Reagan Proposes 60-Day Cease-Fire in Nicaragua : Pledges to Withhold Rebel Aid

President Reagan today called for a cease-fire in Nicaragua and promised that if Congress will release $14 million in aid to rebels battling Nicaragua’s leftist Sandinista government the money would not be used for armaments--at least for 60 days while a peace settlement is sought.

“If the Sandinistas accept this peace offer, I will keep my funding restrictions in effect,” Reagan said in a statement read to reporters at the White House.

“But peace negotiations must not become a cover for deception and delay,” he said. “If there is no agreement after 60 days of negotiations, I will lift these restrictions unless both sides ask me not to.”

During the 60 days, Reagan said, the money would be spent for such things as food, clothing and medicine.

‘Months of Consulting’

Reagan said he was making his announcement “after months of consulting with congressional leaders.”

Reagan keyed his announcement to a March 1 proposal in San Jose, Costa Rica, by leaders of the Nicaraguan resistance and other exiled Nicaraguans, offering a cease-fire in return for an agreement by the Sandinista regime to begin talks, to be mediated by Roman Catholic bishops. The talks would be aimed at holding elections.

“I am calling upon both sides to lay down their arms and accept the offer of church-mediated talks on internationally supervised elections and an end to repression right now in place against the church, the press and individual rights,” Reagan said.

He also said the United States continues to seek free elections in Nicaragua, an end to alleged Nicaraguan aggression against its neighbors, removal of Communist Bloc and other foreign forces from Nicaragua and reduction of Nicaraguan military strength “to a level of parity with their neighbors.”

El Salvador ‘Formula’

“The formula that worked in El Salvador--support for democracy, self-defense, economic development and dialogue--will work for the entire region,” Reagan said. The Administration has supported the Salvadoran government against a leftist insurrection while encouraging a peace settlement.

“Democracy can succeed in Central America, but Congress must release the funds that can support incentives for dialogue and peace,” he added. “If we provide too little help, our choice will be communist Central America, with communist subversion spreading southward and northward.

“We face the risk that 100 million people from Panama to our open southern border could come under the control of pro-Soviet regimes and threaten the United States with violence, economic chaos and a human tidal wave of refugees,” Reagan said.

Plea for Funds

“To the Congress, I ask for immediate release of the $14 million already appropriated. While the cease-fire is on the table, I pledge these funds will not be used for arms or munitions. These funds would be used for food, clothing and medicine and other support for survival. The democratic opposition cannot be a partner in negotiations without these basic necessities.”

Asked whether giving the rebels non-military aid wouldn’t free them to purchase weapons with the money they now use for food and supplies, Reagan said the rebels “are not well-fixed enough to provide for themselves” and are “close to desperate straits.”

Asked what would happen to the rebels if no agreement is reached, the President said, “We’re not going to quit and walk away from them, no matter what happens.”