CENTRAL AMERICAN UPDATE NO. 7

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01370R000801050027-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: November 30, 2010
• Sequence Number: 27
• Publication Date: July 7, 1984
• Content Type: CABLE

Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
OLL/LD
INCOMING
PAGE 001
TOR: 07065OZ JUL 84
PP RUEAIIB
ZNY CCCCC ZOC STATE ZZH
PP RUEHC
DE RUEHC #9670 1890629
ZNY CCCCC ZZH
P 07061OZ JUL 84 ZEX
FM SECSTATE WASHDC
TO ALL OECD CAPITALS PRIORITY
ALL NATO CAPITALS
ALL AMERICAN REPUBLIC DIPLOMATIC POSTS
RUFHGV/USMISSION GENEVA PRORITY 0000
RUDKRB/AMEMBASSY BELGRADE PRIORITY 0000
RUMJDK/AMEMBASSY DHAKA PRIORITY 0000
RUEHCR/AMEMBASSY BANJUL PRIORITY 0000
RUEHNR/AMEMBASSY NAIROBI PRIORITY 0000
RUFHDR/AMEMBASSY DAR ES SALAAM PRIORITY 0000
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0000
RUDKHLO/AMEMBASSY HELSINKI PRIORITY 0000
RUEHEG/AMEMBASSY CAIRO PRIORITY 0000
RUEHIL/AMEMBASSY ISLAMABAD PRORITY 0000
RUEHML/AMEMBASSY MANILA PRIORITY 0000
RUEHLGB/AMEMBASSY KIGALI PRIORITY 0000
RUTADS/AMEMBASSY DAKAR PRIORITY 0000
RUFHPC/AMEMBASSY LOME PRIORITY 0000
RUTADE/AMEMBASSY YAOUNDE PRIORITY 0000
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0000
RUOMOG/AMEMBASSY NICOSIA PRIORITY 0000
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0000
RUEHBY/AMEMBASSY CANBERRA PRIORITY 0000
RUEHDT/USMISSION USUN NEW YORK PRIORITY 0000
INFO RUEHMO/AMEMBASSY MOSCOW PRIORITY 0000
RUEHIN/ AIT TAIPEI FROM AIT WASHDC PRIORITY 0000
RUEHCR/AMEMBASSY MAPUTO PRIORITY 0000
RUEHSB/AMEMBASSY HARARE PRIORITY 0000
RUDKRP/AMEMBASSY PRAGUE PRIORITY 0000
RUEHDM/AMEMBASSY DAMASCUS PRIORITY 0000
BT
C O N F I D E N T I A L STATE 199670
E.O. 12356: DECL: OADR
TAGS: PGOV, PINR, XK
SUBJECT: CENTRAL AMERICAN UPDATE NO. 7
1. (LOU) THERE FOLLOWS SEVENTH IN OUR SERIES OF REPORTS
TO UPDATE POSTS ON DEVELOPMENTS IN CENTRAL AMERICA.
POSTS MAY. AT THEIR DISCRETION, USE UNCLASSIFIED AND LOU
INFORMATION AS NON-PAPERS FOR HOST GOVERNMENT OFFICIALS.
CONFIDENTIAL INFORMATION IS PRIMARILY FOR POSTS'
BACKGROUND, BUT MAY BE USED SELECTIVELY IN BRIEFINGS.
Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
 Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
CONFIDENTIAL
84 4606998 SCP PAGE 002 NC 4606998
TOR: 07065OZ JUL 84
(C) AMB. SHLAUDEMAN VISITED GUATEMALA, HONDURAS, EL
SALVADOR AND COSTA RICA JUNE 19-22 TO CONSULT ON THE THEN
UPCOMING TALKS WITH NICARAGUA AND THE CONTADORA PROCESS.
