$Unique_ID{bob01077}
$Pretitle{}
$Title{Iran-Contra Affair: The Report
Chapter 22E  Section 4:  The Diversion - How Much?}
$Subtitle{}
$Author{Various}
$Affiliation{}
$Subject{enterprise
million
arms
contras
iran
surplus

}
$Date{1987}
$Log{}
Title:       Iran-Contra Affair: The Report
Author:      Various
Date:        1987

Chapter 22E  Section 4:  The Diversion - How Much?

     The Iran arms sales generated a $16.1 million surplus for the Enterprise.
The Enterprise managed to spend part of that money, $3.8 million, for the
Contras before its operations were stopped.

     As of November 19, 1985, the day before the first money from the Iran
arms transactions was deposited into the Enterprise, the Enterprise had a cash
balance of approximately $1 million.  From November 20, 1985 through December
1986, the Enterprise received an additional $2.4 million in donations for the
Contras.  During the same period, the Enterprise spent approximately $7.2
million on behalf of the Contras.  The shortfall - $3.8 million - was diverted
from the Iran arms sale surplus.

     The diversion did not take place by accident.  In fact, North helped set
the price of the arms so that a surplus would be created which could be used
for the Contras.  According to Secord, North consistently instructed him to
use the surpluses generated from the Iranian arms sales for the Contra
project.  North apparently thought that at least $6 million of the Iran
surplus from the May transaction alone would be used for the Contras.  He sent
Poindexter a PROF note on May 16, saying that the Enterprise had "more than $6
million available for immediate disbursement."  Poindexter testified that he
believed that the Enterprise was giving the Contras all of the surplus from
the Iran arms sales.