Didn’t Know Contras Got Aid, Bush Says

Vice President George Bush, conceding that the Administration’s “credibility has been damaged,” said today that he fully supported the secret arms sales to Iran but knew nothing of the diversion of funds to the contra forces.

“If the truth hurts, so be it,” Bush said in a speech to the American Enterprise Institute. “We must take our lumps and move forward.”

The vice president, who has kept a low profile since the disclosure of the secret dealings with Iran and the contras, laid out a detailed justification for the initiative toward Iran.

He conceded that “there can be no denying that our credibility has been damaged by this entire episode and its aftermath.”

3 Years Before Hostages

Explaining the Administration policy toward Iran, Bush said, “We may not like the current Iranian regime, but it would be irresponsible to ignore its geopolitical and strategic importance.”

He said Administration efforts to begin a dialogue with the Iranians started three years before the first American hostage was taken in Lebanon.

He described the arms sales as a signal required by the Iranians and the subsequent release of three American hostages as part of the proof of Iranian seriousness.

“I can tell you the President is absolutely convinced in his own mind he did not swap arms for hostages,” the vice president said.

‘We Want the Truth’

Turning to his own role, Bush said: “I was aware of our Iran initiative and I supported the President’s decision. I was not aware of and oppose any diversion of funds, any ransom payments, or any circumvention of the will of Congress.

“As the various investigations proceed, I have this to say--let the chips fall where they may. We want the truth. The President wants it. I want it. And the American people have a right to it.”

Referring to “rumors” and “false charges,” Bush said: “There is this insidious suggestion that I was conducting an operation (in Nicaragua). It’s untrue, unfair and totally wrong.”