HE RETURNED TO THE REGION JULY 1-5 TO CONSULT ON THE -MOST
APPROPRIATE WAY TO ASSOCIATE THE RESULTS OF-THE -
US-NICARAGUAN BILATERAL DISCUSSIONS WITH THE CONTADORA
NEGOTIATIONS. -
(C) THE ATMOSPHERE IN THE MEETING WAS BUSINESSLIKE
THROUGHOUT. THE TWO SIDES AGREED TO MEET AGAIN AT A DATE
AND PLACE TO BE DETERMINED. THE DECISION OF THE US TO
UNDERTAKE THESE TALKS WAS MADE IN RESPONSE TO A REQUEST
BY THE CONTADORA GOVERNMENTS AND IN ORDER TO STRENGTHEN
THE CONTADORA PROCESS. OUR FIRM VIEW IS THAT THE
US-NICARAGUAN TALKS CANNOT AND MUST NOT SUBSTITUTE FOR OR
WEAKEN IN ANY WAY THE CONTADORA PROCESS.
(LOU) TO CREATE A CLIMATE OF CONFIDENCE IN THE TALKS AND
THEREBY MAXIMIZE THE PROSPECTSFOR SUCCESS, THE US HAS
DECIDED TO MAINTAIN THE STRICTEST CONFIDENTIALITY ON THE
CONTENT OF THE DISCUSSIONS. THE US GOVERNMENT WILL
THEREFORE NOT BE MAKIN; ANY PUBLIC STATEMENTS CONCERNING
THE TALKS NOR WILL-IT BE PROVIDING BACKGROUND INFORMATION
TO THE PRESS ON THEIR PROGRESS.
(C) THE CONTADORA DRAFT AGREEMENT PROVIDED TO THE FIVE
CENTRAL AMERICAN GOVERNMENTS JUNE 9-10.DEFERS
NEGOTIATIONS ON ARMS AND TROOP LEVEL REDUCTIONS AND THE
WITHDRAWAL OF FOREIGN MILITARY AND SECURITY ADVISERS
UNTIL AFTER THE BASIC AGREEMENY IS SIGNED, WHILE
OBLIGATING THE PARTIES TO IMMEDIATELY CEASE ALL SUPPORT
TO PARAMILITARY FORCES AND TO TAKE CONCRETE STEPS TO STOP
ILLEGAL ARMS TRAFFICKING. WE SUPPORT THIS LATTER
PROVISION, BUT ONLY IN THE CONTEXT OF AN AGREEMENT THAT
MEETS SIMULTANEOUSLY CENTRAL AMERICAN CONCERNS ON ARMS
AND TROOP LEVEL REDUCTIONS AND WITHDRAWAL OF FOREIGN
ADVISERS.
(C) THE DRAFT AGREEMENT PROVIDES FOR A "VERIFICATION AND
CONTROL COMMISSION" CONSISTING OF FIVE MEMBERS, FOUR FROM
"GENUINELY IMPARTIAL" COUNTRIES AND A LATIN AMERICAN
EXECUTIVE SECRETARY. THE VERIFICATION PROVISIONS LACK,
HOWEVER, SPECIFICITY ON STAFF, FINANCING AND PROCEDURES.
