Republican Policy Luncheon, October 17, 1989

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Extent (Dublin Core): 23 pages
File Name (Dublin Core): lead_395_039_all
Title (Dublin Core): Republican Policy Luncheon, October 17, 1989
Date (Dublin Core): 1989-10-17
Date Created (Dublin Core): 1989-10-17
Congress (Dublin Core): 101st (1989-1991)
Policy Area (Curation): Government Operations and Politics
Creator (Dublin Core): House Republican Policy Committee (U.S.)
Record Type (Dublin Core): agendas (administrative records)
Names (Dublin Core): See all items with this value Dole, Robert J., 1923-2021
Rights (Dublin Core): http://rightsstatements.org/vocab/CNE/1.0/
Language (Dublin Core): eng
Collection Finding Aid (Dublin Core): https://dolearchivecollections.ku.edu/index.php?p=collections/findingaid&id=26&q=
Physical Location (Dublin Core): Collection 007, Box 395, Folder 39
Institution (Dublin Core): Robert J. Dole Institute of Politics, University of Kansas, Lawrence, KS
Archival Collection (Dublin Core): Robert J. Dole Republican Leadership Collection, 1985-1996
Full Text (Extract Text): (page 1)

RPC House Republican Policy Committee

LHOB 1616, Washington, D.C. 20515, (202) 225-6168

October 17, 1989

Vicki L. Martyak
Executive Director

Mickey Edwards (OK) Chairman

Bob Michel (IL)
Newt Gingrich (GA)
Jerry Lewis (CA)
Duncan Hunter (CA)
Bill McCollum (FL)
Vin Weber (MN)
Guy Vander Jagt (MI)
Bill Archer (TX)
Silvio O. Conte (MA)
Bill Frenzel (MN)
James H. Quillen (TN)
Tom Campbell (CA)
Tom DeLay (TX)
Jack Buechner (MO)
Floyd Spence (SC)
Paul B. Henry (MI)
Paul E. Gillmor (OH)
Bill Goodling (PA)
Bill Green (NY)
Fred Grandy (IA)
J. Dennis Hastert (IL)
Peter Smith (VT)
James T. Walsh (NY)
Doug Bereuter (NE)
Dean Gallo (NJ)
Steve Gunderson (WI)
Nancy L. Johnson (CT)
John J. Rhodes, III (AZ)
Olympia J. Snowe (ME)
Don Sundquist (TN)

Dear Republican Colleague:

Today the Senate will consider H.R. 3385, a bill reprogramming $9 million to support elections in Nicaragua through the National Endowment for Democracy (NED). It is vital to pass H.R. 3385 to give Nicaragua's democratic opposition the opportunity they deserve.
H.R. 3385 authorizes $5 million for NED grants to political alliances, labor, business, media and civic groups, including the 14 party National Opposition Union (UNO) coalition. An additional $4 million will be available for election support, including international observer groups.
Roughly $2 million of the funds in H.R. 3385 would be eligible for payment to Nicaragua's Supreme Electoral Council (SEC). UNO can and will designate that any SEC payments are only for technical support (e.g. printing ballots). UNO's representative on the SEC would closely monitor any payments. The marginal benefit of any funds leaked through the SEC to the Sandinistas would be far outweighed by enabling the democratic opposition to compete on a more level electoral playing field.
On October 3, the House Republican Policy Committee unanimously approved a resolution in support of passing H.R. 3385 without amendments. During floor action on the bill, a "killer amendment" was defeated and H.R. 3385 was passed -- with overwhelming Republican support.
We strongly urge you to support expeditious consideration and passage of H.R. 3385 without amendments designed to undermine the bill. This may be the last best chance for democracy in Nicaragua.

Sincerely,

(Mickey Edward's signature)
Mickey Edwards, Chairman Republican Policy Committee

(Robert Michel's signature)
Robert Michel Republican Leader

(page 2)

October 17, 1989
Page Two

(Next Gingrich's signature)
Newt Gingrich
Republican Whip

(William Broomfield's signature)
William Broomfield, Vice Chairman Committee on Foreign Affairs

(Robert Lagomarsino's signature)
Robert Lagomarsino, Vice Chairman Subcommittee on Western Hemisphere Affairs

(Porter Goss's signature)
Porter J. Goss
Member of Congress

(Robert Dornan's signature)
Robert K. Dornan
Member of Congress

(Cass Ballenger's signature)
Cass Ballenger
Member of Congress

(Rod Chandler's signature)
Rod Chandler
Member of Congress

(Jerry Lewis's signature)
Jerry Lewis, Chairman Republican Conference

(Henry Hyde's signature)
Henry Hyde, Vide Chairman Permanent Select Committee on Intelligence

(Vin Weber's signature)
Vin Weber, Secretary
Republican Conference

(David Dreier signature)
David Dreier
Member of Congress

(John Kyl's signature)
John Kyl
Member of Congress

(Steve Gunderson's signature)
Steve Gunderson
Member of Congress

(Dan Burton's signature)
Dan Burton
Member of Congress

(page 3)

October 17, 1989

From: John H. Chafee

Dates of Senate adjournment in recent odd numbered years.

