'CONTRA' FINANCING SHIFT HINTED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000505390073-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: January 24, 2011
• Sequence Number: 73
• Publication Date: August 30, 1984
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/01/24: CIA-RDP90-00552R000505390073-1
ARTICLE APPEARED
ON PAGE- I
`Contra'
financing
shift hinted
By Alfonso Chardy
Jng0re, Waahm(ton ayrea?
WASHINGTON - The Reagan ad-
ministration, seeking to sidestep con-
gressional opposition to its covert
war in Nicaragua, is considering a
compromise that would allow the
CIA to finance the anti-Sandinista
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 $28 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 re-enact
the provision in the 1985 Intelligence
Authorization Bill are now stalled in
the Republicancontrolled 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-
tion is considered classified informs-
lion - without the need for specific
congressional authorization.
The hope, administration officials
said, was to prevent a pre-election
confrontation with Congress over
the cover 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
However, opponents of the pro-
gram say a confrontation with Rea-
gan appears inevitable. Democratic
leaders, especially House Speaker
Thomas P. O'Neill Jr. (D., Mass.), are
adamant about shutting down the
operation 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-
quested $21 million in additional aid
this year, the new proposal is the
first signal that it is also ready to
forget the $28 million sought for the
Nicaraguan insurgents in fiscal 1985.
"It is quite possible that we will set
aside efforts to secure a fixed
amount for the contras in 1984 and
1985 and simply concentrate on lift-
ing the restrictions on funding the
operation without an explicit
amount," a senior administration of-
ficial said.
But he added that Reagan's chief
advisers still had not made a firm
decision on how to proceed.
"Administration signals on the co-
vert program are consistent with
what we have heard," said an aide to
Rep. Wyche Fowler Jr. (D., Ga.),
chairman of the House intelligence
committee's oversight subcommittee '
and a key opponent of the program.
1ndic&Lwm seen
"So far," the aide said, "we have
seen no big push on the part of the
administration to revive its requests
for the contras in 1984 and 1985 in
either house of Congress. This is a
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 information gave four reasons
why the administration might be
willing to switch gears on covert aid:
? A desire not to highlight the
conflicts in Central America during
the presidential campaign because
Republican pollsters believe Reagan
is vulnerable on the issue, especially
on aiding the contras.
? A feeling within the administra-
tion that despite congressional oppo-
sition, the CIA successfully -has
resolved the issue of funding the
Nicaraguan insurgents by finding al-
ternate sources of supply and cash
for them.
? A belief that Senate support for
covert aid is no longer as solid as it
once was.
? A possible decision within the
CIA to rethink its overall strategy of
conducting the covert program in
Nicaragua amid pressure within the
intelligence community to reduce
,the visibility oL the program and
return it to a truly covert realm.
STAT
STAT
Sanitized Copy Approved for Release 2011/01/24: CIA-RDP90-00552R000505390073-1