Shultz, Ortega Meet Saturday to Discuss Revived Peace Talks : Nicaraguan Offer on Arms, Cuban Troops on Agenda

President Daniel Ortega of Nicaragua and Secretary of State George P. Shultz will meet Saturday to discuss the possibility of reviving Central American peace negotiations, U.S. officials said today.

Ortega and Shultz are in Uruguay for the inauguration today of President Julio Sanguinetti.

Shultz and Ortega both expressed interest in face-to-face discussions on the Nicaraguan’s “unilateral initiative,” announced late Wednesday, but there was a delay in arranging the meeting as each waited for the other to extend a formal invitation.

U.S. officials said the protocol impasse was broken when Nicaragua formally requested the meeting through diplomatic channels.

On Thursday, Shultz abandoned his customary hard line and expressed interest in meeting with the Nicaraguan leader to discuss Ortega’s offer to order the withdrawal of 100 Cuban military advisers and to freeze the acquisition of weapons systems as a way of encouraging a resumed dialogue with Washington.

Staying at Same Hotel

Both men are staying at the Victoria Plaza Hotel across the street from Uruguay’s Government House. Hotel officials said Shultz’s quarters are on the fifth floor, Ortega’s on the third.

Shultz was publicly skeptical about whether Ortega’s proposals represent a sincere effort to meet U.S. concerns but said he is prepared to “listen carefully” to Nicaragua’s views.

En route to Guayaquil, Ecuador, Shultz said the withdrawal of 100 Cubans would be only a “token” gesture because “several thousand” military advisers from Cuba are based in Nicaragua.

“If the token is something that will lead to rather massive reductions, that’s something else again,” Shultz said.

As for Ortega’s announcement that he would freeze acquisition of new weapons systems, Shultz said the Sandinistas have undertaken “a rather massive buildup of hardware, and it may well be that they have got what they need.”

Rebels to Offer Plan

“Anyway, if there is a cessation in the buildup, then that’s welcome,” he added.

In Washington, meanwhile, three Nicaraguan rebel groups, or Contras, said that they will unveil a major peace proposal of their own Saturday and that one idea they are considering is to temporarily recognize Ortega’s presidency in exchange for new elections.

Rebel sources said the proposal to return Nicaragua to democratic rule will be unveiled in Costa Rica. The sources said one reason President Reagan rejected Ortega’s peace offer made Wednesday was to avoid preempting the rebel initiative.

The sources said the rebel leaders will demand freedom of expression and the press before negotiations with the Sandinista government can be held, with the Roman Catholic Church as intermediary or with international observers.

They said the rebels are considering recognizing Ortega’s presidency temporarily in exchange for new National Assembly elections. Ortega won last November in an election boycotted by major opposition parties.