Nicaragua War Heats Up; Shultz Sees New U.S. Steps : Military Aid to Contras Is Possible

Secretary of State George P. Shultz said today that the United States may undertake “further steps” to counter what he described as growing Soviet and Cuban military involvement in Nicaragua.

At a news conference, Shultz offered no specifics but left open the possibility that the Reagan Administration may ask Congress for military aid to supplement the $27 million in non-lethal assistance now being sent to contra rebels fighting the leftist Nicaraguan government.

In Managua today, Deputy Foreign Minister Victor Hugo Tinoco denied that Cuban military advisers are taking part in combat against contra rebels and accused Washington of seeking an excuse to expand its aid to the insurgents.

“The accusation by the U.S. government that Cuban soldiers are taking part in combat is false,” Tinoco said. “It is a false accusation to justify continuing to supply war materiel and SAM-7 missiles to the counterrevolutionaries.”

Some Nicaragua officials said the missile that shot down the helicopter was a Soviet-made SAM-7. Others described it as a U.S.-made Redeye. The government did not explain the discrepancy.

No weapons aid has been given to the contras in more than a year and a half because of congressional opposition. Until the spring of 1984, the United Stated had sent an estimated $80 million to the rebels, much of it military equipment.

Shultz also stated that a Cuban pilot and co-pilot were aboard a helicopter that was shot down by the insurgents earlier this week.

He said the rebels were right to shoot it down and “if I were them I’d certainly want to. . . . Thank heavens they got hold of these kinds of weapons that could knock these choppers down!”

Studying the Options

While declining to spell out what steps the Administration is contemplating on behalf of the rebels, Shultz’s answers made it clear that he has been studying legislative options.

He noted that the measure that provided the rebels with non-lethal assistance also contains a provision requiring an early congressional vote on any Administration request for additional aid.

The legislation also authorizes an early vote on an aid request if the Central American peace process has failed to produce an agreement or if trade or other economic measures fail to resolve the conflict.

The peace process, in which Venezuela, Colombia, Mexico and Panama have served as mediators, has been stalled for an extended period with little hope for a breakthrough.

Asked what he is going to do about the outside presence in Nicaragua, Shultz said the first step is to be sure “that people see it and understand it and believe it.”

‘Evidence . . . Undeniable’

“The Administration has been pointing this up for some time, and we have gotten very skeptical responses, but at this point I think there are pieces of evidence that are undeniable, and it does pose a serious problem,” he said.

The Sandinista government claimed Thursday that a surface-to-air missile supplied to rebels by the United States brought down the Nicaraguan helicopter, a Soviet-made MI-8, and recalled its ambassador from Washington for consultations.

It said such activity by the United States is “irresponsible” and “elevates the Central American conflict to levels until now unknown.”

Tinoco said the government sent protest notes to the United States and Honduras and asked for an urgent meeting of the U.N. Security Council.

Nicaragua’s ambassador to the United States, Carlos Tunnerman, was recalled to Managua to discuss “this delicate situation,” Tinoco said.