(C) THE DRAFT PROVISIONS ON DEMOCRATIZATION WOULD BE BOTH
LEGALLY BINDING AND SUBJECT TO VERIFICATION BY A SUBGROUP
OF THE VERIFICATION AND CONTROL COMMISSION. NICARAGUA
HAS ALREADY, PUBLICLY AND PRIVATELY, EXPRESSED ITS STRONG
OBJECTION TO THESE PROVISIONS. OTHER POSITIVE FEATURES
ARE AN IMMEDIATE MORATORIUM ON THE INTRODUCTION OF NEW
WEAPONS SYSTEMS (WHICH WOULD PRECLUDE NICARAGUAN
ACQUISITION OF MIGS) AND MILITARY PARITY AMONG THE FIVE
COUNTRIES AS A GUIDE TO ARMS NEGOTIATIONS (NICARAGUA HAD
ARGUED THAT ITS DEFENSIVE NEEDS VIS A VIS ALL OTHER
CENTRAL AMERICAN NEIGHBORS AND THE UNITED STATES SHOULD
(C) THE CONTADORA GOVERNMENTS HAVE ASKED THE FIVE CENTRAL
AMERICAN GOVERNMENTS TO RESPOND WITH "OBSERVATIONS" BY
MID-JULY AND MAY INTEND TO INCORPORATE THESE INTO A
REVISED DRAFT. THERE IS NOT YET, HOWEVER, AGREEMENT
AMONG THE NINE PARTICIPANTS AS TO WHAT HAPPENS (OR WHEN)
AFTER THE OBSERVATIONS ARE SUBMITTED.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
 Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
CONFIDENTIAL
PAGE 003 NC 4606998
TOR: 0706502 JUL 84
(C) HONDURAS AND EL SALVADOR, ALTHOUGH ACUTELY CONSCIOUS
OF THE DEFICIENCIES IN THE DRAFT HAVE INDICATED TO THE
CONTADORA GOVERNMENTS THAT THEY CAN ACCEPT THE DRAFT
AGREEMENT AS A BASE FOR NEGOTIATIONS (HONDURAS) OR
FURTHER TALKS (EL SALVADOR) AMONG THE CENTRAL AMERICAN
STATES. THE OTHER CENTRAL AMERICAN GOVERNMENTS HAVE NOT
YET RESPONDED TO THE REQUEST FROM THE CONTADORA
GOVERNMENTS FOR OBSERVATIONS ON THE DRAFT AGREEMENT. THE
CENTRAL AMERICANS (INCLUDING, PERHAPS NICARAGUA) MAY
RESIST ANY CONTADORA ATTEMPT TO FORCE THE PACE OF
NEGOTIATIOHS SUCH AS TO SET ASIDE CONTENTIOUS ISSUES.
(C) IN POINTING OUT DEFICIENCIES IN THE DRAFT AGREEMENT,
POSTS SHOULD BE CAREFUL NOT TO CO;VEY ATTITUDE OF
OPPOSITION TO THE DRAFT AGREEMENT AS A WHOLE OR TO THE
CONTADORA PROCESS, WHICH WE STRONGLY SUPPORT. WE WOULD
BE INTERESTED IN ANY INDICATION VOLUNTEERED BY HOST
GOVERNMENT OFFICIALS THAT THE CONTADORA GOVERNMENTS HAVE
BRIEFED THEM IN DETAIL ON THE DRAFT AGREEMENT OR PROVIDED
THEM WITH COPY OF THE DRAFT AGREEMENT.
(U) ON JUNE 18 THE SENATE DEFEATED TWO AMENDMENTS TO THE
DOD AUTHORIZATION BILL THAT WOULD HAVE RESTRICTED US
POLICY IN CENTRAL AMERICA. AN AMENDMENT OFFERED BY
SENATOR KENNEDY TO BAR US COMBAT TROOPS FROM EL SALVADOR
OR NICARAGUA WITHOUT PRIOR CONGRESSIONAL APPROVAL WAS
REJECTED 63-31. A KENNEDY-BINGAMAN AMENDMENT TO PROHIBIT
US SUPPORT FOR PARAMILITARY OPERATIONS IN NICARAGUA IN
FY-85 WAS DEFEATED 58-38. THE HOUSE HAD APPROVED AN
AMENDMENT TO THE DOD BILL OFFERED BY REP. FOLEY (D-WA)
THAT WOULD PROHIBIT THE PRESIDENT FROM SENDING US TROOPS
TO CENTRAL AMERICA OR MEXICO FOR COMBAT WITHOUT PRIOR
CONGRESSIONAL CONSENT. SINCE THE SENATE VERSION OF THE
BILL CONTAINS NO COMPARABLE LANGUAGE, THIS ISSUE MUST NOW
BE RESOLVED IN CONFERENCE ON THE DOD AUTHORIZATION BILL.
