Reagan Seeks New Formula on Contra Aid : Struggles for Way to Give Congress a Role in Timing Arms Flow

The Reagan Administration, which has decided to seek $36.25 million in assistance for the Nicaraguan rebels but put the military segment in escrow, struggled Tuesday to find a way for both the White House and Congress to have a role in deciding when the military aid would be permitted to flow.

Administration officials hope that a last-ditch compromise giving Congress a voice in the military money’s release will prevent House Democrats from killing the entire Contra aid package and thwarting one of President Reagan’s chief foreign policy programs.

But, less than 24 hours before Reagan was to send his long-anticipated Contra aid package to Congress, his aides were still scrambling to devise the mechanism and were far from confident that they would succeed.

‘Up in the Air’

“It’s still very much up in the air,” said one Administration official, speaking on condition of anonymity. He said that White House officials will consult with members of Congress this morning before making final decisions on key details of the aid program.

Meanwhile, one Administration official said that under Reagan’s plan, if the funding is approved, Secretary of State George P. Shultz would visit Central America as a participant in the peace talks involving the leaders of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. Previously, Shultz had ruled out any direct U.S. participation in multilateral negotiations in the region until promised democratic reforms have been implemented.

“That’s gone. The trigger (for Shultz’s visit) now has nothing to do with . . . what’s happening in the negotiations in Central America. It’s a major concession,” said the official, speaking on condition of anonymity.

February Vote Due

The House is to vote on the package Feb. 3, in accordance with the agreement made with the White House last month.

Under the Administration’s package, $3.6 million of the aid would be spent on Redeye anti-aircraft missiles, small arms ammunition and other weaponry. The rest would be for food, clothing and other non-lethal aid.

But the armaments would be released only if Nicaragua’s Sandinista government and the Contras did not negotiate a cease-fire and the Sandinistas failed to make progress toward implementing promised democratic reforms.

Democratic leaders of Congress, who have opposed Reagan’s Contra aid initiative, insisted that they will reject any proposal that allows the Administration to make the decision that the peace process is stalled and that the military aidshould be sent.

Trying to keep the escrow option alive, senior White House officials were attempting to address concerns that giving Congress a role in the money’s release might violate the Constitution’s provision for separation of the branches of government. While the Constitution gives Congress the authority to approve expenditures, the executive branch has the right to carry out the related programs.

“There’s been some . . . consideration of how to certify release of the escrow money,” the Administration official said. He added that the White House is “looking at a second congressional vote or additional congressional involvement” as possible options, but he declined to elaborate.

According to House Minority Leader Robert H. Michel (R-Ill.) and other sources, the part of the package dedicated to non-lethal aid would total $32.65 million and would include $450,000 intended to help the Contras comply more faithfully with human rights standards. Money would also be spent for communications equipment, transportation to deliver the weapons and a range of other items.

Wright May Object

On Capitol Hill, the plan received a cool reaction from Democratic opponents. An aide to the Democratic leadership in the House said that any proposal failing to involve the Central American nations directly in determining whether U.S. assistance should go to the Contras would be opposed by House Speaker Jim Wright (D-Tex.).

California Rep. Tony Coelho (Merced), the House Democratic whip, said that a White House mechanism to give Congress a voice in the funds release “could get some more members to come over” to the President’s side, but probably not enough. Rep. Dave McCurdy of Oklahoma, a moderate Democrat who is considered a swing vote on Central American issues, expressed a similar view.

And Rep. David E. Bonior (D-Mich.), Coelho’s chief deputy, predicted that “you’ll still find a significant amount of resistance by members of Congress. That’s simply because the $32-million figure (for non-lethal aid) is so high. That kind of aid could include helicopters and planes.”

Many on Capitol Hill agreed that the Administration’s position is precarious.

“This request is the last gasp of the Administration’s dying policy of more guns and bullets for the Contras,” said Sen. Edward M. Kennedy (D-Mass.). “Instead of negotiating with swing votes in Congress, the Administration should be negotiating with the Nicaraguan government.”

If the House approves the package Feb. 3, the measure will go to the Senate for a vote the next day, where it is expected to encounter less opposition.

Times staff writers Josh Getlin, David Lauter and Michael Wines contributed to this story.