The State Department estimates that $40 million a year and 1,300 observers would be needed to ensure compliance with any Central American peace treaty, according to a recent analysis. U.S.

allies in the region are expected to propose a compliance arrangement as part of a draft treaty. Senate Foreign Relations Committee Chairman Richard G. Lugar (R-Ind.), back from a Central

American visit, said Washington would support any treaty with adequate compliance procedures that pushed Nicaragua toward democracy. MORE TO READ