Reagan sets out aid'plan for Caribbean

Press, 26 February 1982, Page 5

Reagan sets out aid'plan for Caribbean

NZPA-Reuter Washington President Reagan, vowing to oppose “brutal and totalitarian" communism in the Caribbean, yesterday proposed a plan linking increased aid, trade preferences, and investment incentives for Central America this year. He said the plan which must be approved by Congress, also called for dutyfree entry of all products except textiles and apparel from the region for 12 years and would give tax incentives to American businesses investing there. In an address to the Organisation of American States, the President also attacked the Left-wing Government of Grenada, and again emphasised his commitment to support the struggle against Leftist guerrillas in El Salvador. Congressional sources said they expected business and labour groups to oppose special trade preferences for Caribbean countries, and members of Congress from sugar-producing states to resist plans to expand sugar imports . from Central .. America. In addition many members of Congress who had details of the so-called Caribbean Basin plan in. advance have expressed concern that the President’s main aim in presenting the programme was to justify American military aid for El Salvador. In his speech, Mr Reagan acknowledged the widespread opposition abroad and in the United States to his El Salvador policy saying that “a determined propaganda campaign has sought to mislead many in Europe and certainly many in the United States as to the true nature of the conflict. . He said the simple truth was that “guerrillas armed and supported by and through Cuba are attempting to impose a Marxist-Leninist dictatorship on the people of El Salvador as part of a larger imperialistic plan.” The President said his Caribbean Basin plan would help Central America to pursue peaceful development and was necessary to help governments defend themselves against outside aggression. “A new kind of colonialism stalks the world .today . . President Reagan said. “It is brutal and totalitarian. It is not of our hemisphere but it threatens our hemisphere ... “Our economic and social programme cannot work if our neighbours cannot pursue their own economic and poli-

tfcal future in : peace but must divert their resources, instead, to fight imported terrrorism and armed attack." Some 85 per cent of Central America’s exports to the United States are already exempt from duty under arrangements designed to benefit developing countries world-wide. Mr Reagan who praised Canada, Mexico, and Venezuela for their programmes aiding Central America said the proposed increase of SUS3SO million would raise economic aid spending for Central America to SUSB24 million in the current financial year. The further SUS6O million to be sought for military aid would increase such assistance to SUSI 72 million, this year. Mr Reagan has already said he intends to send SUSSS million in emergency military aid to El Salvador in 1982. In his speech to the O.A.S. Mr Reagan did not announce any specific measures against Cuba to back previous statements that he intended to act with firmness against alleged subversion by the Hanana Government of President Fidel Castro. The President said Cuba received 66,000 tonnes of war supplies from the Soviet Union last year, more than in any year since the 1962 Cuban missile crisis. He also said Cuba had more than 200 Soviet warplanes, including high performance MiG 23s shipped last month, a total far larger than the military aircraft stocks of all other Caribbean Basin countries combined. Mr Reagan also said that for more than two years, Nicaragua had served as a platorm for military action, including the smuggling of arms to guerrillas in El Salvador and Guatemala. “If we do not act promptly and decisively in defence of freedom, new Cubas will arise from the ruins of today’s conflict.” the President said. “We will face more totalitarian regimes, more regimes tied militarily to the Soviet Union, more regimes exporting subversion . . The President suggested that Cuba and Nicaragua could take part in his Caribbean Basin plan if they changed their policies. “We seek to exclude noone,” he said. “ ... Let them return to the traditions and common values of this hemisphere and we all will welcome them. The choice is theirs.”