"Americans will never make concessions to terrorists- to do so would only invite more terrorism- once we head down that path there would be no end to it, no end to the suffering of innocent people, no end to the bloody ransom all civilized people must pay."
Ronald Reagan, June 18 1985
The 1980s saw Iran and Iraq go to war. America and Iraq were allies, sharing intelligence and American resources supported the Iraqis. During this, seven American citizens are captured and held hostage in Lebanon by extremist Islamic terrorists who have connections with Iran. The Israelis, understanding the political significance of hostages for the American government, suggested selling weapons to Iran in order to free the hostages. Thus, covertly, the Reagan Administration commenced selling weapons, in doing so breaking its own regulations and declared stance against Iran, a state that they had declared a terrorist nation, an enemy of the American State and all the while, they maintained their alliances with Iraq.
http://www-personal.arts.usyd.edu.au/sterobrt/hsty3080/3rdYr3080/IranContra/Design/Iran.htm
http://www.correntewire.com/we_dont_negotiate_with_terrorists
http://www.fas.org/irp/offdocs/walsh/