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Nicaragua Seeks $600 Million to Rebuild : Foreign aid: The new government hopes that the U.S., Japan and Europe will contribute.

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TIMES STAFF WRITER

The economic adviser to President-elect Violeta Barrios de Chamorro said Thursday that Nicaragua will immediately need $600 million to $800 million to rebuild its fragile economy. He also called for re-entry rights to the United States for Nicaraguan emigres who return to help rebuild their homeland.

In meetings on Capitol Hill, Francisco Mayorga outlined the new government’s needs, according to Rep. Dante Fascell (D-Fla.), chairman of the House Foreign Affairs Committee. Mayorga told reporters he hopes the United States will take the lead in supplying the money, but he said he also hopes to get help from Japan and Europe.

Meanwhile in Managua, the Sandinista-controlled National Assembly voted to abolish Nicaragua’s news media law, ending the state’s monopoly on television and its power to close newspapers.

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The assembly was also considering a package of laws that would transfer to their occupants ownership of about 10,000 homes now owned by the state, grant broad amnesty against future prosecution of crimes committed in the last decade--including crimes by members of the Sandinista government--and offer extensive protection to civil servants.

The measures apparently are designed to strengthen the Sandinistas before they pass from government into the opposition.

In another development, President Daniel Ortega said he will hand over power to the newly-elected government next month even if U.S.-backed Contras are not disbanded by then. “But it will be in the middle of a very complicated situation because everybody would be up in arms seeking ways of defending themselves to finish off the Contras,” he told thousands of supporters at a rally marking International Women’s Day.

Here in Washington, Mayorga said that his nation needs the expertise of managers and technicians now in exile in the United States. Fascell supported a proposal to have Washington guarantee Nicaraguans re-entry privileges, saying emigres will hesitate to go home for fear that they might be trapped if Chamorro fails in her attempt to restore democracy and a market economy.

Sen. Bob Graham (D-Fla.), whose state has the most Nicaraguan refugees, joined Fascell in endorsing the plan of free movement for refugees who might return to Nicaragua to help revive the economy.

Mayorga arrived here over the weekend to discuss the new regime’s problems with Bush Administration officials, international banks and congressional leaders and to seek their assistance.

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“We have not heard from the Administration yet,” Fascell said after the session with Mayorga. “But we are not going to wait--we want to get working on an aid program now.”

Fascell said his committee must authorize aid for Nicaragua, which he said will probably come from diversion of funds previously allocated for other countries.

The State Department criticized the Sandinista government for failing to live up to its post-election promise to cooperate in a smooth transition of power. Spokeswoman Margaret Tutwiler said: “After the election, President (Daniel) Ortega promised to respect the will of the Nicaraguan people. . . .

“However, despite these conciliatory statements, there are disturbing signs that the Sandinistas are not keeping faith with promises to honor a peaceful transfer of power,” she said. “There are reports that the Sandinistas are delivering weapons to their supporters and that Sandinista supporters have engaged in street violence against (opposition) members.

“There are also reports that government offices are being emptied of resources and that the Sandinistas are threatening to enact economic measures that would make it exceedingly difficult to bring about the economic recovery of that country.”

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