(left column)
CONGRESS #

95th
96th
97th
98th
99th
100th

(middle column)
DATE OF BEGINNING

Jan. 4, 1977
Jan. 15, 1979
Jan. 5, 1981
Jan. 3, 1983
Jan. 3, 1985
Jan. 6, 1987

(right column)
DATE OF ADJOURNMENT

Dec. 15, 1977
Dec. 20, 1979
Dec. 16, 1981
Nov. 18, 1983
Dec. 20, 1985
Dec. 22, 1987

(page 4)

RPC House Republican Policy Committee

LHOB 1616, Washington, D.C. 20515, (202) 225-6168

October 17, 1989

Vicki L. Martyak
Executive Director

Mickey Edwards (OK) Chairman

Bob Michel (IL)
Newt Gingrich (GA)
Jerry Lewis (CA)
Duncan Hunter (CA)
Bill McCollum (FL)
Vin Weber (MN)
Guy Vander Jagt (MI)
Bill Archer (TX)
Silvio O. Conte (MA)
Bill Frenzel (MN)
James H. Quillen (TN)
Tom Campbell (CA)
Tom DeLay (TX)
Jack Buechner (MO)
Floyd Spence (SC)
Paul B. Henry (MI)
Paul E. Gillmor (OH)
Bill Goodling (PA)
Bill Green (NY)
Fred Grandy (IA)
J. Dennis Hastert (IL)
Peter Smith (VT)
James T. Walsh (NY)
Doug Bereuter (NE)
Dean Gallo (NJ)
Steve Gunderson (WI)
Nancy L. Johnson (CT)
John J. Rhodes, III (AZ)
Olympia J. Snowe (ME)
Don Sundquist (TN)

Dear Republican Colleague:

Today the Senate will consider H.R. 3385, a bill reprogramming $9 million to support elections in Nicaragua through the National Endowment for Democracy (NED). It is vital to pass H.R. 3385 to give Nicaragua's democratic opposition the opportunity they deserve.
H.R. 3385 authorizes $5 million for NED grants to political alliances, labor, business, media and civic groups, including the 14 party National Opposition Union (UNO) coalition. An additional $4 million will be available for election support, including international observer groups.
Roughly $2 million of the funds in H.R. 3385 would be eligible for payment to Nicaragua's Supreme Electoral Council (SEC). UNO can and will designate that any SEC payments are only for technical support (e.g. printing ballots). UNO's representative on the SEC would closely monitor any payments. The marginal benefit of any funds leaked through the SEC to the Sandinistas would be far outweighed by enabling the democratic opposition to compete on a more level electoral playing field.
On October 3, the House Republican Policy Committee unanimously approved a resolution in support of passing H.R. 3385 without amendments. During floor action on the bill, a "killer amendment" was defeated and H.R. 3385 was passed -- with overwhelming Republican support.
We strongly urge you to support expeditious consideration and passage of H.R. 3385 without amendments designed to undermine the bill. This may be the last best chance for democracy in Nicaragua.

Sincerely,

(Mickey Edward's signature)
Mickey Edwards, Chairman Republican Policy Committee

(Robert Michel's signature)
Robert Michel Republican Leader

(page 5)

October 17, 1989
Page Two

(Next Gingrich's signature)
Newt Gingrich
Republican Whip

(William Broomfield's signature)
William Broomfield, Vice Chairman Committee on Foreign Affairs

(Robert Lagomarsino's signature)
Robert Lagomarsino, Vice Chairman Subcommittee on Western Hemisphere Affairs

(Porter Goss's signature)
Porter J. Goss
Member of Congress

(Robert Dornan's signature)
Robert K. Dornan
Member of Congress

(Cass Ballenger's signature)
Cass Ballenger
Member of Congress

(Rod Chandler's signature)
Rod Chandler
Member of Congress

(Jerry Lewis's signature)
Jerry Lewis, Chairman Republican Conference

(Henry Hyde's signature)
Henry Hyde, Vide Chairman Permanent Select Committee on Intelligence

(Vin Weber's signature)
Vin Weber, Secretary
Republican Conference

(David Dreier signature)
David Dreier
Member of Congress

(John Kyl's signature)
John Kyl
Member of Congress

(Steve Gunderson's signature)
Steve Gunderson
Member of Congress

(Dan Burton's signature)
Dan Burton
Member of Congress

(page 6)

POLICY LUNCHEON
OCTOBER 17, 1989

AGENDA

TUESDAY
o Cloture Vote - Nicaragua/Baker in attendance :selected:
o Eastern Airlines - Request to Reduce 30 hours

WEDNESDAY
o Flag Amendment - Debate continuing Wednesday - vote likely Wednesday
o Impeachment Trial - Arguments begin at 2:00 p.m. (for up to 4 hours) Those who have recused themselves (Lott, Coats, etc) do not vote; should not attend

THURSDAY
o Morning uncertain
o Impeachment Trial - resumes at 2:00 p.m., closed session, final votes possible.

