Reagan Said to Have New Plan for Nicaragua

President Reagan is expected to announce soon a “very significant” Central America peace initiative, a Republican leader said today.

But a White House spokesman said the diplomatic move will be tied to a new request for about $150 million for Nicaraguan rebels, making it more palatable to Capitol Hill.

House Minority Leader Robert H. Michel of Illinois told reporters after a meeting with Reagan that the President was considering a new initiative concerning Nicaragua, to be discussed at a meeting in Guatemala later this week by the Central American heads of state.

“It’s fair to say it’s something about Guatemala,” Michel told reporters. “It is to do with a new initiative and I think may be a very significant one.”

It is expected that the Central American leaders attending the Guatemalan summit will vote on a plan put forward by the Honduran government, which includes a six-month extension of aid to the contras after any peace agreement with the Nicaraguan Sandinistas is signed.

But White House spokesman Marlin Fitzwater, saying he is “not aware of any new initiative,” said that it is “too premature” to discuss and that White House top advisers had been sounding out Republican and Democratic leaders on diplomatic initiatives.

When Fitzwater was reminded that the Reagan Administration shows an interest in diplomatic initiatives every time it seeks new funding for the contras, he acknowledged, “It is tied to the request.”

He said Reagan will not make his request until September, after Congress returns from its recess.