Banner Graphic, Volume 17, Number 75, Greencastle, Putnam County, 28 November 1986 — Page 2

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Sandinista soldiers fire a Soviet-made rapid-fire grenade launcher at U.S.-backed Contra rebels in the Nicaraguan jungle. Congressional leaders, Democrats and Republicans alike, predict that public furor over the Iranian arms scandal, in

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which millions of dollars paid by the Iranians for U.S. arms were diverted to the Contras, will dramatically decrease the likelihood of more funds for the Contra effort. (AP Laserphoto)

Scandal threatens future aid to Contras

WASHINGTON (AP) The Reagan administration’s policy of helping Nicaraguan rebels is in deep trouble on Capitol Hill following assertions that Iranian arms money helped bankroll the program, supporters and opponents of the Contra aid program agree. Resumption of Contra aid was only narrowly approved last month before Congress adjourned so: the year. Three events since then have

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Iranian arms probe shifts to CIA, Casey

WASHINGTON (AP) - Investigators will try to determine if a fired White House aide destroyed documents relating to the Central American diversion of profits from U.S. arms sales to Iran, government officials say. The probe also will consider possible CIA involvement in the transfer scheme, The Washington Post reports. Lt. Col. Oliver North, the Marine officer who assertedly ran the program diverting money to rebels in Nicaragua, had free access to his office files for several hours after President Reagan announced Tuesday that North was being removed from the NSC staff, the officials said Thursday. Combinations on the locks in North’s office were changed Tuesday afternoon, after Reagan’s announcement, and North’s papers were put into NSC vaults Wednesday, said the officials, adding that they didn’t know whether any documents were destroyed.

led to predictions that killing the program will be one of first items on the agenda when Congress convenes in January. The first occurred Oct. 5, when an airplane crashed in Nicaragua while carrying supplies to rebels trying to overthrow the Central American nation’s leftist Sandinista government. Two American crew members were killed and a third, Eugene

Holiday plane crash kills three

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Meanwhile, The Post said in today’s editions that the congressional and Justice Department investigations into the diversion program have been expanded to include a study of the roles played by the CIA and its director, William Casey. Quoting unnamed ‘‘informed sources,” The Post said the probes focus on the ClA’s role in setting up a Swiss bank account for Iranian payments for arms and on the agency’s efforts to funnel aid to the Nicaraguan rebels, known as Contras. Sources told the newspaper Casey has acknowledged setting up a Swiss account for Iran’s payments, but they said it was not clear if that account was used to transfer funds to help the Contras. Patrick Korten, a Justice Department spokesman, declined to confirm or deny the report, but said, “The investigation will be thorough and complete and cover every aspect.”

Hasenfus, was captured in an incident that revealed the existence of a private, American-led network supplying arms and ammunition to the rebels, known as Contras. Then, Democrats retained control of the House in the Nov. 4 election and captured the Senate, reversing six years of Republican Senate control and putting the Contra program in greater jeopardy. But the last straw, members of

as pilot David M. Earp, 38, of Manchester, N.H., and passengers Nellie S. Chandler, 42, of Manchester, N.H., and her 19-year-old daughter, Susan, of Hampstead, N.H. Area residents apparently heard what sounded like a crash at 5:30, but the wreckage was not discovered until about four hours later, Beard said. There was an explosion when the plane crashed, but no fire, state police said. A flight plan was not filed, but Beard said authorities had determined the plane apparently had just left an airport in Oxford, Ohio, just across the state line. State police said they received unconfirmed

In other developments: —One well-placed official, who declined to be publicly identified, said North, an aide to National Security Adviser John Poindexter, regularly briefed White House Chief of Staff Donald T. Regan on the transfer plan. “Regan ... would know everything that Poindexter knew,” said the official, who like others interviewed Thursday spoke only on condition he not be named. Regan, asked about the report as he emerged from a Thanksgiving dinner at his hotel in Santa Barbara, Calif., said, “It’s ridiculous. I was not briefed thoroughly on all this, never heard of it until the news came out on Monday about the Iranian money and the Contras.” —The Los Angeles Times today quoted “an official with consistent and accurate knowledge of the unfolding Iran scandal” as saying North told several people he personally briefed Regan on the transfer of the arms sale profits.

both parties say, may have been Tuesday when the White House said profits from the clandestine sale of U.S. arms to Iran were funneled into numbered Swiss bank accounts and then routed to the Contra leaders. President Reagan at that point accepted the resignation of National Security Adviser John Poindexer and fired one of Poindexter’s aides, Lt. Col. Oliver North, who assertedly oversaw the money transfers.

reports that the pilot was headed for Arkansas. The impact tore off the plane’s propeller and landing gear, police said. Members of the family that owns the field where the plane crashed discovered the aircraft as they drove past the farm. Mike Kolb said he examined the wreckage and called police. There was speculation that the plane might have run out of fuel. “I would imagine there would be an odor of fuel from the plane of which there is none at all,” said deputy sheriff Don Smith. “Also you would be able to see some spillage which there is none evident here.”

Car returned INDIANAPOLIS (AP) - One thing Evan Bayh won’t have to worry about when he becomes secretary of state Monday is keeping his campaign promise not to use the official state car for that office. Bayh’s predecessor, Edwin Simcox, returned the car Wednesday, his last day in the Statehouse because the offices were closed Thursday and today for Thanksgiving. “It was declared surplus,” said Timothy Morris, director of general services. “We have the car stored.” “They are very thorough, aren’t they?” said Bayh. “I guess it’s one less detail that I will have to deal with.” Bayh promised during the campaign to return the state car that’s provided to the secretary of state and to use his own car instead.