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MCC was used by Iraq to contract the construction of manufacturing facilities in Iraq by US companies as well as to provide the equipment, tools, and technology necessary to institute Iraq’s nuclear arms and ballistic missile programs. It was this procurement network in which the majority of the foreign suppliers to Iraq’s weapons programs from the United States illegally sold illicit items (such as those mentioned above) amounting to weapons of mass destruction to Iraq with funds received from the Atlanta branch of the BNL.

The exporting companies in the US would assign the guarantee to a bank like the Atlanta-BNL to finance the transaction. In those instances that Iraq did not pay for the imports, the CCC owed money to the bank that financed the transaction. From 1982-1990, the total amount of the sales that were conducted under the CCC’s guarantee program to Iraq reached $5 billion (20% of the total amount of the CCC guarantees program from 1982-1989). Of that $5 billion, the Atlanta-BNL financed almost $1 billion, and due to Iraqi nonpayment, the CCC owed the BNL $450 million.

Secretary of State Charles Shultz, Secretary of Defense Caspar Weinburger, and Chief of Staff Donald Regan allegedly advised President Reagan to cease the Iran arms sales in December of 1985. The Reagan administration, however, continued on its path and shipped 1,000 anti-tank missiles to Iran only two months later. By May of 1986, Oliver North admitted to former National Security Advisor William McFarlane that the profits from the weapons sales to Iran were being diverted directly to the contras violating US law.

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