Mr. BELNICK: And did Mr. McFarlane tell you that it was then proposed that Israel would send an air shipment-through a European city- of some 100 HAWKs to Iran?

Secretary SHULTZ: Yes. That was- he described the structure of a deal in which a plane would go from I think someplace in Portugal, as I remember, and it would be contingent on release of the hostages, a rather complex arrangement.

Mr. BELNICK: But the burden of it was that if the hostages came out, the weapons would go to Iran; if they didn't, the weapons wouldn't?

Secretary SHULTZ: Exactly. It was a straight out arms-for-hostages deal.

Mr. BELNICK: What did you tell Mr. McFarlane?

Secretary SHULTZ: I told him I hoped that the hostages would get out, but I was against it, and I was upset that he was telling me about it as I was just about to start so there was no way I could do anything about it. But anyway, if it was happening, I hoped the hostages would get out.

Mr. BELNICK: After you objected, though, you learned within the next several days that no hostages had been released and your information was that the deal had, therefore, collapsed?

Secretary SHULTZ: Exactly.

Mr. BELNICK: Your notes indicate-in the chronology-that you told your executive assistant on November 23, 1985, it is over?

Secretary SHULTZ: That was what I understood.