Official Washington’s favorite quote from the Iran-Contra scandal was from Secretary of State George Shultz who famously assured congressional investigators that “trust is the coin of the realm.” What is never acknowledged is that Shultz's coin was counterfeit, that he then lied through his teeth.
At the time, in 1987, to protect the myth that Shultz was the principled opponent of the secret Iran-Contra arms deals who was then cut out of the project, Shultz and his senior aide, Charles Hill, withheld key documents about Shultz’s actual role and knowledge.
However, in 1992, after Iran-Contra prosecutors discovered the hidden notes that undercut Shultz’s testimony, they altered Shultz’s status in the criminal investigation from “witness” to “subject” – one step short of becoming a “target.” At that point, Shultz agreed to some closed-door interviews.
“Over the course of the interviews, Shultz’s attitudes evolved from combative to contrite,” the final Iran-Contra report stated. “In the end, after confronting the evidence contained in contemporaneous notes created by his closest aides, he repeatedly admitted that significant parts of his testimony to Congress had been completely wrong.” [See Iran-Contra Report, Chapter 24.]
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