U.S. and Canada reach free trade agreement (Jan. 2). Robert C. McFarlane, former National Security Adviser, pleads guilty in Iran-Contra case (March 11). U.S. Navy ship shoots down Iranian airliner in Persian Gulf, mistaking it for jet fighter; 290 killed (July 3). Terrorists kill nine tourists on Aegean cruise (July 11). Democratic convention nominates Gov. Michael Dukakis of Massachusetts for president and Texas senator Lloyd Bentsen for vice president (July 17et seq.). Republicans nominate George Bush for president and Indiana senator Dan Quayle for vice president (Aug. 15et seq.). Plane blast kills Pakistani president Mohammad Zia ul-Haq(Aug. 17). Republicans sweep 40 states in election. Bush beats Dukakis (Nov. 8).Benazir Bhutto, first Islamic woman prime minister, chosen to lead Pakistan (Dec. 1). Pan-Am 747 explodes from terrorist bomb and crashes in Lockerbie, Scotland, killing all 259 aboard and 11 on ground (Dec. 21).