WASHINGTON — Following are excerpts of the Tower Commission report issued Thursday:
In November, 1986, it was disclosed that the United States had, in August, 1985, and subsequently, participated in secret dealings with Iran involving the sale of military equipment. There appeared to be a linkage between these dealings and efforts to obtain the release of U.S. citizens held hostage in Lebanon by terrorists believed to be closely associated with the Iranian regime.
After the initial story broke, the attorney general announced that proceeds from the arms transfers may have been diverted to assist U.S.-backed rebel forces in Nicaragua, known as \o7 contras\f7 . This possibility enlarged the controversy and added questions not only of policy but also violations of law.
These disclosures became the focus of substantial public attention. The secret arms transfers appeared to run directly counter to declared U.S. policies. The United States had announced a policy of neutrality in the six-year-old Iran-Iraq war and had proclaimed an embargo on arms sales to Iran. It had worked actively to isolate Iran and other regimes known to give aid and comfort to terrorists. It had declared that it would not pay ransom to hostage-takers.
Public concern was not limited to the issues of policy, however. Questions arose as to the propriety of certain actions taken by the National Security Council staff and the manner in which the decision to transfer arms to Iran had been made. Congress was never informed.
A variety of intermediaries, both private and governmental, some with motives open to question, had central roles. The NSC staff rather than the CIA seemed to be running the operation. The President appeared to be unaware of key elements of the operation. The controversy threatened a crisis of confidence in the manner in which national security decisions are made and the role played by the NSC staff.
It was this latter set of concerns that prompted the President to establish this special review board on Dec. 1, 1986. . . .
What Was Wrong
The arms transfers to Iran and the activities of the NSC staff in support of the contras are case studies in the perils of policy pursued outside the constraints of orderly process.
The Iran initiative ran directly counter to the Administration's own policies on terrorism, the Iran-Iraq war and military support to Iran. This inconsistency was never resolved, nor were the consequences of this inconsistency fully considered and provided for. The result taken as a whole was a U.S. policy that worked against itself.
The board believes that failure to deal adequately with these contradictions resulted in large part from the flaws in the manner in which decisions were made. Established procedures for making national security decisions were ignored. Reviews of the initiative by all the NSC principals were too infrequent.
The initiatives were not adequately vetted below the Cabinet level. Intelligence resources were underutilized. Applicable legal constraints were not adequately addressed. The whole matter was handled too informally, without adequate written records of what had been considered, discussed and decided.
This pattern persisted in the implementation of the Iran initiative. The NSC staff assumed direct operational control. The initiative fell within the traditional jurisdictions of the departments of State, Defense, and CIA. Yet these agencies were largely ignored. Great reliance was placed on a network of private operators and intermediaries.
How the initiative was to be carried out never received adequate attention from the NSC principals or a tough working-level review. No periodic evaluation of the progress of the initiative was ever conducted. The result was an unprofessional and, in substantial part, unsatisfactory operation.
In all of this process, Congress was never notified. . . .
A Flawed Process
The arms sales to Iran and the NSC support for the contras demonstrate the risks involved when highly controversial initiatives are pursued covertly.
The initiative to Iran was a covert operation directly at odds with important and well-publicized policies of the executive branch. But the initiative itself embodied a fundamental contradiction.
Two objectives were apparent from the outset: a strategic opening to Iran and release of the U.S. citizens held hostage in Lebanon. The sale of arms to Iran appeared to provide a means to achieve both these objectives. It also played into the hands of those who had other interests--some of them personal financial gain--in engaging the United States in an arms deal with Iran.