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Extensions of Remarks February 25, 1982 EXTENSIONS OF REMARKS 2529 EXTENSIONS OF REMARKS THE NICARAGUAN REVOLUTION and outright gifts this year, the country is destined to strangle and then eliminate pri­ unable to import vital machinery, basic vate enterprise from the country, and to goods, medicine, spare parts, and other ne­ create in its stead a type of Marxist-Leninist cessities. Julio Cesar, the head of the cen­ state capitalism." HON. ROBERT J. LAGOMARSINO tral bank, admitted in the September 15 OF CALIFORNIA Wall Street Journal that Nicaragua will CONTEMPT FOR BUSINESSMEN IN THE HOUSE OF REPRESENTATIVES have to find $750 million abroad to finance The Sandinistas make no secret of their Thursday, February 25, 1982 its 1982 import bill. contempt for Nicaragua's businessmen. De­ The lack of hard currency is a more imme­ fense Minister Humberto Ortega said in a e Mr. LAGOMARSINO. Mr. Speaker, diate crunch for Nicaragua's private busi­ speech published on August 25 that "we are the Council for Inter-American Securi­ ness sector. Although the Sandinista gov­ against the burgeois," and added that "it ty Education Institute has prepared a ernment contends that over 60 percent of has to be clear that the bourgeoisie, which study describing the evolution of the the gross national product comes from pri­ sells out its own country, is here because we revolution in Nicaragua. It concludes vate industries, businessmen and producers want them to be. In any moment, we can that the Sandinista regime is nearing report they can't get credit from the central take their factories without firing a shot." completion of the consolidation of a bank with which to produce and conduct The Defense Minister later vowed to "hang business. by the roadside" those businessmen who, military-oriented Marxist-Leninist dic­ "The problem is that the state controls among other things, obstruct the govern­ tatorship. The study also describes the the mechanisms that allow the private ment's plan to organize militias within the reasons why Nicaragua's economy is sector to operate: the banking, transporta­ nation's factories, since this would impede not working. The text of that study tion, and foreign exchange systems," said the Sandinistas' efforts against "conspiracy follows. I urge my colleagues to give it William Baez, Nicaraguan economist and di­ and aggression.'' their serious consideration. rector of the Foundation for Cooperative But froni the beginning, the Sandinista WHY ISN'T NICARAGUA'S ECONOMY WORKING? Development in Nicaragua, in the October policy to eliminate private enterprise was Two and a half years after launching its 17, Diario Las Americas. "If you engage in made known in something called the "72- "era of reconstruction," the Sandinista gov­ business transactions and cannot obtain hour document," a clandestine Sandinista ernment appears to have wrought instead credit, the deal is dead." paper that was circulated among Nicara­ an era of economic ruin. COSEP BLAMES GOVERNMENT gua's leading businessmen shortly after the "The national economy is collapsing," According to Nicaraguan business leaders, overthrow of Somoza. The paper set forth, wrote the Superior Council of Private En­ the Sandinistas' "doctrine of Marxism-Len­ according to the February 16 issue of Time, terprise <COSEP> in an October 19 letter to inism" and their ideological assault upon Ni­ the Marxist regime's strategy of tolerating junta coordinator Daniel Ortega. "Produc­ caragua's private sector are to blame for the the "private sector only until the govern­ tion shows no signs of recuperation. The country's deepening economic crisis. The ment was able to take over the economy and country is becoming indebted in a spiral Superior Council for Private Enterprise throw out the capitalists." that seems endless ... We are at the doors <COSEP> in its October 19 letter to Daniel The Sandinistas' intention to eliminate of the destruction of Nicaragua. Ortega accused the government of egregious private enterprise was also revealed by a The country already owes almost $3 bil­ economic mismanagement. COSEP ascribed high-ranking official in Nicaragua's Justice lion to foreign creditors, and this debt in­ the crumbling economy, the spiraling debt, Department, Nevardo Arguello, who defect­ creases at an average of $2.5 million a day, and the social turbulence in Nicaragua to ed to the U.S. last February. Arguello had according to the Coordinator of Nicaragua's the Sandinistas' "Marxist-Leninist adven­ been responsible for enforcing a decree Human Rights Commission, Jose Esteben ture." issued by the junta ordering the confisca­ Gonzalez. He wrote a letter to Ortega on The Sandinista government, denouncing tion of the property of the Somoza family, October 17 asking him to explain why the the letter as "an outrageous provocation," of persons who had supported Somoza, and Sandinistas in only two years have incurred moved quickly against COSEP. The text of of people who had embezzled public funds. "a foreign debt practically equal to the the