Iran-Contra Affair: Ronald Reagan signs the top secret National Security Decision Directive 17 (NSDD-17), giving the Central Intelligence Agency the authority to recruit and support Contra rebels in Nicaragua.

Sandinista Daniel Ortega becomes president of Nicaragua and vows to continue the transformation to socialism and alliance with the Soviet Union and Cuba; American policy continues to support the Contras in their revolt against the Nicaraguan government.

Iran Contra Affair: US Attorney General Edwin Meese announces that profits from covert weapons sales to Iran were illegally diverted to the anti-communist Contra rebels in Nicaragua.

Nicaraguan Contras leader Enrique Bermúdez is assassinated in Managua.