FRIDAY
o Uncertain, possible Appropriations Conference Reports

OTHER ISSUES
o Conference Reports Available: LABOR/HHS; Legislative
o Reconciliation - House Republicans oppose striping capital gains, catastrophic, Section 89 and may try a motion to instruct the conferees when they are appointed. It is unclear what the House Democrat Leadership will do.

(page 7)

INTELLIGENCE COMMITTEE

(left column)
Cohen
Hatch
Murkowski
Specter
Warner
D'Amato
Danforth

(right column)
Expiration

1991
1993
1993
1993
1995
1997
1997

We're checking what our rules are with respect to who can be the Ranking Member. Howard is convinced Murkowski would give up Ranking on Veterans to get Intelligence.

(page 8)

Contact Michael Solon 4-0718

GRAMM-RUDMAN III (?)

GOALS:

-- Create a genuine Social Security Trust Fund.
-- Balance the budget without counting the Social Security Trust Fund surplus.

TARGETS:

-- Sets targets for the non-Social Security deficit beginning in 1994 and requires that the non-Social Security deficit be eliminated by 1999. The entire GRH mechanism including the sequestration process would continue to enforce the new deficit targets.
-- Using OMB figures to project a non-S.S. deficit of $105 billion in FY 1993, the specific targets are as follows:

1993 = $0 (including Social Security)
1993 = $105 (excluding Social Security)
1994 = $88 billion
1995 = $70 billion
1996 = $52 billion
1997 = $34 billion
1998 = $16 billion
1999 = $0.

DEFINITIONS:

-- The new deficit targets will exclude all annual Old Age and Survivors Insurance (OASI) and Disability Insurance (DI) receipts and outlays. The Trust Funds will have to pay all their administrative and personnel costs. Further, all interest payments to the Social Security Trust Fund from the Treasury will be on-budget outlays of the Treasury.
-- The provisions of GRH, including all points of order and the sequester process, are extended through FY 1999, along with the Byrd Rule which prohibits extraneous matters on Reconciliation bills considered in the Senate.

(page 9)

021011.751 S.L.C.

101ST CONGRESS 1ST SESSION

S.

IN THE SENATE OF THE UNITED STATES

Mr. GRAMM introduced the following bill; which was read twice and referred to the Committee on

A BILL

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to exclude the Social Security Trust Funds from the calculation of the maximum deficit amount in order to protect retirement funds and eliminate the resulting deficit by fiscal year 1999.

1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assem-
3 bled,
4 SECTION 1. SHORT TITLE.
5 This Act may be cited as the "Balanced Budget and
6 Social Security Trust Fund Creation Act".

(page 10)

021011.751 S.L.C.

2

1 SEC. 2. EXTENSION OF THE PROVISIONS OF THE BALANCED
2 BUDGET AND EMERGENCY DEFICIT CONTROL ACT
3 OF 1985, INCLUDING POINTS OF ORDER.
4 (a) EXTENSION OF THE ACT. - Notwithstanding any
5 other provision of law, all provisions of and points of order
6 included in the Balanced Budget and Emergency Deficit
7 Control Act of 1985, as amended, are extended through
8 September 30, 1999.
9 (b) EFFECTIVE DATES .- Section 275(b) of the Bal-
10 anced Budget and Emergency Deficit Control Act of 1985
11 is amended-
12 (1) in paragraph (1), by striking "1993" and in-
13 serting "1999"; and
14 (2) in paragraph (2), by striking "and the
15 second sentence of section 3(6) of such Act (as
16 added by section 201(a)(1) of this joint resolution)".
17 SEC. 3. ELIMINATION OF INCLUSION OF RECEIPTS AND DISBURSE-
18 MENTS OF SOCIAL SECURITY TRUST FUNDS WHEN
19 CALCULATING MAXIMUM DEFICIT AMOUNTS.
20 (a) FISCAL YEARS PRECEDING FY 1994 .- Section 3(6)
21 of the Congressional Budget and Impoundment Control
22 Act of 1974 is amended by striking "for any fiscal year"
23 in the second sentence, and inserting "for fiscal years pre-
24 ceding 1994".
25 (b) FISCAL YEARS BEGINNING FY 1994 .- Effective Oc-
26 tober 1, 1993, section 3(6) of the Congressional Budget

(page 11)

