Reagan Signs $25.4-Billion Foreign Aid Measure

President Reagan signed a $25.4-billion foreign aid bill Thursday, the first such measure to clear both houses of Congress in four years and one that includes $27 million in “non-lethal” assistance to rebels fighting Nicaragua’s leftist government.

In doing so, Reagan ended one of the most bitter episodes in the continuing debate between the Administration and Congress over U.S. policy toward Nicaragua’s Sandinista regime. And although he found fault with several aspects of the aid package, the President said he is “particularly pleased” that it cleared the way for the resumption of assistance to the rebels, known as contras.

Vice President George Bush, Secretary of State George P. Shultz, Senate Foreign Relations Committee Chairman Richard G. Lugar (R-Ind.) and Rep. William S. Broomfield of Michigan, the ranking Republican on the House Foreign Affairs Committee, joined Reagan at the White House for the brief signing ceremony in the Oval Office.

The President’s signature cleared the way for an immediate infusion of $9 million in U.S. aid to the guerrillas. Another $9 million will become available in 90 days and the third $9 million 90 days after that.

Reagan called the aid to the contras--nearly twice the amount he originally had sought--”an important element in our overall efforts to assist neighboring countries in their defense against Nicaraguan attack and subversion.”

But he reiterated his unhappiness over a provision, imposed by Congress, that bars the CIA and the Pentagon from administering the assistance program, saying, “The provision unduly and unnecessarily restricts efficient management and administration of the program.” The ban on CIA and Pentagon involvement in the contra aid funding left the Administration searching for an agency to oversee the funding.

Even as Reagan signed the foreign aid authorization measure, the Administration found itself responding to new allegations about its Nicaraguan policies.

‘Direct Military Advice’

The New York Times reported in Thursday’s editions that the White House has been providing “direct military advice” and “tactical influence” to the contras through the National Security Council. The program was launched after Congress voted to stop military assistance, it said.

When asked about the article, Reagan told reporters at the bill-signing ceremony that the Administration is not skirting the law covering assistance to the contras. “That’s a question that kind of traps me,” he said, “(but) we are not violating any laws.”

The foreign aid bill was completed by Congress on July 26 after Senate Republicans gave up their last-ditch effort to adopt the Administration’s proposal for the contra assistance to be administered by the CIA.

The bill authorizes outlays of $12.7 billion each for the current fiscal year, which ends Oct. 1, and fiscal 1986. And while the Nicaraguan rebel aid was given the most attention, the major recipients of U.S. assistance from the package are Israel and Egypt.

Congress authorized $3 billion for Israel in each of the two years and $2.1 billion for Egypt. In addition, Israel will receive $1.5 billion in a one-time provision of economic aid, and Egypt will receive $500 million in emergency economic assistance.

In a formal statement issued after the bill was signed, Reagan, who discussed next year’s budget with his Cabinet for the first time Thursday, said he is reviewing cuts made by Congress and will decide whether a request will be made next year for funds beyond those authorized in the new law.

He said he is particularly concerned about congressional cuts in security assistance programs.

“Security assistance enables us to help our friends deter aggression, deepen bilateral ties, build forces which are compatible with our own and develop the confidence necessary for advancing peace and stability,” he said. “These reductions . . . will necessitate severe cuts in other programs that are critical to U.S. security interests.”