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Compromise on Contra Aid Deadline Seen

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Times Staff Writer

President Reagan and the Democratic-controlled Congress appeared Sunday to be moving toward a compromise over how to fund the Nicaraguan resistance beyond Sept. 30, if peace negotiations continue in Central America after that date.

Under the compromise, which seemed to have the blessing of both the White House and congressional leaders, the contras would be permitted to continue spending military assistance appropriated for them during the present fiscal year after that appropriation technically expires on Sept. 30.

Such an agreement would avert an embarrassing showdown between Reagan and congressional opponents of contra aid over whether to renew the rebels’ military assistance while peace negotiations continue among the five nations of Central America.

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Aug. 5 Accord

Under an earlier accord reached Aug. 5 with House Speaker Jim Wright (D-Tex.), Reagan agreed not to request the renewal of contra aid until at least Sept. 30. But there had previously been no indication what he would do after that date if the Nicaraguan government appears to be complying with a new preliminary regional agreement calling for a cease-fire to be negotiated by Nov. 7.

Conservatives have been arguing that unless Reagan seeks renewed funding as quickly as possible, the contras will be stranded in the Nicaraguan jungles without sufficient supplies. Liberals have warned that such a request for additional aid would undermine the peace negotiations.

Appearing on CBS’ “Face the Nation,” White House Chief of Staff Howard H. Baker Jr. said for the first time that Reagan is willing to delay his request to Congress for renewed contra aid beyond Sept. 30 under certain circumstances. He added that Reagan is under no pressure to submit the request because the contras have enough equipment and supplies to sustain them beyond September.

Baker said that while Reagan still has “an absolute right” under his agreement with Wright to seek renewed contra funding on Oct. 1, he has not yet decided whether he will do so.

“Whether or not the President asks for additional military aid on or after Sept. 30, I think, depends more than anything else on the Sandinistas,” he said. “That is: Do they agree to negotiate with the contras on a cease-fire? Do they agree to the restoration of democratic principles in Nicaragua, such as freedom of the press, freedom of religion and the like?

“If those things occur and good progress is being made and a cease-fire is in progress, perhaps the President will delay his request for aid. But absent those things, I feel it is virtually certain that the President will ask for additional military aid on or after Sept. 30.”

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Baker emphasized that the contras are not at any risk if they do not get new funding immediately. “There is enough material on the ground and in the hands of the freedom fighters so that they wouldn’t have to shut down and disband on Oct. 1, (and) it would certainly last for a while,” he said.

The President’s top adviser added that he does not know yet whether Congress will permit the Administration to continue spending the money after Sept. 30. Technically, the current contra funds were appropriated by Congress only for the 1987 fiscal year that expires on Sept. 30, and the Administration has no legal authority to spend them beyond that date.

No Democratic Objection Seen

But House Assistant Majority Leader Tony Coelho, appearing on Cable New Network’s “Newsmaker” program, indicated that congressional Democratic leadership will not object if that money is spent in the new fiscal year.

“The question is: Do they (Administration officials) have the authority . . . to go ahead and make sure it’s being spent properly and that it is carried forth?” he said. “And we say: Yes, they do, and if they don’t we’ll take care of that.”

It was not clear from the statement by California Rep. Coelho (D-Merced) whether the Democrats would, as they have in the past, attempt to limit the expenditure of funds by the contras after Sept. 30 to so-called “humanitarian purposes,” such as food, clothing and medical supplies.

Coelho said he thought the unspent money for fiscal 1987 would be sufficient to keep the contras going through November--well beyond the current Nov. 7 deadline for a cease-fire.

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National Security Adviser Frank C. Carlucci indicated on NBC’s “Meet the Press” that the White House is currently negotiating with the contras and congressional leaders on this issue.

“We are in consultation with the contras, working with them on getting appropriate funding, for whatever period is needed until a satisfactory peace plan and verifiable processes are in place in Nicaragua,” he said. “I think Congress will support us on that.”

If the President were to seek renewed military assistance for the contras on Sept. 30, he likely would face a firestorm of opposition--particularly if the peace talks have not broken down. Rep. Lee Hamilton (D-Ind.) predicted on “Meet the Press” that a congressional vote on renewing contra aid would be “very close” if Reagan made the request on Sept. 30.

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