state/nation/world
The Daily Collegial
Garcia resigns as Salvadoran defense minister
By ARTHUR ALLEN
Associated Press Writer
SAN SALVADOR, El Salvador Gen. Jose
Guillermo Garcia resigned yesterday as de
fense minister, ending a bitter power struggle
with some commanders who accused him of
bungling the war against left-wing guerrillas.
Garcia, 49, summoned reporters as rumors
circulated that he would step down and told
them: "I always thought that one day I would
hold a news conference for you with only one
question asked and one answer given. This
question has an answer: Yes. I believe you
understand what I'm referring to."
In the latest armed forces feud, the air force
commander, Col. Juan Rafael Bustillo, threat
ened last week to refuse. Defense Ministry
orders unless Garcia resigned.
Last January, Col. Sigifredo Ochoa Perez,
Gov. Thornburgh
to strengthen Pa.
By RICH KIRKPATRICK
Associated Press Writer
HARRISBURG Gov. Dick
Thornburgh yesterday proposed
imposing a new 1 percent tax on
businesses and tightening benefit
requirements *as part of a plan to
pull Pennsylvania's jobless fund
into the black by 1986.
He also suggested the state adopt
a union-supported "worksharing"
system. It would allow employers
to spread the impact of layoffs by
reducing hours for all workers, who
then would be eligible for some
jobless benefits in addition to their
Cable TV piracy operation cracked
• SCRANTON, Pa. (AP) A man
who called himself the "HBO Kid"
was named yesterday as the mas
s termind of the country's largest
" • known cable television piracy ring,
• which cost five legitimate firms up
• to $2.5 million over five years.
"They were so businesslike they
7 even made service calls," said state
Attorney General Leßoy Zimmer
' man. •
Frank Cardamone, 23, of Taylor,
Pa., was arraigned before District
Justice Eugene Cadden and re
leased on his own recognizance pen
ding an April 26 preliminary
hearing at the Lackawanna County
courthouse.
Cardamone's surrender followed
an undercover investigation that
• Zimmerman said pitted "sophisti
cated electronic theft against so
phisticated electronic
• surveillance."
He said Cardamone got an early
start in the electronics business and
was "very clever, crafty and Indus
;
trious." He said he even usc. .he
name "HBO Kid" on his business
• card and license plates.
Cardamone allegedly provided
• about 2,700 northeastern Pennsylva
.
• nia customers with illegal convert
:. ers that unscrambled the signals of
extra-cost television channels such
as Home Box Office (HBO).
Customers of the piracy scheme
- were charged a one-time fee of $lOO
to $125, compared to a monthly
charge of $7 for a legal converter by
each of the five cable companies
that operated in the region, the
attorney general said.
To avoid suspicion, Zimmerman
; said, the cable pirates rented trucks
- similar to those used by cable firms
in the area they served in Lacka
wanna
ly around Scranton and Wilkes
Barre.
Zimmerman said his agents plan
more arrests over the next several
weeks, including people allegedly
trained by Cardamone and others
who acted independently.
By R. GREGORY NOKES represents U.S. diplomatic personnel. each year. completed at only four posts.
Associated Press Writer Although the association is satisfied that American John Redell of the General Accounting Office, which The State Department said in statement Monday that
security efforts abroad are "working pretty well," he conducted a follow-up study that found serious delays in "significant improvements" had been made at the
WASHINGTON The U.S. Embassy in Beirut, heavi- • said, "when you have someone willing to die in the the program, says security needs at embassies has embassy in Beirut, and that all planned improvements
ly damaged in a terrorist attack yesterday, was among attempt of an attack, it's very difficult to stop." changed dramatically. had been completed.
those diplomatic compounds where security was tight- The bombing of the Beirut embassy was the
_most "In the 19705, State was gearing its program up to
They included establishing perimeter checkpoints ,to
ened following the hostage-taking in Iran. But experts serious assault on an American embassy since a spate of protecting individuals," he said. "The threats were
screen vehicles and visitors entering the grounds, secu
say it's impossible to prevent all attacks especially attacks in 1979 -- which included the taking of American against individuals. But in the 1980 s they are gearing up
rity posts manned by Lebanese, security guards and
suicide missions. ' hostages in Tehran on Nov. 4, 1979, the burning of the for massive assaults, group assaults..." Marines and use of metal detectors to screen of visitors
A pro-Iranian terrorist group, Moslem Holy War, embassy in Islamabad, Pakistan on Nov. 22 and the He said group assaults were something new and the
and packages before admisison into the buildings.
claimed responsibility for setting off explosives packed sacking of the U.S. mission in Tripoli, Libya less than new program was intended to "buy time" until host ,
into a pickup truck, killing more than three dozen people. two weeks later. governments could provide sufficient local police protec-, Larry Speakes, the White House deputy .spokeman,
"It points out once again what a perilous occupation In 1980, the State Department began a five-year tion. said yesterday, "These things are difficult to protect
diplomacy has become," said Dennis K. Hays, president program of increasing protection at overseas diplomatic The GAO, the investigative arm of Congress, said last against. You do what you can. We've done what we can.
