Long ago, some leaders made secret deals. 
Long ago, leaders in the United States made secret deals.
They sold weapons to a land called Iran. They wanted to help people held in another land. 
The leaders used the money to help a group in Nicaragua. But a law said they could not do this. 
This caused a very big problem for the leaders. Many people were upset that the rules were broken.
It is important for leaders to follow the law.
In the 1980s, leaders in the United States made secret deals. These deals became a big scandal. It is called the Iran–Contra affair.
The U.S. began selling weapons to Iran. They did this in secret. The leaders hoped the weapons would help free seven Americans held in Lebanon. 
At the same time, the U.S. was helping a group called the Contras in Nicaragua. The Contras were rebels. They wanted to change the government there. But Congress passed laws called the Boland Amendments. These laws said the U.S. could not give money to the Contras. 
To get around the law, officials used money from the weapon sales. They used a secret network called "the Enterprise." When the news broke in 1986, it caused a huge problem. President Ronald Reagan spoke on TV to explain. 
The Iran–Contra affair was a major political scandal in the United States. It happened between 1981 and 1986 during the presidency of Ronald Reagan. The scandal involved secret deals to sell weapons to Iran. At the same time, officials used the money from those sales to help a rebel group. This group was known as the Contras in Nicaragua. The whole event became a very difficult time for the U.S. government. It raised big questions about how much power a president should have.
The plan worked through a secret network called "the Enterprise." 
There were many reasons why these secret deals began. The Reagan administration wanted to free seven U.S. hostages held in Lebanon. They hoped selling arms to Iran would influence the group holding them. 
The scandal became public news in November 1986. A magazine called Ash-Shiraa reported on the weapon deals first. 
This event is a famous example of a clash between different parts of government. It showed a struggle between the President and Congress. The President argued he had the power to handle foreign policy. Congress argued they had the power to control the budget. Several dozen officials were indicted during the investigations. This included Secretary of Defense Caspar Weinberger and Lieutenant Colonel Oliver North. In the end, most people involved received pardons from President George H. W. Bush.
The Iran–Contra affair was a major political scandal in the United States. It occurred between 1981 and 1986 during the presidency of Ronald Reagan. The scandal involved a secret plan to sell weapons to Iran. Officials used the money from these sales to fund the Contras. The Contras were a rebel group fighting the Sandinista government in Nicaragua. This affair raised deep questions about the balance of power in the American government.
The scandal grew from a clash between the President and Congress. The Reagan administration wanted to support the Contra rebels in Nicaragua. However, Congress passed a series of laws called the Boland Amendments. These laws prohibited the government from using taxpayer money to help the Contras. By 1984, a total ban on funding the Contras was in place. To bypass these laws, officials created a secret network called "the Enterprise." 
The mechanism of the affair involved two secret, connected actions. First, the administration sold weapons and spare parts to Iran. They did this even though the U.S. had an official arms embargo on Iran. Second, the administration diverted the profits from these Iranian arms sales. This money was used to fund the Contras in Nicaragua. By using non-appropriated funds, officials hoped to avoid violating the Boland Amendments. They argued that the NSC was not an agency covered by the law. Most legal scholars disagreed and said the NSC was indeed subject to the law.
There were several reasons why the administration pursued these secret deals. One goal was to free seven U.S. hostages held in Lebanon. These hostages were held by Hezbollah, a group connected to Iran's Islamic Revolutionary Guard Corps. An Iranian arms dealer named Manucher Ghorbanifar proposed trading arms for the hostages. Another reason was to prevent Iran from joining the Soviet sphere of influence. Officials worried that if the U.S. did not sell to Iran, the Soviet Union would. Additionally, Iran desperately needed spare parts to maintain its American-made weapons during its war with Iraq.
The scandal became public in November 1986. A Lebanese magazine called Ash-Shiraa reported on the secret weapon deals. 
Investigations followed the public revelation of the scandal. Congress and the Tower Commission, a three-person group appointed by Reagan, investigated the matter. 
The affair had a lasting impact on the understanding of U.S. constitutional law. It highlighted the struggle between the executive branch's power to conduct foreign policy and Congress's power to control the budget. In the end, most of those indicted or convicted received pardons. These pardons were issued by President George H. W. Bush in his final days in office. Independent Counsel Walsh noted that these pardons appeared to prevent further evidence from coming to light. The scandal remains a significant example of how government officials may attempt to avoid accountability to elected representatives.
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