In an effort to secure the release of US hostages in Lebanon, the Reagan administration undertook secret negotiations with Iran involving “arms for hostages.” This was in violation of the stated US policy of never negotiating with terrorists. Compounding this difficulty was the fact that the proceeds from weapons sales to Iran were used to covertly fund the Contra guerillas in Nicaragua. This was in contravention of stated Administration policy, as well as laws adopted by the Democrat-controlled Congress. Colonel Oliver North and Admiral John Poindexter both were criminally indicted for the scandal, though the Congressional report concluded that President Reagan bore ultimate responsibility for the scandal.
Time: Late War
Removed after event: Yes
Along with Che, Iran-Contra Scandal is one of the most underrated events in the game. The reason it is so powerful (compared to Latin American Death Squads) is that the modifier applies to all US realignment rolls, including their rolls on your realignments. So it’s not a speculative event: you headline it and then go nuts realigning the US in the Mid War regions. Suddenly, now that even rolls are favorable, it is a lot easier to find good realignment targets. No need to hold onto both Colombia and Brazil to realign Venezuela any more; just one of the two will suffice.
Play it on your last Action Round, though you can sometimes get away with playing it merely very late if the USSR doesn’t have time to set up a realignment.