Nicaragua News Service
                            June 25-July 3, 1994
                               Vol. 2, No. 28 
                           by Colleen Littlejohn

Major news stories for the week ending, Saturday, July 2nd, 1994:
 
1.  Drought threatens electrical energy rationed nationwide.
2.  General Ortega and bodyguards found innocent by military tribunal.
3.  ANDEN demands legal status from Ministry of Labor.
4.  Transport union reaches agreement with government.
5.  Coffee prices rise; meat prices decline.
6.  Demobilized contras take over Colombian embassy; EPS orders new 
    offensive to pacify the north.
7.  FSLN defines position on new Military Law.
8.  Constitutional reforms held up by one article.
9.  60 million "liquid" in aid for 1994.
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1.  Drought threatens - electrical energy rationed nationwide.

Once again, the whole of Nicaragua is being subject to an energy ration of
about three hours daily and in some cases more.  The Nicaraguan Energy
Institute does not know how long the rationing would last and have
explained that the rationing is due to the low water level of the Apanas
Lake in Jinotega which is hampering the functioning of the hydroelectric
plant there.  The water has reached its lowest levels in 36 years. 
Ironically, during last year's winter, the Apanas received too much rain,
and the hydro dam had to be reinforced because of the pressure of the
excess water. 
 
This year, the original prognosis of a good winter, which in Nicaragua
means a steady flow of rain (not too much nor too little) deems to have
been little more than wishful thinking on the part of Nicaraguan weather
specialists.  A high pressure front off the coast of the Bahamas seems to
be provoking a period of drought almost nationwide which threatens to last
until the end of August.  Planting season however, began at the beginning
of May this year and only those few with irrigation systems may be exempt
from total crop loss if the rain does not begin to appear shortly. 
 
The energy cuts, supposedly programmed, but which in practice, come at any
hour, have been severely hampering the productivity of small and medium
industries, as well as any type of office work, throughout the country.
(Barricada 6/29, La Prensa 6/27)

2.  General Ortega and bodyguards found innocent by military tribunal.

Last June 27th, the military court that was trying the case of the murder
of Jean Paul Genie declared General Humberto Ortega and his eight
bodyguards innocent.  The General, himself, had also been accused of
obstructing justice in order to cover up the crime. 
 
As was expected, the parents of Jean Paul have not accepted the verdict of
the military court and their lawyer described the process as "unjust and
illegal".  They will appeal the decision and if necessary take the case to
the Nicaraguan Supreme Court. (Barricada 7/1)

3.  ANDEN demands legal status from the Ministry of Labor.

ANDEN, the most important teachers' union in the country, took advantage
of the national commemoration of National Teachers' Day last week to
demand that the Ministry of Labor allow them to include their national
leadership with that Ministry.  The Union has not been legally recognized
by the government for the last four years. 
 
ANDEN leaders also met with the president of the Labor Commission of the
National Assembly, Robert Moreno, who accused the Minister of Education,
Humberto Belli, of influencing the government politically so as not to
recognize the legitimacy of the teacher's union.  ANDEN also marched upon
the Supreme Court to pressure a decision from that body concerning the
legality of the firing of 86 teachers last year by the Ministry of
Education. 

4.  Transport union reaches agreement with the government.

The government reached an agreement with the "Parrales Vallejos" transport
union last week when the union agreed to pay a total of $10,690,920 for
the equipment and installations received when the state-owned ENABUS
company was privatized in favor of the workers.  Negotiations had been
ongoing for more than a year and a half. 
 
With fines for late payments and credits favoring the workers, the total
due to the State is $9,950,000 payable over a 10 year period. 

5.  Coffee prices rise; meat prices decline.

As a result of severe frosts in Brazil, international coffee prices have
soared in the past week and Brazil's tragedy will result in a better
situation for Central American coffee producers.  The international prices
of coffee rose to over $180 per hundredweight before settling at $161 at
the end of last week.  Nicaraguan producers, however, will not benefit
this year from the increase, given that the majority of the 1993-1994 have
already been sold on the futures market. 
 
But while there was good news for coffee prices, there were only worries
on the part of cattle ranchers at all levels.  Meat prices have dropped
drastically in recent weeks due to an excess of fattening cattle in the
US, which are being sacrificed at record levels.  The US is the largest
meat producer in the world and price drops signifying a loss of between
$120 and $240 per steer, will also severely affect US producers. 
 
The news also means that the US will probably reduce their quotas for meat
imports, which directly affects Nicaragua and other small countries who
share the 10% quota left over from the 90% which has been granted to
Australia and New Zealand. 
 
