SIG MEETING SUMMARY OF CONCLUSIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP00M00244R000500050008-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 26
• Document Creation Date: December 23, 2016
• Document Release Date: July 5, 2012
• Sequence Number: 8
• Publication Date: February 21, 1986
• Content Type: LETTER

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Third Agency - State
Executive Re
22516-22538
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8605672
United States Department of State
-1314f"Alggla
With S ttachment)
Senior Interagency Group No. 54
Washington, D.C. 20520
February 21, 1986
1 Executive Registry
86- 0558X/1
TO OVP - Mr. Donald P. Gregg
NSC - Mr. Rodney B. McDaniel
CIA - hi
--------
Defense - L.ui, uavia K. Brown
JCS - MAJ Michael F. Emerson
SUBJECT: SIG Meeting Summary of Conclusions
Attached is the Summary of Conclusions for the SIG Meeting
on Humanitarian Assistance for Nicaraguan Resistance Forces held
on Thursday, February 13, 1986.
ikNicholas Platt
ecutive Secretary
Attachments:
1. Summary of Conclusions
2. List of Participants
uNcLAu.1..prg6
(With,SKeVET Attachment)
STAT
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United States Department of State
Washington, D.C. 20520
SECRET
Senior Interagency Group No. 54
February 21, 1986
PARTICIPANTS: See List Attached
DATE AND TIME: Thursday, February 13, 1986, 10:00
PLACE: Operations Center Conference Room 7516, NS
a ?m?
SUBJECT: SIG Meeting on Humanitarian Assistance for Nicaraguan
Resistance Forces, Thursday, February 13, 1986
SUMMARY OF CONCLUSIONS
Ambassador Duemling reviewed the progress of the NHAO program
to date. The SIG endorsed the second 90-day report which will be
submitted to the Hill the week of February 18. The NHAO section
of the report includes detail on the following new programs:
Human Rights Commission. NHAO has provided the seed money
for the Commission. Its 6-month budget is just over
$1 million.
Expanded medical care facilities.
Procurement of Vehicles.
There was considerable discussion of the problem of deliveries
from the U.S. into the region, which is the major stumbling block
in the implementation of the NHAO program. Because of Honduran
sensitivities and unwillingness to assist, large quantities of
supplies are backing up in warehouses in the U.S./
Amb. Duemling stated that the GAO auditors have been in place
since December 6, and that the Barnes subcommittee staff has
scheduled an oral brief from them this week. GAO's major
criticisms are that stockpiling and inadequate monitoring and
verification in the region provide opportunities for fraud and
corruption. The GAO also cited duplication through local purchase
of supplies of a sort already purchased in the U.S. but held in
storage because of delivery problems.
SECRET
E r'" ILL
L.Pzo 'f(t,1J
DECL:OADR
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Most of these problems are the direct result of the
Congressional insistence on making this an overt program. The
Embassy has been working with the Hondurans but the problems will
continue as long as the program Ar remains structured as it is.
GAO's desire to send an auditor or on-site inspection in the
region would cause further complications with the Hondurans. It
was suggested that consultation procedures with the intelligence
committees already in place be used to inform the Congress and
that the situation be discussed with Will Ball.
The SIG agreed that while we will work for an extension of the
NHAO program, a phase-down plan should be developed. A 3-6 month
cushion past the March 31 deadline can be built in for supplies
and pharmaceuticals, but not for food deliveries.
SECRET
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SIG MEETING
Humanitarian Assistance for Nicaraguan Resistance Forces
February 13, 1986 - 10:0G a.m.
Operations Center Conference Room 7516, NS
State:
PARTICIPANTS
Under Secretary Armacost, Chairman
Elliott Abrams, ARA
William G. Walker, ARA
Robert Duemling, NHAO
Rick Melton, ARA
Ron Goddard, ARA
Sheila Lopez, S/S-S, Notetaker
OVP: Sam Watson
NSC: LTC Oliver North
Observers:
CIA:
DOD:
JCS:
BG Fred Gorden
LTG John H. Moellering
STAT
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HUMANITARIAN ASSISTANCE
FOR THE NICARAGUAN DEMOCRATIC RESISTANCE
In its first five months of operation, the
Nicaraguan Humanitarian Assistance Office (NHAO) has
obligated $16.4 million of the $18 million made
available (to date) for humanitarian aid to the
Nicaraguan democratic resistance. Expenditures con-
tinue to be guided by the criteria set forth in the
legislation, as amended by subsequent expressions of
Congressional intent (see below).
