Singlaub Thinks Reagan Knew of Cash Diversion

A key adviser to the Nicaraguan contras and a leading fund-raiser for their cause told CBS television that he believes that President Reagan knew of the secret diversion of funds to the rebels.

In an interview broadcast Monday night on the “CBS Evening News,” retired Gen. John K. Singlaub said that National Security Council aide Lt. Col. Oliver L. North must have kept the President informed of his efforts to finance the contras.

North was dismissed from his NSC post Nov. 25 amid allegations that he helped direct the diversion of profits from secret Iranian arms deals to the Nicaraguan rebels.

In a weekend interview broadcast Monday, Singlaub said North must have acted with the knowledge of his superiors, including then-National Security Adviser Robert C. McFarlane and President Reagan.

No ‘Rogue Elephant’

“I can’t believe that Oliver North could be considered a rogue elephant going off in all directions,” Singlaub said. “I am confident that he had some authority from those above him before he did things he’s now accused of having done. . . .

“Initially, it was Bud McFarlane, and later, after Bud left the National Security Council, it was (Vice) Adm. (John M.) Poindexter, and I believe that in both cases they would go to their boss who is the President,” Singlaub said.

Poindexter resigned his post as national security adviser Nov. 25. The President has asserted that Poindexter was “not directly involved” in the diversion of funds to the Nicaraguan rebels.

When asked if the President knew of North’s activities, Singlaub said: “I believe that is correct.”

Meetings With President

Singlaub said North had frequent meetings with the President to brief him on events in Central America.

“Well, the fact that the President is so well informed on this subject, he had to be getting it from somewhere,” said Singlaub, adding that he thinks North himself briefed Reagan “probably more frequently than twice a week” about the operation.

Singlaub, who serves as a military adviser to the contra forces battling the leftist government of Nicaragua, is out of the country and was interviewed by satellite over the weekend, CBS said.