Reagan Beginning Review of Options on Nicaragua

President Reagan today set in motion a review of political, economic and other measures to put pressure on Nicaragua’s leftist government, saying that Congress has compromised the U.S. position in Central America.

The action comes in the wake of congressional rejection of Reagan’s request for $14 million in assistance to the contra rebels fighting the Sandinista government of Nicaragua, the largest country in Central America.

White House spokesman Larry Speakes said the review will not include any plans for use of U.S. troops in the region.

Speakes said Reagan ordered Secretary of State George P. Shultz and National Security Adviser Robert C. McFarlane “to begin a review of the full range of options with regard to U.S. policy toward Nicaragua. Over the next several days, the Administration will be reviewing the full array of measures that can be taken to influence the situation in Nicaragua.

“We will not be specific on the options under consideration,” he said. “They do include political, economic and other measures.”

From Outside Sources

Speakes at first said one option could be to seek money from outside groups for the rebels.

Later, however, after an aide checked with McFarlane, the spokesman said, “Private funding could occur, but this is not something the government would be responsible for. We are discussing government options.”

As for the possibility of U.S. military action, he said, “I wouldn’t raise that scare tactic.”