During the reporting period (November 1, 1985,
through January 31, 1986), NHAO has continued to
conduct operations in the same manner and with the
same staffing as described in the first Presiden-
tidl Report to Congress (dated November 6, 1985).
However, the pace of disbursements accelerated as the
staffs of NHAO and the United Nicaraguan Opposition
(UNO) first developed and then gained experience with
effective modalities for the provision of aid.
NEW PROGRAMS
As indicated in the statistical summary, the
overwhelming percentage of assistance to the demo-
cratic resistance continues to be in the form of
food, medicine, clothing, equipment and transporta-
tion. However, there are three new programs worthy
of special mention.
A. Human Rights Commission
Acting on policy guidance from the Secretary of
State, NHAO agreed in December 1985 to fund UNO's
newly-created Human Rights Commission (UNO/HRC). The
objective of the UNO/HRC is to defend and promote
human rights (as defined and set forth in the Inter-
national Convention), with particular emphasis on the
observance of human rights during the conduct of war.
UNO/HCR will train UNO forces in a military code of
conduct, will investigate and punish derelictions,
and will also monitor and expose violations of human
rights committed by the Sandinistas. This program is
being directed by one of UNO's principal leaders,
Arturo Cruz, assisted by Ismael Reyes, former head of
the Nicaraguan Red Cross; as well as Roberto Ferrey
and Alvaro Baldizon, both former Sandinista officials
_I Epcuti Fq,istry
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UNO/HRC has submitted to NHAO a budget projecting
expenses of approximately $950,000 during the period
January - June 1986. To date, NHAO has provided
$125,000 in start-up money for this undertaking.
B. Medical Care Facilities
In addition to paying for pharmaceuticals and
other consumable medical supplies, NHAO is providing
funding for longer-term treatment in the United
States of seriously wounded combatants requiring
restorative surgery. This assistance takes the form
of payment of hospital and doctors' bills and main-
tenance of a hospice (capacity approximately 15
persons) for patient lodging during the period of
treatment and rehabilitation. NHAO made a separate
grant to the Fundacion de Nicaragua, a Miami-based
non-profit organization associated with the demo-
cratic resistance, to administer this program.
NHAO has also funded the establishment or expan-
sion of several UNO medical clinics within the Cen-
tral American region, where the vast majority of
UNO's medical needs are met. These funds cover con-
struction costs, salaries of health-care personnel,
and the purchase of medical equipment such as x-ray
machines and refrigerators to store perishable phar-
maceuticals.
C. Vehicles
During the initial phase of its operations, NHAO
abstained from funding the purchase of vehicles
(trucks, boats and aircraft) because the potential
for dual-use (to transport both humanitarian and
lethal supplies, for example) could lead to contro-
versy over the meaning of the legislative guide-
lines. While so doing, NHAO recognized that without
effective means of transport, NHAO-purchased supplies
might not reach and thus could not serve their intend-
ed recipients. In light of this dilemma, the Depart-
ment of State suggested to the Congress in November
1985 that the Intelligence Authorization Act for FY
86 specifically provide that appropriated funds could
be used for the purchase of vehicles. The conference
committee chose, instead, to issue a clarifying inter-
pretation of NHAO's authority, as follows:
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The conferees note that they considered
authorizing the intelligence agencies to provide
transportation equipment to the Nicaraguan
democratic resistance, but determined not to
authorize funds for such equipment because the
Nicaraguan Humanitarian Assistance Office estab-
lished by Executive Order 12530 of August 29,
1985, pursuant to the International Security and
Development Cooperation Act of 1985 (P.L. 99-83)
and the Fiscal Year 1985 Supplemental Appropria-
tions Act, already has the authority to provide
transportation equipment as part of the humani-
tarian assistance program, and the provision of
such equipment is not precluded by the definition
of humanitarian assistance contained in those
Acts so long as no modifications are made to the
equipment designed to be used to inflict serious
bodily harm or death. (Emphasis added.)
