Nation

COVER STORIES THE 8IRANSCAM 8TRAIL8 This chronology of the Reagan Administration's involvement in arms sales to Iran and the secret funding of the Nicaraguan CONTRAS is based on testimony by public officials, details that sources have disclosed to TIME, and reliable newspaper and television reports.

Early 1984

Following congressional restrictions on contra funding, NSC Aide Oliver North reportedly devises a plan to use private U.S. citizens and other countries to funnel aid to the Nicaraguan rebel forces. President Reagan is said to approve the plan, although former National Security Adviser Robert McFarlane last week denied the existence of such a plot.

Oct. 10

Congress strengthens the Boland Amendment by banning any U.S. agency from supporting the contra war.

November

Iranian Arms Dealer Manucher Ghorbanifar contacts former CIA Officer Theodore Shackley in West Germany, according to the New York Times. Ghorbanifar proposes selling U.S. arms to Iran as a swap for hostages in Lebanon. Shackley passes the proposal to U.S. officials.

May-June 1985

The CIA reportedly suggests that the U.S. encourage allies to sell arms to Iran as a way of bettering relations. Defense Secretary Caspar Weinberger bristles, "This is absurd."

Summer

In London, Saudi Billionaire Adnan Khashoggi arranges a meeting between Ghorbanifar and Israeli arms dealers.

July

McFarlane meets with David Kimche of the Israeli Foreign Ministry

to discuss ways

of improving

relations with

Iran. McFarlane discusses the idea of arms sales with the President. Reagan expresses misgivings but feels it is

important to open negotiations. McFarlane tells Kimche that

the U.S. is interested.

July 26

Congress agrees to supply the contras with $27 million in nonmilitary humanitarian aid.

Aug. 6 or 7

At a pivotal meeting with Reagan, Secretary of State George Shultz, Chief of Staff Donald Regan, NSC Assistant John Poindexter and the CIA's John McMahon, McFarlane says the Israelis want U.S. approval to ship arms to Iran.

Shultz and Weinberger are strongly opposed, but the group reluctantly agrees to give Israel the green light to proceed.

Aug.-Sept.

Israel ships two planeloads of U.S. weapons to Iran. Bank documents show that Ghorbanifar writes two checks totaling $5 million to Khashoggi. Hostage Benjamin Weir is released on Sept. 14. The Administration, hoping other hostages will be freed, delays announcing the release for four days.

November

Israel ships missiles to Iran on planes supplied by the CIA, with Khashoggi bridge-financing the deal.

Dec. 4

McFarlane announces his resignation and is replaced by Poindexter.

Dec. 6

The President and his advisers agree that the U.S. should pursue channels to Iran, but cannot sanction further arms sales.

Dec. 8

McFarlane and North meet with Kimche and Ghorbanifar in London. The

Iranian pushes

hard for more

arms deals but

the Americans stand firmly by Reagan's instructions.

Jan. 17, 1986

At the CIA's urging, Reagan reverses himself and signs a secret intelligence "finding" authorizing direct U.S. arms transactions with Iran. He instructs Casey to conceal the project from Congress. Shultz and Weinberger are not notified.

Late January

Amiram Nir, an Israeli government counterterrorism expert, meets in Washington with North and other White House officials. Nir says North has set the price for weapons to Iran at three to four times book value. North tells Nir of a Swiss bank account where the money should be deposited. Nir passes the account number to the Iranians.

February

In the first direct shipment of weapons from the U.S. to Iran, the Pentagon transfers 500 TOW antitank missiles to the CIA, which flies them to Israel. They are then flown to Tehran. Money from the sale is deposited in a Swiss bank account set up by the CIA. Khashoggi is the middleman, collecting $10 million from the Iranians and reimbursing the U.S. perhaps $3.75 million.

Spring

The contras receive increased supplies of weapons and other materiel. Flight crews for the airdrops are primarily made up of former CIA operatives. Attorney General Edwin Meese later reveals that profits from arms sales to Iran were funneled to the contra supply network.

April 14

The U.S. bombs Libya to retaliate for Muammar Gaddafi's terrorist activities.

May

The U.S. sends two more planeloads of weapons to Tehran via Tel Aviv.

May 25

North asks Texas Billionaire H. Ross Perot to send $2 million to Cyprus in what proves to be a fruitless attempt to ransom more hostages.

May 28

McFarlane and North fly to Iran aboard a plane loaded with spare parts for Hawk antiaircraft-missile batteries. McFarlane expects all the remaining U.S. hostages to be released before he lands in Tehran, but no hostages are freed. On the return flight, North tells McFarlane that profits from the arms sales are going to the contras.

June

The U.S. refuses to send a second shipment it had promised as part of the McFarlane trip. The Iranians respond by holding back payment for the previous delivery. As the standoff continues, Khashoggi and two Canadian partners, who have put up $15 million, get no return for their money.

June 25

The House approves $100 million in military and humanitarian aid to the contras.

July 26

Hostage

Lawrence Jenco is released.

July-August

The Iranians finally produce partial payment. Khashoggi arranges two new deliveries that

are supposed to

lead to the

release of more hostages.

August

Khashoggi's reported shipments produce no additional hostages, and the U.S. threatens to halt the arms deals. Iran responds by withholding payment for Khashoggi's recent deliveries. Khashoggi and his Canadian associates are left in the lurch.

Oct. 5

A C-123K cargo plane delivering arms to the contras is shot down over Nicaragua.

The sole surviving crew member, Eugene Hasenfus, is tried and

convicted in a Sandinista court. Sentence:

30 years in

prison.

Oct. 7

New York Businessman Roy Furmark tells Casey that Khashoggi's Canadian partners have not been repaid for their investments and are threatening legal action.

The Canadians suspect that the arms money

has been funneled to the contras.

Casey goes to Poindexter

with Furmark's news.

Oct. 26-27

The U.S. sends a final shipment of arms to Iran.

Nov. 2

Hostage David Jacobsen is released.

Nov. 4

Lebanese magazine Al Shiraa breaks the story of U.S. dealings with Iran. Parliamentary Speaker Hashemi Rafsanjani confirms that McFarlane visited Tehran with a planeload of weapons.

Nov. 25

After three weeks of controversy over the Iran arms deals, Meese discloses the contra connection but claims that only North and Poindexter knew of the entire operation. Both men leave the NSC.