Hasenfus was the only survivor when the Sandinistas shot down his plane over southern Nicaragua. He said he was working as a cargo handler on the flight. Two other Americans and a Nicaraguan died in the crash.
After a trial before a People's Tribunal composed of a lawyer, truck driver and laborer, Hasenfus was sentenced last month to 30 years for terrorism and other crimes. He was being held in the Tipitapa prison outside Managua when he was freed.
Ortega told reporters before Hasenfus was released that the pardon also would be a birthday gift for Hasenfus' son Adam. The Hasenfuses also have a daughter, Sarah, 12, and another son, Eugene Jr., 9.
"Let this be a reminder to President Reagan that there are children here that must have birthdays without the threat of death and mutilation," Ortega said.
At Ortega's request, the Nicaraguan National Assembly voted to pardon Hasenfus, a process that took only a few hours from the time it was first announced by the Nicaraguan government radio station.
Dodd, a member of the Senate Foreign Relations Committee traveling in Central America, issued a statement Wednesday saying Hasenfus was released on humanitarian grounds.
"I did not ask that he be pardoned, and there was no quid pro quo for his release," he said. "Mr. Hasenfus' situation was a small part of my conversation with Ortega, perhaps 15 minutes of a 4-and-a-half-hour conversation."
Dodd told ABC's "Good Morning America" yesterday that he accepted at face value the reasons the Sandinistas gave for releasing Hasenfus.
"They said this was the Christmas season, [and that they wanted to] reunite a family.... I think they wanted to demonstrate to people in the United States that they could be humane."
In Washington, the State Department said in a statement: "We are gratified that the Sandinistas have released Hasenfus and that he will be reunited with his family during the Christmas season. However, the handling of this entire incident was orchestrated by the Sandinistas for maximum propaganda effect."