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TOP SECRET SENSITIVE In addition to developing an interagency approved comprehensive legislative proposal to implement the recommendations of the NBCCA, actions must also be taken in the near term which will provide for a satisfactory improvement in the present crisis situation. Therefore, the following measures from the Action Plan outlined in the Restricted Interagency Group Report "Where Next in Central America, are approved as a means of ensuring the successful implementation of the NBCCA proposals: 1st The Secretary of State, in coordination with the Secretary of Defense and the Directors of Central Intelligence and Office of Management and Budget, should pursue, in particular, the following objectives/actions which are consistent with the NBCCA report: -- Nicaragua: Our approach to the Nicaraguan Government must focus on achieving the following: (1) Implementation of the democratic commitments made by the Sandinistas to the OAS in 1979. (2) Termination of Nicaragua's support to Marxist/ Leninist subversion and guerrilla activity in any foreign country. (3) Removal of Soviet Bloc/Cuban personnel and an end to Nicaraguan military cooperation with communist countries. (4) Reduction in the Sandinista military apparatus to parity within the region. (5) Intensified efforts in the Contadora forum to achieve the political and security objectives defined in the Contadora Document of Objectives, with emphasis on the need for a comprehensive package with concrete, verifiable provisions that do not allow Nicaragua to circumvent its commitments. (6) Review and recommend such economic sanctions against Nicaragua that are likely to build pressure on the Sandinistas. Due consideration should be given to the net economic impact on Nicaragua, to U.S. public affairs, and to Congressional concerns. An action plan on these sanctions should be provided for review by the NSPG by March 1, 1984. (7) Reemphasize to the Soviet Union, Cuba, and Nicaragua that we will not tolerate the introduction into Nicaragua of advanced fighter aircraft or Cuban ground forces. (IS) SENSITIVE TOP SECRET 007M H 11 COPIES