But the Economy Act argument was disingenuous, because the Pentagon always uses the Economy Act when it moves weapons to the CIA. In his public account, Powell also obscured his unusual actions in arranging the shipments without giving senior officers the information that Pentagon procedures required.
Weinberger officially handed Powell the job of shipping the missiles to Iran on Jan. 17, 1986. That was the day Reagan signed an intelligence "finding," a formal authorization to pull arms from U.S. stockpiles and ship them to Iran.
In testimony, Powell dated his first knowledge of the missile transfers to this moment, an important distinction because if he had been aware of the earlier shipments as much evidence suggests he potentially would have been implicated in a felony.
'Executive' Orders
A day after Reagan's "finding," Jan. 18, 1986, Powell instructed Gen. Max Thurman, then acting Army chief of staff, to prepare for a transfer of 4,000 TOW anti-tank missiles but Powell made no mention of Iran. "I gave him absolutely no indication of the destination of the missiles," Powell testified.
Though kept in the dark, Thurman began the process of transferring the TOWs to the CIA, the first step of the journey. Powell's orders "bypassed the formal [covert procedures] on the ingress line," Thurman acknowledged in later Iran-Contra testimony.
As Powell's strange orders rippled through the top echelon of the Pentagon, Lt. Gen. Vincent M. Russo, the assistant deputy chief of staff for logistics, called Powell to ask about the operation. Powell immediately circumvented Russo's inquiry. In effect, Powell pulled rank on his superior officer by arranging for "executive instructions" commanding Russo to deliver the first 1,000 TOWs, no questions asked.
"It was a little unusual," commented then Army chief of staff, Gen. John A. Wickham Jr. "All personal visit or secure phone call, nothing in writing -- because normally through the [covert logistics office] a procedure is established so that records are kept in a much more formal process."
On Jan. 29, 1986, thanks to Powell's orders, 1,000 U.S. TOWs were loaded onto pallets at Redstone Arsenal and transferred to the airfield at Anniston, Ala. As the shipment progressed, senior Pentagon officers grew edgier about Powell withholding the destination and other details. The logistics personnel also wanted proof that somebody was paying for the missiles.
Major Christopher Simpson, who was making the flight arrangements, later told Iran-Contra investigators that Gen. Russo "was very uncomfortable with no paperwork to support the mission request. He wasn't going to 'do nothin', as he said, without seeing some money. ...'no tickey, no laundry.'"
The money for the first shipment was finally deposited into a CIA account in Geneva on Feb. 11, 1986. Three days later, Russo released the 1,000 TOWs to the CIA. The first direct U.S. arms shipment to Iran was under way, although the Israelis were still acting as middlemen.
Legal Worries
Inside the Pentagon, concerns grew about Powell's unorthodox arrangements and the identity of the missile recipients. Major Simpson told congressional investigators that he would have rung alarm bells if he had known the TOWs were headed to Iran.
"In the three years that I had worked there, I had been instructed ... by the leadership ... never to do anything illegal, and I would have felt that we were doing something illegal," Simpson said.
Even without knowing that the missiles were going to Iran, Simpson expressed concern about whether the requirement to notify Congress had been met. He got advice from a Pentagon lawyer that the 1986 intelligence authorization act, which mandated a "timely" notice to Congress on foreign arms transfers, had an "impact on this particular mission."
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