Scandal Leaks Too Flimsy to Tell Congress--CIA’s Gates : Says Agency Erred by Not Acting

Robert Gates, President Reagan’s nominee for CIA director, said today he did not tell Congress about the possible diversion of Iranian arms sale profits to the Nicaraguan contras because he had “worrisome but extraordinarily flimsy” evidence.

In addition, Gates acknowledged “shortcomings in CIA’s participation in the Iran (arms sales) project” altogether and said the agency erred in “not pressing to reverse” Reagan’s secret January, 1986, directive to withhold information on the arms sales from Congress “once the operation began to string out after mid-February, 1986.”

Gates said that as CIA director he would “contemplate resignation” if he felt a situation was repeated in which timely notification to Congress of covert action, as required by law, was withheld.

He described his interpretation of “timely” as “several days” and said the withholding of information in the Iran affair stretched the relationship between the intelligence community and Congress to the breaking point.

Would Replace Casey

Gates was nominated to replace William J. Casey, a pivotal figure in the Iran arms-contra aid scandal, who resigned Feb. 2 after undergoing surgery for a brain tumor. Gates appeared today at a confirmation hearing before the Senate Intelligence Committee.

In response to a question by Sen. William S. Cohen (R-Me.), Gates said he, unlike Casey, “probably would have recommended against” Reagan’s authorization of the Iranian arms sales because of the circumstances surrounding the project.

Sen. Arlen Specter (D-Pa.) said he had “serious concerns” about Gates’ role in the Iran affair. Gates has come under fire for not revealing all details of what he knew of the Iran arms sales and funds diversion during a subsequent hearing Dec. 4.

Gates denied news reports that Casey’s November testimony was deliberately prepared to mislead the committee. He said it was changed to say no one in “senior management” knew of a military parts supply mission to Tehran rather than no one in the CIA knew.

‘Scenario Paper’

Gates said that in early February, 1986, he saw a “scenario paper” from the National Security Council that laid out a “proposed schedule” for the exchange of “weapons and hostages, which would then lead to a mission to Tehran and the opening of a strategic dialogue.”

Gates, now the CIA’s No. 2 man, said he first heard speculation that funds may have been privately diverted from the Iranian arms sales to the contras early last October.

“I considered in October and November, and even today, that it would have been irresponsible to report to these bodies the flimsy speculation of Oct. 1,” he told the committee today.

Gates said there was no evidence before last Nov. 25 of CIA or government involvement in any possible violation of law prohibiting assistance to the rebels in Nicaragua.

Gates told the committee that from Oct. 1 to Nov. 26, 1986, he did not receive any further information about a possible diversion of funds.

“I regarded what little information I had as worrisome, but extraordinarily flimsy,” he said.