FOR IMMEDIATE RELEASE                                          IG
FRIDAY, SEPTEMBER 20, 1996                         (202) 616-2777
                                               TDD (202) 514-1888

                                 
        STATEMENT BY INSPECTOR GENERAL MICHAEL R. BROMWICH


     "Today I opened an investigation into allegations that 
federal agencies helped funnel drug profits to rebels in
Nicaragua, known as the Contras, in the 1980's.  

     "Attorney General Janet Reno referred the matter to my
office after learning about the allegations reported in the San
Jose Mercury News, in part through letters from Senator Dianne
Feinstein and Representative Maxine Waters, both of California.

     "We will coordinate our efforts with the CIA's Inspector
General, who already has opened an inquiry."

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