On this basis, NHAO has begun to consider
requests for funding the purchase and maintenance of
small trucks, boats and aircraft, provided their
primary and predominant use is the delivery of human-
itarian assistance commodities or the transport of
the wounded, and provided no modifications designed
to inflict serious bodily harm are made to such equip-
ment. These stipulations have been discussed in
detail with the UNO leadership, and inserted in all
documents pertaining to the purchase, maintenance and
use of such vehicles.
OVERSIGHT AND CONTROL
A. By the State Department's Inspector General
In October 1985, the Inspector General of the
Department of State initiated a two-week, informal
audit of NHAO's operations and procedures, culmina-
ting in a report of November 8, 1985. The inspector
assumed that the overriding Congressional concern
with respect to NHAO's operations was that assistance
not be diverted to unauthorized purposes, especially
for acquisition of lethal materials.
The audit report approvingly noted NHAO's
adoption of operating procedures and controls similar
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to those used by AID disaster relief programs.
However, the report suggested a number of refine-
ments. Citing concerns about NHAO's ability to veri-
fy the bona fides of off-shore suppliers and the
ultimate end-use of supplies procured in both the
United States and the Central American region, the
report suggested that NHAO recruit and assign addi-
tional personnel to the monitoring function, while
continuing to make maximum use of U.S. resources
within the region to ensure proper use of NHAO-
purchased materiel. Finally, the report suggested
that NHAO require UNO to develop budget projections
for disbursing the balance of the funds appropriated
for humanitarian assistance.
On December 20, 1985, NHAO responded to the
Inspector General that NUAO concurred with all recom-
mendations; as of the date of this report, they have
been fully implemented.
B. By the General Accounting Office
On November 5, 1985, the General Accounting
Office (GAO) notified the Department of State that at
the request of the Chairman of the House Foreign
Affairs Subcommittee on Western Hemisphere Affairs,
GAO was commencing a review and audit of NHAO opera-
tions. Representatives of GAO, NHAO and the State
Department met on December 6, 1985, to discuss
groundrules for the audit, and it has been in pro-
gress ever since.
TRANSPORTATION PROBLEMS
In mid-October, 1985, a flight from the United
States containing NHAO-purchased supplies was forced
to return from the region without discharging its
cargo. (This episode was included in the first
report under the heading "Delivery Incident.") From
that time, UNO's previously existing arrangements for
the delivery of US-sourced supplies to the region
were suspended. NHAO has worked with UNO to devise
alternate delivery arrangements, but to date has
achieved only limited success.
One result of this development is that UNO has
been obliged to rely more heavily on supplies pur-
chased within the region than would otherwise have
been the case.
1 rdum'le
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SUMMARY OF GRANTS
A. NHAO Grants
1. Program Grants (to be disbursed through
letters/memoranda of commitment, except Project Hope
and Fundacion grants [see below])
Grant 601 (UNO)
(issued 10/3/85)
Grant 602 (U110)
(issued 10/15/85)
Grant 603 (UNO)
(issued 10/29/85)
Grant 604 (UNO)
(issued 11/11/85)
Grant 605 (UNO)
(issued 12/23/85)
Grant 606
(Fundacion de Nicaragua)
(issued 11/13/85)
Grant 607 (Project Hope)
(issued 12/02/85)
2. Administration Grants
Grant 641-001 (UNO Washington)
(issued 10/17/85)
Grant 641-002 (IDEA, Inc.)
(issued 11/06/85)
3. Direct NHAO Obligations
Grant 632-001 (Butler Buildings)
(issued 12/23/85)
GRAND TOTAL
$1,000,000
$1,500,000
$3,000,000
$3,000,000
$3,000,000
4;i, U00,
$3,750,000
50,000c
50,675d
28,000
$16,378,675
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B. Commitments against Program Grants through 1/24/86
$10,843,041
Humanitarian Assistance
Food
3,632,688
Clothing
2,927,889
Medical
2,202,957
Equipment
1,314,021
Transport
765,486
C. Expenses against Administration Grants through
1/31/86
Administration Expenses
UNO Liaison Office Expenses
IDEA, Inc. Expenses
39,373
18,681
58,054
D. NHAO Administrative Expenses through 1/31/86
NHAO Administrative Expenses $ 66,953
Direct Personnel Costs
Travel
Office Rent
Telephone toll calls
Miscellaneous
/33,286
14,000
14,667
3,000
2,000
GRAND TOTAL $10,967,688
Notes
a. The program grant to the Fundacion de
Nicaragua funds longer-term care in the U.S. and
UNO's medical staff in the Central American region.
