AS WE WATCH THE TEFLON PEEL from Ronald Reagan's presidency, there is no need to bicker about the relative venality of the various crimes his Administration committed. The President has broken faith with the American people. He swore to uphold and to defend the Constitution but instead led his Administration on a course that shows gross disrespect for the rule of law. As disastrous as President Reagan's tenure has been, the legacy of his Administration will not be its short-sighted policies, but a perversion of the fundamental process of government that will not soon be forgotten.

This Administration felt itself above the law. It felt justified illegally selling arms to Iran while prosecuting private citizens for doing the same. It aided the Contras in violation of acts of Congress and ignored laws requiring that Congress be notified of covert intelligence operations. This single-minded pursuit of private ends without regard for legitimate means is worse than arrogant; it is a violation of trust. No one is above the law; least of all the chief executive charged with defending it.

In addition to threatening the foundations of our government, the Administration's debacle has destroyed this country's ability to conduct foreign policy. The conduct of the White House has undermined our alliances, aided our enemies and shown America to be completely untrustworthy. It will be a long time before the U.S. enjoys any credibility abroad. But the first step toward reestablishing confidence in our government is to demonstrate that it still works, to find and prosecute those who broke the law.

Reagan's foreign policy has been distinguished by an obsession with opposing communism--and anything that vaguely resembles it--whenever and wherever possible. That monomania was ostensibly motivated by a concern for democracy, but if so the President, like Ahab, was led astray by his obsession. The confidence that he and his advisors had in their own ends led them to means that have subverted our country's democratic institutions.

Reagan's breach of trust cannot be undone. But by doing justice, by showing some respect for principle, a thorough investigation and timely punishment can reaffirm the integrity of our institutions of government. From Ronald Reagan on down, those who broke the law should be brought to justice. The Administration's transgressions will still leave a residue of mistrust, but by showing that the law still rules and that all will be held accountable the Congress and the courts can start repairing the damage that the President has done.