by John Poindexter
September 20, 1985
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NATIONAL SECURITY AGENCY
CENTRAL SECURITY SERVICE
FORT GEORGE O. MEADE, MARYLAND _____-4000
September 20, 1985
Robert C. McFarlane
National Security Advisor
Old Executive Office Bldg. Rm. 306
Washington D.C. 20506
Re: MAGG PIE
Dear Mr. McFarlane:
Despite the failure of the first arms transaction, the Iran initiative was continued. Our negotiators agreed, the United States, through Israel, would provide Iran with 400 TOW missiles. In return, the Iranians would arrange for the release of any U.S. hostage, except for Buckloy.
The transaction was to take place in the same manner as the first. Israel would provide the missiles and the U.S. would later replenish the Israeli supply.
Lt. Col. Oliver North and Ltjg. Robert Hunt, on staff to the National Security Council, who in their official capacity were to make the necessary arrangements to receive any hostages who might be released.
On September 15, 1985, a DC-8, piloted by Gunther K. Russbacher (ONI) and John R. Segal (CIA) along with Oliver North (NSC) and Robert Hunt (ONI), Howard Teicher (CIA), flew to Tabriz, Iran, loaded with 400 TOWS. On the same day, American hostage Benjamin Weir was released to Beirut on information and belief this transaction was effected to demonstrate the ability of the negotiators on each side to deliver by providing TWO missiles and releasing a hostage respectively.
On September 17, 1985, Manucher Ghorbanifer paid $290,000 to the Israeli intermediary to cover the costs of transporting the TOWs. The following day, Iran paid $5 million into Ghorbanifer's Swiss bank account at Credit Swiss, No. 913-236-83-7.
Any further clarifications or changes should be acknowledged.
Sincerely,
John M. Poindexter
Deputy Director
National Security Council
cc: V-P Bush
William Casey
JMP/sv