At least initially, support for UNO's human rights
program is also being channelled through the
Fundacion.
b. Working with UNO's medical director, Project
Hope has devised a comprehensive program to meet both
emergency and on-going health care needs of the
democratic resistance. Pursuant to that program, the
grant to Project Hope funds the purchase within the
United States of pharmaceuticals and medical
equipment.
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c. The administration grant to UNO's Washington
office stipulates that its activities must be
strictly limited to providing liaison between UNO and
NHAO so as to facilitate the flow of humanitarian
assistance. This grant differs from program grants
in that it permits UNO to receive a small cash
advance to cover administrative expenditures, which
must be documented and justified to NHAO before
further cash advances are made.
d. The administration grant to IDEA, Inc. (with
provisions identical to the UNO Washington grant
regarding cash advances) procures administrative
support services, including assistance to the regional
medical program and to KISAN (the Indian/Creole compo-
nent of UNO) in submitting assistance requests to
MAO through UNO.
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ANNEX
Humanitarian Asssistance
for the Nicaraguan Democratic Resistance
ITEMIZED PROGRAM COMMITMENTS THROUGH 1/24/86
Grant-Letter/Memo
of Commitment No. Item, quantity Value
I. Food and consumables
602-001 various foodstuffs
602-008 various foodstuffs
602-012 eggs
603-007 various foodstuffs
603-011 various foodstuffs
603-012 foodstuffs, sundries
603-021 various foodstuffs
603-022 various foodstuffs
603-024 various foodstuffs
sundries
603-027 various foodstuffs
604-002 various foodstuffs
604-004 various foodstuffs
604-008 various foodstuffs
604-019 various foodstuffs
604-023 various foodstuffs
604-025 various foodstuffs
604-026 various foodstuffs
604-030 various foodstuffs
$196,875
$214,982
$ 6,474
$827,872
$ 26,766
$ 15,907
$ 43,939
$ 98,950
t39,000
6,536
$497,471
$901,034
$ 19,997
$ 20,627
$ 65,000
$ 11,991
$ 57,919
$ 59,173
$ 16,342
P%il!Tv -527
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604-031
604-034
606-002
606-012
606-014
II. Clothing
601-001
601-002
601-003
601-004
601-005
602-003
602-005
602-006
602-009
602-010
602-011
602-017
603-001
various
various
various
various
various
-9
foodstuffs
foodstuffs
foodstuffs
foodstuffs
foodstuffs
Category Subtotal:
waterproof material
(21,000 yds.)
caps (10,000)
socks (2,000 dz. prs.)
boots (16,000 pr.)
shirts and trousers
(3,468 sets)
boots
boots
boots
(1,000 pr.)
(1,080 pr.)
(500 pr.)
shirts and trousers
(15,000 sets)
sewing labor costs for
manufacture of 6,351
sets of shirts and trousers
suspenders (6,000)
belts (10,000)
boots (10,000)
ponchos (20,000)
underwear
2016 dz. t-shirts
2016 dz. briefs
boots (15,000)
$346,634
$ 16,091
$126,603
$ 1,103
$ 15,402
$3,632,688
$ 32,970
$ 12,500
$ 17,000
$496,000
$ 55,408
$ 19,150
$ 22,200
$ 9,575
$243,750
$ 41,282
$ 19,500
$ 27,500
$305,520
$178,400
$ 34,272
$457,500
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603-002
belts (6,120)
trousers (5,300)
suspenders (1,077)
603-010 boots (6,800)
603-019 boots (500 pr.)
socks (200 dz pr.
bandanas (200 dz. pr.)
603-023 socks (2010 dz. pr.) $ 18,808
604-004 various clothing $ 9,587
604-007 trousers (1,000 pr.) 14,300
shirts (1,000) 5,720
rubber boots (1,000 pr.) i
6,200
604-012 shirts (1,600) $ 12,800
604-015 trousers (300) $ 13,604
shirts (300)
I18,972
5,300
700
$108,100
$ 12,425
hats (300)
coats (348)
gloves (300 pr.)