The news is potentially very devastating for Nicaraguan small farmers. 
Cattle raising, in the new era of "free trade (for some) has been one of
the few agricultural activities where a farmer could expect to make a
small profit." (Barricada 6/28,6/30)

6.  Demobilized contras take over Colombian embassy; EPS orders new offensive 
     to pacify the north.

On Tuesday, June 28th, 15 members of the ex-Nicaraguan Resistance entered
and took over the offices of the CIAV-OAS while.  At the same time,
another six ex-contras entered the Colombian embassy to ask for political
asylum.  One of the contra leaders, "El Chispero," affirmed that the
action was taken because "of the desperation of our people and the fear
for our lives.  We have signed hundreds of agreements with the government,
none of which have been honored, and we demand personal security." 
Meanwhile, the Minister of Government, Alfredo Mendieta stated that the
government would not negotiate with those involved and that the actions
were part of a larger destabilization strategy and that the government as
only waiting word from Colombia's government to take over the buildings by
force.  Mendieta accused the major leaders of the Supreme Council of the
Nicaraguan Resistance of being involved in the planning and implementation
of the terrorist act. 
 
After approximately 48 hours, the installations of both the Colombian
embassy and the CIAV-OAS were abandoned by the intruders after a long
conversation with Monsignor Eddy Montenegro, close assistant of Cardinal
Obando y Bravo.  Those involved in the planning of the actions, however,
are still under arrest. 
 
The situation was complicated by the fact that the spokesperson of the
Nicaraguan Resistance party, Fernando Avellan was shot by unknown gunmen
and those responsible have not been arrested, partly due to the fact that
Avellan, out of danger, refuses to cooperate with the police in the
investigation. 
 
Meanwhile, trouble continues in the North with armed bands and the army
announced last week a new offensive against those irregular forces that
are operating in Regions I and VI.  The major bands being pursued are led
by the contra leaders, Charro, Northiel, Pajarillo and Cascabel.  The
first two leaders have asked to negotiate their eventual disarmament with
the government. However, the government has stated that it will not
negotiate with these groups who have been responsible for the paralyzing
of transportation of the last thirty days in the zones of Quilali, San
Juan de Rio Coco, Rio Blanco and Matagalpa. 
 
According to army figures, approximately 380 of the irregular forces
belong to groups whose motivation is basically political while another 560
people are involved in bands for criminal motives.  (Barricada 6/29)

7.  FSLN defines its position on the new Military law.

The FSLN National Directorate issued a public statement last week in which
it affirmed that the new military code: "is vital for the strengthening of
a State of Law and for the process of institutionalizing the army."  The
DN, however, did propose certain modifications to the law, including
recognition for retired officers.  The law would also forbid the army to
be used for police type activities to guard public order.  The DN also
stated that it was necessary for the President to be able to reject
candidates proposed by the Military Council for the position of Head of
the Army.  This would clarify that the military was subordinated to
civilian courts.  The FSLN National Directorate also indicated that the
code should state that army personnel are not required to obey an order
that goes against the Constitution, the law, or basic human rights.
(Barricada 7/1)

8.  Constitutional reforms held up by one article.

The political aspirations of the present Minister of the Presidency and
son-in-law of President Chamorro, Antonio LaCayo, are the main reasons
behind the turtle-like pace of the process to reform the Nicaraguan
Constitution.  The reforms, as agreed upon between the majority of the
members in the National Assembly, would not allow close family relations
of the President to follow her in office.  In the last few weeks, LaCayo
has done little to hide his presidential aspirations.  Chamorro appears to
support him by not signing and publishing the changes in the law that
would allow the Constitution to be amended by one legislative session. 
The government has instead announced its: "will to keep working with
Assembly leaders to work out a political consensus necessary to reform the
Constitution without that consensus being a product of party interests." 
(Barricada 6/29)

9.  60 million "liquid" in aid for 1994.

Despite the good news of increased aid from the Club of Paris and the
loans to come from the IMF, the reality is, according to a press
conference given by Dr. Evenor Taboada, President of the Nicaraguan
Central Bank, that only $60 million will be liquid for the present year. 
 
Of the total $662 million approved post-ESAF, $298 million are liquid but
80% of that amount- or $238 million- is destined to pay the foreign debt. 
 
The government continues to assure that the aid received will continue to
guarantee the stability of the cordoba. However, in recent days, the
exchange rate has risen to 7.15 cordobas to one US dollar. 
 
In 1994, Nicaragua will also count on approximately $280 million in export
income, and $150 million from Nicaraguans sending money to their families
from abroad.  Those figures, together with the $68 million liquid from the
IMF-Club of Paris will still not be enough to cover Nicaragua's 700
million dollar import bill, leaving a deficit of over $210 million. 
(Barricada 6/28)