The enclosed report is transmitted in compliance with the requirements of Section 722(j) of the International Security and Development Cooperation Act of 1985 (P.L. 99 - 83), and Section 104 of Chapter V of the Supplemental Appropriations Act, 1985 (P.L. 99 - 88).

The report, with appropriate background, describes efforts by the United States and others, including developments in the Contadora process, to promote a negotiated settlement in Central America and Nicaragua; alleged human rights violations by the democratic resistance and the Government of Nicaragua; and disbursement of humanitarian assistance to the democratic resistance (with a classified annex).

During the period covered by the report, the Sandinistas have continued their refusal to engage in dialogue with the democratic opposition and have adopted an intransigent position in Contadora negotiations. The October 15 suspension of civil liberties dramatically reflected the Sandinistas' continued repression of human rights and their desire to silence their opponents rather than pursue internal reconciliation.

The events of the ninety days covered by the attached report clearly show the need for continued support for the Nicaraguan democratic resistance. Only it can provide the sharp pressure needed to move the Sandinistas toward serious negotiations and prevent the consolidation of a totalitarian state allied with Cuba and the Soviet bloc in Central America.

An identical letter with a copy of the attached report has also been forwarded to the President of the Senate and the Chairmen of the Senate and House Select Committees on Intelligence.

Sincerely,

Ronald Reagan

Note: Identical letters were sent to Thomas P. O'Neill, Jr., Speaker of the House of Representatives; George Bush, President of the Senate; Barry Goldwater, chairman of the Senate Select Committee on Intelligence; and Edward P. Boland, chairman of the House Permanent Select Committee on Intelligence.