,190
.,
SII(;I;I':STLIl I!EAIlINt:~
Inforprcss CcntrO,"llIll"ican;1 9a Calle "A," 3-56, z.l Guatemala Institute for Policy Studies Resource
Materials on U.S. Military Assis­
tance in Central America
Institute for Policy Studies 1901 Q Street, N.W. Washington, D.C. 20009 LADOC
Latinamerica Press Apartado 5594 Lima 100, Peru Latin America Update
Washington Office on Latin America
110 Maryland Avenue, N.W.
Washington, D.C. 20002
Latin American Perspectives
P.O. Box 792 Riverside, CA 92502 Latin America Weekly Report and Latin America Regional Reports: Mexico and Central America Latin American Newsletters Ltd.
91-93 Charterhouse Street
London ECIM 6UR, England
Monthly Review
62 W. 14th Street
New York, N.Y, 10011
NACLA Report all the Americas
North American Congress on Latin
America
151 W. 19th Street, 9th Floor
New York, N.Y. 10011
The Natio"
P.O. !lox lOS:! Marion, Ohio 13:J05 The National Catholic Heporter
P.O. Box 281 Kansas City, MO 64141 News from Guatemala
P.O. Box 335, Station R
Toronto, Ontario, Canada M1G 4C3
New Left Review
7 Carlisle Street
London WIV6NL
England
Newsletter of the Heligious Task Force
for El Salvador
1747 Connecticut Ave., N.W.
Washington, D.C. 20009
Nicaraguan Perspectives
Nicaragua Information Oenter
P.O. Box 1004
Berkeley, CA !H704
Socialist Review
4228 Telegraph Avenue
Oakland, CA 94609
Washington Report on the
Hemisphere
(Council of Hemispheric Affairs)
1900 L Street, N. W., Suite 201
Washington, D.C. 20006
Chronology of Events*
1821-Central America follows the example of Agustin Iturbide in Mexico
and declares independence from Spain.
1822-Central America joins Iturbide's Mexican Empire.
1823-Iturbide is overthrown and Central America declares itself indepen­
dent as the United Provinces of Central America.
1823-President James Monroe, fearing an attempt by Spain to restore its
authority over its rebellious New World colonies, declares that the United
States will tolerate no further European intervention in the affairs of the
nations of Central and South America.
1833-The first major peasant rebellion in EI Salvador occurs. It is led by
the Indian Anastasio Aquino.
1838 -The United Provinces of Central America collapses, and conservative
caudillos come to power.
1846-California is seized by the United States, starting talk of an inter­
oceanic passageway through Nicaragua as a way to shorten the journey
from New York to the West Coast.
18'18-Cornelius Vanderbilt establishes the Atlantic and Pacific Steam Co.,
which transports passengers across Nicaragua.
1854-The U.S. military destroys the Nicaraguan city of San Juan del Norte
in retaliation for an insult to the American Minister to Nicaragua.
1855 - North American adventurer William Walker invades Nicaragua, with
the aim of establishing a slave SLate there, and declares himself President.
1857-The U.S. military, with help from Vanderbilt, invades Nicaragua in
an attempt to overthrow Walker. Walker is ultimately defeated by a force
of Costa Ricans at Rivas.
1880-191O-The feudal hacienda system of EI Salvador usurps large tracts
of communal peasant land for coffee-growing. Peasants evicted from these
lands are forced to become sharecroppers and bondservants.
"Sources from which this chronology was taken include the foltowing: El Salvador:
Background to the Crisis (Central America.n Information Office, 1982); Arnon Ha.dar,
The United States and El S,t/vador: Political and Military Involvement (u.s.-m Salvador
Research and Information Center, 1981); San Francisco Examiner, "The Tortured Land:
Key Dates ill the History of Central America," July 25, 1982; and the articles appearing
in this volume.
491
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1899-Minor Kcith, a North A!lll'ric<1n, rounds tit(' Unitl·d
in Honduras.
Frllit.
Company
1903-U.S. military intervcnt.ion in Honduras t.o proted U.S. illtncHt.s.
1903 Thc United States sponsors a revolt in Panama resulting ill l'anama's
independence from Colombia, which clears the way for the cOTl~truction of
the Panama Canal.
1903-04-A series of U.S. military interventions in Panama during and
following the revolt. against Colombia.
1904-President Theodore Roosevelt adds the Roosevelt Corollary to the
Monroe Doctrine. Under the Corollary, the U.S. takes on thc role of an
"international police force" in Central America.
1907--U.S. military intervention in Honduras during a war between Hon­
duras and Nicaragua.
1909--Conservative revolt supported by U.S. marines in Nicaragua over­
throws Libcral government of Jose Santos Zelaya.
1914--Panama Canal opens.
1912-25-Prcsence of U.S. Marines maintains Conservatives in power in
face of continued Liberal rebellion in Nicaragua.
1920-U.S. military intervention in Guatemala during a period of fighting
between trade unionists and the government.
1921-Unrest in San Salvador. Women strikers are killed and a shoemakers'
strikc is brutally crushed.
1924-Regional Federation of Workers of El Salvador is established with
80,000 members; it afftliates with thc Central American Workers I"ederation.
1925-Strikes and rent riots in Panama lead to the landing of about 600
U.S. troops.
1928-34-Augusto Sandino leads a guerrilla war against U.S. forces in
Nicaragua. The U.S. forces leave in 1934, but Sandino is killed by the
U.S.-trained National Guard of Anastasio Somoza Garda aftcr having been
tricked into disbanding his guerrilla army. Somoza initiates a dynasty
which rules Nicaragua for the next 45 years.
1931-The Communist Party of El Salvador wins a number of municipal
elections. General Mart..inez, the military dictator, refuses to accept the
electoral results.
1931-44-Martfnez rules El Salvador for 13 years, his
industrial ization.
preventing
1932-Brutal suppression of a peasant uprising in EI Salvador results in the
massacre of up to 30,000 men, women and children. The vast majority of
the victims are killed alter the uprising has been stamped out. Indians are
the target of especially brutal repression, and the massacre has the effect
of wiping Ollt indigenous culture. The massacre has become known as la
trwt,;!l!za, the slaught"L AglistiH Farahulldo Marti, a h';ld('r of 1.11('
was arrested by the govern men t a I'ew days before the massacre.
HI.I
IH·a~:tIl!.ll,
1944-·-Ncrvous about popular unrest in EI Salvador, the Unitcd States
advises General Martinez to rcsign. Military rule continues.
1948-The Partido Revolucionario de Unificacion Democratica (Revolution­
ary Party of Democratic Unification-PRUD) is founded in EI Salvador. Its
leader, Oscar Osorio, is president from 1950 to 1956. This is the beginning
of a period of industrialization.
1954-The democratically elected, progressive government of President Ar­
benz in Guatemala is ovcrthrown in a U.S.-sponsored coup carried out by
the CIA, initiating a string of .military governments that has continucd up
to the present.
1961-Frente Sandinista dc Liberacion Nacional (Sandinista National Lib­
eration Front) is founded in Nicaragua.
1961-The right-wing anti-communist group ORDEN is founded in EI Sal­
vador by General Jose Alberto Medrano.
1961-The Central American Common Market is formed.
1969-The Soccer War breaks out between EI Salvador and Honduras. The
Central American Common Market collapses.
I970-present---Period of increasing violence and civil war throughout the
region. Civil wars in Guatemala, Nicaragua and EI Salvador. Intensified
repression by government forces and right-wing death squads. Growth of
popular movements and guerrilla organizations.
1977-Carter Administration cuts off military aid to Guatemala because of
continuing human rights violations there.
