Hostages Free; Questions Linger

The kidnapping has been a setback on two fronts: It has done nothing to win public confidence in or support for U.S.-backed contras who regularly mimic the sort of disregard for human rights that President Reagan insists is the

hallmark of their Sandinista rivals. And, to the extent the United States has tried to rally European support for anti-terrorist moves - from clampdowns on hostage-takers to sanctions and air strikes - the episode has exposed an administration ineptly in control of rebels that it, simultaneously, is offering $100 million in aid.

Domestically, the incident legitimately fuels criticism that the contras are not beyond the kind of terroristic tactics - harbor-mining, political assassination, kidnapping - that, in arenas from Iran to Lebanon, the United States rightly and loudly deplores. Internationally, it fuels bitterness that when foreign lives are on the line the Reagan administration is slow out of the blocks.

All is well that ends well, and American diplomats certainly deserve a share of the credit. But for the administration, serious questions remain: If it controls the contras, why were the Germans held so long? If it does not control them, is it wise to hand them another $100 million and, with it, the official endorsement of - and responsibility for - their behavior?