of the American Foreign Service Association, which posts aiming to complete improvements at 25 posts year that the program was behind schedule, with work This was clearly unexpected."
considered one of the army's best combat
leaders, staged a six-day mutiny with his 1,200
soldiers in northern Cabanas province. The
rebellion ended when Ochoa, agreed to go to
the Salvadoran Embassy in Washington as
military attache. Military sources said at the
time that, as part of the compromise set
tlement, Garcia had pledged to resign in three
months.
President Alvaro Magana accepted Gar
cia's resignation, and named Gen. Carlos Eu
genio Vides Casanova, commander of the
national guard, to head the Defense Ministry,
a presidential aide said.
The aide, Francisco Jose Guerrero, said the
Constituent Assembly still had to ratify the
president's choice. Military sources said the
44-year-old Vides Casanova has a reputation
as a tough administrator.
Garcia told the news conference he had
reduced wages.
Thornburgh said his plan, now
being drafted into legislation, "is
critical" to efforts to improve the
state's business climate.
"It will restore essential equity
and financial balance that have
been missing from our unemploy
ment compensation systems," the
governor said at a press confer
ence.
Pennsylvania owes the federal
jobless system $2.7 billion and will
owe $lOO million in interest this
year.
Thornburgh, saying the state
fund has been paying out $2 in
Frank Cardamone, 23, of Taylor, Pa., lowers his head as he leaves the state police barracks at Dunmore, Pa. minutes
after being charged in connection with what authorities called the largest cable TV piracy operation ever discovered In
the nation. .
Zimmerman said Cardamom's
customers also could face criminal
charges, but that his office and the
cable companies agreed to a 30-day
grace period during which custom
ers can avoid prosecution by turn
unveils plan
jobless fund
benefits for every $1 in taxes from
employers, added: "This trend ab
solutely must be reversed."
If, the Legislature adopts the
plan, the fund could show an annual
surplus of $57 million in 1986 instead
of an $B7l million deficit, Thorn
burgh said. Moreover, he said, the
debt could be erased by 1992, in
stead of growing to $5 billion by the
end of 1986. .
",The option to do nothing is not
on the table," Thornburgh said.
In addition, if corrective steps
are taken by Sept. 30, fennsylva
nia's interest payment this year
will be cut to $2O million.
ing in their illegal equipment.
Cardamone is charged with one
count of conspiracy and two counts
of theft. If convicted he faces a
maximum sentence of 14 years in
prison and a $30,000 fine.
tendered his resignation to Magana on March
18, but the president did not act on it until
yesterday.
"I hope the president continues with a team
that supports the democratic process, which is
the country's salvation," Garcia said. "What
worries me is that the people might be de
frauded,. because the people deserve more
than has been given them."
He called for armed forces unity and ex
pressed hope that the government would fol
low through with its pledge to hold elections.
Elections had been scheduled for March 1984,
but Magana, at the urging of President Rea
gan, recently announced they would be held
this December.
Magana is an interim president, chosen by
the Constituent Assembly that was elected in
March 1982 to pave the way for a return to
democracy.
The firms victimized by the
scheme, Zimmerman said, were.
Adams Cable TV, Blue Ridge Cable
TV, Northeast Cable TV, Service
Electric Co., and Verto Cable TV.
Walesa:
By BRYAN BRUMLEY
Associated Press Writer
WARSAW, Poland Police detained and interro
gated Lech Walesa, his family priest and two other
companions for hours yesterday after stopping their
car on the road to Warsaw, Walesa's wife and the
clergyman reported.
• Danuta Walesa told The Associated Press in a
telephone interview from Gdansk that her husband was
brought home at about 8 p.m. (1 p.m. EST). Police
detained the party at about 11 a.m., according to the
Rev. Henryk Jankowski, Walesa's adviser and confes
sor.
It was the second time Walesa was held by authori
ties and questioned in the six days since he announced
he was meeting with underground Solidarity leaders to
coordinate policies.
Garcia was considered a moderate and had
backed social and economic reforms that have
been under attack by ultra-rightists in the
right-wing• government.
The United States has provided millions of
dollars in military aid tohelp the gOvernm'ent
in its 41-month-old civil war, but Congress has
linked additional aid to a demand that the
government end human rights abuses by its
security agencies.
Garcia had tried to remove Ochoa by trans
ferring him to the embassy in Uruguay as a
military attache, but agreed under pressure to
send him to Washington.
At a Jan 13 meeting of departmental com
manders after Ochoa had ended his revolt,
Garcia gained enough support to remain as
defense minister, but one source said "the
vote was not unanimous." He said among
those who "hedged their bets" was Bustillo.