Jan. 10, 1978-Managua newspaper editor Pedro Joaquin Chamorro, lead­
ing critic of the Somoza regime, is assassinated, presumably at the orders
of dictator Anastasio Somoza Debaylc. The death of the widely respected
editor sparks rioting and serves as a catalyst in bringing together anti­
Somoza forces.
Aug. 22, 1978-A group of 25 Sandinistas led by Commander Zero-Eden
Pastora-takes the National Palace in Managua, holding 1,500 hostages,
including 49 deputies of the national assembly. The two-day occupation
focuses world attention on Nicaragua and the Sandinistas.
19, 1979-Sandinista forces begin their final offensive from Costa Rica.
June 20, 1979-ABC correspondent Bill Stewart is murdered by a National
Guardsman in Managua in full view of U.S. tclevision cameras.
17, 1979-Somoza resigns and goes into exile in Miami. His National
Guard surrenders to the Sandinistas two days later.
Oct. 15, 1979--Reform-minded officers in EI Salvador overthrow the dic­
tatorship of General Carlos Humber to Romero.
Jan. 3, 198rJ.Mass resignations from the Salvadorean government, includ­
ing the three civilians in the junta.
('IIIlIl',(11
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Marcil 6, 1980 The Salvador{':tn junta allflOUfl"{'S plans for agrarian [(·forlll.
This is followed by an upsurge in gov('rIlIllI'nL repression,
March 0, 1980--A third Salvadorean junta is formed . .Jose Napole(ln Duartc
of the PDC joins the junta. Mass PDC defections by IllclllbNS unwilling to
be associated with the government follow.
March 24, 1980-Salvadorean Archbishop Oscar Arnulfo Itornero, an out­
spoken opponent of government repression and spokesman for the needs of
the poor of EI Salvador, is assassinated by a sniper while celebrating mas~.
March 27, 1980-USAID grants 13 million dollars in aid to El Salvador.
April 1, 1980-U.S. House of Representatives Appropriations Committee
approves $5.7 million in military aid to EI Salvador.
April IS, 1980-The Frente Democratico Revolucionario (Democratic Rev­
olutionary Front--FDR) is formed in EI Salvador.
May 14, 1990-Massacre of Salvadorean peasants trying to flee into Hon­
duras at the Rio Sumpu!. Six hundred killed by Salvadorean troops acting
in unison with Honduran forces.
Oct. 4, 1980--The Salvadorean Army begins a military offensive in Morazan,
resulting in 3000 peasants killed and over 20,000 refugees.
Nov. 27, H/SOSix leaders of the FDR are kidnapped in San Salvador with
the assistance of the military; later their tortured bodies are found.
Dec. 2, 1980- Four religious workers from the U.S. are killed after returning
to EI Salvador from a short trip. Their bodies are found in shallow graves
near the airport. Members of El Salvador's National Guard are blamed
for their deaths. Three days later President Carter suspends all aid to El
Salvador. The women's murderers have yet to be brought to justice.
Dec. 13, 1980--Jose Napoleon Duarte, a member of the junta since March,
is named president.
Dec. 15, 1980-U.S. economic aid to El Salvador is resumed. Total for 1980
is $150 million.
Jan. 5, 1981· North Americans Michael Hammer and Mark Pearlman,
working as advisers to EI Salvador's agrarian reform program, together with
Jose Viera, head of the Salvadorean agrarian reform agency, are gunned
down in San Salvador.
Jan. 10, 1981-Guerrillas' unsuccessful "final offensive" launched in El
Salvador.
Feb. 10, 1981-The new Reagan administration gives an aid package of
$64 million to EI Salvador and suspends aid disbursement of $15 million to
Nicaragua.
Feb. 23, 1981-State Department relea.'les a white paper showing what it
calls "definitive evidence" that leftist rebels of El Salvador are receiving
arms and training from communist countries, especially Cuba, with the
help of Nicaragua.
( '111 ",,,,I"I:Y
·1!I~1
{v/:t,,/, :I, UI.'i/ l{"agan adillinistration allIlOllrIC('S that :.m IllOrp U.S. mili­
tary advisns will be sent to EI Salvador, bringing the total Humber to
more than 50. It also announces $25 million in additional military aid to
El Salvador.
June 1981-Credibility of State Department's white paper destroyed by
several articles in the U.S. press which refute it on every point.
Aug. 28, 1981-Mexico and France issue a joint communique recognizing
the FDR-FMLN, the umbrella organization of the Salvadorean opposition,
as a "representative political force."
Nov. 29, I98.1-·Roberto Suazo Cordova elected president of Honduras.
March 15, I982--Amid growing tension with the United States, the San­
dinista government declares a state of emergency in Nicaragua.
March 23) 19S2-A military coup in Guatemala overthrows the lame-duck
government of Romeo Lucas Garcia after Garda's candidate, Gen. Anibal
Guevara, had been declared the winner in allegedly fraudulent elections. A
three-man junta takes over, led by retired General Efraln Rios Montt, a
born-again Christian with ties to U.S. evangelical organizations.
March 28, 1982-In the midst of civil war and government repression,
and under a state of siege, elections are held in EI Salvador. They
result in a victory by right-wing part,ies which threaten to squeeze the
Christian Democrats remaining in the government out of power. Roberto
D'Aubuisson, former death-squad leader, becomes head of the new Con­
stituent Assembly.
May 19, 1982-The Salvadorean Constituent Assembly, now dominated by
parties to the right of the Christian Democrats, calls a halt to the agrarian
reform.
June 9) 1982- Rios Montt drops the other members of the junta and takes
over as sole leader of Guatemala.
June 3D, 1982~·Montt announces a state of siege in Guatemala and declares
war on leftist guerrillas, whom he says will be executed upon conviction.
July 27, 1982-Reagau certifies that the human rights situation is improv­
ing in EI Salvador and that reforms are proceeding there, contrary to
evidence from international human rights monitoring agencies and other
groups. In the period immediately following the certification, government
killings of civilians soar.
(:IIIU )~()\,()(;y
CHRONOLOGY spa alld land ('Xt'n'isl's ill alld arollnd 1I0lllhll,I\ 10 illtililidalt'
Ni('arag:lla, (:lIha, alld till' Salvadoran 1'I,lll'k
JULY 2H: For thl' first lilllt' sin('(' Ikag:all took olli('!'. the
HOllst' volt's down contra aid.
1984
1981
JANUARY 20: Ronald Reagan inaugurated as President.
APRIL 1: Reagan terminates $118 million in U.S. aid to
Nicaragua (obtained by Jimmy Carter) despite report of the U.S.
ambassador in Managua that Sandinistas had halted transshipment of
arms to leftist guerrillas in El Salvador.
APHI L: At a lIIt'ding with CIA Director William Casey,
Honduran arlllY Colollel Gustavo Alvarez Martinez proposes that the
lfnitt·d Stah's back anti-Sandinista insurgents based in Honduras in
a plall II'ading to direct U. S. inh'rvention to oust the government in
Managua.
AU (; UST: Casey's newly appointed operations director for
Latin Allwriea, Duane Clarridge, twice visits Honduras to signal
U. S. go-ahead for Alvarez proposal.
AUGUST 11-12: Assistant Secretary of State Thomas Enders
discusses a negotiated resolution of differences with the Sandinistas,
centering on their military buildup and support for leftist insurgen­
cies.
AUGUST 11:
in Guatemala. 17
Nicaraguan Democratic Forces (FDN) formed NOVEMBER 16: Reagan approves proposal to provide
$19.95 million in support for contra rebels.