letter had been revealed in a press con­ Arguello told the Council for Inter-Ameri­ giant indebtedness accumulated by the cor­ ference called by COSEP on October 19. can Security in an interview on February 26 rupt Somoza regime in 43 years of systemat­ Thirty hours later, around midnight, state that he had complained to the Minister of ic pillage." security forces arrested four COSEP leaders Justice that some of the confiscations were The nation's trade balance, which stood at in their homes for having "violated the eco­ illegal. The Minister admitted that this was a surplus of $160 million in 1979, plummeted nomic and social emergency law." Three of true, Arguello said. However, the Minister to a $215 million deficit in 1980. Inflation them were sentenced to seven months im­ told Arguello that "the property would not rages at 35 percent, and the Wall Street prisonment on October 30. be returned regardless of whether or not Journal says it could hit 50 percent this Those sent to jail were the President of the confiscation was legal. He said that the year. Unemployment stands at 30 percent, the Higher Council for Private Enterprise, property would be owned by the state." Ar­ and this is sure to worsen if the economy Enrique Dreyfus; the President of the guello added, "To justify his argument, the continues to deteriorate. Chamber of Construction, Benjamin Lanzas; Minister said that private enterprise would STATE OF EMERGENCY and the President of the Federation of Nica­ soon disappear in any case, and since there So severe is this economic crisis that the raguan Professionals, Gilbert Cuadra. Simi­ would be little private property remaining, government imposed a one-year "state of lar prison sentences were handed down to the shock would not be as great." economic and social emergency" in Septem­ three businessmen who the secret police ber, banning strikes and unauthorized price were unable to capture, and who are said to NATIONALIZATIONS increases, raising import taxes by as much be in hiding. All six men were signatories of The Sandinistas' anti-capitalist rhetoric as 100 percent, and threatening imprison­ the October 19 COSEP letter. has been accompanied by wholesale nation­ ment of up to three years for anyone "ar­ The regime's anti-free enterprise orienta­ alizations of industries and massive confis­ rested on suspicion" of "economic sabo­ tion is also criticized by many of the Nicara­ cations of private property. Charging the tage," which includes the publishing of eco­ guan businessmen who have fled the coun­ private sector with attempting to under­ nomic data affecting "state security." try. One of these is Jose Francisco Cardenal, mine Nicaragua's economy by "imposing the Bankrupt, Nicaragua has become entirely former President of Nicaragua's Chamber of power of those who rob and oppress," dependent on foreign aid. One Western Construction and a long-time opponent of Daniel Ortega marked the July 19 second economist in Managua, quoted in the Sep­ the Somoza dictatorship. anniversary of the Sandinista victory by an­ tember 28 issue of Newsweek, stated that Cardenal said at a July conference in nouncing far-reaching reform laws that "Nicaragua has proven to be one of the Washington, D.C., that "the economic result threaten most of Nicaragua's private sector world's great beggar nations." of the Sandinista ideological philosophy and with expropriation. A prominent Nicara­ The reason: Nicaragua's foreign currency its attacks on private enterprise has been guan industrialist, featured in the August 23 reserves are virtually gone. Even after re­ the virtual ruin of Nicaragua's economy . Los Angeles Times, asserts that "the Sandi­ ceiving nearly $450 million in foreign aid The Government has continued its policy nistas have already enough laws to confis- e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 2530 EXTENSIONS OF REMARKS February 25, 1982 cate 80 percent of the private property of confiscations, and of the irresponsible im­ WHERE IS PASTORA NOW? Nicaragua.'' provisations, of the paralyzing bureaucracy, Pastora's whereabouts remain a mystery. None of these confiscated lands, however, and, in general, of the programmed, pro­ Ariel Remos wrote in Miami's Diario Las have been delivered to the people. Frank gressive strangulation of the economic Americas on October 2 that Pastora was still Bendana, exiled President of Nicaragua's sector that is not part of the state." "under a kind of house arrest in Cuba, on Union of Coffee Associations and Coopera­ Increasing number of Nicaraguans are be­ account of disagreements about the almost tives, told the Council for Inter-American coming restless and frustrated with the eco­ absolute control of Fidel Castro over the Security last July that "ever since the San­ nomic mess. To bolster public morale, the Sandinista government" and that Castro dino-Communists have assumed power, they government has launched a campaign of has decided to send Pastora to Chile to lead have done nothing more than seize the rhetoric and propaganda.
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