HPSCI HEARING NICARAGUA 23 MARCH 1983

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00363R000801770002-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 20, 2016
• Document Release Date: August 29, 2007
• Sequence Number: 2
• Publication Date: March 23, 1983
• Content Type: REPORT

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HPSCI HEARING
Nicaragua
23 March 1983
SECRET
Please return to:
SA/DCI/IA
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MEMORANDUM FOR: Director of Central Intelligence
Deputy Director of Central Intelligence
FROM: SA/DCI/IA
SUBJECT: HPSCI Hearing on Nicaragua, 23 March 1983
1.I (prepared the attached paper on the status
of insurgency. He approached it as a DDI current intelligence
briefing 25X1
The DO has reviewed and approved it.
2. The DO (Dewey Clarridge) will provide tomorrow morning
their papers to support you for this hearing.
3. I realize this is not much to go on but I thought you
should have what I have received thus far. Also enclosed
for your consideration is the book used on 23 February for the
HPSCI review on Central America.
4. Please let me know if there is anything else you need
for this hearing.
CL BY Signer
DECL OADR
SECRET
25X1
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ONFI N
tAL
House Permanent Select Committee on Intelligence
Wednesday - 23 March 1983
4:00 a.m.
H-405 The Capitol
(Nicaragua Update)
WITNESS:
William J. Casey
ACCOMPANIED BY:
Duane Clarridge
ALSO ATTENDING:
Director of Central Intelligence
Chief, Latin America Division,
Directorate of Operations
Director, Office of Externa25X1
Affairs
Legislative Liaison Division,
Office of External Affairs
CONFIDENTIAL
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NICARAGUA: STATUS OF INSURGENCY
The anti-Sandinista insurgents have had considerable success
in the last month in infiltrating units well into Nicaragua and
inflicting heavier casualties on government units.
-- Their strength has also continued to grow as a result of
additional "ralliers."
-- They now number some 6,500 armed men inside Nicaragua,
with 1,500 volunteers available in Honduras once they are
fully trained and equipped.
The Nicaraguan Democratic Force (FDN) has been able to set
up a new front in the Matagalpa area well inside Nicaragua.
-- Its commander claims to have inflicted over 300 casualties
on Sandinista forces in the area in the last few weeks.
-- He also claims to have interdicted the main roads south
and east of the departmental capital.
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The Sandinistas are reacting strongly to the increased
insurgent activity.
-- They reportedly are attempting to create a depopulated
zone along the entire border.
-- They also have sent reinforcements to the Matagalpa area,
including both regular units and militia forces.
While they appear confident they can handle the insurgents,
they are again threatening retaliation against Honduras.
-- Defense Minister Humberto Ortega has publicly raised the
danger of war with Honduras because of its support for the
insurgents.
stated that
Nicaragua eventually plans to introduce guerrillas into
Honduras.
The Sandinistas are likely to use the insurgent threat for
maximum propaganda effect.
-- In addition to raising the matter at the UN, they also may
crack down hard on domestic opponents and tighten their
control of the economy.
-- They have seized a Coca Cola plant owned by a prominent
exile, and may move to take control of the vital coffee
industry.
2
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Managua probably will turn to the Cubans for increased
military aid.
-- In addition to more support for the counterinsurgency
effort, they may ask for delivery of the MIG-21s currently
based in Cuba.
-- Libya has already pledged to provide more military aid,
including jet aircraft and air defense radars.
The bottom line is that while the anti-Sandinista insurgents
are having greater success in causing increased concern and costs
to the regime, they will have little capability to overthrow the
junta in the foreseeable future.
-- Nor are they likely to provoke an open conflict between
Nicaragua and Honduras.
-- The Sandinistas will use the threat, however, for maximum
propaganda effect as well as an excuse to crack down
further on domestic opponents and take greater control of
the economy.
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