1982
AUGUST 20: Enders outlines U.S. policy on Nicaragua in
San Francisco speech, adding democratization to list of U.S. condi­
tions for normal relations.
DECEMBER 8: Democratic-controlled House bans covert
aid for purpose of overthrowing the Sandinistas.
1983
MAY 27: Enders fired; Tony Motley appointed to replace him.
JULY-DECEMBER: U.S. military stages unprecedented
16
JANUAHY-FEBHUAHY: CIA mines Nicaraguan harbors. MARCH 31: Alvarez ousted in Honduras. MAY: NSC adviser Robert McFarlane secures Saudi pledge $1 million a month to contras.
JUNE 1: Shultz travels to Managua and launches new nego­
tiating round aimed at resolving U. S.-Sandinista differences.
SEPTEMBER 5-6: U.S. envoy presents U.S. position at
Manzanillo.
OCTOBER 10: Congress suspends U.S. aid to contras.
NOVEMBER 4: Daniel Ortega elected president in Nicara­
gua.
NOVEMBER 6: Reagan reelected in forty-nine-state land­
slide.
1985
JANUARY 18: United States announces suspension of Man­
zanillo talks.
FEBRUARY 11: Saudi king Fahd pledges another $24 mil­
lion to contras, for total of $32 million.
APRIL 30: Motley resigns; replaced by Elliott Abrams.
MAY 1: U.S. economic embargo against Nicaragua.
JUNE 12: House approves $28 million in "humanitarian" aid
to contras.
JUNE 30-JULY 1: After meeting contra military leaders in
Miami, Oliver North implements plan to raise funds and deliver arms
to contras through offshore enterprise managed by Richard Secord.
DECEMBER 6: North tells Israeli official of plan to divert
profits to contras from secret sale of arms to Iran.
1986
JUNE 25: House approves $100 million, including $70 million
in military aid to contras.
OCTOBER 5: U.S. supply plane shot down over Nicaragua.
Crew member Eugene Hasenfus parachutes into captivity.
... 18
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NOVEMBER 3: U.S. arms-for-hostages talks with Iran re­
vealed in Beirut magazine.
NOVEMBER 4: Democrats win control of the Senate.
NOVEMBER 25: U.S, aid diversion to contras revealed by
Attorney General Edwin Meese; Oliver North fired, John Poin­
dexter resigns.
DECEMBER 15: CIA Director William Casey disabled by
stroke.
1987
AUGUST 5: Wright-Reagan plan for peace presented.
AUGUST 7: Central American leaders agree to peace plan
drafted by Costa Rican president Oscar Arias.
NOVEMBER 5: Sandinistas announce readiness for indirect
talks with contras.
1988
JANUARY 15-16: At Central American summit, DanielOr­
tega agrees to direct talks with contras, lifts state of emergency.
FEBRUARY 3: House defeats contra funding request, killing
the military aid program.
MARCH 11: Robert McFarlane pleads guilty to misde­
meanor charges arising from Iran-Contra affair.
MARCH 16: John Poindexter, Oliver North, Richard Secord,
and Albert Hakim indicted on criminal charges.
MARCH 16: Reagan dispatches 3,200 troops to Honduras in
a "show afforce" after a reported Sandinista incursion into Honduras.
MARCH 23: Sandinista and contra leaders sign tentative
cease-fire.
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251
Companies by Country and by Category
Appendix II.
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Dollars and Dictators Chronology 1900·1982
","<"v
",0
1901
United Fruit is the first transnational corporation to arrive in Guatemala.
1903 Senate of Colombia refuses to permit United States to build a canal through
its territory of Panama. President Theodore Roosevelt supports a Panamanian
revolt. Panama becomes independent and signs Canal Treaty with United
States.
33
9
4
7
11
4
15
64
31
23
34
52
40
27
13
346
54
34
2
5
33
34
28
8
244
1904 Panama establishes a monetary system based on U.S. dollar.
16
3
10
5
7
3
15
o
84
1905
U.S. troops land in Honduras five times during next 20 years.
79
40
13
24
54
17
46
12
378
1908
U.S. troops land in Panama four times during next ten years.
20
184
72
91
196
143
164
41
1,493
1911 United States places Nicaragua under a customs receivership and controls
Nicaragua's trade revenues for next 38 years.
1912 Over next 20 years U.S. Marines repeatedly occupy Nicaragua.
1914 Panama Canal completed.
1919 Unions from EI Salvador, Nicaragua, and Honduras JOin short·lived Pan­
American Federation of Labor which is sponsored by American Federation
of Labor.
1920 President Coolidge announces Evart Doctrine to justify U.S. intervention in
internal affairs of Latin America in order to protect U.S. foreign holdings.
1921
President Coolidge pressures Guatemala to overthrow President Carlos Herrera,
enabling United Fruit to expand.
1926
For seven years, Augusto Sandino, "General of Free Men," leads strong oppo­
sition against U.S. Marines' occupation of Nicaragua.
1929 International Railways of Central America, a United Fruit affiliate, connects
Guatemalan and Salvadoran railways. IRCA also operates banana railroads in
Costa Rica and Honduras. .
1929 Great Depression in United States adversely affects all Central American
economies.
1931
New dictators Jorge Ubico of Guatemala and Carias Andino of Honduras
receive immediate support of U.S. government. In EI Salvador dictator
Maximiliano Hernandez takes power.
1932
Farabundo Marti leads peasant uprising in EI Salvador. U.S. warships stand by
during the military massacre of Salvadoran peasants that follows.
ommerce, U.S. Direct Investment Abroad 1977, April 1981.
1933
President Franklin Roosevelt announces Good Neighbor Policy for Latin
America and declares that United States is opposed to armed intervention.
lmerce Included the U.S. investment in all foreign affiliates
at least 10% of a corporation or business enterprise. Not
assets, sales or income less than $500,000.
1933
102
U.S. Direct Investment by Country 1977
(millions $)
Total
Assets
Total
Number U.S. Direct
Net
Income Income Employees Investment
30
426
281
755
369
527
8,873
19
469
463
735
510
463
2,361
3
15
32
4
30
32
472
416
22,524
9,614
22,904
25,830
11,084
23,073
21
178
79
155
157
108
2,442
1,261
5,020
588
115,445
3,140
:!
\
Before U.S. Marines leave Nicaragua, United States sets up National Guard
and appoints Somoza Garcia as commander-in-<:hief.
,',
4
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252
253
1945
U.S. government starts to provide credit for purchase of U.S. exports through
provisions of Export-Import Bank Act.
1947
U.S.-sponsored Rio Pact stresses cooperation between United States and Latin
America against external attack.
1948
An anti-communist revolution led by Jose Figueres and supported by United
States is successful in Costa Rica. Figueres, three-time president of Costa
Rica, later admits to his connections with CIA.
1
1961
OPS is transferred to AID and program expanded.
1962
National Sandinista Front for Liberation (FSLN) forms in Nicaragua.
1962
U.S.-sponsored Operation Brotherhood, forerunner to CONDECA, stages
military exercises with participation by Honduras, Guatemala, Nicaragua, and
EI Salvador.
1962
American Institute for Free Labor Development (AIFLD) founded to "respond
to threat of Castroite infiltration and eventual control of major labor move­
ments within Latin America."
1964
U.S. suppression of Panama's Flag Riots which protest U.S. dominance in
Panama leaves 28 dead and over 300 wounded.
1964
United States sponsors formation of CON DECA to coordinate Central American
military action against internal subversion.
1964
ADELA forms "to promote economic and social progress in Latin America by
encouraging development of the private enterprise sector."