021011.751 S.L.C.

3

1 and Impoundment Control Act of 1974 is amended by
2 striking the first 2 sentences and inserting "Effective in
3 fiscal year 1994 and thereafter, the term 'deficit' means,
4 with respect to any fiscal year, the amount by which total
5 outlays for such fiscal year exceed total revenues for such
6 fiscal year, except that under no circumstances may the
7 receipts or disbursements of the Federal Old Age and Sur-
8 vivors Insurance Trust Fund and the Federal Disability In-
9 surance Trust Fund be included in total outlays or total
10 revenues for any such fiscal year. In calculating the deficit
11 for purposes of comparison with the maximum deficit
12 amount under the Balanced Budget and Emergency Deficit
13 Control Act of 1985 and in calculating the excess deficit
14 for purposes of sections 251 and 252 of such Act, for fiscal
15 year 1994 and thereafter, the receipts of the Federal Old
16 Age and Survivors Insurance Trust Fund and the Federal
17 Disability Insurance Trust Fund for such fiscal year and
18 the taxes payable under sections 1401(a), 3101(a), and
19 3111(a) of the Internal Revenue Code of 1986 during such
20 fiscal year, shall not be included in total revenues for such
21 fiscal year, and the disbursement of each such Trust Fund
22 for such fiscal year shall not be included in the budget
23 outlays for such fiscal year.".

(page 12)

021011.751 S.L.C.

4

1 SEC. 4. PROHIBITION ON NET INTEREST PAYMENTS FOR INTEREST
2 PAYMENTS TO SOCIAL SECURITY.
3 Sections 3(6) of the Congressional Budget and Im-
4 poundment Control Act of 1974, as amended by section 3
5 of this Act, is amended by adding at the end thereof the
6 following:
7 "(C) Effective in fiscal year 1994 and thereafter, all
8 interest payments by the Treasury to the Federal Old Age
9 and Survivors Insurance Trust Fund and the Disability In-
10 surance Trust Fund shall be outlays of the Treasury for
11 purposes of calculating the deficit.".
12 SEC. 5. MAXIMUM DEFICIT AMOUNT.
13 Section 3(7) of the Congressional Budget and Im-
14 poundment Control Act of 1974 is amended-
15 (1) in subparagraph (G) by striking "and" after
16 the semicolon;
17 (2) in subparagraph (H) by striking the period
18 and insert a semicolon; and
19 (3) by adding at the end thereof the following:
20 "(I) with respect to the fiscal year begin-
21 ning October 1, 1993, $88,000,000,000;
22 "(J) with respect to the fiscal year begin-
23 ning October 1, 1994, $70,000,000,000;
24 "(K) with respect to the fiscal year begin-
25 ning October 1, 1995, $52,000,000,000;

(page 13)

021011.751 S.L.C.

5

1 "(L) with respect to the fiscal year begin-
2 ning October 1, 1996, $34,000,000,000;
3 "(M) with respect to the fiscal year begin-
4 ning October 1, 1997, $16,000,000,000; and
5 "(N) with respect to the fiscal year begin-
6 ning October 1, 1998, $0.".
7 SEC. 6. CONFORMING CHANGES.
8 (a) DEFINITION OF MARGIN .- Section 257(10) of the
9 Balanced Budget and Emergency Deficit Control Act of
10 1985 is amended by-
11 (1) striking "1992" and inserting "fiscal year
12 1998"; and
13 (2) inserting "and fiscal year 1999" after
14 "fiscal year 1993".
15 (b) DETERMINATION OF REDUCTIONS .- Section
16 251(a)(3)(A)(i)(III) of the Balanced Budget and Emergen-
17 cy Deficit Control Act of 1985 is amended by striking “
18 for fiscal year 1990, 1991, 1992, or 1993," and inserting
19 "for each fiscal year through fiscal year 1999,".
20 (c) EXTENSION OF TREATMENT OF SOCIAL SECURITY
21 TRUST FUNDS .- (1) Subsection (a) of section 261 of the
22 Balanced Budget and Emergency Deficit Control Act of
23 1985 is amended-

(page 14)

021011.751 S.L.C.

6

1 (A) by striking the caption for such subsection
2 and inserting "FISCAL YEARS 1986 AND THEREAF-
3 TER"; and
4 (B) in paragraph (2) by striking “, and ending
5 before October 1, 1992".
6 (2) Subsection (b) of section 261 of the Balanced
7 Budget and Emergency Deficit Control Act of 1985 is
8 amended by striking "as amended by section 346(b) of the
9 Social Security Amendments of 1983 (to be effective with
10 respect to fiscal years beginning after September 30,
11 1992)" and inserting "as amended by subsection (a) of
12 this section (to be effective with respect to fiscal years be-
13 ginning after September 30, 1993)".
14 (3) Section 346 of the Social Security Amendments of
15 1983 (Public Law 98-21) is amended by striking subsec-
16 tion (b).
17 SEC. 7. PROHIBITION OF EXTRANEOUS MATTERS IN RECONCILIA-
18 TION MEASURES IN THE SENATE (BYRD RULE).
19 Section 20001(c) of the Consolidated Omnibus
20 Budget Reconciliation Act of 1985 is amended by striking
21 "September 30, 1992" and inserting "September 30,
22 1998".

