Did He Lie?

By Ed Magnuson

The intriguing question arising at Oliver North's Iran-contra trial goes beyond whether Ronald Reagan was aware of the secret policy his subordinates carried out in his name. Put bluntly, the new question is, Did the former President not only approve of the policy but lie about it in 1987 when he told the Tower commission that he did not know of the National Security Council's assistance to the rebels?

According to the report of the three-man board (John Tower, Edmund Muskie and Brent Scowcroft), which interviewed Reagan twice, the President insisted "he did not know that the NSC staff was engaged in helping the contras" from 1984 to 1986, when Congress banned U.S. military assistance to the rebels. But North, a former NSC aide charged with lying to Congress about his efforts to keep the contras intact, hopes to persuade a jury in Washington that Reagan and other superiors fully approved his activities.

Last week, as former National Security Adviser Robert McFarlane took the stand, North's lawyers introduced memos showing that Reagan had:

-- Accepted McFarlane's suggestion in April 1985 that the President telephone Honduran President Roberto Suazo Cordova to ask him to intervene with Honduran military officials who were holding up the transfer of military supplies to the contras. Reagan made the call, and the ammunition reached the rebels.

-- Agreed to a North suggestion in February 1985 that Honduras get $35 million in expedited military aid and $75 million in economic assistance in return for its help to the contras, many of whom operated from camps in Honduras. The note also directed a secret emissary to brief Honduran officials on the deal.

-- Approved a plan, suggested by North on Oct. 30, 1985, to air-drop to contra units intelligence information about two boats carrying arms to Sandinista troops. The drop would also include high-powered 106-mm recoilless rifles "to be used to sink one or both of the arms carriers." The memo, from North to McFarlane, was marked "President approves." Brendan Sullivan, North's attorney, told the jury that John Poindexter, then McFarlane's deputy, wrote those words.

It is possible that what the Tower commission dryly termed Reagan's "management style" permitted subordinates to convey his approval of plans of which he was unaware. Or by 1987 Reagan may have forgotten acts taken to help the contras in 1985, even though his fight with Congress over the issue had been a searing one. As the North trial focuses increasingly on Reagan's role in the scandal, it seems likely the ex-President will be called to testify. If Reagan breaks historical precedent by doing so, the clash between his past public statements and Oliver North's basic defense could prove painful and dramatic.

With reporting by Steven Holmes/Washington