1965
United Brands acquires Numar, a Costa Rican margarine pla~. It continues to
diversify its ownership along with two other banana companies, Standard
Fruit and R.J. Reynolds.
1948
President Truman sends first U.S. military training mission to EI Salvador.
1948
Organization of American States (OAS) is founded.
1950
U.S. direct investment in Central America totals $313 million.
1951
U.S. Congress passes Mutual Security Act, which makes funds available to
strengthen Latin American armies for hemispheric defense.
1951
Inter-American Regional Organization of Workers {OR IT) forms with backing
of U.S. Department of State.
1953
Colon Free-Trade Zone in Panama is created from a proposal by a vice-president
of National City Bank of New York.
1954
President Eisenhower approves Operation Success which allows CIA to direct
coup d'etat in Guatemala.
1966
U.S. Special Forces coordinate Operation Guatemala, a counterinsurgency
campaign which kills over 8,000 people. 1954
A successful strike by Honduran banana workers opens way for widespread
organizing among other Honduran workers.
1967
Association of American Chambers of Commerce in Latin America (AACCLA) is established.
1957
President Eisenhower establishes Office of Public Safety (OPS) to train Latin
American police.
1968
Salvadoran Communal Union (UCS) forms with AIFLD's assistance.
1958
1959
1959
1960
1960
1960
1961
General Omar Herrera Torrijos comes to power in Panama.
1968
David Rockefeller initiates U.S. Inter-American Council to promote develop­
ment of private sector in Latin America.
U.S. government creates Inter·American Foundation to "strengthen the bonds
1969
of friendship" between Latin America and United States.
Inter-American Development Bank forms to channel multilateral grants and
loans to Latin America.
1970
U.S. direct investment over last decade more than doubles to a new total of
$1,732 million.
Fidel Castro leads guerilla army to victory in Cuba.
1970
David Rockefeller-led Council of the Americas supersedes Council for Latin
U.S. direct investment over last decade more than doubles to a new total of
America and supports establishment of Panama's International Finance Center.
$747 million.
1970
International Finance Center is established in Panama City.
United States uses Guatemala and Nicaragua to stage an invasion of Cuba.
1970
U.S. corporations form Latin American Agribusiness Development Corpora­
tion (LAAD) to promote production of non-traditional exports from Latin
Panama Canal Zone becomes a key center for training in counterinsurgency.
America.
Central American Common Market (CACM) is established. U.S. corporate
1971
Over next four years three separate guerilla organizations form in EI Salvador.
investment in Central America dramatically increases.
1961
Foreign Assistance Act states that U.S. aid should be used to assist U.S.
economy.
1971
1961
Agency for International Development (AIO) is established.
1974
1961
1961
Overseas Private Investment Corporation (OPIC) is created to insure and guar­
antee U.S. investors.
U.S. Congress abolishes OPS upon discovery that police are being trained in
torture techniques.
President Kennedy creates Alliance for Progress to promote economic develop­
ment of Latin American countries.
1974
Five Central American countries form Union of Banana Exporting Countries
(UPEB) to increase their control in banana market.
Central American Bank for Economic Integration (BCIE) is formed.
254
255
1975 In Honduras, United Brands pays a $1.25 million bribe to lower banana tax,
and save company $7.5 million in taxes.
March United States suspends aid to Nicaragua claiming that Cuban arms are moving to EI Salvador through Nicaragua. 1975 Offshore light assembly industries start to locate in Central America because
of cheap labor and tax incentives.
July Panama's Torrijos dies in plane crash.
Aug 1975 Harkin Amendment states foreign assistance won't be sent to governments
with gross human rights violations.
A team of 21 U.S. military advisors, including four Green Berets, arrives in
Honduras.
1977 1977 1977 1
Aug Americas Society forms as an umbrella organization to coordinate activities
Honduran soldiers arrive in Standard Fruit's railroad cars to destroy success­
of various institutions promoting private sector development in Latin America.
ful Las Isletas banana cooperative.
Sept Belize gains independence from United Kingdom.
Guatemala and EI Salvador reject U.S. aid because of human rights attach­
ments.
No" United States authorizes $19 million to CIA to destabilize Nicaraguan govern­
ment.
Comunbana forms as marketing arm of UPEB. In Panama, United Brands re­
fuses to load Comunbana ships and government threatens to nationalize
No" Suazo Cordova is elected president of Honduras and later appoints Colonel
United Brands acreage.
Gustavo Alvarez as commander·in-chief.
1979 Panama Canal Treaties establish joint United States-Panamanian control over
Panama Canal.
Dec U.S.-trained Salvadoran Brigade, AtJacatl, is responsible for murdering 1,000
civilians during search and destroy missions.
1979 President Carter sets up airborne Caribbean Task Force.
1979 1982
Jan
Nicaragua's FMLN triumphs over dictator Anastasio Somoza Debayle.
Reagan Administration begins bringing 1,600 Salvadoran soldiers and officers
to United States for training.
1980 Jan U.S. direct investment over last decade more than doubles to a new total of
$4,223 million.
President Reagan proposes Caribbean Basin Initiative (CBI) which significantly
increases U.S. economic aid to Central America. At same time he also proposes
increases in military aid for Central America.
1980 EI Salvador's Archbishop Oscar Romero writes a letter to President Carter
asking United States to stop military aid to EI Salvador. A month later
right-wing terrorists murder Romero.
Jan With U.S. prodding, Costa Rica, EI Salvador, and Honduras form Central
American Democratic Community (CDC) to stimulate private sector develop­
ment and to provide mutual aid in case of external aggression.
"
1:1
1980 In Guatemala workers win a five year union struggle against Coca-Cola.
1980 Amigos del Pais and Guatemalan Freedom Foundation hire U.S. public rela­
March Military coup d'etat in Guatemala.
tions firms to launch a campaign in United States praising Guatemalan govern­
ment.
March Roberto D'Aubuisson becomes president of National Assembly and Alvarado
Magana president of EI Salvador.
AIFLD sponsors agrarian reform program in EI Salvador.
1980 Feb May In Guatemala, four main guerilla groups form Guatemalan National Revolu­
tionary United (URNG).
Luis Alberto Monge becomes president of Costa Rica, taking place of Rodrigo
Carazo.
1980 A coalition of over 50 mass organizations join together to form Revolutionary
Democratic Front (FOR) in EI Salvador.
1980 June General Efrain Rios Montt becomes president and commander-in<hief of
Farabundo Marti Liberation Front (FMLN) is established as umbrella organi­
Guatemala.
zation for the five guerilla organizations of EI Salvador.
1980 AID funds Caribbean/Central American Action (C/CAA) to promote private
sector interest in region.
1980 Four U.S. churchwomen killed by military in EI Salvador.
stops military aid.
1980 Two guerilla organizations come in public view in Honduras.
1981
Jan
United States resumes military aid to EI Salvador. Reagan bypasses Congress
to send additional military aid to EI Salvador.
Feb United States sponsors a peace treaty between EI Salvador and Honduras.
United States
July Aristides Royo exits as president of Panama and former vice president Ricardo
de la Espriella enters, marking a move to the right with increasing influence of
the National Guard.
Aug UN High Commission on Refugees reports it has 287,000 registered refugees
in Mexico and Central America.
Aug Congress passes a revised CBI proposal and additional military aid for Central
America increasing fiscal year 1982 economic aid for Central America by
$200 million and military aid by $12 million.
f
Iii!
