Found: The "lost chapter" of the Iran-Contra report

That chapter - which we are publishing here for the first time (pdf) - was "lost" because Republicans on the congressional Iran-Contra investigation waged a rear-guard fight that traded elimination of the chapter's key findings for the votes of three moderate GOP senators, giving the final report a patina of bipartisanship.

Under that compromise, a few segments of the draft chapter were inserted in the final report's Executive Summary and in another section on White House private fundraising, but the chapter's conclusions and its detailed account of how the "perception management" operation worked ended up on the editing room floor.

The American people thus were spared the chapter's troubling finding: that the Reagan administration had built a domestic covert propaganda apparatus managed by a CIA propaganda and disinformation specialist working out of the National Security Council.

"One of the CIA's most senior covert action operators was sent to the NSC in 1983 by CIA Director [William] Casey where he participated in the creation of an inter-agency public diplomacy mechanism that included the use of seasoned intelligence specialists," the chapter's conclusion stated.

"This public/private network set out to accomplish what a covert CIA operation in a foreign country might attempt - to sway the media, the Congress, and American public opinion in the direction of the Reagan administration's policies."

However, with the chapter's key findings deleted, the right-wing domestic propaganda operation not only survived the Iran-Contra fallout but thrived.

So did some of the administration's collaborators, such as South Korean theocrat Sun Myung Moon and Australian press mogul Rupert Murdoch, two far-right media barons who poured billions of dollars into pro-Republican news outlets that continue to influence Washington's political debates to this day.

This part of Parry's story is chilling.

The seeds of this private/public collaboration can be found in the 84-page draft Iran-Contra chapter, entitled "Launching the Private Network." [There appear to have been several versions of this "lost chapter." This one I found in congressional files.]

The chapter traces the origins of the propaganda network to President Reagan's "National Security Decision Directive 77" in January 1983 as his administration sought to promote its foreign policy, especially its desire to oust Nicaragua's leftist Sandinista government.

In a Jan. 13, 1983, memo, then-National Security Advisor William Clark foresaw the need for non-governmental money to advance this cause. "We will develop a scenario for obtaining private funding," Clark wrote.

As administration officials began reaching out to wealthy supporters, lines against domestic propaganda soon were crossed as the operation took aim at not only at foreign audiences but at U.S. public opinion, the press and congressional Democrats who opposed funding Nicaraguan rebels, known as contras.

At the time, the contras were earning a gruesome reputation as human rights violators and terrorists. To change this negative perception of the contras, the Reagan administration created a full-blown, clandestine propaganda operation.

Think about what we know of Fox News, Rupert Murdoch's organization, and all the other right wing focused media venues and organizations. This was the start of it.

Do read all of Parry's article and then spend some time browsing the pdf.

This is why exposing the wrong-doing is so important. So that those responsible cannot continue to actively participate and lead in our government despite their questionable and sometimes illegal activities.