(LOU) ON JUNE 25 THE SENATE VOTED 88-1 TO DELETE THE
DOLLARS 21 MILLION APPROPRIATION FOR THE CONTINGENCY
RESERVE FOR THE NICARAGUAN PROGRAM FROM THE URGENT
SUPPLEMENTAL (H.J. RES. 492). DESPITE THE 58-38 VOTE A
WEEK EARLIER TO SUSTAIN THE ADMINISTRATION'S POSITION ON
NICARAGUA (ABOVE). THERE WAS STRONG PRESSURE IN THE
SENATE TO SEPARATE THIS FUNDING FROM POPULAR ELEMENTS IN
THE URGENT SUPPLEMENTAL, SUCH AS SUMMER JOBS, GIVEN THE
HOUSE'S REFUSAL TO APPROVE THE BILL WITH THE DOLLARS 21
MILLION INCLUDED. SENATORS BAKER AND GOLDWATER SAID THEY
WOULD SEEK TO RESTORE THE MONEY FOR THE NICARAGUA PROGRAM
IN ANOTHER BILL.
(U) THE FOREIGN OPERATIONS SUBCOMMITTEE OF THE SENATE
APPROPRIATIONS COMMITTEE (SENATOR KASTEN, CHAIRMAN) IN
MARKING UP THE FY-84 "OMNIBUS" SUPPLEMENTAL AND THE FY-85
FOREIGN AID APPROPRIATION REQUEST JUNE 21, APPROVED THE
PRESIDENT'S FULL ECONOMIC AND MILITARY AID REQUESTS FOR
CENTRAL AMERICA FOR BOTH SUPPLEMENTAL FY-84 AND FY-85
(LESS THE DOLLARS 62 MILLION FOR EL SALVADOR ALREADY
APPROVED IN THE URGENT SUPPLEMENTAL). ON JUNE 26 THE
FULL SENATE APPROPRIATIONS COMMITTEE ALSO APPROVED THE
FY-85 REQUEST, BUT IT DEFERRED MARK-UP OF THE ONNIBUS
SUPPLEMENTAL PENDING HOUSE ACTION ON THIS BILL. THE
HOUSE APPROPRIATIONS COMMITTEE HAS DEFERRED ACTION ON THE
OMBIBUS SUPPLEMETAL UNTIL AFTER THE JUNE 30 - JULY 23
CONGRESSIONAL RECESS.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
 Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
CONFIDENTIAL
84 4606998 SCP PAGE 004 NC 4606998
TOR: 07065OZ JUL 84
------------------------------------------------------------------------
APPROPRIATIONS COMMITTEE SETS THE STAGE AFTER THE JULY 4
RECESS FOR SHARP BATTLES IN CONFERENCE ON BOTH THE
OMNIBUS SUPPLEMENTAL AND THE FY-85 CONTINUING
RESOLUTION. SINCE NEITHER HOUSE IS EXPECTED TO PASS A
FY-85 FOREIGN AID APPROPRIATIONS BILL THIS YEAR, THE AID
APPROPRIATION FOR NEXT FISCAL YEAR MAY BE ENACTED THROUGH
THE CONTINUING RESOLUTION.
(C) SALVADORAN PRESIDENT DUARTE HAS ACCEPTED AN
INVITATION TO VISIT GERMANY IN MID JULY. OTHER EUROPEAN
STOPS ARE POSSIBLE.