I'
lathing could be further from
We've run it for the benefit of
$200 million a year into the
Jrity. And that shouldn't be
h a regime in Panama that so
n people.
j me your contribution so we
again against a strong U.S.
th deep concern,
Chronology
The following outline of events relevant to
United States-Panama relations is adapted
from a chronology by Jane Franklin with the
permission of the author.
nald Reagan
1856-1989: On at least 16 occasions, United States intervenes militarily in Panama. From 1903 U.S. troops are permanently stationed there. Majority of invasions, which involve sending additional troops and weaponry, are carried out to suppress insurrections and to retain property United States had seized in Panama. 1903: U.s. show of military force in Panama accelerates its struggle to break away from Colombia. Treaty to build Panama Canal is "negotiated" and signed in United States by French businessman "representing" Panama. 1914: Panama Canal opens. United States takes control of 1O-mile-wide zone in middle of country. Segregation imposed in Canal Zone against nonwhites. U.S. employees receive wages twice those of Panamanians. 1958: After popular protest, United States agrees to fly both U.S. and Panamanian flags in Canal Zone. 1959: Panamanians march into Canal Zone to raise Panamanian flag on Indepen­
dence Day, are turned back by U.s. troops. 1964: Panamanians march into Zone on January 9 after U.s. students raise only U.s. flag. U.S. troops kill more than 20 Panamanian civilians and wound more
than 300. Panama breaks diplomatic relations with United States. Relations
resume after United States agrees to discuss new treaty.
1968: Cot. Omar Torrijos overthrows government of wealthy landowners and
becomes head of more nationalist military government. Period of reforms begins
with expansion of literacy, education, health, rural development, trade union
organization and wage laws. Blacks, Mestizos and Indians are appointed to
government positions for first time. General Manuel Antonio Noriega becomes
head of armed forces.
1972: Ruling Junta is confirmed by election. 1977: Three treaties known as Torrijos-Carter treaties are signed. Key provisions 131
132 Chronology
include total return of U.S. military bases and Canal Zone to Panarna by year 2000; no interference in Panama's internal affairs; and restrictions on U.S. military presence in Panama. Chronology 133
June 1989: U.S. Justice Department issues opinion that United States can carry out arrests in foreign countries without approval of their governments. 1980: Ronald Reagan campaigns for President with promise not to give up Canal. September 12, 1989: Bush Administration again expands sanctions, including withdrawing 1989 sugar quota and adding to list of companies and individuals barred from doing business with U.s. citizens and traveling to United States. 1981: General Torrijos is killed in airplane crash. October 3, 1989: Noriega puts down coup attempt supported by U.S. government. 1983: General Noriega is named Commander of newly created Panamanian Defense Forces. October 17, 1989: Bush Administration supports wider role for CIA in coup attempts, complaining that restraints about possible death of targets is too limiting. 1985: Relations between Noriega and United States become hostile after Panama rebuffs demands of Admiral Poindexter, Reagan's National Security Adviser, to collaborate on invasion of Nicaragua. November 1989: U.s. government announces that after January 31, 1990, it will bar vessels registered in Panama from entering U.s. ports. This forces other countries to pressure the Panamanian government, as majority of countries in world use Panamanian registry for commercial vessels. 1979: Treaties take effect; 65% of the Zone reverts to Panamanian control. 1986: U.S. government proposes turning over Canal by 1990 if agFeement is reached to allow u.s. bases to remain until 2015. December 20, 1989: United States invades Panama. September 24, 1987: U.s. Senate approves resolution demanding that Panama change its government or face a cutoff of U.S. aid. February 4, 1988: Noriega is indicted by Federal grand juries in Miami and Tampa on drug trafficking. February 8, 1988: Noriega demands withdrawal of U.S. Southern Command headquartered in Panama. February 26, 1988: National Assembly (the Congress of Panama) blocks move by President Delvalle to remove General Noriega. Delvalle is removed for violating Panamanian Constitution (similar to impeachment). Washington continues to recognize Delvalle as President after National Assembly names Solis Palma as Acting President. March 11, 1988: Reagan Administration imposes sanctions, including restrictions on trade and withholding of Canal fees. April 1988: Reagan Administration increases economic sanctions. U.S. govern­
ment and private U.S. companies are prohibited from making payments to Panama; $56 million in Panamanian funds in U.S. banks frozen; United States sends additional 2,000 troops to Panama in violation of 1977 treaties. United States gives $1 0 million to Guillermo Endara as presidential candidate. Many more millions are reported to be given covertly. (U.S. election law bars candidates from receiving foreign contributions.) May 25, 1988: U.S. Secretary of State George Shultz announces talks on deal for Noriega's departure have collapsed. May 7,1989: Presidential election takes place. Panamanian government nullifies results on May 10 because of u.s. interference. Bush Administration sends 2,000 more troops to Panama. U.s. military starts staging regular military maneuvers on Panamanian territory in violation of treaties. Over 100 such acts take place. Panama appeals to United Nations for observers and assistance in stopping U.S. military activity. May 11, 1989: President Bush recalls Ambassador Arthur Davis. Begins sending additional 1,700 soldiers and 165 Marines to Panama. ,
516
Appendix 2
Solano, Angel Edmundo: Monge's first Security Minister, who
tried to uphold Costa Rica's neutrality policy. Removed in August 1984. SoIls, Ottem: Arias's first Minister of Planning and critic of AID's
policies, including denationalization of the banking system.
Spadafora, Dr. Hugo: Panamanian doctor who fought with Pastora
in wars against Somoza and the Sandinistas. Leading oppo­
nent of Noriega. His grisly September 1985 murder remains
unsolved.
Tacsan, Col. Francisco: Monge government Security Ministry
liaison to CIA who was involved in La Penca plot.
Tambs, Lewis: U.s. Ambassador to Costa Rica, July 1985-Jan.
1987, who worked closely with North to construct Santa
Elena airstrip. Left in wake of Iran-contra scandal and later
declared persona non grata by Legislative Assembly.
Taylor, CoL John: Head of security at u.s. embassy and AID
throughout much of 1980s. Heavily involved in covert activi­
ties and met secretly with North just before La Penca bombing.
Terrell, Jack: Worked with contra private aid network, became
disillusioned, and played important role in uncovering covert
activities.
Torbiornsson, Peter: Swedish journalist with whom La Penca
bomber traveled in weeks before attack.
Vidal, Felipe: Cuban-American terrorist, CIA operative, and drug
dealer who headed the International Brigade and worked with
John Hull. Fugitive from Costa Rican murder charges stem­
ming from La Penca bombing.
Winsor, Curtin: U.s. Ambassador to Costa Rica, June 1983-early
1985. Outspoken opponent of Sandinistas and Costa Rican
neutrality.
Wolf, Victor: Costa Rican CIA collaborator who allowed his
Guanacaste ranch "Las Loras" to be used by contras and drug
traffickers.
APP(NOIX)
Chmnology of[vrnl5 "
l
1948-1949 • Costa Rican Civil War followed by abolition of
army, enfranchisement of women, outlaWing of Popular Van­
guard Party (PVP) , and nationalization of banks.
1951 • National Liberation Party (PLN) formed by Jose Figueres.
1961 • Free Costa Rica Movement (MCRL) founded.
1975 • PVP again legalized.
t
1978 • Rodrigo Carazo becomes president. • Costa Rica's severe
economic crisis begins. • Costa Rica qUietly supports Sandin­
iSlas' military operations along border with Nicaragua.
Aug. 22, 1978 • Sandinista guerrillas, led by Eden Pastora, seize
Gen. Anastasio Somoza's National Palace in Managua.
July 19, 1979 • Sandinistas topple Somoza dictatorship in Nica­
ragua.
