This report presents a revised version of a briefing given in October 1983 to the National Bipartisan Commission on Central America, chaired by Dr. Henry Kissinger. The revisions consist primarily of background material that the authors had assembled but were not able to provide in the actual briefing. The views expressed here are based largely on findings from earlier Rand research, but they also reflect the authors' collective judgments about why and how the United States should be interested in Central America. The report, like the briefing, is intended for a broad public audience. Central America is a fast-moving subject. Even before the publication of this report, the Kissinger Commission had issued its report, and the Reagan Administration had submitted the Central America Democracy, Peace, and Development Initiative Act of 1984 (also known as the Jackson Plan) to Congress. The present report has not been updated to reflect these or other recent developments. Its purpose is to document the information that the authors provided to the Commission. Contents: The New Policy Environment; U.S. Interests in Central America; Security Trends and Potential Threats; The Challenge of Nicaragua; General Implications for U.S. Policy.