(U) GUERRILLA ACTIVITIES: LEFT-WING GUERRILLAS HAVE
INTENSIFIED THEIR ACTIVITIES AIMED AT CIVILIAN. IN A
COMMUNIQUE ISSUED JUNE 16, THE FMLN ANNOUNCED THAT IT
WOULD PARALYZE TRAFFIC AND DESTROY VEHICLES ON ALL
HIGHWAYS, AND PRIMARY AND SECONDARY ROADS. BUS SERVICE
IN FOUR EASTERN DEPARTMENTS HAS DROPPED BECAUSE OF
THREATS TO BUS DRIVERS. INDISCRIMINATE MINING BY THE
GUERRILLAS HAS INCREASED, WITH RESULTING HIGHER RISKS TO
CIVILIAN NONCOMBATANTS. ON JUNE 13, THE FMLN SAID THEY
WOULD SABOTAGE ALL PHASES OF COTTON PRODUCTION IN AN
EFFORT TO STRIKE A BLOW TO ONE OF THE NATIONAL ECONOMY'S
MAIN SOURCES OF INCOME. GUERRILLA FORCED RECRUITMENT AND
MOBILIZATION ACTIVITY AMONG CIVILIANS LIVING IN AREAS OF
TRADITIONAL GUERRILLA CONTROL HAS RESULTED IN A MASSIVE
EXODUS OF SALVADORANS THROUGH HONDURAS. THESE EVENTS
DEMONSTRATE THE FMLN'S INTENTIONS TO CONTINUE ITS ATTACKS
AGAINST THE ECONOMIC INFRASTRUCTURE OF THE COUNTRY.
(U) THE GUERRILLAS ATTACKED THE CERRON GRANDE DAM, EL
SALVADOR'S LARGEST HYDROELECTRIC PLANT JUNE 28. 600
TROOPS OF THE AIRBORNE BATTALION WERE TRANSPORTED QUICKLY
TO THE DAM USING REPEATED TRIPS WITH ONLY 10
HELICOPTERS. OTHER TROOPS WERE AMBUSHED BY THE
GUERRILLAS AS THEY MOVED BY ROAD TO THE DAM. BY NOON THE
ENTIRE FACILITY WAS UNDER THE CONTROL OF GOVERNMENT
FORCES. WHILE THE ATTACK ON THE DAM REFLECTED A LAPSE OF
SECURITY, THE QUICK RESPONSE BY THE SALVADORAN ARMED
FORCES, WITH DUARTE'S FULL SUPPOR?, PREVENTED GREATER
DAMAGE. DUARTE'S ROLE AS COMMANDER-IN-CHIEF AT THE
GENERAL STAFF AND LATER AT THE DAM ITSELF WAS IMPRESSIVE
AND IN MANY RESPECTS UNPRECEDENTED.
(LOU) LAND TO THE TILLER EXTENSION VOTED DOWN: ON JUNE
28, THE SALVADORAN LEGISLATIVE ASSEMBLY VOTED AGAINST.A
BILL THAT WOULD HAVE EXTENDED LAND REFORM'S PHASE III,
THE LAND TO THE TILLER PROGRAM, FOR A FOURTH TIME. THERE
WAS VERY LITTLE INTEREST ON ANYONE'S PART IN EXTENDING
PHASE III. CAMPESINO GROUPS PROPOSED AN EXTENSION VERY
BELATEDLY AND WITHOUT THE LOBBYING TYPIFYING PAST
EXTENSIONS. CAMPESINO LEADERS REPORT THAT THE EXTENSION
ISSUE WAS A POLITICALLY COSTLY DISTRACTION FROM THE REAL
BUSINESS OF MAKING THE REFORMED SECTOR MORE PRODUCTIVE
AND FINANCIALLY VIABLE. IN THE PEACEFUL ZONES,
APPLICATIONS FOR LAND HAVE DROPPED SHARPLY, INDICATING A
MUCH DIMINISHED POOL OF POTENTIAL BENIFICIARIES. IN THE
CONFLICTIVE ZONES, A SIX MONTH EXTENSION, WITHOUT
ESTABLISHING PEACE, WOULD ACCOMPLISH LITTLE. THE PROGRAM
CAN BE REESTABLISHED LATER, AND PRESIDENT DUARTE INTENDS
TO SUPPORT THE DISTRIBUTION OF LAND IN THE CONFLICTIVE
ZONESAT A MORE APPROPRIATE TIME.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
 Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
CONFIDENTIAL
84 4606998 SCP PAGE 005 NC 4606998
TOR: 07065OZ JUL 84
CONSTITUTE A MAJOR STEP IN THE MILITARY GOVERNMENT'S
PROGRAM TO RESTORE CIVILIAN, DEMOCRATIC RULE. VOTER
TURNOUT WAS HEAVY AND PRELIMINARY RESULTS INDICATE THAT
CENTRIST POLITICAL PARTIES (LED BY THE LEFT OF CENTER
CHRISTIAN DEMOCRATS, THE REVOLUTIONARY PARTY AND THE
NATIONAL RENOVATION PARTY) EMERGED WITH A STRONG MAJORITY
IN THE 88 SEAT ASSEMBLY. GUATEMALA CHIEF OF STATE GEN.
