TIME SAYS REAGAN KNEW ARMS CASH WENT TO CONTRAS
Former National Security Adviser John
Poindexter told President Reagan on two occasions in 1986 that
profits from arms sales to Iran were being diverted to
Nicaraguan rebels, according to a Time magazine report.
    Poindexter resigned as head of the National Security
Council (NSC) last November when the Reagan administration
disclosed he was aware part of the profits from the arms sales
were diverted to contra rebels in Nicaragua.
    The report in Time quoted unnamed friends of Poindexter's
as saying he felt he was following Reagan's orders and that he
kept the president adequately informed.
    "Indeed, he is likely to testify that on at least two
occasions in 1986, he told Reagan in general terms that the
contras were being helped as an ancillary or side benefit of
the arms deal with Iran," Time said.
    Reagan has repeatedly denied he knew anything about the
diversion of arms sales profits to the contras.
    In his nationally televised March 19 news conference Reagan
told reporters Poindexter and fired NSC aide Oliver North "just
didn't tell me what was going on."
    Poindexter has been granted limited immunity so he can
testify in congressional hearings on the affair.
 REUTER
