CONFIDENTIAL
By
neighbouring countries. These measures are fully in accord with the Contadora principles which Nicaragua has stated it accepts. implementing them Nicaragua would make a real contribution to peace and stability in Central America.
We condemn all atrocities and violence against civilians wherever they occur, whether perpetrated by the contras or others.
With regard to the Nicaraguan elections in 1984, we concluded from our observation of the campaign that the non-Sandinista parties did not enjoy the same rights or ability to campaign as the Sandinistas who controlled the great majority of the media and many of the
institutions of the state. In those circumstances it was our judgement that the conditions for a free and fair election did not exist. The Socialist International also commented that there was no excuse for censoring news and statements relating to the elections and that the fact that this had happened was to be
regretted.
On the subject of loans to Nicaragua by international financial institutions, Mr Malcolm Rifkind gave a comprehensive account in the House of Commons on 15 May 1985 of our voting policy at the Inter-American Development Bank and the World Bank. His answers make it clear that we are not blocking loans to Nicaragua and that each proposal, for Nicaragua as for any other recipient country, is
considered on its merits.
Our aid programme is continually under review. At present our bilateral aid to Nicaragua consists of support for small development projects co-financed with British voluntary agencies. Eleven such projects were approved in the financial year 1985/86 and four have so far been approved in this financial year; further proposals will be considered on their merits.
We also contribute substantially to appeals by international relief organisations to help refugees and displaced persons in Central America, including Nicaragua. In the financial year 1985/86 we contributed £300,000 to refugee appeals by the International Committee of the Red Cross and £330,000 to the United Nations High
CONFIDENTIAL
/Commissioner