23 November 1981

Iran–Contra affair: Ronald Reagan signs the top secret National Security Decision Directive 17 (NSDD-17), giving the Central Intelligence Agency the authority to recruit and support Contra rebels in Nicaragua.

The Iran–Contra Affair was a political scandal in the United States during the mid-1980s, centered around the covert sale of arms to Iran, which was under an arms embargo, and the illegal diversion of proceeds to fund Contra rebels in Nicaragua. The Contras were fighting against the Sandinista government, which the U.S. opposed due to its socialist leanings. The scheme violated both the arms embargo and the Boland Amendment, which explicitly prohibited U.S. funding of the Contras. Orchestrated by senior officials within the Reagan administration, the affair involved a complex web of secret dealings, including the use of intermediaries and off-the-books transactions. When the operation was exposed in 1986, it caused a massive public outcry and led to congressional hearings, revealing a lack of oversight and accountability in the executive branch. While several officials were indicted, President Reagan denied direct knowledge of the scandal, though it significantly tarnished his administration’s reputation. The affair highlighted broader issues about executive overreach and the clandestine conduct of foreign policy.