two different kinds of red eye missiles. There's one that's very
unsophisticated which is just a direct shot missile. And then there's one
that's able to take on the Hind [sic] because the Hind has major decoy
devices, has heavy armament, and it has these flares on the back of the
exhaust from the jets - the expulsion from the engine - that mask the heat.
"So you have to have the $8,000 red eye to make it work."
The transcript concludes with an observation, attributed to Miller,
summing up well the philosophy with which Channell, Conrad, and Miller
approached their solicitations:
MILLER: "If you provide money for ammunition, the money they've set
aside for ammunition can go to boots.
"On the other hand, if you provide money for boots, what they've set aside for
boots can go to ammunition."
The solicitation was a success. The next morning Ramsey had breakfast
with Calero and, at that time or shortly thereafter, donated $20,000 directly
to the Nicaraguan Development Council. As noted earlier, the NDC had
previously retained IBC as a public relations consultant. [When Ramsey was
shown a copy of the dinner transcript, he indicated that, while portions of
the dialogue seemed familiar, "[t]here is very much on there I have never
heard of before." Ramsey Dep. at 70. Ramsey suggested that Channell, Conrad,
Miller, and Gomez "might not have ask[ed] for the money [for lethal supplies]
directly." Instead, "[t]hey were just saying that if the [Contras] had the
money they could buy them." Ramsey Dep. at 87.]
Later, in early June 1985, Miller received a telephone call from North,
who asked him to try to raise $30,000 for an undisclosed purpose related to
the Contras. North also gave Miller the name and number of a
Robelo-controlled account in the United States - although Miller did not know
that - into which any contribution could be deposited.
At Channell's suggestion, Miller contacted Ramsey, who sent $10,000
directly to the Robelo-controlled account. North later confir