Mr. BARBADORO: Now, between July of 1984 and 1986 when the U.S. Government funding resumed, you spent approximately $19 million for arms and ammunition, correct?

Mr. CALERO: Correct, sir.

Mr. BARBADORO: Prior to July of 1984, had you had any experience in purchasing weapons?

Mr. CALERO: No, sir.

Mr. BARBADORO: How did you determine what arms to buy and how much to pay for them?

Mr. CALERO: Well, I knew what was being used and we had prepared before, with the CIA, a budget, which listed all the materials that we were going to buy with the new funding, which never came, but—so I knew what we had to get and I consulted with our military men.

Mr. BARBADORO: Did you also consult with Colonel North?

Mr. CALERO: Oh, I told him, I used to tell Colonel North practically everything. I had no reservation. I had full confidence and trust in him.

Mr. BARBADORO: So you discussed your purchases with Colonel North in advance, is that right?

Mr. CALERO: I discussed our needs and probably told him that I was going to purchase, yes.

Mr. BARBADORO: Did you also tell him after you made a purchase what you had purchased and how much you had paid and who you had bought it from?

Mr. CALERO: Yes. Yes.