(page 15)

GRH III

(graph depicting GRH and social security surplus and deficits)

(y-axis top down)
SURPLUS
(+)
100
50
0
DEFICIT
(-)
50
100
150
200

(x-axis left to right)
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99

(Line begins around 200 deficit on the y-axis and increases right to 100 surplus)

(below x-axis, above trend line) PRESENT GRH DEFICIT TARGETS

(below x-axis, below trend line) DEFICIT

(below x-axis) NON-SOCIAL SECURITY DEFICIT

(below x-axis) GRH III TARGETS

(above x-axis, below trend line) SOCIAL SECURITY SURPLUS

(page 16)

Is GRH Working?

(graph depicting GRH deficit)

(x-axis) 1986 1987 1988 1989 1990

(y-axis top to bottom)
350
300
250
200
150
100
50
0

(top line labeled "CBO Deficit Baseline, 1985" begins at approximately 200 and gradually increases right to approximately 300 in 1990)

(bottom line labeled "Actual" begins at approximately 225 and quickly decreases to (1987,150) then gradually decreases to almost 100 in 1990)

RPC Chart

(page 17)

Is GRH Working?

(graph depicting years versus percent of GNP)

(y-axis top down)
6
5
4
3
2
1

(x-axis left to right) 1986 1987 1988 1989 1990

(top line labeled "1985 CBO Baseline as % of GNP" beginning at approximately 5 and ends slightly higher in 1990)

(bottom line labeled "Actual" beginning at approximately 5 and rapidly declines to approximately 3.5 in 1987, slightly increases to almost 4 in 1988, then steadily decreases to below 2 in 1990)

RPC Chart

(page 18)

THE SECRETARY OF STATE
WASHINGTON

Dear Bob:

The Bipartisan Accord united the Executive and the Congress in seeking democratization and peace in Nicaragua. It is our common hope that the February 1990 elections will help achieve those goals.

As you begin consideration of HR 3385, a bill to assist in Nicaragua's elections process, I want to express my strong support for its contents. Democracy and peace can come to Nicaragua only if the elections are both free and fair. While the Sandinistas alone will determine whether the elections are free, Congress and the Executive, working together to pass this legislation, can help ensure that they are fair.

I also want to emphasize, in the strongest terms, the urgent need for the bill's passage. Half of Nicaragua's Sunday registration days have already passed; only two remain. Funds to aid in registration are needed more urgently than ever. It is also essential to the process of democratization that other funds contained in this package reach Nicaragua well before the election -- now only four and a half months away.

Because the administration supports the bill as transmitted to the Senate, and because of the urgency of enactment, I am opposed to all amendments to HR 3385, regardless of substance or intent. As you know, the bill is a compromise resulting from consultations with both the Senate and House. Differing versions of the bill would further hinder enactment. While I remain respectful of Congressional prerogatives, the urgency of the situation in Nicaragua demands that we make these funds available as soon as possible.

With best personal regards,

Sincerely yours,
(signature) Jim
James A. Baker, III

The Honorable
Robert Dole,
United States Senate.

(page 19)

WEDNESDAY, SEPTEMBER 20, 1989
THE WASHINGTON POST

The Democrats and Nicaragua

THE DEMOCRATS, or the liberals among them, cannot have very many more opportunities left to lose in assisting the democratic struggle in Nicaragua. For years, you will recall, they argued that the policy of military aid to the contra resistance kept them from supporting the democrats in Managua; eventually the military aid stopped. Then the Democrats said they'd love to help the internal political opposition to the Sandinistas, but they couldn't support covert action; the CIA was extracted from the "proceedings. Then they said they'd love to help 'overtly, but to aid the opposition party through the National Endowment for Democracy would compromise the mandate and purity of that organization, which is supposed to concentrate on aiding the democratic process; the Bush administration agreed to keep the NED out of supporting a particular party. Now the administration seeks $4 million or $5 million for NED's usual and useful nonpartisan work on process-voter registration, education, poll-watching-and the re- quest faces a budget squeeze that may take the numbers way down.
Come on, you guys. How many ways can Democrats find to say no to a cause they profess to believe in? In other, conservative-run places, American liberals champ impatiently and imaginatively to get their government to do the right thing. In Sandinista-run Managua, they seem to have an endless proclivity to say no to the political and military opposition alike. Take Sen. Chris Dodd (D-Conn.), who in this debate revealed a deep and, by some, unsuspected devotion to the independence and integrity of the National Endowment for Democracy. In hailing the administration's decision not to support the opposition campaign through the NED, he said of Nicaragua's president: "Ortega is not Marcos or Noriega. He has a real popular base in his country." It was a curious remark by one who presumably shares the common interest in devising conditions to determine fairly whether Mr. Ortega is more than the Marxist military commander many of his adversaries believe him to be.
If NED money goes to Nicaragua, it will do so under local laws written by the Sandinistas, who presumably think they will reap some of the benefit. The American premise will be, as it always is, that in a fair contest the people's choice will prevail. It would be good to have Democrats warmly and unequivocally aboard.

