Answer to Question 1
In the mid-1980s, the United States secretly and illegally arranged the sale of military arms to Iran in return for its help in freeing American hostages held in Lebanon by various factions of Iran's proxy, Hezbollah. The profits from these sales were clandestinely used to support the Contras, in contravention of Congressional legislative actions that forbade such assistance. Ultimately, America's clandestine practices were discovered and the resulting Iran Contra Affair brought President Reagan's administration under blistering criticisms from the Congress.
The answer as to yes or no will vary, but should be logical and can address the different ways of thinking about state-sponsored terrorism. Such as (1) the amount of control a sponsor is actually able to exert over a proxy, (2) the amount and kinds of support (e.g., substantial amounts of arms and ammunition), (3) the frequency of such support (e.g., only infrequent sharing of low-level intelligence on anticipated movement of vessels in the region), and (4) the degree of openness with which it assists terrorist organizations.
The response should also address the fact that it was a covert operation and that Nicaragua sued the United States and won. The reasons for acting covertly maybe be: (1) the use of terror groups as proxies offers an attractive alternative to open, all-out warfare because the state's homeland and conventional forces are not placed at risk; (2) compared to conventional warfare it is a low-cost alternative which may have a high impact, such as destabilizing a rival regime or affecting voting outcomes; (3) if the connection to the sponsoring state is discovered the terrorist attack(s) may not lead to open war. It may also be mentioned that the United States had a duty to make reparations for the damages, but Nicaragua has never sued to collect the damages.
Answer to Question 2
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