Oct. 10, ] 979 • Santlinista hit team kills Somocista leader Co­
mandante Bravo (Major Pablo Emilio Salazar) in Honduras.
June 1980 • U.S. Ambassador Frank McNeil arrives.
Sept. 17, 1980 • Argentine led hit team working for the Sandinis­
tas assassinates deposed Nicaraguan dictator Anastasio So­
moza in Paraguay.
Dec. 13, 1980 • Contra war launched with attack by September 15th Legion against Radio Noticias del Continente, a leftist radio station in Costa Rica.
Jan. 20, 1981 • Ronald Reagan sworn in as U.s. President.
1981 • U.S. resumes military assistance after 14-year hiatus.
March 9, 1981 • Reagan signs his first Presidential Finding au­
thorizing $19.5 million for CIA operations in Nicaragua.
July 8, 1981 • Pastora resigns as Nicaragua's Vice Minister of
Defense and goes into exile.
Aug. 1981 • Brooklyn Rivera goes into exile .• Costa Rica be­
comes first Latin American country to cease debt payments.
~
517
518
Appendix 3
Appendix 3
519
Aug. 11,1981 • In Guatemala City, FDN (Nicaraguan Demo­
cratic Force) formed.
Nov. 1981 • Misura launches "Red Christmas" offensive along
Coco River, marking start of contra war on Nicaragua's
Atlantic Coast.
Feb. 1982 • Pastora meets with CIA official Duane Clarridge and
agrees to open Southern Front. • Daniel Chaij, Director of
AID (U.s. Agency for International Development) in Costa
Rica arrives.• A Sandinista commando unsuccessfully tries
to kill Negro Chamorro in his San Jose apartment.
April 1982 • Alfonso Robelo leaves Nicaragua for exile in Costa
Rica.
April 15, 1982 • Pastora publicly breaks with Sandinistas at San
Jose press conference.
May 8, 1982 • Luis Alberto Monge sworn in as Costa Rican
president and qUickly negotiates agreements with IMF (Inter­
national Monetary Fund) and AID.
Sept. 1982 • Pastora, Robelo, Fernando ("El Negro") Chamorro,
and Rivera form ARDE (Democratic Revolutionary Alliance).
Ocl. 7, 1982 • Hector Frances "kidnapped" in San Jose and later
reveals details of CIAlFDN operations in Costa Rica.
Late 1982 • CIA begins locating airstrips and training camps for
conlras in Costa Rica.
Dec. 21, 1982 • Congress passes first Boland Amendment pro­
hibiting use of CIA and other u.s. funds for toppling the
Nicaraguan government.
Jan. 8-9, 1983 • Foreign Ministers of Panama, Venezuela, Co­
lombia, Mexico form the Contadora Group to seek negotiated
end to Nicaraguan war.
April 15, 1983 • ARDE issues call for armed struggle.
May 1, 1983 • ARD E's first military action, against EI Castillo
Viejo on Sanjuan River.
May 1983 • Felipe Vidal's Cuban contingent, later known as tht'
International Brigade, arrives to join Southern Front. • Tht'
CIA and the Defense Department arrange for Israel to tran"ln
captured PLO weapons to contras. Known as "Operation
Tipped Kettle," the deal is overseen by Richard Secord, who
had just retired from the military under a cloud of scandal
June 5, 1983 • Felipe Vidal and sixteen other "private volunteers"
from Miami arrive in Costa Rica to join the contras. Some
members of this "International Brigade" work for the CIA, are
involved in drug trafficking, and plot to replace Pastora and
Brooklyn Rivera with commanders aligned with the FDN.
June 29, 1983 • Bomb carried by two Nicaraguans explodes prematurely in San Jose parking lot, killing one. The pair were Sandinista agents sent to kill ARDE political leader Alfonso Robelo.
June 1983 • Ambassador Curtin Winsor arrives, replacing McNeil. ~
~
1
July 21-23,1983 • John Hull, Luis Rivas, and Bill Crone visit
Washington to lobby against Pastora. They meet with Oliver
North, Sen. Dan Quayle, and Robert Owen.
Sept. 8-9, 1983 • ARDE air attack against Managua airport and tanks at Corinto port. Sept. 9, 1983 • ETA guerrilla Gregoria Jimenez is arrested and jailed in Costa Rica and accused of being part of a Sandinista
hit team sent to kill Pastora. Jimenez claims he was to spy on,
not kill, Pastora and other contra leaders.
Sept. 15, 1983 • Monge's Neutrality Proclamation.
Sept. 15-17, 1983 • ARDE attack Sandinista garrison at EI Cas­
tillo on Sanjuan River.
Sept. 25, 1983 • U.s. proposes sending military engineers to
Costa Rica's northern zone.
Sept. 28, 1983 • ARDE attack at Pefias Blancas, first in series of
CIA-orchestrated border incidents.
Oct. 1, 1983 • Immigration records show La Penca terrorists,
"Per Anker Hansen" and "Patricia Anne Boone Mariscot" first
arrive in Costa Rica.
Oct. 24, 1983 • CIA-orchestrated M-3 ('Third Way") faction
splits from ARDE.
Dec. 8, 1983 • Congress passes $24 million aid package to con­
lras, stipulating that when funds run out, CIA must with­
draw. This prompts Reagan administration to approach third
countries for support and to set up covert North network to
run war.
Jan. 1984 • Pastora visit'> Washington and has hostile meeting at
....
520
Appendix 3
Appendix 3
National Security Council (NSC) with Robert McFarlane,
North, and Clarridge.
March 24,1984 • Contra supply plane crashes in northern Costa
Rica.
April 11-14, 1984 • ARDE attacks and occupies Sanjuan del
Norte, marking its biggest military victory.
May 1, 1984 • Pastora receives CIA's 3D-day ultimatum demand­
ing he align ARDE with FDN.
May 10, 1984 • Leaked draft of secret State Dept. memo says U.s.
military aid can prevent Costa Rica from "backsliding into
neutrality."
May 15, 1984 • Largest peace march in Costa Rica's history held
in San Jose.
May 26, 1984 • North's envoy Robert Owen arrives in San Jose.
May 27, 1984 • North arrives in SanJose for clandestine meeting
with U.S. embassy and contra officials.
May 29,1984 • Monge leaves for 6-week European tour.
May 30, 1984 • Bomb explodes at La Penca during Pastora's press
conference. 1984 • Joe Fernandez becomes CIA station chief in Costa Rica. Aug. 16, 1984 • Monge reshuffles cabinet, replacing pro-neutral­
ity Security Minister Angel Solano with CIA collaborator
Benjamin Piza.
Aug. 19, 1984 • Legislature passes Ley de la Moneda, the first
major bank privatization bill.
Oct. 1984 • Rivera and Sandinistas begin peace talks.
Oct. 10, 1984 • Congress passes second Boland amendment pro­
hibiting "direct and indirect" u.s. aid to the contras.
Nov. 1984 • South African military delegation makes secret visit
to Costa Rica to meet Southern Front contras. - Pedro Joa­
quin Chamorro takes asylum in San Jose and begins publish­
ing Nicaragua Hoy. - Nicaraguan throws grenade into car,
injuring Alfonso Robelo and his girlfriend. The attacker
escapes and is suspected of working for the Sandinistas.
30,1985 • $3.2 million VOA (Voice of America) station,
"Radio Costa Rica," beamed at Nicaragua opens in northern
Costa Rica.
521
March 1985 • U.S. amends Foreign Assistance Act to permit
police aid to Costa Rica.
March 1985. Contra leaders sign San Jose Declaration giving
Sandinistas list of demands and ultimatum.