(page 19)

A30 FRIDAY, OCTOBER 13, 1989

Nicaraguan Opposition Operating on a Shoestring

By Lee Hockstader
Washington Post Foreign Service

MANAGUA, Nicaragua-Dilsia Saens, a Managus housewife not much involved in politics, happens to live next door to the headquarters of the National Opposition Union, the political coalition that is challenging the Sandinistas in next February's general elections.
For the past few months, Saenz has allowed her neighbors to attach an extension to her phone line. Until the government-run phone company finally came by this week to install three new lines, it was the only phone the opposition had.
In Washington, where the Bush administration sees the Nicaraguan elections as a historic opportunity to topple the anti-American Sandinista regime, the debate concerns how many millions of dollars to send to finance the opposition presidential campaign of newspaper publisher Violeta Chamorro. In Managua, the Sandinista government of President Daniel Ortega trumpets reports that under-the-table funds from the CIA are already filtering into opposition coffers.
But the reality at the Nicaraguan opposition's headquarters is that with voter registration already underway, it is struggling to keep a shoestring operation afloat at a critical juncture in the electoral process. Judging from appearances, UNO, as it is known in its Spanish initials, is practically broke.
"Here we have no paper, no folders, no staples, barely any furniture," said Roberto Guzman, the director of the Nicaraguan Socialist Party, one of 14 parties in the UNO coalition. "We had an ad in the pa- per the other day asking for secondhand furniture, typewriters, anything."
Guzman estimates the opposition needs $6 million to run its campaign.
Throughout the country they have ruled as a virtual one-party monopoly for a decade, the Sandinistas have offices in almost every city and town. In Managua, Sandinista banners and flags adorn public buildings and lamp posts. Teen-agers wear Sandinista T-shirts, and drawings of the distinctive broadbrimmed hat of Augusto Cesar Sandino, the 19th-century guerrilla who inspired the ruling party's name and revolution, can be seen nearly everywhere.
By contrast, UNO is practically invisible. It has opened offices in just half of the country's 16 departmenta, or provinces, and is still struggling to come up with a slogan to compete with the Sandinistas' "Everything will be better." At this point, UNO campaign organizers say, hiring a political consultant- let alone a media specialist-is out of the question.
"We lack funds, we lack materials, and we lack experience," acknowledged Guzman. The only thing we have is the people's support."
Whether or not UNO has widespread popular support is a matter of debate. Polls taken during the summer, before Chamorro was nominated, suggest that the Sandinistas start the campaign with a substantial advantage.
What is more certain is that the UNO coalition, which includes 14 parties ranging from conservative to Communist, is getting a slow start in what is expected to be a hard-fought campaign.
For years, the opposition blamed most of its problems on persecution and manipulation by the Sandinistas. But in recent months, UNO has acknowledged that the Sandinistas, under close scrutiny by election observers from the United Nations, the Organization of American States and other groups, have backed off and are mostly leaving the opposition alone.
On several occasions when the opposition has cried foul, the Supreme Elections Council has quickly stepped in. When UNO complained that a portion of one of their tele- vision spots had been censored by state-run television, the council, which oversees electoral matters, immediately ordered that the spot be rebroadcast in its entirety. The government complied.
At the same time, however, UNO has been plagued by internal bickering and organizational confusion. A fund-raising trip to Miami by Chamorro last month netted a disappointing $10,000, according to her campaign officials.
Sources in Miami also said that on the first day of her trip, Chamorro angered a group of well-connected exiled Nicaraguan businessmen when she canceled a fundraising dinner with them at the last minute. The group had planned the dinner to present the candidate with a plan to set up a non-profit corporation that would raise funds and channel them to Chamorro's campaign.
Most analysts agree that the timing of UNO's organizational travails could not be worse.
Registration for the Feb. 25 elections is scheduled only for the first four Sundays in October. Nicaraguans who do not register on those four days cannot vote.
On Oct. 1, about 360,000 Nicaraguans registered to vote, a total regarded as low by political analysts here. There are thought to be about 1.9 million eligible voters. A low turnout, many observers say, would favor the Sandinistas, who have a hard-core base of support of about 30 percent of the electorate, including government employees, members of the army and young people. The Sandinistas won the last elections, in 1984, with about two-thirds of the vote against a weak and divided opposition.
UNO is also worried that it was able to post observers at only about half the 4,394 registration centers nationwide. The Sandinistas had their supporters at virtually every station.
The elections council has mounted an impressive campaign to publicize the registration program. Lately, it has been almost impossible to turn on the television or radio without being exhorted to register.
But Chamorro campaign officials worry that their supporters need to hear the message directly from the opposition if they are to be motivated to register.
I'm optimistic that the people are behind us," said Alfredo Cesar, a former contra rebel director who is now a key UNO strategist. "But I'm realistic that we don't have the resources to compete with the same chances as the Sandinistas. They have a hell of a propaganda machine funded by the Soviet Bloc."
Said one Latin American diplomat: "UNO's strategy is to present the election as a referendum on the Sandinistas, and that's a good strategy because there's a lot of resentment against the Sandinistas. But at the same time the opposition needs to give people a positive reason to come out and support them."
Lately, the Sandinista propaganda machine has cranked into high gear in an effort to paint UNO and Chamorro as stooges for Washington. Ortega has said publicly that he considers his real adversary to be President Bush, not Chamorro, and has challenged Bush to debate.
Last week, Interior Minister Tomas Borge alleged that an ambassador from an unnamed Central American country had secretly channeled funds to the opposition, using Cesar as a conduit.
And a report in Newsweek, citing intelligence sources, said the CIA has provided $5 million in covert funds for "opposition housekeeping."
Both accounts are hotly denied by UNO officials, who insist they don't even have a bank account, let alone millions of dollars to deposit in it.
The U.S. House of Representatives has already approved a $9 million package that would finance a number of civic and political groups in Nicaragua, principally the UNO coalition. Senate action is pending.
Opposition officials - badly want the U.S. aid but concede that publicity about its imminent-arrival has put them in a bind. "With all this talk about money from the United States, everyone thinks we must be rolling in cash," said Guzman. "The truth is we have nothing."
Reuter reported from Washington:
The Soviet Union has cut direct arms shipments to Nicaragua in half this year, but increased shipments from Eastern Europe, North Korea and Cuba have made up the shortfall, the Defense Department said yesterday.
Although describing the evidence as circumstantial, the Pentagon said Moscow may be orchestrating delivery of Soviet Bloc military aid to Managua through Cuba despite a promise to end such assistance.
Secretary of State James A. Baker III said that at his recent talks with Soviet Foreign Minister Eduard Shevardnadze in Wyoming be did not challenge Moscow's assertions that it had ceased arms shipments to Nicaragua.

