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Created: 9/1/1987

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Iha Resistance directorate and northern front military commander met with tha President onugust In Los Angeles,elegation of the directorate followed upesting with Speaker Wright onugust in Dsllss. In both meetings! the directors promoted their proposal for anunding plan calling foi approval of full funding but placement in escrow of the portion designated for lethal suppllee.

While the Administration formally welcomed the planusefulpeaker Wright was less enthusiastic. However, he did indicate in his conversations with the Resistance delegation that he believed some humanitarian assistance could be approved. One of the Resistance directors who attended the meeting with the Speaker described hi* as categorically rejecting any possibilityethal program, whether in escrow or not, but in the course of the meeting, softening this position, although never to the point of agreeing to lethal aid. He is also adamantly opposed to allowing the Administration to make the judgment about when to release any funds held in escrow, describing the Administration as having lost all credibility with the Congress.!

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The Resietance wasbe President and other ssnlor sdmlnlstr delegation that met with the Speaker fel meeting with the Speakern first-hand Impressions, and who fregu exchangee with Ssndlnlsta officialsiews. They think they have givennformation about the Nlcaraguan altuatl speaker's public appearance with them an considered the directors to bseek peace to be major steps forward.

APPROVES FCR RELEASE DATE:4 '

Combat activity ln the past week remained at about the ass* level aa before Esqulpulae and waa narked by several successful ambuaheei

ugust7 hallcoptar waa shot downantasna, while carryingroops, eieven of whom were killed, eight wounded, and three aieelng (and possibly captured). Managua clalna tha aircraft waa ahot downedeye nisallo, but we do not hava Independent confirmation from the field. (Daniel Ortega, in citing the ahootdown aa evidence of tJ.S. duplicityla the Eequipulae Accords, noted that the Resistance baa ahot downhelicopters.>

- *of Jlnotega reaulted in the

death of twoHilltary Region headquarters officere, including the deputy coavander.

eliteen EPS reaervlata were hilled and two wounded

in an ambush near La Trinadad. Th* hoapital inate

vicinity waa ao full that wounded had to be tranaperted to sat el1 *

everal flxed-wlng aircraft and hellcoptera opiating frosii-atagalpa and Julgalpa airfields were grounded ue to battle damage.

under the new leadership ofI

a Increasing lta activity and drawing additionalounter insurgency aasete into the aoutbern 5th unitary Region. i

_ _ South unite overran and deatroyed the garrison at La Fonseca, southeaat of Nueva Guinea onugust.

--There have been more thanttacks on bps garrisonsugust, but thla waa the Host successful to date by the ERM/soutb.

"1Twobattallona

" *vcanerax Staff, concern over the constant

tesrpo and acope of Resistance activity prompted it to Mobilize several reaerve battalions fro. thend

p-clflccities, for use in tha lat and 5th Military Reglone.

eaervlata have been training

ilitary Training Center, where someubans have alao been reported.

muilitary Regionmobilizederiod extending froa Auguet throughor the year, and many are undergoing artillery andactivity

ht hunter battalion engaged in combat operatione In Natagalpa repartaent recently waa ordered to

itacoiipanlea under the coaaand of a

probable Cuban edvleor and to follow hla in.truction.. that this particular unit may havearge

nuaber of new recruits or reeervlsts to fill ita ranka.

ss reachedevelhst EPS offieisls in the northwest hsvsommission including aeabere from the Mothers* Patriotic Hoveaent to assist in eteanlng the aanpower drain and the need to divert men and resources Into eo-calledunits whose sole Job is hunting down dsssrtere.

in virtually all the combat areao It-pur ted H materiel shortages, which in aany oeaee impaired or even

counter Insurgency operations. The lack of tlaely

IVlalb/ helicopters snd spot shortagea of fuelparticular concern to field units.

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Ocotsl is apparently becoalng the focal point for 1

"ordination of intalltgence snd operations in

northwest.

froa an air eurveillsnce rsdsr battalion,

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the Mixed Air Brigade, probably froa the Puntaheadquarters were being to Ocotal. Sandinista co&aandsrs in thie areathe need for aore positive control of

their own sssets, especially air, and better aynthesla of intelligence for uee at the tactical level.

Probably related development, the let Military

Region headguarteraell wss aleo developing plana forreaction companyellUft capability.

ew telecommunlcatlona network connecting ocotal to Ratell and other nearby allltia brlg.de garrison, haa been newly inatalled.

During the period since the laat report, five aerial resupply missions have been completed,4 pounds of suppllee snd equipment to Resistance forces. Total, since the resumption of United Stst.e- assistance u.Un. flownoundstons) of supplies delivered

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Original document.

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