In response to a congressional request, GAO provided its views on whether two disbursements of economic support funds to the Honduran government in 1986 violated the International Security and Development Cooperation Act of 1985. GAO noted that the act contains a legal prohibition on the conditioning of foreign assistance on the recipient's provision of assistance to persons engaged in insurgency...

GAO FINDS NO EVIDENCE TO INDICATE THAT THE DISBURSEMENTS OF FUNDS TO HONDURAS WERE PURSUANT TO AN ARRANGEMENT RELATING TO HONDURAN ASSISTANCE TO THE NICARAGUAN DEMOCRATIC OPPOSITION. WE HAVE FOUND NO BASIS FOR CONCLUDING THAT THE TRANSACTIONS IN QUESTION WERE MADE IN VIOLATION OF SECTION 722(D). ARE INTENDED TO BE USED TO PROMOTE ECONOMIC OR POLITICAL STABILITY. 22 U.S.C. SUCH FUNDS ARE AVAILABLE...