DISCLOSURE THREATENS ALL FUNDS FOR REBELS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000404630038-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 25, 2010
• Sequence Number: 38
• Publication Date: November 26, 1986
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/08/25: CIA-RDP90-00552R000404630038-5
Disclosure
threatens
all funds
for rebels
By Rita McWilliams
and James Morrison
HE NASHINGTON TIMES
The elaborate scheme cooked up
by a few White House aides to aid the
Nicaraguan resistance with profits
from Iranian arms deals may end up
killing all U.S. aid to the rebels -
including part of the $100 million
package Congress approved in Octo-
ber.
"I don't know who knew what was
going on, but I suspect it will be a
d day in Washington before any
d Sen. Dave Durenberger, Minne-
a Republican and chairman of the
Senate Intelligence Committee.
The National Security Council,
Mr. Durenberger said, "may have
killed" the president's hopes of con-
tinuing aid to the Nicaraguan rebels.
A State Department official who
asked not to be named said "doubts
will be raised" in January, when Con-
gress could block the release of as
much as $60 million of the $100 mil-
lion in U.S. aid that was approved last
month.
The new Congress could refuse to
release the remaining portion of the
$100 million package by passing a
resolution of disapproval. The res-
olution, however, could be vetoed by
the president. A veto could be over-
ridden by a two-thirds vote in the
House and Senate.
"The issue will be clouded:' the
official said. The perspective will
be lost. The issue will not be decided
on the merits of trying to overthrow
the Sandinistas, but on Iran and the
National Security Council."
Sen. Claiborne Pell, who is ex-
pected to become chairman of the
Senate Foreign Relations Commit-
tee when Congress reconvenes Jan.
6, said. "Congress may be a little less
'.yrnpathctic for military aid for the
ontras"
Sen. Sam Nunn, the Georgia
emocrat in line to become
iairman of the Senate Armed Ser-
vices Committee next year, said he
remains supportive of rebel aid, but
future support has been "put in jeop-
WASHINGTON TIMES
26 November 1986
"I don't think it I the Iranian
situation) should be determinative
of what we do in Central America;'
Mr. Nunn said. "I think the Reagan
administration must understand
they cannot abuse democracy here
at home and the laws here at home
in order to foster or promote democ-
racy abroad."
Robert Kagan, an official in the
State Department's office of public
diplomacy, predicted that Congress
will not curtail aid to the rebel
forces. "The policy was approved on
its merits. After the dust settles,
Congress will continue to support
the policy."
Republicans and Democrats yes-
terday also called for investigations
into possible violations of a law,
which expired in October, that
banned for two years U.S. military
aid to the rebels.
The requests for congressional
probes came after Attorney General
Edwin Meese III announced yester-
day that as much as $30 million Iran
paid Israel for American weapons
was diverted to the rebel forces.
Mr. Meese said National Security
Council Deputy Director Oliver
North, who was fired from the NSC _
yesterday by President Reagan, is
"the only person in the U.S. govern-
ment who knew precisely about" the
transfer of funds to rebels battling
the Marxist Sandinista government,
Elliott Abrams, assistant secre-
tary of state for inter-American af-
fairs, said he did not know the profits
from the arms sales were being fun-
neled to the rebels.
"It is extremely likely the Contras
[Nicaraguan resistance forces l
didn't even know where the money
was coming from," Mr. Abrams said
of deposits made in Swiss bank
accounts held by the rebel leaders.
f North didn't tell the secretary of
ate or the DCI I Director of Central
telligence William Casey), why
ould he tell a bunch of Nicara-
guans?"
Rebel leader Adolfo Colero de-
nied receiving the funds diverted
from the arms sale. Mr. Colero also
denied having a Swiss bank account.
Walt Riker, a spokesman for Sen-
ate Majority Leader Robert Dole,
Kansas Republican, said it is prema-
ture to speculate on future funding
for the rebel forces,
"We stay strongly committed to
the Contras and the principle they
are fighting for- the Marxist dicta-
torship and the nightmare that has
resulted," Mr. Riker said. "We have to
find out what, if any. laws are broken
and get to the bottom of it."
Last year, Congress approved $27
million in non-lethal aid for the reb-
els but specified that the U.S. gov-
ernment could not provide any addi-
tional funds directly or indirectly
through a third nation.
Xavier Arguello, a rebel
spokesman in Washington. said he
"regretted" that Col. North lost his
job. He praised Col. North as a man
who "risked his career for us be-
cause he believed in our cause and
the cause of democracy"
Sanitized Copy Approved for Release 2010/08/25: CIA-RDP90-00552R000404630038-5