Honduras was the original "Banana Republic," its history inextricably intertwined with that of the U.S.-based United Fruit Company, but in 1979, when Anastasio Somoza was overthrown in Nicaragua, Honduras got a new nickname: "The Pentagon Republic." In 1978, Honduras received $16.2 million in U.S. aid; by 1985 it was getting $231.1 million, primarily because President Suazo Cordova, working with U.S. Ambassador John Dmitri Negroponte and Honduran General Gustava Alvarez, allowed Honduras to become a training center for U.S. funded Nicaraguan contras. General Alvarez, who according to Newsweek, "doesn't care if officers are thieves, as long as they are virulent anti-communists," assisted in training programs and founded a special "hit squad," the Cobras. Victims of the Cobras were stripped, bound, thrown into pits and tortured. The Reagan Administration claimed ignorance of these human rights violations, but U.S. advisors have admitted knowledge" Alvarez, who made enemies among his troops because he pocketed U.S. aid and because he belonged to the "Moonies", a far-right South Korean religious cult, was overthrown by the military in 1984. Suazo's ties to Alvarez cost him his bid in the next election, but death squad activity and U.S. aid to Honduras continue. Many high ranking government and military personnel during and after Suazo's term were drug traffickers, and although the U.S. government denies knowledge of this, there is evidence to the contrary. In fact, the U.S. embassy was renting space from known drug dealers.

http://wais.stanford.edu/USA/us_supportforladictators8303.html

Weapons

After the Israeli-sanctioned massacres at Sabra and Shatila then Israeli Defense Minister Ariel Sharon and the Air Force Chief arrived in Honduras. In his 38-hour visit, Sharon and the Hondurans agreed that Israel would send Honduras 12 Kfir planes, radar equipment, light weapons and spare parts and 50 advisers. Military training was also proposed. Less than six months later, Israel was sending weapons to Honduras: artillery pieces, mortar rounds, mines, hand grenades and ammunition. Most were to go to U.S.-backed counterrevolutionaries seeking to overthrow the Nicaraguan Government from bases in Honduras. In the period of 1970-80, Honduras received the following weapons from Israel: 12 Dassault Super Mystere fighters; four Arava (STOL) transports; I Westwind reconnaissance plane; 14 RBY Mk armored cars; five fast patrol boats (unconfirmed); 106-mm mortars; and 106-mm rifles.