April 16, 1985 • Rene Corvo leads attack on Nicaraguan border
town of Esperanza which North network blames for defeat of
congressional contra aid package.
1985. Five foreign mercenaries and nine Nicaraguans
April
arrested in contra camp on Hull's property.
May 1985 • U.S. Green Berets arrive to train Civil Guard at battalion at MurcieIago. - Carlos Rojas comes forward with "David's" story about La Penca. May 31,1985 • Two Civil Guardsmen killed in Las Crucitas incident. U.S. and Costa Rica blame Sandinistas. June 10, 1985 • MCRL demonstrators stone Nicaraguan em­
bassy. - Patria y Verdad terrorists bomb electrical station in
Naranjo.
June 11, 1985 • CIA creates contra umbrella organization, UNO
(United Nicaraguan Opposition), announced in San Jose with
"Triple A" (Alfonso Robelo, Arturo Cruz, and Adolfo Calero)
as directors.
June 12, 1985 • Congress passes $27 million "humanitarian aid"
package for contras and in Aug. Reagan signs order creating
State Department's Nicaraguan Humanitarian Assistance Of­
fice (NHAO) to oversee program.
1, 1985 • North gives exclusive right to purchase contra
military supplies to Richard Secord's group, the Enterprise,
cutting out other businessmen and Calero brothers.
July 19, 1985 • Ambassador Lewis Tambs arrives with orders
from North to "open" the Southern Front.
Late July 1985 • Ultra rightist plot to bomb U.S. embassy and
other targets exposed. "David" disappears and presumed
murdered.
Aug. 1985 • North network begins expansion of Santa Elena
airstrip for contra resupply operations.
Aug. 7-8, 1985 • Twenty-nine Witness for Peace pacifists cap­
tured by ARDE on Sanjuan River.
I
,.. 522
Annf'ndlX
Appendix 3
3
Sept. 13, 1985 • Beheaded body of Hugo Spadafora found near
Costa Rican-Panama border.
Sept.
1985. Honey and Avirgan release La Penca report
implicating CIA and FDN in bombing.
Feb. 2, 1986 • Oscar Arias, running as peace candidate, elected
president.
Feb.-March 1986 • After years of controversy, 173 U.S. military
engineers arrive, but only permitted to work in southern
Costa Rica.
March 19, 1986 • Security Minister Piza goes to Washington
with Joe Fernandez to meet Reagan, NSC Adviser John Poin­
dexter, North, and Secord and to draft cover story letter for
airstrip.
Late March 1986 • Singlaub makes unsuccessful last ditch effort
to negotiate an arms-for-FDN-alliance deal with Pastora.
April 1986 • Nicaraguan Resistance, a new contra umbrella
group with expanded leadership, formed to replace UNO.
May 8,1986 • Arias inaugurated and informs Ambassador Tambs
to close down Santa Elena airstrip.
May 9,1986 • At CIA-organized ceremony, six top Pastora com­
manders sign document shifting allegiance to FARN and FDN.
May 16, 1986 • Pastora gives up armed struggle and asks for
political asylum in Costa Rica.
May 22-23, 1986 • Honey and Avirgan win libel case brought by
Hull.
May 24-25, 1986 • At Esquipulas, Guatemala summit, five Cen­
tral American presidents reiterate intention to sign Conta­
dora peace plan. June 4, 1986 • North network contravenes Arias's orders and
secretly reopens Santa Elena airstrip.
June 9, 1986 • A C-I23 cargo plane loaded with contra military
supplies gets stuck in mud at Santa Elena airstrip.
July 1986 • Top Noriega drug pilot Floyd Carlton arrested in San
Jose in DEA sting operation. Eventually extradited to U.s. and
becomes key witness against Noriega.
Aug. 13,1986 • Senate approves $100 million in aid for contras. House had approved similar package inJune. This marks resumption of official CIA role in war. .\
523
Sept. 5, 1986 • In late night telephone call, Tambs warns Arias
not to publicly reveal Santa Elena airstrip.
Sept. 24, 1986 • Journalists who had discovered Santa Elena
publicly confront Security Minister Hernan Garron. He de­
scribes the mile-long airstrip as a "tourist" project owned by
private investors from Udall Research.
Sept. 25, 1986 • In memo to his boss Poindexter, North falsely
writes he has closed down Udall and removed all "USG
fingerprints" from the airstrip project.
Oct. 5, 1986 • Sandinistas shoot down supply plane carrying
Eugene Hasenfus who reveals covert resupply network.
Nov. 3, 1986 • Lebanese magazine reports U.s. secretly sold arms
to Iran.
Nov. 1986 • Casey makes unannounced visit to Costa Rica and
Arias refuses to meet with him.
Nov. 25, 1986 • Nicaraguan Resistance's General Assembly in
San Jose abruptly terminated when Reagan and Attorney
General Edwin Meese announce on TV the arms sales to Iran
and diversion to contras. Poindexter resigns and North is
removed. Iran-contra scandal officially becomes public.
Dec. 1986 • ~rias visits Washington and meets Reagan and
Casey.
Dec. 4, 1986 • Arias visits Washington and meets Reagan and
Casey, who try to win his cooperation in the war against
Nicaragua.
Dec. 13, 1986 • Steven Carr, American mercenary who had re­
vealed important details of CIA operations in Costa Rica dies
in Van Nuys, Calif., reportedly of cocaine overdose.
Dec. 19, 1986 • Reagan appoints Independent Counsel Lawrence
Walsh to investigate Iran-contra affair. Over next four years,
Walsh convicts eleven. Two cases overturned on appeal and
one dismissed before Bush issues presidential pardons.
Jan. 11, 1987 • Tambs, who reSigned in wake of Santa Elena
airstrip scandal, leaves Costa Rica. CIA Station Chief Fer­
nandez is recalled and departs secretly shortly afterward.
Jan. 17, 1987 • San Jose Summit convened by Arias to launch
peace plan. Attended by presidents of Honduras, Guatemala,
and EI Salvador, but not Nicaragua.
I
I"!
.
524
Appendix 3
AppendiX 3 525
• Arias recalls Ambassador Guido Fernandez
Washington accused of "lobbying" against contra aid. Fer­
nandez becomes Information Minister.
May 23-29,1988 • Biehl publicly denounces AID's Parallel State
in small Chilean magazine, APSI.
Aug. 1988 • Biehl leaves Costa Rica.
Oct. 24, 1988 • Legislature passes second bank denationalization
law.
Nov. 23, 1988 • Legislative Assembly's first Special Drug Com­
mission report links leading politicians and officials to drug
traffickers.
Dec. 1988 • U.s. Senate report, Drugs, Law Enforcement and For­
eign Policy, documents links between contras, the CIA, Nori­
ega and the drug cartel. • Enormous new AID complex, a
symbol of the parallel state, opens in San Jose suburb. Nearby,
U.s. Embassy headquarters had opened two months earlier.
Dec. 26, 1988 • Costa Rica judiciary report blames La Penca
bombing on contras, CIA and drug traffickers, accuses CIA
and AU officials of conspiring to derail the investigation, and
charges Hull andlVidal with first degree murder for their
involvement in the bombing.
Jan. 12, 1989 • Costa Rica's public prosecutor charges Hull,
Octaviano Cesar, and pilot Gerardo DUran with drug and
arms trafficking and "hostile acts" for his contra activities.
Hull arrested and subsequently released on bail.
20, 1989 • George Bush sworn in as U.s. President.
Jan. 23, 1989 • The La Penca bomber Gaguine is reported to be
among 28 leftist guerrillas killed in an attack on La Tablada,
Argentina's main military base.