Solidarity leader detained,
Reagan leaning against
reappointing Volcker
By OWEN ULLMANN
Associated Press Writer
WASHINGTON President
Reagan is leaning against naming
Paul A. Volcker to a second term
as chairman of the Federal Re
serve Board but has not made a
final decision on either. Volcker's
future or on choosing a successor
for the powerful post, administra
tion sources said yesterday.
One source, speaking only on
condition that his name not be
used, said White House officials
are considering five or six candi
dates to succeed Volcker, whose
four-year term as head of the
nation's cehtral bank expires in
August.
Volcker, 55, appointed by for
mer President Carter, is one of the
most influential figures on the
economic scene because of the
tremendous impact the Federal
Reserve exerts on inflation, inter
est rates and economic growth
through its control of the nation's
supply of money and credit.
The administration source, em
phasizing that Reagan has not
made up his mind firmly, said
Volcker still has an outside chance
at a second term, if he wants it,
but that 'the probability of that
happening "is diminishing every
day."
"Volcker's support in this ad
ministration has never been
strong," said the source. "The
overwhelming view is that the
president has a right to name his
own guy. Carter did. That's the
way it works. There are lots of
qualified people in the country for
the job."
Although Volcker's term as
chairman expires_ in August, he
could stay as a member of the
Fed's board of governors for 10
more years. But it is assumed he
would leave if not named chair-
Walesa stopped short of publicly endorsing the un
derground's call for protests, which sparked the arrest
of at least 26 Solidarity activists on Saturday.
Walesa had said he was questioned last week about
his meetings with the underground, but Mrs. Walesa
declined to discuss yesterday's interrogation. She said
her husband was "too tired and too hungry" to come to
the phone, adding that he was ordered to appear at
Gdansk police headquarters at 11 a.m. today.
The Interior Ministry, which runs the security police,
refused to comment on Walesa's reported detention.
The duty officer at Olsztyn police headquarters, con
tacted by telephone from Warsaw said, "He has not
been detained. He has-not been arrested either."
The officer's comments were reminiscent of Official
statements last Dec. 16, when authorities drovel)Valesa
around Gdansk for nine hours to keep him from a rally
outside the shipyard.
man again.
The list of possible successors
includes.:
Preston Martin, 59, a long-time
Reagan political associate from
California who was named by the
president last year to be vice
chairman of the Fed, the No. 2
post; economist Milton Friedman,
70, the Nobel prize winner whose
theories about monetary policy
have had great impact on both the
administratiOn and the Fed; Beryl
W. Sprinkel, 59, undersecretary
for the Treasury in charge of mon
etary policy; William E. Simon,
' 55, a financial consultant who was
treasury secretary under former
President Ford, and Alan Greens
pan, 57, chairman of the Council of
Economic Adviserslunder Ford.
Sources said Treasury Secre
tary Donald T. Regan, 64, who is
well liked by the president, also
could be tapped for the job, which
requires Senate confirmation.
Speculation about Volcker's fu
ture has been rampant in recent
weeks. Some observers have as
sumed that Reagan, a Republican,
is sure to name his own candidate
to so crucial a post rather than
stay with a man picked by a Dem
ocratic president. They note that
Carter replaced the highly re
garded Arthur Burns in 1978 with
G. William Miller. Volcker got the
job when Miller became treasury
secretary.
Numerous Republican poli
ticians have blamed Volcker for
keeping interest rates high, caus
ing the severe recession of 1981-82
and driving up unemployment.
They argue that if Reagan retains
Volcker, the president would tac
itly be accepting responsibility for
those economic events and make
Republicans vulnerable in the 1984
elections.
Tuesday, April 1
Gen. Guillermo Garcia
interrogated
state news briefs
Inmates haggle over surrender terms
PITTSBURGH (AP) Two armed inmates holding a pair of
hostages seized in a botched breakout attempt haggled yesterday
over the "terms of surrender" in the fifth day of their standoff at a
maximum-security prison
"We get the impression they're trying to make up their minds,"
spokesman Ken Robinson told reporters waiting out the siege at the
State Correctional Institution at Pittsburgh, a century-old stone
fortress along the Ohio River.
"We're not moving real rapidly, but we're still talking," he said.
Robinson, said at 4:30 p.m. the inmates and negotiators had not
conversed for about two hours while inmates apparently mulled
-over negotiators'` responses to demands. No food was sent into the
men yesterday, he said.
At an early afternoon briefing, he reported "a handful of items
holding up a settlement."
"What that means, I can't tell you," Robinson added.
The inmates on Saturday gave professional prison negotiators
four pages of proposals in return for sandwiches, the first food
given the captors since the siege began Thursday morning,
Robinson' said.