MEJIA HAS RECENTLY REITERATED THAT THE CONSTITUENT
ASSEMBLY'S AUTHORITY WILL BE STRICTLY LIMITED TO DRAWING
UP A NEW CONSTITUTION. THE MILITARY GOVERNMENT LIVED UP
TO ITS PLEDGE NOT TO SUPPORT ANY POLITICAL PARTY OR TO
INTERFERE WITH ANY GROUP'S CAMPAIGN EFFORTS, AND THE
PROCESS THAT IS SCHEDULED TO CULMINATE IN PRESIDENTIAL
ELECTIONS IN 1985 BEGAN ON A DYNAMIC NOTE.
(U) THE US OBSERVERS. IN THEIR REPORT ON THE ELECTIONS,
STATED "WE WERE IMPRESSED BY THE CIVIC PRIDE IN THE
ELECTIONS, BY THEIR (THE VOTERS) EVIDENT DESIRE FOR
DEMOCRACY, BY THE TOTAL ABSENCE OF VIOLENCE OR PRESSURE,
AND BY THE FRIENDSHIP EXPRESSED FOR THE UNITED STATES.
WE SAW THE DETERMINATION OF THE GUATEMALAN PEOPLE TO
PARTICIPATE IN A DEMOCRATIC PROCESS AND SHARE THEIR HOPE
THAT THE STRONG PROCESS BEGUN ON SUNDAY WILL CULMINATE IN
THE ESTABLISHMENT OF A GENUINE OPEN AND REPRESENTATIVE
CIVILIAN GOVERNMENT. THE HIGH DEGREE OF PARTICIPATION BY
THE REGISTERED VOTERS REFLECTS A STRONG COMMITMENT TO
ACHIEVING CHANGE BY PEACEFUL MEANS."
(U) EDEN PASTORA, LEADER OF THE MILITARY WING OF THE
NICARAGUAN OPPOSITION MOVEMENT ARDE, WAS IN WASHINGTON
JUNE 26 - JULY 2 FOLLOWING RECUPERATION IN VENEZUELA FROM
THE MAY 30 BOMB ATTACK AGAINST HIM. PASTORA'S VISIT CAME
IN THE WAKE OF ARDE MILITARY REVERSES AND A NEW SPLIT IN
THE MOVEMENT OVER ARDE'S RELATIONS WITH THE FDN.
PASTORA, JOINING WITH OPPOSITION LEADER, ARTURO CRUZ,
REITERATED HIS WILLINGNESS TO LAY DOWN HIS ARMS IN RETURN
FOR SANDINISTA ASSURANCES OF FREE, OPEN ELECTIONS IN
WHICH ALL GROUPS COULD PARTICIPATE.
