---
born: 1917-08-26
category: Intelligence Scandal
created: 2024-04-25
died: 1990-10-29
location: Wilton, New Hampshire
summary: William French Smith (1917-1990) served as U.S. Attorney General from 1981
  to 1985 under President Reagan, and as the first Reagan AG signed the secret 1982
  Memorandum of Understanding with CIA director William J. Casey that removed drug
  offenses from the list of crimes CIA assets were required to report to the Department
  of Justice.
tags:
- Person
- DoJ
- IranContra
- Dark_Alliance_Investigation
updated: 2026-05-17
---

William French Smth was the U.S. Attorney General under [Ronald Reagan](/people/ronald-reagan/) who signed the secret 1982 Memorandum of Understanding with [Central Intelligence Agency](/organizations/central-intelligence-agency/) director [William J. Casey](/people/william-j-casey/) that exempted CIA assets from drug crimes reporting. The agreement, hammered out between the CIA and Justice Department, fundamentally altered the relationship between intelligence operations and law enforcement.[^1]

### The Secret 1982 Agreement

In early 1982, Smith and Casey signed a formal Memorandum of Understanding that removed drug offenses from the list of crimes the CIA was required to report to the Justice Department. Crimes committed by people "acting for" an intelligence agency no longer needed to be reported either. For thirteen years, the CIA and Justice maintained what Inspector General [Fred Hitz](/people/fred-hitz/) called "a gentleman's agreement to look the other way." The agreement was signed just as the CIA was launching both the [Contra](/organizations/contras/) project and operations in Afghanistan, timing that [Robert Parry](/people/robert-parry/) argued proved premeditation: "That could only have been done for one purpose. They were anticipating what eventually happened. They knew drugs were going to be sold." Civil rights lawyers later filed suit charging the agreement was illegal and led to policies protecting rather than stopping drug trafficking.[^2]

[^1]: Webb, Gary. *Dark Alliance: The CIA, the Contras, and the Crack Cocaine Explosion.* Seven Stories Press, 1998. Epilogue.
[^2]: Webb, Gary. *Dark Alliance: The CIA, the Contras, and the Crack Cocaine Explosion.* Seven Stories Press, 1998. Epilogue.