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Oenerrl Aarrembly Distr UNITED NAT13NS Oenerrl Aarrembly Distr. GENERAL A/44/492 30 August 1909 ENGLISH ORIGINAL; ENGLISH/SPANISH Forty-fourth session Items 26 and 83 of the provisional agenda* JUDGMENT OF THE INTERNATIONAL COURT OF JUSTICE OF 27 JUNE 1986 CONCERNING MILITARY AND PARAMILITARY ACTIVITIES IN AND AGAINST NICARAGUA8 NEED FOR IMMEDIATE COMPLIANCE DEVELOPMENT AND INTERNATIONAL ECONOMIC CO-OPERATION , I Letter dated 29 Auaust 1989 from the Charm d affair- aA gf the Permamw of Nicar&gua to the United Natiou addressed I have the honour to transmit herewith a copy of an article published in Tha Washinaton Post on 27 August 1989, entitled "Uncle Sam's Money War against the Sandinistas", I should be grateful if you would arrange for this letter and its annex to be circulated as a document of the General Assembly under items 26 and 83 of the provisional agenda. (Signed)Daysi MONCADA Ambassador Charg6 d'affaires a,i. * A/44/150. 89-20624 10758 (E) / I . ANNEX Uncle Sam’s Money War A9ainst the Sandinistas By Peter Kornbluh HE CON1’dAS’ IJ.S..rupplled gunr may loon fall silent for good, but ‘an equally devartating economic war waged by Washlngton contin- ue8 to lnfllct aevere damage on Nicaragua, The protracted campaign-based on ember. T~,.eccnomic irolation and rabotage-ham attracted 5”ar Icaa opposition and far fewer headlined tha,* !he con. tns’ shooting war. But now, more than eight years al. ter it began under Ronald Reagan, the full atory 01 the US, effort to drsfabilize the Nicaraguan economy ia gradually emerging. A variety of national.recurity di. rectivo and Internal government memoranda ahow clearly that the United Tales was indeed using CEO- nomic aa well as paramtlit~ry muscle to force the San- dinlrtnr, aa Reagan put ,:. “to say uncle.” At leadt part of the campaign-a full trade embargo-continue8 un- der George Bush. Ironrally, with the contra8 now expected to be de- mobilited by the end of the year, Washington’s econom. ic preaaurr may well prove to have been the more im- portant component of the U.S. “low4ntensity” war againat the Ssndinrutar. By all anounts, Nicaragua’s economy 18 in dirrstrour straits. After a promismg ini- tial effort to rebuild the country-despotled for decade8 by the corrupt Somora family dynasty-any hope that the Sandini8tas can alleviate the poverty and socto.eco- nomic neglect suffered by moat Nics*aguans is all but gone. Nicaragua’s rltghtmare is an cery rrnnnder of Chtle’s erpertence with Wnshrngton during the brref SocLtlist government of Salvador Allend?. Congressronnl mves- ttgations Into CIA covert ilcttvlttes in the mtd.lY7Os revealed that President Nixon had directed the CIA to “make the (ChtleanJ economy scream,. whtle nottonal security advlaer Henry Kissmger supervised on eco- nomic “destablllzatron”canlpalgifthat rontrlbuted to the econonnc chaos that preceded the overthrow and as. sassuxttton of Allende in a mlita~. qup led by the du. rable and brutal Gen, Augusta Pinochct. As III Chile, U.S. economic warfare against Nicaragua ha8 followed a clear blucprmt of pressures: l Turrrrinofton of bliaftrul ~ruJe urrd JIM. After Anas- tazio Somota wns overthrown 10 yearr ago, the Carter admmistratton used U.S. economic atd and trade as a carrot to mfluence the direction of the Sandintsta rev. olution. Under Reagan, i! became a sttck. Shortly after taking office m 1991, Reagan termmated aid and began gradua$ curtailing LJS~Nicaraguan trade. A full em. bar% was~mvokt&&lav~1985, / . l .:n Ynvtiblo blorCirdi” 01 m~rltilal~raldrv~lopm~n~ &nC fMf8) loans. The Reagan admlnlatrrtlon almbly vetoed or atopped eome loans by the World Bank and the Intsr.Amerlcan Development Bank (IDB). In other cawa, Wnah;ngton moved to “persuade the Manage. ments of the [MDBa) not to bring these loans forward, according to an internal 1983 memorandum to Treasury see NICARAOUA, C4, COI, 1 Uncle Sam% Mor.ey War J NICARAOUA, Cl It alsd denled N1cPragu.n US. Export4mport From Bank trade crdks-needed by merchants in- Qcsetuy Donald Repan, Since that year, Nks dwtrlalhts and farmers to import US IMIIU. am ban nccelved no multilateral bank loens, factured go&- and Dveraeas Private (nve& l I?pbnrorti @sun on alliar With ‘hlted ment Corporatin guaranteee, whkh underwrite B the State DepPrtment twisted gov. U.S. corporate Investment8 h the Third World. a& urn, h Western Europe to curtall And h Novemk;. tk preeldent dfpted NSDD Nkamuan trade end old: ln Latin Amerks, 17 secretly authoL?p the CIA to create a a&d&q b a mret 19S4 National Security countermvdullonvy umy of edlea. Jklakn Dkcetlve (NSDD), the White Housr In 1982, when Nkoragua WY abut to r& dagbd out M&o for pmaure because d