From: rich@pencil.cs.missouri.edu (Rich Winkel)
Subject: NICANET HOTLINE -- 08/31/92
Followup-To: alt.activism.d
Originator: rich@pencil.cs.missouri.edu
Organization: PACH
Date: Tue, 1 Sep 1992 23:34:19 GMT

/** reg.nicaragua: 112.0 **/
** Topic: NICANET HOTLINE -- 08/31/92 **
** Written  5:01 pm  Aug 31, 1992 by nicanet in cdp:reg.nicaragua **
            NICARAGUA NETWORK HOTLINE ** 202-544-9360
 
                         August 31, 1992
 
You have reached the Nicaragua Network Hotline recorded Monday, 
August 31, 1992.   To reach our office, call: 202-544-9355.
 
Topics covered in this hotline include: The continuing saga of US 
aid; Government's property compensation plans revealed; New 
attempt to solve Atlantic Coast government crisis; Central 
America Free Trade Agreement provokes reactions; Transport strike 
settled, teachers strike begins; and, cholera cases top 1,000.  
 
The Miami Herald, in its Sunday edition, ran a story based on a 
yet to be released report by the Republican staff of the Senate 
Foreign Relations Committee.  The report, written by Deborah 
DeMoss, the Helms staffer who keeps a picture in her office of 
Roberto D'Aubisson, father of the Salvadoran death squads, 
contains a number of claims.  The article reported that the US 
has given Nicaragua $1 billion in aid.  Its unclear if this is 
the Miami Herald's error or the Republican report. The true 
figure is only about half that much, and doesn't even begin to 
approach a billion if you add the contra demobilization funds 
given to the UN and OAS.  The report also charges Chamorro and 
Lacayo with nepotism.  Much of Nicaragua's small educated class 
is related resulting in many families such as Chamorro's own that 
contains leaders of movements that span the political spectrum 
from FSLN to the contras.  It would probably be impossible to 
fill all the vacancies in government without appointing some 
relatives.  The Republican report also charges that state-owned 
banks used US money to make $167 million in loans that were never 
repaid.  In the first place, much of the US aid has been 
restricted to international debt payments and other economically 
unproductive purposes, not allotted to agricultural loans.  And 
in the second place the defaulted loans were have almost across 
the board been made to the COSEP cotton and coffee producers.  
Small farmers and cooperatives are having serious difficulties 
planting at all because they are cut off from credit.  The report 
also charges Humberto Ortega with having millions of dollars in a 
Canadian bank and Antonio Lacayo with skimming US aid to bribe 
members of the National Assembly.  Neither charge has much 
credibility, but they are the kind of charges Helms likes to make 
because it is difficult for the accused to prove his innocence.  
The Miami Herald reports that the accusations are 
unsubstantiated, based on newspaper reports and unnamed sources. 
We will produce a more detailed response to the report when we 
receive a copy.
     President Chamorro backed away somewhat from Lacayo's claim 
last week that changes in the police, including the firing of 
Police Chief Rene Vivas, would not be made until the US aid was 
released, but she also said "I will not hang myself in 
disappointment" if the aid is not released.  Although Chamorro 
appears to be willing to go a long way to get the aid released, 
it is obvious that the heavy handed US pressure is not winning 
her heart.  Indeed, Daniel Ortega advised Nicaraguans to forget 
about US aid saying that the elimination of assistance to Central 
America is predictable over the next few years anyway.  FSLN 
National Directorate member Henry Ruiz said the US administration 

appears to be in agreement with Helms and is upping the ante for 
release of aid.  Ruiz said that earlier the replacement of Vivas 
and 30% of the police leadership was sufficient, but now the US 
government is demanding return of 800 properties to "North 
American" citizens and clearing up unsolved murders of former 
contras including Enrique Bermudez.
 
Barricada reported on August 24 that the government's plans to 
compensate those "unjustly" confiscated by the Sandinistas 
includes $18 million in direct cash payments in 1993 and stock 
shares in the major public utility companies.  The paper quoted 
Treasurer Guillermo Ruiz saying that all forms of compensation 
will total $180 million.  This is larger than the entire Bush 
Administration aid request for Nicaragua next year.  The National 
Workers Front (FNT) warned the government not to attempt to 
privatize companies without honoring the national dialogue 
agreement to sell workers at least 25% of the stock and warned 
that if properties confiscated under decrees 3 and 38 are 
privatized without worker compensation that they will be seized.  
Decrees 3 and 38 were the laws under which properties of Somoza 
and his closest associates were confiscated.
 
You may recall that several months ago the FSLN and YATAMA 
members of the South Atlantic Regional Council united to oust 
Governor Alvin Guthrie and to elect FSLN member Ray Hooker.  
Guthrie claimed there was not a quorum present and Chamorro 
backed his appeal to the Supreme Court.  On August 25, apparently 
motivated by the fact the the court did not rule within the 45 
days mandated by law, the Regional Council again voted to oust 
Guthrie.  This time in a clear majority of 25 out of 43 elected 
council members voted Guthrie out.  Three UNO councilmembers even 
joined the 19 Sandinistas and 3 Yatama members out of disgust at 
Guthrie's pervasive corruption.
 
Reactions to the signing of a Free Trade Agreement between 
Central America and Mexico are beginning to be heard.  Even the 
right-wing business association COSEP is divided with some of its 
members fearing that the four year transition is not sufficient 
for them to become competitive with foreign companies.  
Spokespersons for the Small and Medium Industry Association 
(CONAPI) and the Union of Small and Medium Farmers (UNAG) issued 
warnings that free trade would only aggravate the already dire 
situations of their members who face the highest costs in Central 
America and suffer disadvantages in terms of access to credit and 
technical assistance.
 
A preliminary settlement of the five day old bus and transport 
strike was announced on August 24.  The strike closed product 
transport over the borders, quickly resulting in shortages in the 
markets.  The strike is suspended pending final negotiation of 
road taxes.  As that strike was settled the teachers union ANDEN 
announced staggered work stoppages to achieve a pay increase, 
compliance with the collective bargaining agreement, employment 
+guarantees, and teacher training courses.
 
And finally, the grim cholera scorecard has now surpassed 1,000 
cases and eight deaths.  Cholera cases are rising rapidly, 
especially in the Managua region.


To become a supporter and receive our publications and mailings, 
please contact us.  The Nicaragua Network's address is: 1247 E 
St., SE, Washington, DC  20003; our phone: 202-544-9355.
** End of text from cdp:reg.nicaragua **
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