For months the Presidents of five Central American countries had been signaling new hopes for peace in their embattled region. The focus for that optimism was a proposal they planned to discuss at a June 25 regional summit meeting in Guatemala City. But last week, following a flutter of U.S. diplomacy in the region, the peace initiative appeared to collapse. Salvadoran President Jose Napoleon Duarte, Washington's closest ally in Central America, demanded a postponement of the meeting. Meanwhile, President Reagan held a hastily arranged, one-hour session at the White House with the author of the peace plan, Costa Rican President Oscar...
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