(C) DANIEL ORTEGA TRIP TO EASTERN EUROPE: FOLLOWING
ANNOUNCEMENTS THAT THE GRN WAS SEEKING HIGH-PERFORMANCE
AIRCRAFT, GRN JUNTA COORDINATOR DANIEL ORTEGA VISITED THE
SOVIET UNION, BULGARIA, EAST GERMANY AND HUNGARY.
ALTHOUGH WE ASSUME ORTEGA RAISED THE POSSIBILITY OF MORE
MILITARY ASSISTANCE DURING THIS VISIT, WE HAVE NOT SEEN
ANY INDICATION THAT THE SOVIETS AND THEIR ALLIES PLAN TO
STEP UP THEIR MILITARY ASSISTANCE TO THE SANDINISTAS AT
THIS TIME. THE LEVEL OF INCREASED ECONOMIC ASSISTANCE
FROM THE BLOC IS ALSO PROBLEMATIC.
(C) GRN EFFORT TO DISCREDIT OPPOSITION: ON JUNE 20, AS
PART OF ITS LATEST EFFORTS TO DISCREDIT ITS DOMESTIC
OPPOSITION, THE GRN AGAIN OPENLY ATTACKED THE CATHOLIC
CHURCH. THE LATEST INCIDENT FEATURED A TELECAST
CONFESSION OF AN ALLEGED NICARAGUAN GUERRILLA LEADER,
HERNAN ESPINOZA, IN WHICH HE CLAIMED TO HAVE BEEN IN
LEAGUE WITH A CATHOLIC PRIEST AS WELL AS LEADERS OF THE
CONSERVATIVE PARTY. IN SUBSEQUENT PRESS CONFERENCES AND
GOVERNMENT PRESS EDITORIALS, THE GRN ACCUSED THE
OPPOSITION POLITICAL PARTIES, INDEPENDENT LABOR, THE
PRIVATE SECTOR, THE INDEPENDENT DAILY "LA PRENSA," AND
THE CATHOLIC CHURCH HIERARCHY OF CONSPIRING TO OVERTHROW
THE REGIME.
CONFIDENTIAL .
Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
 Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9
CONFIDENTIAL
84 4606998 SCP PAGE 006 NC 4606998
TOR: 070650Z JUL 84
------------------------------------------------------------------------
(C) COSTA RICA ECONOMIC PROBLEM: ON JUNE 15, COSTA
RICA'S CREDITOR BANKS GRANTED IT A 90 DAY MORATORIUM ON
PRINCIPAL REPAYMENTS, THUS AVERTING A SERIOUS POTENTIAL
DEFAULT SITUATION. WITHIN THE NEXT NINETY DAYS THE GOCR
HOPES TO RECEIVE SUBSTANTIAL ECONOMIC ASSISTANCE FROM THE
IMF AND USG TO BOLSTER ITS FOREIGN EXCHANGE RESERVES.
(LOU) PRESIDENT MONGE'S EUROPEAN TRIP: ON JUNE 30,
PRESIDENT MONGE WRAPPED UP HIS SUCCESSFUL FIVE-WEEK
OFFICIAL VISIT TO EUROPE. MONGE ENCOUNTERED GENERAL
SUPPORT FOR HIS MESSAGES OF SUPPORT FOR REGIONAL
DEMOCRACY, ENDORSING THE DUARTE GOVERNMENT IN EL SALVADOR
AND CRITICIING THE SANDINISTAS. HIS PROPOSAL FOR AN
EC-CENTRAL AMERICAN-CONTADORA FOREIGN MINISTERS' MEETING
HAS RECEIVED WIDESPREAD SUPPORT AND IS TENTATIVELY SET
FOR SEPTEMBER. SUCH A MEETING WOULD PROBABLY FOCUS ON
ECONOMIC ISSUES, WITH THE CENTRAL AMERICANS PUSHING FOR A
REGIONAL COOPERATION AGREEMENT WITH THE EC. DAM
END OF MESSAGE CONFIDENTIAL
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/03/09: CIA-RDP90BO137OR000801050027-9