A newly-declassified report on human rights abuses in Honduras in the 1980s has found that the United States Central Intelligence Agency knew of torture and murders carried out by the Honduran military.

The report, by the CIA's inspector general, says the Agency played down the abuses and deliberately suppressed information about an anti-communist paramilitary group the Anti-Communist Liberation Army of Honduras, or ELACH which kidnapped, tortured and executed left-wing activists.

But the report says there's no evidence CIA agents were present during interrogation or torture sessions.

However, an independent Human Rights observer in Honduras Ramon Custodio says there is evidence to the contrary and he suspects the report may be another attempt at a cover-up.