604-016 boots (5,276 pr.) $166,194
604-023 various clothing $ 33,556
604-034 various clothing $ 7,524
606-004 uniforms (20,000) $325,000
606-007 boots (2,820 pr.) $100,970
uniforms (420 sets)
606-011 boots (2,000 pr.) $ 81,197
socks (4,000 pr.)
t-shirts (4,000)
caps (2,000)
606-012 various clothing $ 7,012
606-014 various clothing $ 7,393
Category Subtotal: $2 927 889
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IV. Equipment
601-001
601-002
601-009 mountain rescue equipment970
canteen covers (10,000) ! 17,500
mess trays (100) 525
602-004 watches (1,000) I 13,750
cargo straps (100) 600
flashlights (5,000) T 14,905
602-009 pouches (4,000)13,400
flashlights (8,0640 1 24,192
bags (4,000) 8,400
canteen covers (6,000) 16,200
602-011
602-013
602-014 -
603-003
603-004
603-005
603-006
603-018
603-020
603-025
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approved Fundacion
expenditures
$318,500
Category Subtotal:
$2,202,957
backpacks (4,000)
$ 45,400
large tents (7)
$ 8,050
poncho liners (20,000)
$230,000
canteens (10,000)
$ 5,800
fabric storage tanks (13)
$ 9,750
farm tools
$ 22,261
sanitary napkins (400 cs.)
$ 16,445
candles (165 cs.)
canteens (6,120)
$ 3,978
web belts (500 dz.)
$ 6,000
spray paint (2,432 cans)
$ 6,880
hammocks (20,000)
$191,000
canteen covers (20,000)
$ 33,000
cots, folding (332)
$ 6,557
evacuation markers (500)
$ 3,175
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603-030 cargo parachutes (74) $ 4,440
604-013 canteen belts (10,000) $ 22,500
604-014 binoculars (260) $ 20,500
monoculars (100)
scopes (90)
606-001 warehouse lease, 6 mos. $ 18,000
(for storage of NHAO-
purchased supplies)
606-003 utility motors (6) $ 19,894
corn grinders (4)
606-005 office supplies $ 2,289
606-006 field packs (20,002) $484,660
606-009 cargo parachutes (125) $ 15,000
632-001 Butler Buildings (4) $ 28,000
Category Subtotal: $1,314,021
V. Transportation
601-006 air charter service $ 35,850
602-002 air charter service $ 35,850
603-007 ground transportation $ 68,250
603-009 air charter service $ 33,100
603-016 ground transportation $ 32,750
603-024 petrol, oil and lubricants $ 147
603-028 air charter service $182,000
603-029 aircraft parts $ 5,834
604-001 air charter service $ 48,000
604-002 ground transportation $ 75,100
;Iirre
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604-009 ground transportation
604-010 boat purchase
604-011 outboard motors and parts
604-020 air charter service
604-022 ground transportation
604-031 ground transportation
604-032 air charter service
606-008 air charter service
606-015 Land Cruiser
pick-up truck
Category Subtotal:
$ 7,000
$ 2,860
$ 5,809
$ 44,129
$ 69,150
$ 2,631
$ 48,538
$ 6,000
t41,160
21,328
$765,486
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6/5 851(JUi
United States Department of State
UNCLASSIFIED
(With SECRET Attachment)
Senior Interagency Group No. 54
TO:
OVP
IA
Washington, D.C. 20520
September 30, 1
- Mr. Donald Gregg
- Mr. William Martin
DOD - COLa David Brown
JCS - MAJ Michael Emerson
SUBJECT: SIG Meeting Summary of Conclusions: Revised
List of Participants
The attached Summary for the SIG Meeting on Humanitarian
Assistance for Nicaraguan Resistance Forces contains a revised
List of Participants. Please substitute the attached version for
the one that was circulated on September 21.
?
#,f Nicholas Plat
"Executive Secretary
Attachments:
1. Summary of Conclusions
2. Revised List of Participants
UNCLASSIFIED
(With SECRET Attachment)
STAT
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September 20, 1985
SECRET
Senior Interagency Group No. 54
PARTICIPANTS: See List Attached
DATE AND TIME: September 13, 1985, 3:15 p.m.