(black and white image) Opposition candidate Violeta Chamorro campaigns in the town of La Trinidad

(page 21)

THE NEW YORK TIMES, THURSDAY, SEPTEMBER 14, 1989

Help Nicaragua's Democrats, Openly

Early next year, Nicaraguans will at last be able to register a meaningful choice about their political future in free, internationally observed elections. A coalition of democratic parties is now preparing to challenge the Sandinista regime in accordance with the Central American peace agreement
For Nicaragua, it will be an unprecedented democratic exercise. For the United States, it could be an opportunity to help Nicaraguan democrats in a way that all Americans can be proud of, through above-board financial aid dispensed through the National Endowment for Democracy.
The Bush Administration wants Congress to approve a shift of funds and to waive the restriction against donating Endowment money to candidates for office. That's a far wiser approach than the most likely alternative, covert assistance sent through the C.I.A. The Bush proposal deserves support from those on both sides of past debates over the contra war.
.
Congress established the Endowment in 1983 to promote democratic institutions and processes. It is mainly funded by the Government and is administered by a board with Republican, Democratic, industry and labor representatives. It was meant to provide an alternative to covert financial aid for political groups abroad. After reports of ideological abuses during the early Reagan years the Endowment's charter was amended in 1985 to bar direct aid to candidates for office.
Normally, the U.S. Government has no business backing one or another slate in democratic elections. But Nicaragua is a very special case, for two reasons. There is only one genuinely democratic ticket in the running. And to have a shot at winning. the democrats will need to overcome the advantages of a regime that has dominated public debate while censoring and restricting opposition voices for most of the last 10 years.
The opposition coalition is headed by two unambiguous democrats and Nicaraguan patriots. Violeta Chamorro, the presidential candidate, took over as publisher of La Prensa in 1978 after her husband was assassinated, presumably by pro-Somoza thugs. She served with the Sandinistas in their first ruling junta, then moved into opposition in 1980. Virglio Godoy, her running mate, served the Sandinistas as Labor Minister until 1984.
Mrs. Chamorro will run against the incumbent President, Daniel Ortega, candidate of the Sandinista National Liberation Front. Despite protests to the contrary, the Sandinistas are Marxist-Leninists who believe that their leadership of the anti-Somoza revolution entities them to permanent predominance in the post-revolutionary state.
Open foreign funding of candidates is legal under Nicaraguan law. Europe's Social and Christian Democratic foundations regularly take an active role in Latin American politics. And the Sandinistas will likely get considerable help, overtly or covertly, from their own friends.
Perhaps, given past Congressional funding for the contra war, any acknowledged U.S. Government money would do its Nicaraguan recipients more harm than good. That is for them to decide.
Past divisions over Nicaragua should not obscure the merits of open, legal help to democrats seeking peacefully to make their case to the voters.

