d. Ellen Clayton Garwood
Ellen Garwood also testified at the Committees' public hearings. She had been a NEPL contributor on several occasions. She is a wealthy octogenarian widow from a well-known family in Austin, Texas.
Garwood first met North in 1984 at a Council for National Policy meeting. She had been briefed privately by him on the Contras' needs at least a handful of times, including once at a small airport in Dallas when North flew there to solicit Hunt in September 1985. [5/21/87, at 7-10; Garwood Dep. At 12-15, 16-18, 20, 28-30, 32-36].
Garwood traveled to Washington in April 1986 to attend meetings of NEPL contributors. Prior to the trip, Channell told Garwood that she would be presented with an appeal for much more money than had been requested of her before. [5/21/87, at 8-9g].
During the last day of the NEPL meetings, Channell asked Garwood to meet with him and North that evening in the hotel lounge. At the evening meeting, North told Garwood that the situation of the Contras was desperate. With tears in his eyes, North explained to her that the Contras were hungry, poorly clothed, and in need of lethal supplies. He emphasized that the Contra forces might not exist by the time the Congress renewed Contra aid. [5/21/87, at 9-10; Garwood Dep. At 33-34].
Either North or Channell then produced a small piece of paper with a handwritten list on it. They discussed the list in hushed tones outside of Garwood's hearing. After North left the lounge, Channell showed the paper to Garwood. The paper contained a list of weapons and ammunition, with a price opposite each category of items. She recalls that the list included hand grenades, anti-aircraft missiles, bullets, cartridge belts and other items. [5/21/87, at 10-12; Garwood Dep. At 34].
Channell told Garwood that the items were what the Contras needed to sustain their efforts and requested her to provide the amount necessary to purchase the listed lethal supplies. Channell transcribed a copy of the list for Garwood to take with her. [5/21/87, at 13; Garwood Dep. At 35-28].
To supply the items on the list, Garwood immediately contributed more than $1.6 million to NEPL; she wired $470,000 in cash and transferred stock valued at 1,163,506. For this same purpose, she contributed an additional $350,000 the next month. All told, she contributed 2,518,135 in 1986. Garwood stated unequivocally that the principal purpose of these April and May 1986 contributions was to purchase for the Contras the weapons and ammunition on the list provided by North and Channell. [5/21/87, at 14-16; Garwood Dep. At 58-61].
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These descriptions of the Hunt, Newington, O'Boyle and Garwood solicitations are not exhaustive. The Committees interviewed or deposed 13 of NEPL's significant contributors during the relevant time period, nearly all of whom reported personal contact with North. The Committees have received evidence that several of these contributors -- including John Ramsey of Wichita Falls, Texas, and C. Thomas Claggett, Jr., of Washington, D.C. -- made donations intended for the purchase of lethal supplies. Channell's records reveal that 12 contributors, including Newington and Garwood, accounted for slightly more than 90 percent of NEPL's contributions in 1985 and 1986.
By giving to the tax-exempt NEPL, the contributors were able to claim tax deductions even though their contributions were intended for the purchase of lethal supplies. The Committees have received evidence that several of these contributors claimed tax deductions for their NEPL contributions. For taxpayers in the 50 percent tax bracket, this meant that the public in effect paid for half of their gifts.