http://www.nytimes.com/1986/04/14/world/cia-aid-to-rebels-reported.html

April 14, 1986

C.I.A. Aid to Rebels Reported

AP

The Central Intelligence Agency, barred from providing military aid to Nicaraguan rebels, secretly sent several million dollars to the contras for political projects over the past year, United States Government officials say.

The officials said the money went to the rebels' political umbrella group, the United Nicaraguan Opposition, to pay rebel officials and supporters, open offices in Europe and Latin America, and take trips to seek foreign support for their cause.

The money came out of the C.I.A.'s overall budget, over which President Reagan and the C.I.A. Director, William J. Casey, have wide discretion. The C.I.A. must inform the two Congressional intelligence committees of such covert spending, and officials said notification did take place.

The officials said the C.I.A. described the spending as for ''political projects.'' While not providing a precise spending figure, they said it came to several million dollars.

The clandestine aid also allowed the C.I.A. to maintain a strong influence over the rebel movement, even though a congressional ban existed from October 1984 through September 1985, prohibiting the agency from spending money ''which would have the effect of supporting, directly or indirectly, military or paramilitary operations in Nicaragua,'' the officials said.

While the C.I.A. depicts the aid as political rather than military, internal documents of the umbrella group show much of the political money going to military organizations allied with the political group.

According to the documents covering August 1985 through February, the Nicaraguan Democratic Force, the largest rebel army, was allocated $456,707 for costs including its office space, ''security'' and operation of the rebels' ''15 of September'' radio station, which broadcasts into Nicaragua from Honduras. The documents do not explain what is meant by ''security.''

The Kisan Indian rebel group received $350,198, but the largest share, $528,613, was devoted to the political umbrella group's activities in Costa Rica, according to the documents. The Costa Rican total included $160,001 for ''security.''

Some Nicaraguan exiles close to the umbrella group also said money went to pay for trips in which organization officials traveled with friends and spouses to Europe.