Bush Pushes Latin Aid Plan as Key to Freedom in Cuba

WASHINGTON —  President Bush, facing resistance from a key Democratic senator over the proposed cost, asserted Tuesday that his requested $800-million aid package for Panama and Nicaragua could help bring democracy to Fidel Castro’s Cuba.

“I’m terribly disappointed that Castro seems to be firming up his totalitarian position instead of moving towards free and fair elections,” the President told a bipartisan group of congressional leaders at the White House.

“But I think if we are helpful to Nicaragua and Panama, it will simply increase the pressure in that marvelous island of Cuba for change,” he added during a picture-taking session before the meeting became private.

The President’s stepped-up lobbying came as Sen. Patrick J. Leahy (D-Vt.), head of a Senate subcommittee that will have first crack at the aid request, called it “too much money” and charged that part of the Panama component was “silly and wasteful.”

At a hearing with high-level State and Treasury Department officials, Leahy protested that far more aid had been requested for Panama and Nicaragua than for emerging democracies in Eastern Europe.

“Which area is more important to American foreign policy, security and economic interests?” asked Leahy, chairman of the Senate Appropriations subcommittee on foreign operations. “Of course, it is Eastern Europe, where the central issues which have divided East and West for over a generation are being decided.”

Despite Leahy’s criticism, other members of the Senate panel and a companion House subcommittee generally backed the package, which calls for sending $300 million to Nicaragua and $500 million to Panama.

But lawmakers indicated that Congress will have difficulty approving it by the date Bush wants: April 6, the beginning of Congress’ spring recess.

“There is general support for the request, although there could be some slight reduction,” said Sen. John McCain (R-Ariz.). What gives it impetus, he added, is Bush’s proposal to take the money from military programs.

“Having the funds come out of defense is the grease that makes the wheel turn,” McCain said.

White House Press Secretary Marlin Fitzwater said the President urged lawmakers to approve the aid package rapidly. He said that Richard G. Darman, director of the Office of Management and Budget, has been making good progress in negotiating defense cuts with key members of congressional appropriations committees.

Fitzwater, however, conceded that Congress might not meet Bush’s suggested deadline.

A major reason is that many lawmakers are expected to try to attach pet projects to the Panama-Nicaragua bill, the first must-pass legislation to come along in this year’s congressional session.

Leahy ridiculed a part of the Panama aid plan that calls for, among other things, the Treasury Department to loan Panama $150 million to pay to the World Bank, which then would loan Panama $150 million to repay the Treasury Department.

“This sounds a little bit like Abbott and Costello--who’s on first?” Leahy said.

“You can say it’s goofy,” Deputy Treasury Secretary John E. Robson responded. But actually, he said, it is a means of inducing international financial institutions to help Panama so that further U.S. aid will not be needed.

Times staff writer David Lauter contributed to this story.