Special Central American Assistance Act of 1979

(Measure passed House, amended, roll call #88 (202-197))

Special Central American Assistance Act of 1979 - Amends the Foreign Assistance Act of 1961 to authorize appropriations for economic assistance to Nicaragua and other countries in Central America.

Requires the President to consider the Government of Nicaragua's observance of specified human rights when furnishing such assistance. Requires the termination of such assistance if Nicaragua engages in a consistent pattern of gross violations of human rights. Directs the Secretary of State to report semi-annually to Congress on the degree of observance of human rights in such country.

Directs the President to certify to Congress that Nicaragua is not cooperating with any international terrorist organization or supporting acts of violence in other countries, prior to releasing any assistance to Nicaragua. Requires the President to terminate such assistance if Nicaragua is later found to be aiding or abetting terrorism.

Declares it the sense of Congress that Guatamala, El Salvador, Costa Rica, Panama, Nicaragua and Honduras should be supported against terrorism and external subversion.

Sets forth conditions for funds for: (1) the National School of Agriculture in Nicaragua; and (2) loans for private sector assistance. Requires local currency assistance to be used to strengthen private financial institutions which will help keep the private sector in Nicaragua financially independent. Requires monitoring and auditing of such local currency loan program and the results to be reported to Congress.

Directs the President to terminate assistance if Nicaragua: (1) harbors any foreign combat military forces which pose a threat to the security of the United States or any of its Latin American allies; (2) consistently violates the right to organize and operate labor unions free from political oppression; or (3) systematically violates free speech and press.

Directs the President to encourage the holding of free elections in Nicaragua within a reasonable period of time and to take into consideration the progress being made for such elections, in providing additional assistance.

Prohibits the use of authorized funds for assistance to educational facilities which would house, employ or be made available to Cubans.

Requires any agreement with Nicaragua regarding the use of authorized funds to specify that loan funds be used to purchase U.S. goods or services.

States that up to one percent of the funds made available to Nicaragua shall be used to publicize in Nicaragua the extent of U.S. aid programs. Directs the President to report to Congress on the effectiveness of such publicity.