(page 22)

STATEMENT FROM (UNO) PRESIDENTIAL CANDIDATE VIOLETA CHAMORRO
ON OCTOBER 12, 1989

" -- This election in Nicaragua is not just an election; it is a referendum. The choice is between those who believe in democracy and those who do not. Right now, those who do not believe in democracy are in complete control of the Nicaraguan state -- the army, the police, the media, local government, all financial institutions, and the system of education.

" -- The National Opposition Union (UNO) believes in democracy: it also believes that it is going to need help if democracy is going to come to Nicaragua. UNO needs help from the United States, and from all other friends -- public and private -- that value the possibility of liberty triumphing over tyranny. UNO is willing to receive this help within the framework of Nicaraguan law.

" -- Our friends in the United States should not underestimate the stranglehold the Sandinistas have on this country; nor should they underestimate the amount of help it will take for UNO to even make a start in leveling the playing field here."

STATEMENT FROM UNO SPOKESMAN LUIS SANCHEZ MADE IN AN EDITORIAL IN THE OCTOBER 9, 1989 LA PRENSA

" -- External assistance to the opposition is absolutely necessary in order to compensate, at least in part, for the (opposition's) enormous disadvantage in relation to the FSLN, which takes advantage of all the state's resources, receives donations from its ideological allies. And does not account to anyone."

(page 23)

SCHEDULE FOR THE WEEK OF OCTOBER 16, 1989

(unintelligible writing)

TODAY, TUESDAY, OCTOBER 17
THE SENATE WILL RECONVENE AT 2:15 P.M., AND BEGIN A ROLL CALL VOTE ON THE MOTION TO INVOKE CLOTURE ON H.R. 3385, ASSISTANCE FOR FREE ELECTIONS IN NICARAGUA, IF CLOTURE IS INVOKED, THE SENATE WILL REMAIN ON THE BILL UNTIL DISPOSED OF. THEREFORE, VOTES WILL OCCUR AND THE SENATE COULD BE IN SESSION INTO THE EVENING IN ORDER TO COMPLETE ACTION ON THE BILL.

WEDNESDAY, OCTOBER 18
THERE WILL BE A JOINT MEETING AT 11:00 A.M. ON WEDNESDAY, TO HEAR AN ADDRESS BY THE PRESIDENT OF SOUTH KOREA. SENATORS ARE ASKED TO ASSEMBLE IN THE SENATE CHAMBER AT 10:40 A.M., IN ORDER TO PROCEED AS A BODY TO THE HALL OF THE HOUSE OF REPRESENTATIVE, TO HEAR THE ADDRESS. FOLLOWING THE JOINT MEETING, THE SENATE WILL RESUME AND HOPEFULLY COMPLETE ACTION ON THE CONSTITUTIONAL AMENDMENT PROHIBITING PHYSICAL DESECRATION OF THE FLAG. VOTES WILL OCCUR DURING WEDNESDAY'S SESSION OF THE SENATE, AT 1:45 P.M., A LIVE QUORUM WILL BEGIN, AND AT 2:00 P.M., THE SENATE WILL BEGIN NO MORE THAN 4 HOURS TO HEAR THE FINAL ARGUMENTS IN THE IMPEACHMENT PROCEEDINGS AGAINST JUDGE ALCEE L. HASTINGS. THEREFORE, A LATE SESSION IS NOT ANTICIPATED, HOWEVER, ALL SENATORS ARE ASKED TO REMAIN ON THE FLOOR TO HEAR THE CLOSING ARGUMENTS.

THURSDAY, OCTOBER 19
THE SENATE COULD CONSIDER ANY APPROPRIATIONS CONFERENCE REPORTS AVAILABLE, OR ANY OTHER ITEMS CLEARED FOR ACTION. THEREFORE, VOTES COULD OCCUR IN THE LATE MORNING OR EARLY AFTERNOON WITH RESPECT TO ANY ITEMS BEFORE THE SENATE. AT 1:45 P.M., A LIVE QUORUM WILL BEGIN, AND AT 2:00 P.M., THE SENATE WILL MEET IN CLOSED SESSION TO DELIBERATE AND VOTE ON THE THE ARTICLES OF IMPEACHMENT AGAINST JUDGE HASTINGS. THEREFORE, VOTES CAN BE EXPECTED THROUGHOUT THE DAY ON THURSDAY, AND AGAIN SENATORS ARE ASKED TO REMAIN ON THE FLOOR DURING THE DEBATE AND VOTES ON THE ARTICLES OF IMPEACHMENT AGAINST JUDGE HASTINGS.

FRIDAY, OCTOBER 20
SINCE THE CONTINUING RESOLUTION EXPIRES ON OCTOBER 25TH, IT IS ANTICIPATED THAT THE SENATE WILL BE CONSIDERING ANY AVAILABLE APPROPRIATIONS CONFERENCE REPORTS. THEREFORE, VOTES CAN BE EXPECTED TO OCCUR DURING FRIDAY'S SESSION OF THE SENATE.

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