Arias Stresses Neutrality : U.S. Drops Call for Contra Bases, Costa Rica Reports

The Reagan Administration, meeting with Costa Rican President Oscar Arias Sanchez in the midst of dealing with the Iran- contras arms scandal, did not press the Central American country to aid Nicaraguan rebels, as had been expected.

Although the Administration has applied vigorous pressure in the past to induce Costa Rica to bend its neutrality and provide bases for the contras in their fight against the Sandinista regime, Ambassador Guido Fernandez said the subject never came up in a two-hour White House session Thursday nor at a 1 1/2-hour meeting with Secretary of State George P. Shultz on Friday.

“We were expecting some mention of the issue,” Fernandez said. “All we had was a very positive understanding of Costa Rica’s position of neutrality.”

Foreign observers predicted that President Reagan’s embarrassment over the disclosure that money from the sale of U.S. arms to Iran was being funneled to the contras would immobilize the Administration’s foreign policy in general and, particularly, in Central America.

Diplomats Feel Vindicated

Latin diplomats who have criticized Washington for seeking a military solution in Nicaragua instead of backing peace proposals, such as that launched by the so-called Contadora group of Latin nations, proclaimed the vindication of that prophecy.

“Now, I think Mr. Reagan may be willing to join us,” said a representative of one of the four Contadora states of Venezuela, Colombia, Panama and Mexico, who spoke on condition that he not be named.

Arias, in a news conference Friday ending his three-day visit, emphasized his government’s resolutely neutral stance even though he opposes the Marxist Sandinista government as a dictatorship.

“We think Nicaragua has to change, but that change should come through a political solution, a negotiated one,” Arias said. “Pressure should come in the political field, not in the military.”

The new president, elected last January, warned that the United States alone cannot bring about change in Nicaragua. All the democracies must join together to push the Sandinistas toward a negotiated settlement, he said, although he conceded the Contadora efforts failed to bring results because it set no “timetable” for the Sandinistas to move toward democracy.

Official Confirms Report

A U.S. official who briefed reporters following the Arias interview with Reagan confirmed that Costa Rica was not asked to provide assistance to the contras.

“President Arias has made it clear that he will not permit any kind of military operations in or through or via or over Costa Rica,” said the official, who spoke on condition of anonymity. “That’s his decision, and we accept it.”

As an illustration of his firmness in refusing to permit contra activity on his territory, Arias pointed out that Alfredo Cesar, leader of the contras’ southern front, is permitted to live in Costa Rica but not to conduct any military operations there.

Arias also recalled that one of his first actions on assuming office last May was to shut down a clandestine airfield on the Santa Elena peninsula near the Nicaragua border that was being used by contra troops.

The president said his chief concern was securing aid for his country’s ailing economy. With a foreign debt of $1,500 per capita, he said debt service will consume one quarter of Costa Rica’s gross domestic product by 1990 unless he can secure a debt postponement and reduction of interest rates.