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November 25, 1986
John P. came in this morning & announced he was leaving the N.S.C. & returning to the Navy. I told him I wouldn’t refuse his resignation but regretted it. I explained that I knew the press would crucify him if he stayed & he didn’t deserve that. What it was all about was that Ed Meese learned that several months ago the Israelis delivered some of our arms to Iran but exacted a higher price then we had asked. They sent us our price then past the balance in a Swiss bank acct. belonging to the Contras—their way of helping the Contras at a time when Congress was refusing aid to the Contras. John resigned because he had gotten wind of this game but didn’t look into it or tell me. In the old Navy tradition he accepted the responsibility as Capt. of the ship. We broke the story—I told the press what we’d learned. This headed them off from finding out about it & accusing us of a cover up. I’ve asked Ed Meese to continue digging in case there is anything we missed & I’m appointing a commission to review the whole matter of how N.S.C. Staff works. Ed M. stayed with the press & took their Q’s. They were like a circle of Sharks.
Lunch was at W.H. with returning Justices of the Supreme Court. It was a fun time. Then an N.S.C. meeting to see how we’d handle the roll out of the 131st B2 bomber equipped for Nuclear Cruise Missiles. It puts us 1 plane above the restraints of SALT II which the Soviets & us had agreed to observe even though the treaty had never been ratified. The Soviets have regularly violated the agreement. My decision is to h--l with them we roll out the plane. Upstairs to the lonely W.H. Mommie left for the West today. I join her tomorrow.