CIA FUNDS RUN SHORT FOR COVERT OPERATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87B00858R000200170014-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: November 17, 2010
• Sequence Number: 14
• Publication Date: April 13, 1984
• Content Type: OPEN SOURCE

Approved For Release 2010/11/17: CIA-RDP87B00858R000200170014-1
13 APR ;Js;y
CIA Funds Run Short
For Covert Operations
House Joins Senate to Condemn
U.S. Participation in Minelaying
By T.R. Reid and Joanne Omang
Washington Post Staff Writers
The House last night joined the Senate in approving a
nonbinding resolution condemning the U.S. role in laying
mines in Nicaraguan harbors, but Congress put off until
after its Easter recess any vote to reduce funding for U.S.
aid to rebels fighting the Nicaraguan government.
After three hours of raucous and caustic debate, the
House voted, 281 to 111, in favor of a resolution express-
ing "the sense of Congress" that the United States should
not participate in "planning, directing, executing or sup-
porting the mining" in Nicaragua. The Senate passed the
same resolution, 84 to 12, Tuesday.
Although Congress has authority to cut off funds for
such operations, the resolution approved last night does
not do so. Both chambers have agreed to put off votes on
funding measures for U.S. operations in Central America
until after next week's scheduled recess.
Administration officials have expressed hope that con-
gressional anger about the mining operation will have
cooled by then so that bills providing money for secret
operations in Nicaragua can pass. President Reagan has
requested $21 million to continue such operations there.
Some House members argued last night that Congress
should take stronger action than a nonbinding resolution.
"This says that Congress isn't really serious," Rep. Jim
Leach (R-Iowa) said. "It would be better to establish as
the law of land ... that no funds be appropriated" for
the secret mining operations.
In contrast to Tuesday's Senate vote, in which the
Republican leadership voted for the resolution criticizing
Reagan's action, House Republicans leaders last night
rallied to the president's side.
"The purpose of this resolution is to embarrass the
president," Minority Leader Robert H. Michel (R-Ill.)
said. " ... You are aiming at the president, but you're
going to hit the people of El Salvador."
Michel said a key goal of U.S. military aid to Ni-
caraguan rebels is stopping that nation's harassment of
El Salvador, a U.S. ally.
Rep. David E. Bonior (D-Mich.) replied that Congress
is obliged to take a stand against U.S. participation in
mining the harbors. "This administration has engaged in
a flagrant violation of international law, an act of war
and an exercise in international terrorism," he said.
The House vote generally followed party lines, sug-
gesting that Republican anger at Reagan about the min-
ing operation had been tempered since the lopsided Sen-
ate vote. Last night, Democrats split, 224 to 15, in favor
See LATIN, A19, Col. 1
Steps Toward a Disengagement
In Nicaragua Are Recommended
By Bob Woodward
Washington Post Staff Writer
The operations arm of the CIA that oversees its secret
war against the leftist Sandinista government of Nica-
ragua has been notified that money for the program
could run out next week, perhaps as soon as Sunday, and
steps should be taken to begin disengagement, senior
administration sources said yesterday.
Congressional Democrats, reacting to news reports
about direct CIA involvement in the mining of several
Nicaraguan harbors, have predicted that the House will
refuse to approve $21 million President Reagan has re-
quested to continue the covert operation.
Republican members of Congress and administration
officials said they still hope to win approval of the fund-
ing after next week's congressional recess.
The CIA-supported "Contra" guerrillas still may have
enough money to operate for several more weeks, but $22
million of the current $24 million for their support was
spent by the end of last month, the sources said, and it
appears that the Reagan administration is uncertain
about what to do next.
CIA Director William J. Casey is considering the pos-
sibility of asking another country, such as Saudi Arabia,
to send money to the Contras until the funding problem
is solved, according to one well-placed source, but no de-
cisions have been made.
Casey is viewed inside the CIA as the primary moving
force behind the secret war against Nicaragua and the
controversial mining of its harbors.
