3. Maintain a low profile throughout the process of disengagement. The US does not have at this time the political credibility to spearhead a mediation effort. We should encourage and support initiatives taken by other regional actors avoiding direct participation. Our direct involvement may limit our ability to influence the process and may become an obstacle to mutual concessions.

4. Encourage pluralistic media coverage. Conditions in El Salvador and our official posture have not encouraged adequate media coverage. Influential US journalists have been banned from the country by threats on their lives. Salvadorean government restrictions on visiting reporters have kept a tight lid on many critical events in the past six months. Informal signals to foreign desk editors during the electoral campaign discouraged their interest in the region.

Appropriate, objective and pluralistic media coverage will make a positive contribution to the search for a peaceful solution to the conflict in El Salvador and, indeed, throughout Central America.

A. Current Role in El Salvador

Policy statements on Central America, whether for internal use or for congressional or public consumption are inadequate starting points for discussion of our current role in the region. Rather than focusing on the articulation of policy objectives and their rationale, we prefer to outline the actions of our government agencies which affect developments in El Salvador.

We have ascertained that the activities grouped and listed below are being implemented by no less than twelve agencies of the government and supported by numerous NGO's.

The following is a partial list of these activities:

1. Improving political and economic conditions to increase viability of current governing coalition through:

* Accelerating disbursement of bilateral economic aid and providing administrative and technical assistance.

* Supporting approval and expediting disbursements of IBRD, IDB and IMF new and pipeline programs and projects under consideration.

* Setting up of US/Salvadorean technical and managerial team to assist in government planning and administration to prevent economic collapse.

* Expanding resource flow and tightening administration of agrarian reform program to reduce its impact on traditional elite and to increase short term benefits to target population.

* Expanding short-term resource flow to private sector to discourage current capital exodus and strengthen sectoral confidence.

* Monitoring closely and moderating latent and open differences among members of governing Junta and the officers corps.

2. Improving and protecting the international legitimacy and prestige of the regime through: