REAGAN SEEKS MORE AID FOR CENTRAL AMERICA
President Reagan, seeking to salvage
his Central America policy from the Iran arms scandal, said a
major U.S. economic program for the region was working but
needed 500 mln dlrs more than originally planned.
    In a report to Congress, he called for immediate approval
of 300 mln dlrs in new 1987 economic aid for four Central
American democracies and eventual full-funding of a total
economic program costing 8.9 billion dlrs through 1992.
    The report, mandated by Congress, explains how the
administration intends to carry out the recommendations of the
Reagan-appointed Kissinger Commission, which in 1984 developed
a blueprint for U.S. policy in the region that was meant to
offset Reagan's military aid program for Nicaraguan rebels.
    The commission, headed by former Secretary of State Henry
Kissinger, had proposed a 8.4 billion dlr program through 1989.
    "The Soviet Union and its allies have provided the
Sandinista regime military hardware and sufficient economic aid
to keep Nicaragua's failed economy afloat," Reagan said.
    Assistant Secretary of State Elliott Abrams, who briefed
reporters, said the administration will not try to link
approval of military aid for the rebels, known as contras, with
the vastly more popular economic package for the region, as
some Republican leaders in Congress have suggested.
    He also expressed optimism that despite the Iran-contra
scandal, Congress would approve this year's final 40 mln dlr
allotment in military aid for the rebels, who are fighting
Managua's leftist Sandinista government.
    Abrams admitted the administration would have its toughest
fight in the Democratic-controlled House, but said he believed
a majority of the Senate -- led by Democrats for the first time
in six years -- would back the military request.
   
 Reuter