Ex-LCB agent accused of extortion
•HARRISBURG (AP) A former bar owner testified yesterday nrt
a retired Liquor Control Board enforcement agent owned a part
interest in a private club and tried to extort money and food from
bars in west Philadelphia. •
The Senate Law and Justice Committee heard testimony from
seven witnesses concerning activities by LCB agent Joseph Ford
before his retirement in 1981.
Larry King, 40, of Upper Darby told the committee that he had
giVen luncheon meats, Christmas hams and drinks to Ford on a
regular basis' from about 1974 to 1980. King said Ford pushed
gambling machines into his and other bars, and said he helped
Ford get started in his own bar.
- All seven said yesterday that after giving their statements to the
LCB in 1981, they never heard from the agency again.
"I knew it was wrong, and I also knew what would happen if I
didn't go along (with Ford)," Young said in reply to a question. "I
would have been harassed, cited and run around."
Ford could not be reached for comment.
nation news briefs
•
Sen. Hollings enters presidential race
WASHINGTON (AP) Sen. Ernest F. Hollings of South Carolina
formally entered the Democratic presidential sweepstakes yester
day, but said his party cannot hope to regain the White House until
it.convinces voters it can truly manage the economyrather than
merely offering to "send more money."
In an appearance at the National Press Club, Hollings also said
he would consider choosing a black or a woman as his running
mate. "We have outstanding black leaders of experience, national
renown, women also," he declared.
Hollings declared his candidacy 'at Midlands Technical College in
Columbia, S.C., and then flew to Washington to speak at the press
club.
On the flight to Washington, Hollings conceded that if he doesn't
finish close behind former Vice President Walter F. Mondale in the
New Hampshire primary "I'm going to be in trouble." He said he
was confident he would win the presidential primaries in Alabama
and Georgia.
$ll9 million malpractice suit settled
HOUSTON (AP) The parents of a 2-year-old girl who suffered
brain damage during Caesarean birth have accepted a settlement
that could total $ll9 million the largest malpractice award ever
made, according to the parent's attorney.
Shortly before the case was to go to trial, Ronald Ferris, 32, and
his wife, Linda, 29, agreed to the out-of-court settlement, attorney
Richard Mithoff said
Pasadena. Bayshore Hospital, owned by Hospital Corp. of Ameri
ca, agreed to pay the Ferris' $4.2 million within 30 days and $7,000
monthly for the first year, said attorney Richard Mithoff.
The payments are guaranteed for 20 years or for the rest of the
child's life, whichever is longer, Mithoff said.
The Ferris sued the hospital, claiming their daughter, Andrea,
suffered oxygen deprivation during Caesarean birth July 7, 1980,
permanently damaging the . brain.
Shultz: U.S., Mexico interdependent
MEXICO CITY (AP) Secretary of State George P. Shultz
yesterday hailed the "extraordinarily good" relationship between
the United States and Mexico, despite their serious differences over
Central American problems.
During the hour-long opening session of a two-day meeting, there
was a clear attempt to stress that the two countries are interdepen
dent and to tone down the Central American issue. Shultz and five
other Cabinet members from the two countries spoke.
The Mexican government, however, Made it clear in other ways
that, notwithstanding the American viewpoint, it will continuelo
maintain friendship with . Nicaragua's leftist leadership and with
the Salvadoran guerrilla movement. The United States supports
the Salvadoran government and accuses Nicaragua of supporting
and helping to spread revolution in the region.
Dad, wife, mistress to set up house
DOUBLEBOIS, England (AP) Superdad John Knight's mis
tress and their nine children are moving to this Cornwall village
next month to join his wife and 10 of their children, local authorities
announced yesterday.
"I am absolutely over the moon and delighted that the family will
be back together again soon," said Carole Knight, 38, who is
expecting heF 12th child in July.
"I am so much lobking forward to putting down roots in our new
community," the other woman, Clare Martens, 40, told the Western
Morning News. "Now all I want us to do is get on with living."
Knight is an unemployed, 46-year-old former civil servant who
divides his time equally between wife and mistress and maintains
the two families on about 250 pounds ($388) a week in welfare
payments,
•
stock report
Stock prices ride Volume Shares
winning streak 104,230,400
NEW YORK (AP) Stock Issues Traded
2,018
prices swept ahead yesterday,
riding their longest winning Up
streak in eight years to anoth- 1,001
er record high.
The Dow Jones average Unchanged
climbed 11.90 to 1,183.24, for 391
its eight consecutive gain. The
last time it put together a Down
string of eight advances in a 626
row was April 8-17 of 1975.
The average now has risen • NYSE Index
406.32 points since last Aug. 12. 91.71 + .53
Volume on the New York • Dow Jones Industrials
Stock Exchange totaled 88.56 cp 1,183.24 + 11.90 '
million shares.
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The Daily Collegian Tuesday, April 19, 1983-5
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