Reagan Vows Not to Abandon Contras : Says Rebels Can Count on Aid if Peace Plan Fails

President Reagan, vowing “we will not abandon our friends,” said today that Nicaraguan rebels will be able to count on support from the United States if the Central American peace agreement signed a month ago fails to produce democracy.

“We will not accept a mere semblance of democracy,” Reagan said in a speech.

“If the recent peace agreement does not work, let’s resolve that (the contras ) will be able to count on our continuing assistance until Nicaragua is a genuine democracy,” he said.

He acknowledged that “in recent weeks the issue in Central America seems at times to have become confused: Who is proposing what, how many votes are there on Capitol Hill for this or that?”

‘Issue Is Peace, Democracy’

“But the real issue has never changed,” Reagan said. “The real issue is peace and democracy in Central America and the national security of the United States.”

To cheers from the audience, Reagan declared, “Let’s be clear about one thing: We will not abandon our friends in Nicaragua.”

Reagan spoke in the East Room of the White House before an audience of political appointees in his Administration. The speech came as the Administration explored new ideas to head off what officials believe will be almost certain defeat for the contras resulting from the peace accord signed a month ago.

The officials say there is unanimity among Administration policy-makers that the United States faces a major strategic setback in that region unless current trends are reversed.

New Approaches Discussed

High-level meetings were held last week to discuss new approaches, but the officials said it was premature to disclose what the Administration has in mind. Secretary of State George P. Shultz may give some insight into the Administration’s thinking when he testifies before the Senate Foreign Relations Committee on Thursday.

At issue is the peace agreement five Central American presidents signed in Guatemala on Aug. 7. The agreement demands an end to U.S. aid to the contras and gives the Sandinista government until Nov. 7 to arrange a cease-fire and undertake democratic reforms.

The Sandinistas already have taken several steps to open the country’s political process, including the formation of a National Reconciliation Commission.

A number of U.S. officials who agreed to discuss the matter only if not identified said they expect this process will continue in such a way as to tilt the balance in the Congress decisively against any renewal of U.S. military aid to the contras when the current $100 million allocation expires on Sept. 30.

Over the short term the best the contras can hope for is U.S. humanitarian aid. As the contras realize they can no longer count on military aid, officials believe, demoralization will set in.