PLACE: Secretary's Conference Room
SUBJECT: SIG Meeting on Humanitarian Assistance for Nicaraguan
Resistance Forces, September 13, 1985
Secretary Shultz opened the meeting by stressing the
importance of getting the funds to those for whom they were
intended quickly and enthusiastically, but with care to remain
true to the Congressional purpose in voting the funds. It is
important to administer the program so as: (1) to aid our friends
in Nicaragua; and (2) to contribute to developing support for the
President's program.
The Secretary wanted SIG participants to have an opportunity
to express their views as the program got under way. Assistant
Secretary Abrams and his Interagency Group will watch over the
program, provide policy guidance, and ensure that the activities
of the new organization are fully coordinated with the situation
in Nicaragua.
The Secretary introduced Ambassador Duemling, the newly
designated Director of the Nicaraguan Humanitarian Assistance
Office (NHA0). Ambassador Duemling's role will be to create a
system to administer the assistance program. A priority task will
be to establish proper auditing and monitoring measures.
Assistant Secretary Abrams and the IG will need to identify
appropriate recipients.
Ambassador Duemling reported on his progress to date. He
noted that his first Congressional appearance will be before Lee
Hamilton's Committee on September 19. On September 18, he will be
joining Assistant Secretary Abrams in a meeting with the
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- 2 -
leadership of the Unified Nicaraguan Opposition (UNO). UNO must
understand the guidelines under which the program will operate to
ensure that UNO requests are appropriate.
Ambassador Deumling identified three interrelated issues to be
addressed:
(1) How to ensure that what is provided stays within the
limits of the law and the policy guidance provided by the Abrams
Interagency Group;
(2) How to establish adequate accountability without
inhibiting unnecessarily the flow of assistance;
(3) How to assemble a qualified staff to administer the
program.
All agencies noted that administration of the program would be
difficult and pledged their full support to ensure the NHAO's
success.
Secretary Shultz closed the meeting by noting that his purpose
in attending the first meeting of the SIG was to underscore the
importance of this initiative. Under Secretary Armacost will
chair subsequent meetings. The Secretary was confident that
Ambassador Duemling could count on the support of all agencies in
carrying out bis responsibilities.
SECRET
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SIG MEETING
HUMANITARIAN ASSISTANCE FOR NICARAGUAN RESISTANCE FORCES
September 13, 1985, 3:15 p.m.
Secretary's Conference Room
State
PARTICIPANTS
Secretary Shultz, Chairman
Under Secretary Armacost
Assistant Secretary Abrams
Robert Deumling
William Walker
James Michel
Richard Milton, Notetaker
NSC ADM John M. Poindexter
LTC Oliver North
Observers:
CIA
Defense
JCS
Clair Geor7e
Fred Ikle
Richard Armitage
ADM Arthur Moreau
COL Stephen Crocker
STAT
Executys 953 6
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SECRET
- Senior Intorayon.cy Group No. 54
- ? TO:
,
SUBJECT:
OVP - Mr.
NSC
CIA-
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Defense -
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United States Department of State
lasskingion, AG 20520
Donald Gregg
ilia* Martin
COL Day ? rown
Michael Emerson
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Senior Interagency Group on Humanitarian
Assistance for Nicaraguan Resistance Forces
Executive Registry
851481
The Secretary of State would like to convene a meeting of
representatives from your agencies to participate in a new
Senior Interagency Group to exercise oversight over the
activities of the Nicaraguan Humanitarian Assistance Office
(NUAO). The Secretary will chair the first meeting of this
SIG. Under Secretary Armacost will chair subsequent meetings
and members of the SIG designated by your agencies should be at
a comparable Revel. The group will meet at the Department of
State in the Secretary's Conference Room on September 13 at
3:15 p.m. Attached is the agenda. Please telephone names of
your representatives to Sheila Lopez (632-5804).
?
Attachments
As Stated.
kfteNicholas P14Jt
wExecutive Secretary
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Senior Interagency Croup on Husanitarian
Assistance for Nicaraguan ResietanceYorces
Septenber,13, 198S
MENDik
I. Purpose of the SIG
: II. Introduce Di rector of Nicaraguan NUaanitarian Assistance
Office (NNAO)
III. Summary report on steps taken to begin operations
IV. Identification of policy issues for Interagency review.
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