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In Ronald Reagan's second term, two of the most controversial foreign policy issues were the Iran-Contra Affair and the U.S. intervention in Central America, particularly in Nicaragua. The Iran-Contra Affair involved secret arms sales to Iran, which were used to fund Contra rebels fighting the Sandinista government in Nicaragua, despite congressional prohibitions. This scandal raised significant ethical and legal questions about executive power and accountability in foreign policy. Additionally, Reagan's support for anti-communist movements in Central America faced criticism for its implications on human rights and regional stability.

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