'CONTRA' FINANCING SHIFT HINTED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000201090014-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: February 9, 2012
• Sequence Number: 14
• Publication Date: August 30, 1984
• Content Type: OPEN SOURCE

Declassified in Part -Sanitized Copy Approved for Release 2012/02/09 :CIA-RDP90-009658000201090014-8
ARTICLE APPEARED
ON PAGE~~_
`Contra'
f inancin
SJL Lii. V ~~
By Altonso Chardy
Mqulrn Washfnstoi BurWu
WASHINGTON -The Reagan ad-
ministration,seeking to sidestep con-
gressional opposition to its covert
war in Nicaragua, is congidering a
compromise that would allow the
CIA to finance the antiSandinista
rebels out of the agency's secret con-
tingency fund, administration and
congressional officials say.
Under this plan, officials said, the
administration would abandon its ef-
forts to obtain S28 million next year
for the Nicaraguan rebels, or con-
tras, in exchange for the elimination
or softening of current law that re-
quires congressional approval of
money sent to the rebels.
That law expires Sept. 30, the end
of fiscal 1984_ Attempts by the Demo-
cratic-controlled House to reenact
the provision in the 1985 Intelligence
Authorization Bill are now stalled in
the Republicant~ntrolled Senate.
if the administration can kill re-
enactment in the Senate, the CIA
could then take over funding of the
rebels through its secret contingen-
cy fund -the size of its appropria-
rion is considered classified informa-
tion -without the need for specific
congressional authorization.
The hope, administration officials
said, was to prevent apre-election
confrontation with Congress over
the covert program that would pro-
vide the Democrats, who have voted
four times in the last two years to kill
all aid to the rebels, with a forum to
attack President Reagan's record in
Central America.
PHILADELPHIA INQUIRER
30 August 1984
Confrontation looms Indies ions seen
However, opponents of the pro- "So far," the aide said, "we have
gram say a confrontation with Rea- seen no big push on the pnrt of the
gan appears inevitable. Democratic administration to revive its requests
leaders, especially House Speaker for the contras in 1984 and 1985 in
Thomas P. O'Neill Jr. (D., Mass.), are either house of Congress. This is a
adamant about shutting down the
~aperation and are unlikely to view
favorably a compromise that would
keep the covert war alive, especially
after presidential nominee Walter F.
Mondale's pledge to end it if elected.
Though the administration already
has said it is willing to forgo a re-
major indication that the adminis-
tration has decided to abandon ef-
forts on the specific covert funds and
instead will be pushing for the lift-
ing of funding restrictions."
A Senate aide with access to classi-
fied informarion gave four reasons
why the administration might be
quested S21 million in additional aid willing to switch gears on covert aid:
this year, the new proposal is the ? A desire not to highlight the
first signal that it is also ready to conflicts in Central America during
forget the S28 million sought for the the presidenrisl campaign because
Nicaraguan insurgents in fiscal 1985. Republican pollsters believe Reagan
"It is quite possible that we will set , ~ vulnerable on the issue, especially ,
aside efforts to secure a fixed I on siding the contras.
amount for the contras in 1984 and ? A feeling within the edministra-
1985 and simply concentrate on lift- ? lion that despite congressional oppo- i
ing the restrictions on funding the sition, the CIA successfully ?has
operation without an explicit ;, resolved the issue of funding the
amount," a senior administration of- Nicaraguan insurgents by finding el-
ficial said. ternate sources of supply and cash
But he added that Reagan's chief for them.
advisers still had not made a firm ? A belief that Senate support for
decision on how to proceed. covert sid is no longer as solid as it
"Administration signals on the ca once was.
vert program are consistent with ? A possible decision within the
what we have heard," said an aide to CIA to rethink its overall strategy of
', Rep. Wyche Fowler Jr. (D., Ga.), ,conducting the covert program in
chairman of the House intelligence Nicaragua amid pressure within the
committee's oversight subcommittee ~ tntelligence community to reduce
and a key opponent of the program. .the visibility o~,,the program and
return it to a traly covert realm.
Declassified in Part -Sanitized Copy Approved for Release 2012/02/09 :CIA-RDP90-009658000201090014-8