this added excerpt might also bring back forgotten memory of that time. It is also from the link immediately above:
Back in 1981, a State Department insider boasted that we would "turn Nicaragua into the Albania of Central America" - that is, poor, isolated and politically radical - so that the Sandinista dream of creating a new, more exemplary political model for Latin America would be in ruins.
George Shultz called the Sandinistas a "cancer, right here on our land mass," that has to be destroyed. At the other end of the political spectrum, leading Senate liberal Alan Cranston said that if it turned out not to be possible to destroy the Sandinistas, then we'd just have to let them "fester in [their] own juices."
So the US launched a three-fold attack against Nicaragua. First, we exerted extreme pressure to compel the World Bank and Inter-American Development Bank to terminate all projects and assistance.
Second, we launched the contra war along with an illegal economic war to terminate what Oxfam rightly called "the threat of a good example." The contras' vicious terrorist attacks against "soft targets" under US orders did help, along with the boycott, to end any hope of economic development and social reform. US terror ensured that Nicaragua couldn't demobilise its army and divert its pitifully poor and limited resources to reconstructing the ruins that were left by the US-backed dictators and Reaganite crimes. The contras were even funded by the US selling arms to Iran, in what became known as the Iran-Contra Affair.
One of the most respected Central America correspondents, Julia Preston (who was then working for the Boston Globe), reported that "Administration officials said they are content to see the contras debilitate the Sandinistas by forcing them to divert scarce resources toward the war and away from social programs." That's crucial, since the social programs were at the heart of the good example that might have infected other countries in the region and eroded the American system of [much higher-grade] exploitation and robbery.
We even refused to send disaster relief. After the 1972 earthquake, the US sent an enormous amount of aid to Nicaragua, most of which was stolen by our buddy Somoza. In October 1988, an even worse natural disaster struck Nicaragua - Hurricane Joan. We didn't send a penny for that, because if we had, it would probably have gotten to the people, not just into the pockets of some rich thug. We also pressured our allies to send very little aid.
This devastating hurricane, with its welcome prospects of mass starvation and long-term ecological damage, reinforced our efforts. We wanted Nicaraguans to starve so we could accuse the Sandinistas of economic mismanagement. Because they weren't under our control, Nicaraguans had to suffer and die.
Third, we used diplomatic fakery to crush Nicaragua. As Tony Avirgan wrote in the Costa Rican journal Mesoamerica, "the Sandinistas fell for a scam perpetrated by Costa Rican president Oscar Arias and the other Central American Presidents, which cost them the February [1990] elections."
For Nicaragua, the peace plan of August 1987 was a good deal, Avrigan wrote: they would move the scheduled national elections forward by a few months and allow international observation, as they had in 1984, "in exchange for having the contras demobilised and the war brought to an end...." The Nicaraguan government did what it was required to do under the peace plan, but no one else paid the slightest attention to it.
Arias, the White House and Congress never had the slightest intention of implementing any aspect of the plan. The US virtually tripled CIA supply flights to the contras. Within a couple of months the peace plan was totally dead.
As the election campaign opened, the US made it clear that the embargo that was strangling the country and the contra terror would continue if the Sandinistas won the election. You have to be some kind of Nazi or unreconstructed Stalinist to regard an election conducted under such conditions as free and fair - and south of the border, few succumbed to such delusions.
If anything like that were ever done by our enemies... I leave the media reaction to your imagination. The amazing part of it was that the Sandinistas still got 40% of the vote, while New York Times headlines proclaimed that Americans were "United in Joy" over this "Victory for US Fair Play."