THE IRAN-CONTRA HEARINGS : Excerpts: Col. North and I Took Our Guest for a Tour of the White House

Following are excerpts from testimony Thursday by Iranian-born businessman Albert A. Hakim before the congressional committees that are investigating the Iran-contra affair: View of Oval Office

(House committee counsel John W. Nields Jr. questioned Hakim about attempts by him, Lt. Col. Oliver L. North and retired Air Force Maj. Gen. Richard V. Secord to use an Iranian official as a “second channel” to negotiate an exchange of arms for hostages being held in Lebanon.)

Question: Was it agreed with Col. North and Gen. Secord and you that a meeting should be arranged with this Iranian official in the U.S . ?

Answer: Yes, sir .

Q: And that was in September of 1986?

A: That’s correct. . . . We had a . . . meeting at the offices of Col. North. . . . Towards the end of the day after we broke off and arranged to have the meeting the next day at our offices, Col. North and I took our guest for a tour of the White House, and he took him to every corner in the White House and by then--

Q: Did that include the Oval Office?

A: Yes, we--we went also--we did not actually walk into the Oval Office, the doors were open, there was a little barrier--a rope barrier in front there, but we showed him the rooms. And Col. North by this time was also impressed by this gentleman, and he was feeling--after many months of frustration--he was feeling upbeat. And it is interesting to know that while we were passing by one of the corridors--stepping down the stairs--we came across--a picture was hanging on the wall. It portrayed a table, and sort of like a conference table, and there were dogs sitting around the table, and I remember there was--one of the dogs was taking a little nap, and Ollie was feeling very upbeat and he asked me to translate for our guest that this represented our Cabinet, and that was--Mr. Casey taking a nap. That broke the ice.

(Hakim and North later met with the Iranian again in Germany.)

Q: Did you and the second channel . . . reach an agreement?

A: We agreed on a nine-point proposal, which later on was communicated to Col. North . . . and then it was agreed upon . . .

Q: There is a reference in the nine-point plan . . . to the release of certain Kuwaitis, 17 persons (imprisoned in Kuwait on suspicion of terrorism). . . . You proposed that the problem be solved by having you providing a plan, or promising to provide a plan, for the release of these Kuwaitis?

A: That is correct.

Q: And then item No. 4 says: “One-and-a-half American hostages in Lebanon will be released. What was--what did that mean?

A: This is very interesting. It’s the question that eventually Col. North asked me . . . I explained to him that really the “half” indicates . . . a very sincere effort with the Lebanese for the release of the second hostage.

Q: And did you eventually learn that the nine-point plan was accepted by the U.S. government side?

A: Yes, sir. Payments to North

(Senate committee counsel Arthur L. Liman questioned Hakim about the $200,000 account that Hakim set aside for the benefit of North’s children.)

Q: Mr. Hakim, you began your business career in Iran, is that correct?

A: That’s correct, sir.

Q: And is it also so, that one of the practices there is baksheesh ?

A: Well, it certainly was.

Q: And baksheesh involved giving kickbacks or payoffs to government officials, is that so?

A: Entitlement, yes.

Q: And is it a fact that you would put money in Swiss accounts in names other than that of the recipients?

A: Yes.

Q: Now, as I understand your testimony, you said that you set this account (for North) up because, and I quote from yesterday, because you became emotionally very attached to Ollie, and you still are, and “I really love this man.” Do you remember that?

A: Yes.

(Hakim was asked whether North ever objected to the special fund).

A: No such discussions took place.

(Liman asked Hakim about the negotiation of the nine-point agreement with the Iranians.)

Q: Is it a fact that you were left alone to try to work out something that would be acceptable?

A: I was the only one who had the competence, sir.

Q: And is it a fact that you are the one who then negotiated the nine points?

A: Yes, sir.

Q: And the Iranians were representing their interests?

A: Yes.

Q: And you, a private citizen and a businessman all of a sudden found yourself in the role of trying to work out an agreement for the United States. . . . You, Albert Hakim, private citizen, businessman, seeking not just to advance the United States’ interests, but profit. . . .

A: Mr. Liman, our secretary of state comes also from the business end of our structure. . . .