"Casey cooked this whole thing up," one informed
source said.
But Casey's enthusiasm for the covert operation in
Nicaragua is not widely shared among senior CIA offi-
cials despite Casey's popularity because of the greatly
increased funding he has secured for the agency.
John N. McMahon, the CIA's No. 2 man, who has 33
years of experience, believed from the beginning that the
Nicaraguan operation was ill-conceived, according to an
official familiar with his thinking.
"John just knew it would come to this where there
would not be enough public and congressional support
and we'd withdraw," the official said.
McMahon reportedly has argued that, after the Amer-
ican intelligence community scandals of the 1970s, it is
now a time to rebuild the CIA's intelligence-gathering
capabilities rather than risk more damage to it with un-
certain covert operations.
Asked about this, a CIA spokesman said that, what-
See COVERT, AlS. Col. 5
Approved For Release 2010/11/17: CIA-RDP87B00858R000200170014-1
 Approved For Release 2010/11/17: CIA-RDP87B00858R000200170014-1
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 Approved For Release 2010/11/17: CIA-RDP87B00858R000200170014-1
CIA Runs Short of Fun
For Operations in Nicaragua
COVERT, From Al
ever personal opinions McMahon
may have voiced about specific op-
erations in staff discussions, he is not
opposed to any CIA operations. Sev-
eral sources said the mining of Nic-
aragua was not intended to stop the
flow of arms from the Sandinistas to
leftist rebels in nearby El Salvador,
which is one the justifications that
Congress has been given for the co-
vert operation against Nicaragua.
"It's harassment pure and simple,"
said one administration official, "and
designed to keep them busy, a diver-
sion."
The State Department has issued
a legal opinion, circulated in the
Senate Select Committee on Intel-
ligence, saying the harbor mining is
"self-defense" and designed to stem
the unlawful flow of arms. A senior
administration official said yester-
day, "unfortunately it's bulls-- " and
would add to the perception that
one hand of the administration does
not know what the other is doing.
Administration sources said that
attacks by the CIA-supported anti-
Sandinista guerrillas have had a se-
rious impact on the Nicaraguan
economy but have not slowed the
flow of arms into El Salvador.
"It went down after Grenada [the
October, 1983, U.S. invasion of the
Caribbean island] but it's now going
up and may even be higher," said
one source familiar with estimates.
Another source generally agreed with
this assessment, but added that
there have been some successes in
interrupting the arms flow.
Sources said CIA analysts have
concluded that the Contra guerrillas
have no chance of overthrowing the
Sandinista government in Nicaragua,
which has a military and police force
totaling about 75,000 men.
The National Security Council
has set a ceiling of 18,000 on the
number of Contras the CIA may re-
cruit, support and direct. Sources
said the number of Contras now op-
erating is 12,000 to 15,000.
Casey remains determined to fight
for the requested $21 million to con-
tinue supporting the Contras, ac-
cording to administration officials.
"He was the only one at the CIA
saying we'd get the money," one of-
ficial said yesterday.
Tuesday's 84-to-12 Senate vote
condemning the mining of Ni-
caraguan harbors clearly had an im-
pact at the CIA, where officials said
they believed they had kept Con-
gress well-informed, citing Casey's
testimony to the Senate intelligence
committee March 8 and March 13 to
the effect that "mines have been
placed" in the harbors.
None of the committee's members
reached yesterday disputed this and
some said they should have been
more inquisitive. "It is as emotional
an issue as we can have in our time
and we are perceived to have hidden
it," said one CIA official. "This is so
[expletive] demoralizing."
The mines have damaged several
ships and, according to one intelli-
gence report, caused injuries, includ-
ing broken bones, for a few seamen.
The Nicaraguan fishing boats that
recently were damaged by the mines
were trying to sweep the mines out
of channels when they exploded, ac-
coedbg to ass report.
Approved For Release 2010/11/17: CIA-RDP87B00858R000200170014-1