NSSD 2-87 Central America

ENECARSIFIED SECRET - 3 - -- whether the U.S. should encourage or undertake a more activist diplomacy, e.g. , President Arias' proposal to enlist Latin and European leaders in a call for democratization in Nicaragua; how to encourage a more activist diplomacy on the part of the four democracies, especially within Latin America; in addition to our standing admonition on jet fighter aircraft, possible new markers on their relations with Nicaragua which we should lay down with the Soviets that would establish explicit limits beyond which the United States would react; -- whether and under what circumstances the U.S. should conduct any talks with the Sandinista regime; whether diplomatic relations with Nicaragua should be continued and, if so, at what level; -- whether adjustments are needed in our security assistance in light of heightened security concerns in Honduras and the prospect of Nicaraguan promotion of terrorism in the region; -- whether changes should be made in our economic and security assistance for El Salvador to help the GOES deal with increased urban guerrilla activity, including front operations in the universities and labor unions; -- options for improving the economic situation in Central America, including aid levels and trade issues, including options for reviving intra-regional trade; (8) -- options for improving the political situation in Central America, e.g., measures to strengthen democratic institutions and to promote cooperation and mutual support among Central American democracies and from other democratic governments in Latin America; and -- a status report on implementation of the Kissinger Commission recommendations. tot This review shall be the responsibility of the Restricted Interagency Group on Latin America chaired by the Assistant Secretary of State for Inter-American Affairs. The report shall be submitted no later than February 13, 1987. (e) Ronald Reagan GECRET