it8 celve b tlmt dgniflcant private MC bpn from a# to Nkarague and I(u kademhlp of the 1883 the Bank d Ameria, State Depadmwt obkiab Crmradom peace Lnitlatrve, which p,lvcd cne made the& oppxitlon known to Ihs buJI’a ds 0110 k M Central Amcncan oretldcnta’ de. ken. The $Jhnika loan wan canceled. Then C~UQI three uwb ago to d&and the contra& the adninhtralion tar eted Nkuagus’r prhvly l . fkki la #fabdm AI LKloeed In docu* emort to tk United t~8te+aueo~, On March manta rekaaed during the Irationtra hvcr* Id,1983 the White Houw anno& tit Nk- tigatbn, the contraa were dlrscted to attack aft,ua’a sugar quota would b cut by 90 p ecomrnk &rgete In Nicaragua. However, the cent. its a nrling by the General Am m6l dnmatk par\militoy rwultcr~ ment O(I9a& and Trade (GA’I’TI, the Inter- natititrade quivaknt of the Unitr I Natbna, porn,, fuel &mge bcilltin and ahippinp- that the United St&a’ action had v&led the wbre anled out by tk CIA it&l. GATT Treaty, tk Reagan Admi&ration re- he Reagan odminietrrtion repeatedly fused to restore Nicaragua’s sugar quota. T de&dthat itrNicarauua wlkv included For more than two yearn, the National s6 A ptitivseonomk ob&zt&ca k March cuity Council weighed turther econo& op 198s b&et, ‘Misconception, About U.S. Pal. lions, including Ihe ultlmte m *; full ky Toward Nicaragua,’ published by the slate trade tmbup. In January lC&. national r* Demtment’r Gffke d Public Diplomacy, de. ciruty adviser Robert MCI’ ‘yIe received . c&d thnt ‘tk U.S. govemmenl’haa ti im. *menu of snnctiotu’ memorandum that included posed any foml d a=omlic boycott on Nice. trade cutoffs and pnwuc on West Eumpean rag& ad wa wt %ying to strangle Nicara. ah to wane their trade and aid to Nkaragua, according to one high Reagan a-lion w WY. But eamding to the fit published report d offkial. NSDD 124, *!o.R by Reagan in Feb. US. dorta to undermine the Nicaragurn gov. nuuy 1984, called for SecreL/ d Sste George Shui& in caxdination mth Defenae emmcmt (In the June 20, 1981 issue of The Secretary Cap Weinkrger and CtA Director New Reoublich White Houss oMcW benan to William Casey, to “review and recommend such contemplate a Vestabilizat~ program” “Lthin economic sanctions against Nicarattua tit are weda d Ronald ReagRn’r inauguration. Thev likely to budd prmrur; on thha * An- @an called far Waahmgton to undemune Nice other NSDD dr,nftpd a vcar later bv National mlgua’s fragtle ecnmmy--rttil recovering from Secutity Cauncil aides dliver North; Raymond Somozo’s deslructive effort8 to stay in power- Burghardt %d Donald FortIer called C %c* by ending U. S. rssistmtc, blocking multilateral nonuc sanclrone against the Svdinutas’ that bank bans snd prc3aunng other rtationa .3 i* would include “placing embargoes on U.S..Ni. Late tk Sandbustas. The resultrng economic caraguan imparta and exportn. distmu, it wan hoped, would tile intemal op Basic differences of opti over the use of pcuitkm and blossom into an uptisin~ led by trade cmbargoea ktwecn the NSC Nld the U.!Lbacked contra invading from Honduras State Dcp;vtmcnt delayed implementation of a and cwtr Rica. N embargo. Indeed, Reagan’s announcement Not~~hstanding the farlure of the Contras, of the embargo on May 1,1985 appeus to have US. pdicy over the last eight yeam has closely been timed to help wstaul the contns in Hm followed that !xenario, and Its ecolK!mic uprts duraa after Congress in Apnt ~:dtsed the press have had the acquicsence of Congress. Within ident’s rqucsl for more contm aid In a secret six wwh after Reagan took ofice, the adnun. I\pnl 25 mc-morandum releasrd during-the istratian had ended econonuc dud. b &rt order, _ -Nqtththi& McParlane recommended that Rea. ‘MDB management not to kh9 the bum for- ward, ‘Sina Januw d 1982, Uta U&d 3t5tea asHondurul PNidant Robelt suaw COP five bm, to Mcuagw from h ba and 7naiu cbu the ex&utive branch’5 hw r 3Efand the htwhrian Bmnk ’ abb pohkelcommitmenttomlintrhln~pNwmon zw. J 1 1993 menwndum to &onrld the!3u&k&,reg5rdleaadwhatactbnCen* %a hlJnber 04 pmgomb tawelluy b- mmbkeh”‘-- %bneaddedtktSuuo%Ui ~8p~pued IF the MDB( lnch~de nine horn tha ID%andthrrlmnitheWor#Ebnk,...h* inp Mthl &it the IcOntNl,’ one Gcll Jnn wddbto%paerindeenib5r ’ - sb dam htor. decluinr the IKDowt5had ntkn d 5 W-h uwiil and kaor&uy UINP tmdw um lnttmatbMi Emergency PWWUACt,RhBpmhplWd~NltX8d~Ollk buyo rgaimt Niaraw he Jwtke hptmnmt &yen bit it mu 5 dubbu5 uae State Shulb intervenad ponody to atop 4 dthelmw,uKltheNscmdSbbugueduntli $s&mUbn ban loi ~grkuitunl aedita to Nice theendabout%ontNtmnctlty’-whetJlertha ‘a private fumn Shuita met with IDB embrgo would abrogate abnding cmtmcb Skn Antonb Ortb Mona and aant him 5 bttu Vunhp that the Us.
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