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December 07, 1985
Day opened with “Rex”—(our new dog) on our bed. I then had a meeting with Don R., Cap W. & Bud M., John P., Geo. Shultz & Mahan of C.I.A. This has to do with the complex plan which could return our 5 hostages & help some officials in Iran who want to turn that country from it’s present course & on to a better relationship with us. It calls for Israel selling some weapons to Iran. As they are delivered in installments by air our hostages will be released. The weapons will go to the moderate leaders in the army who are essential if there’s to be a change to a more stable govt. We then sell Israel replacements for the delivered weapons. None of this is a gift—the Iranians pay cash for the weapons—so does Israel.
George S., Cap & Don are opposed—Cong. has imposed a law on us that we cant sell Iran weapons or sell any other country weapons for re-sale to Iran. Geo. also thinks this violates our policy of not paying off terrorists. I claim the weapons are for those who want to change the govt. of Iran & no ransom is being pd. for the hostages. No direct sale would be made by us to Iran but we would be replacing the weapons sold by Israel.
We’re at a stalemate. Bud is flying to London where the Israeli & Iranian agents are. Britain has no embargo on selling to Iran. Maybe we could Britain in the middle. The plan is set for Wed.
House guests Betts B. & Ted G.