269. Telegram 288351 From the Department of State to the Embassy in Nicaragua1
288351. Subject: IDB Loan to GON and Human Rights in Nicaragua. Refs: (A) Managua 5201, (B) Managua 5104, (C) Managua 4395, (D) Managua 4141, (E) Managua 3798.
1. Executive Directors of the Inter-American Development Bank (IDB), including U.S. Director, voted November 18 to approve 15 million U.S. dollars agro-industrial loan for Nicaragua. USG decision to support the loan followed careful consideration of human rights situation in Nicaragua, in keeping with provisions of Harkin Amendment in the IDB Act.
2. As Embassy is aware, decision to approve the Nicaraguan loan required careful weighing of information indicating improvement in human rights picture against other, less encouraging signs. As Ambassador pointed out to President Somoza in August, complaints from Nicaraguan Church based on events in Siuna area raised serious question of whether GON had engaged in consistent pattern of gross violations of human rights, as referred to in Harkin amendment. Consideration also given to issues of detention incommunicado, treatment of detainees, provision of fair trials, etc. While trends over past few months are encouraging, underlying problem may very well persist. Congressional criticism of the GON and our bilateral dealings with
Nicaragua will certainly continue, probably in heightened form, and support of this loan proposal may become one specific point of controversy.
[Page 721]3. You should seek an interview with President Somoza at the earliest opportunity to discuss the background of our decision on the agro-industrial loan. You should reaffirm Assistant Secretary Shlaudeman’s statement to Somoza (reftel C) that we seek to preserve a cooperative relationship with the GON based on mutual interest. In this instance, we were gratified that recent developments in the human rights field permitted us to vote affirmatively on the agro-industrial loan. It should be noted that we are required by statute to base decisions on IDB loans on measurement of government practices with respect to internationally recognized human rights, as enumerated in the Universal Declaration of Human Rights. Reference should also be made to the restatement of the U.S. commitment to defend these rights made by Secretary Kissinger at Santiago. As noted by Shlaudeman, the Harkin amendment reflects a preoccupation with human rights standards which the Executive Branch shares with the Congress and the American people.
4. It should be emphasized that the concern evidenced by the Harkin amendment will continue and may well be accentuated in the future. Consequently, we will have to carry out similar determinations when future loan proposals come up in the IDB for Nicaragua and other recipients. The GON should be aware that any serious departure from recent trends on the human rights front could force us to vote against such loans, when they cannot be demonstrated to be of benefit primarily to the needy, as we did in July in the case of a Chilean application.
5. In discussing this matter with Somoza, you should stress our desire to avoid such a negative outcome. In this regard, it would be most helpful to us, and would seem to serve our mutual interests, if the GON could consider additional concrete steps to end the practice of holding suspected FSLN detainees incommunicado, without access to their families and legal counsel. Also helpful would be continued efforts to end mistreatment of detainees (including efforts to discipline or prosecute those who mistreat detainees) and the clearing up of the numerous cases of disappearances brought to Somoza’s attention by the Nicaraguan bishops in August (reftel D).
6. On a more general level, you should again ask Somoza about his intentions to carry through with his announced intention to lift the state of siege (reftel B). In light of recent GON successes against the FSLN, including elimination of Carlos Fonseca and other leaders, this seems propitious moment to terminate the suspension of constitutional rights and press censorship. Full restoration of regular judicial system and [Page 722] press freedom would do much to ameliorate GON’s continuing image problem here and elsewhere.
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Summary: The Department stated the U.S. Director on the board of the Inter-American Development Bank had voted to approve a loan to Nicaragua on the understanding that the human rights situation there had improved somewhat, but added that the Nicaraguan Government should be aware that any departure from recent encouraging trends could force the United States to oppose such loans in the future.
Source: National Archives, RG 59, Central Foreign Policy File, D760439–0228. Confidential. Drafted by Gowen; cleared by Charles Bray in ARA, and in draft by Weissman, Kenneth Hill in D/HA, and Charles Runyon in L/HR; and approved by Shlaudeman. Telegram 5104 from Managua is dated November 1. (Ibid., D760408–1095) Telegram 4141 from Managua is dated September 1. (Ibid., D760332–0620) Telegram 4395 from Managua is Document 268. Telegram 3798 from Managua is Document 266. In telegram 272372 to Managua, November 5, the Department requested an updated assessment of the human rights situation to determine if support for a proposed IDB loan was in keeping with provisions of the Harkin amendment, which required a negative U.S. vote on assistance to any country engaged in a consistent pattern of gross violations of human rights. (National Archives, RG 59, Central Foreign Policy File, D760412–0957) In telegram 5201 from Managua, November 8, the Embassy reported that there was no evidence of a pattern of gross violations at any time, that the situation appeared to have improved in the preceding months, and that it was receiving no new reports of abuses. (Ibid., D760416–0763) In telegram 131 from Managua, January 10, 1977, the Embassy reported that the substance of telegram 288351 had been communicated to Somoza. (Ibid., D770009–0148)
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