Jan. 26, 1989 • Seventeen Congressmen write letter threatening
aid cutoff if Costa Rica continues to pursue Hull. Arias sends
strong reply.
Feb. 14, 1989 • Five Central American presidents agree contras
be demobilized and Nicaraguan president
Ortega agrees to free elections in 1990.
March 3, 1989 • McFarlane sentenced in Washington court to two
years' probation, a $20,000 fine, and 200 hours of community
service for withholding infonnation from Congress.
1987 • Contadora Group finally announces it has been un­
successful in negotiating Nicaraguan peace agreement.
Feb. 26, 1987 • Tower Commission Report on Iran-contra scan­
dal released.
Feb.-Aug. 1987 • AID withholds funds to Costa Rica as sign of
displeasure with Arias peace plan.
April 1, 1987 • Arias, under pressure from Washington, removes
Guido Fernandez as ambassador.
6,1987 •
dies of a brain tumor.
May 7, 1987 • Congressional Iran-contra hearings open.
June 1987 • AID Director Chaij recalled at request of Arias.
June 17, 1987 • Arias summoned to White House and has hostile
exchange with Reagan and top administration officials over
peace plan.
July 25, 1987 • Arias incorporates Santa Elena property into
national park, touching off years of complex legal battles with
u.s. owners. Aug. 7-8, 1987 • Central American presidents sign "Arias Peace Plan" at summit in Guatemala. Oct. 13, 1987 • Arias wins Nobel Peace Prize. Nov. 1987 • Costa Rican judiciary opens case against Piza and Col. Jose Montero for involvement in Santa Elena airstrip
project. • Ambassador Deane Hinton arrives. Nov. 5,1987 • Peace accords begin to go into effect. Nov. 17, 1987 • The Iran-Contra Affair of the u.s. Congress report released.
Jan. 12, 1988 • Arias expels contra leaders who refuse to re­
nounce armed conflict and adhere to peace accords.
Jan. 15-16, 1988 • Sandinistas make important concessions at
second San Jose Summit on the Central American peace plan.
Jan. 21, 1988 • State Dept. Inspector General's memo and audit
regarding AID malpractice in Costa Rica made
Feb. 3, 1988 • Congress votes down administration's contra mili­
tary aid package.
March 21-23,1988 • Cease fire agreement between Nicaraguan
government and contras signed at Sapoa, Nicaragua, marking
official end of war.
April 1, 1988 • Sandinistas and contras begin truce in fight-
i
IIII1
,
526
l'\.1J1Jt:IlUlX
Appendix 3
3
April 13, 1989 • Congress agrees to allocate the contras $4.5
million in non-lethal aid each month until Nicaragua holds
elections.
May 4, 1989 • North convicted on several minor counts for role
in Iran-contra scandal. Fined and sentenced to community
service in july.
july 18, 1989 • Hull jumps bail and DEA illegal1y flies him out of
Costa Rica to avoid prosecution.
20,1989 • Legislative Assembly's second Special Drug Com­
mission report links u.s. officials, Noriega, and drug traffick­
ers to Costa Rican contra operations. It recommends Joe
Fernandez, North, POindexter, Tambs, and Richard Secord be
declared persona non grata and that Hull be tried and sen­
tenced, and then stripped of his Costa Rican citizenship and
expelled.
Aug. 6-7, 1989 • At Tela, Honduras summit, Central American
presidents reject U.S. pressure and unanimously call for
demobilizing contras by Dec. 8. They ask United Nations and
Organization of American States for help.
Aug. 23, 1989 • Tourists discover Green Berets and Civil Guard
carrying out military and anti-drug operations in national park.
Aug. 1989 • Anti-Noriega "contras" reported operating out of
southern Costa Rica.
Oct. 26-28, 1989 • Arias hosts hemispheric summit attended
Bush and fifteen other preSidents to celebrate one hundred
years of Costa Rican democracy. Leaders discuss the "Six D's":
development, drugs, democracy, debt, disarmament and de­
forestation.
Nov. 24, 1989 • Washington judge dismisses case against Joe
Fernandez after Attorney General Dick Thornburgh blocked
disclosure of relevant CIA documents.
Dec. 1989 • Enormous new AID complex. symbol of the Paral­
State. opens in San jose suburb. Nearby embassy head­
quarters had opened two months earlier. Dec. 20, 1989 • U.S. invasion of Panama.
Jan. 24, 1990 • In Washington court, Secord sentenced to two
years probation for role in Iran-contra scandal.
,
1
I
527
Feb. 1, 1990 • Albert Hakim sentenced to two years probation for illegally supplementing North's salary. Feb. 4,1990 • Conservative Unity Party candidate Rafael Angel Calderon elected Costa Rican preSident. Feb.
1990. Sandinistas defeated in elections by opposition coalition UNO, led by Violeta Chamorro. Feb. 1990 • Costa Rica starts extradition proceedings against Hull, asking that u.s. government return him so he can be tried on murder and other charges. March 1990 • EARTH university finally opens. March 13, 1990 • Bush lifts 5-year-old trade embargo and asks Congress for $300 million in aid for Nicaragua, including $45 million for demobilization of contras. March 23, 1990 • Contras and Sandinistas reach agreement for disarming and moving rebels into UN-monitored zones. April 2-3, 1990 • In Montelimar, Nicaragua, Central American presidents hold final summit on impementation of peace plan and agree to immediate demobilization of the contras and destruction of their weapons.
April 25,1990 • Violeta Chamorro inaugurated as president of
Nicaragua.
May 8, 1990 • Arias leaves office and Calderon inaugurated.
May 19, 1990 • U.S.-trained narcotics agents kill twelve-year-old
boy in anti-drug raid.
June 8, 1990 • jose Figueres, the "father" of modern Costa Rica,
who abolished the army, nationalized the banks, and founded
the Liberation Party, dies.
Aug. 1990 • Calderon government reacts cautiously to Bush's
Initiative for the Americas, which is intended to eliminate
trade barriers and increase investment.
Late Nov. 1990 • Legislature appoints special4-member com­
mission to investigate La Penca bombing.
Sept. 16, 1991 • North's convictions are thrown out on appeal.
Oct. 28, 1991 • Costa Rica closes last of the Nicaraguan refugee
camps.
Nov. 15, 1991 • In Washington, former Under Secretary of State
Elliott Abrams sentenced to two years probation and 100
I(
528
Appendix 3
hours' community service for lying to Congress about his role
in Iran/contra scandal. • Washington judge reverses convic­
tion of Poindexter on five felony counts for role in Iran­
contra scandal.
Jan. 31, 1992 • CIA official Alan Fiers sentenced to one year's
probation and 100 hours' community service for withholding
information from Congress about illegal financing of contras.
May 25, 1992 • Ex-CIA official Tom Clines begins serving six­
teen month prison term for tax felonies related to Iran-contra
financial deals.
Dec. 9, 1992 • In Washington trial, CIA official Clair George
found guilty of two felony charges.
Dec. 11, 1992 • Bush agrees to turn over to Independent Prosecu­
tor Walsh his personal diary notes on the Iran-contra affair
kept after November 1986.
Dec. 24, 1992 • Bush gives presidential pardons to former De­
fense Secretary Caspar Weinberger, Clarridge, George,
Abrams, Fiers, and McFarlane, effectively ending Walsh's
prosecution of government officials involved in the Iran­
contra scandal.
Aug. 1, 1993 • The La Penca bomber is identified as Vital Roberto
Gaguine, a leftist Argentine guerrilla who worked for the
Sandinista's Fifth Directorate counter-intelligence unit.
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