WHITE HOUSE TIED TO PRIVATE GROUPS SEEKING FUNDS FOR NICARAGUAN CONTRAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00806R000201180105-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: July 19, 2010
• Sequence Number: 105
• Publication Date: June 10, 1985
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/07/19: CIA-RDP90-00806R000201180105-3
STAT
White House tied to private groups seeking
funds for Nicaraguan contras
From Wire Reports
STAT
? r F . _ _" BA1LT I ^ qR_F SUN
WASHINGTON - The White
House has kept close ties with pri-
vate groups raising money for Nica-
raguan rebels despite a public stance
that it doesn't encourage or discour-
age those efforts, according to well-
placed sources.
The White House - at least ini-
tially - offered advice to individuals
involved in the fund-raising, and di('
not discourage offers from severai
allied governments to funnel aid to
the "contras," according to private
and government sources who spoke
on condition that they not be identi-
fied.
. The sources said the Reagan ad-
ministration has adopted an arms-
length relationship with the fund-
raising since last fall, when Congress
passed a ban on U.S. aid that "would
have the effect of supporting. directly
or indirectly, military or paramilitary
operations in Nicaragua."
That language. the most recent of
a series of Nicaraguan restrictions
sponsored by Representative Edward
P. Boland is a principal,
target of current administration pro-
posals in Congress to resume CiA aid
to the contras.
The Central Intelligence Agency
spent about $80 million training and
organizing the estimated 15.000
rebels from 1981 until a year ago,
when Congress cut off the aid.
Last week, the Republican-con-
trolled Senate voted to let the CIA
ship$38million in non-lethal aid to
t rebels. and the Ho ise is slstrtl to.
consider a similar plan this_week.
Assistant Secretary of State Lang-
home Motley, appearing yesterday
on the ABC television program "This
Week With David Brinkley." was
asked if the Reagan administration
would consider alternatives, such as
sending U.S. combat troops to Nica-
ragua, if the present policy proved
unsuccessful.
"if it doesn't accomplish it, you
have to look at IL" he replied.
However. Mr. Motley said the ad-
ministration's overall Central Ameri-
can policy and its aid to the contras
was proving successful.
"The overall policy is working in
that area," he said.
Senate Foreign Relations Com-
mittee Chairman Richard Lugar. ap-
pearing on the same program,
agreed, saying that U.S. policy was
pressuring the Sandinista regime
into negotiations with the rebels.
One source, familiar with the ad-
ministration's handling of private aid
to the contras. said White House ef-
forts to encourage and coordinate
that support began in early 1984, as
Congress turned increasingly hostile
to the CIA's backing of the rebels.
The source said that beginning
last July, at least three countries ap-
proached the White House and
volunteered to provide aid to the con-
tras. He said one was an Asian coun-
try, but he refused to identify any of
them.
"They came to the U.S. to make
sure we had no objection to it," the
source said, adding that the White
House welcomed the offers but pro-
vided no "quid pro quo" to reward
the nations for giving the help. He
also said the White House estimated
that outside support would total
about S 11 million this year, and thus
agreed to scale back its 1985 request
to Congress to $14 million.
The source said President Rea-
gan's National Security Council staff
handled contacts with private
groups. Including the World Anti-
Communist League, a staunchly con-
servative organization headed by re-
fired Maj. Gen. John K. Singlaub.
General Singlaub. who resigned
from active duty in 1978 after pub-
licly criticizing then-President Car-
ter's plan to withdraw forces from
South Korea, said the league's inter-
national network and other fund
sources raise about $500,000 a
month for the contras.
In recent interviews with the As-
sociated Press. General Singlaub said
that amount was enough for the
rebels to continue "surviving," but
prevented them from becoming a
greater threat to the leftist Nicara-
guan government.
General Singlaub said that a year
ago, when he started his fund-rais-
ing, he would receive advice on the
contras' military needs and an occa-
sional briefing from the NSC staff. He
said his chief contact was Lt. Col.
Oliver L. North, an NSC deputy direc-
tor for political-military affairs.
But now. General Singlaub said,
Mr. North has been "pretty much
immobilized by this idiotic amend-
ment" prohibiting even indirect help
for the contras. "He can't act to give
advice or encouragement," General
Singlaub added.
But General Striglaub said he still
informs Mr. North about the league's
fund-raising efforts and asks for in-
direct guidance.
Sanitized Copy Approved for Release 2010/07/19: CIA-RDP90-00806R000201180105-3