state/ngtionlvorld
Index shows slower
growth
:,By ROBERT BURNS
, AP Business Writer
The government's Index of
Leading Economic Indicators rose
0.3 percent in July, the smallest
monthly gain since the forecasting
gauge began rising last Septem
,ben
The stock market, apparently
.;•heartened by the report, rallied
',-'despite a drop in bond prices.
The Dow Jones average of 30
industrial stocks, the most widely
,watched indicator of stock market
'trends, soared 20.12 points, to
.1,216.16. It was the Dow's biggest
since it rose 30.74 points on
-July 30.
• Separately, the Agriculture De
,,•, ,
. partment said farm prices rose 4.6
percent in August, the biggest
monthly rise in more than three
:years. Agriculture officials attrib
' :uted the price jump partly to the
,•- 'Farm Belt's summer drought.
Economists interpreted the
leading indicators report as evi
dence that the economic recovery,
* which began late last year, slowed
`,`„ in July from the torrid pace of last
;spring.
;. • At Citibank in New York, econo
f ,mist Alan Murray said his bank
'estimated that the nation's econ
omy continued to grow in July, but
r , at a slower rate than earlier
f'
"The momentum of the recov
ery is clearly slowing as the econ
.: -orny' shifts gears," Murray said.
r ;He predicted that the nation's
„ gross national product the broa
:; •dest measure of economic activity
—would expand at an 8 percent
annual rate in the current quarter.
; _ •
GNP grew at a 9.2 percent rate in
'the previous quarter.
Commerce Secretary Malcolm
•;Baldrige, commenting on the 0.3
yerbent increase in the Index of
t ;Leading Economic Indicators,
said, "this recovery's strong
+.;
phase . . . is largely behind us,”
'adding that more moderate and
raw sustainable growth likely will fol
' low
The forecasting gauge is a com
, pilation of a dozen forward-point
.ing statistics covering
t . manaufacturing, employment,
Air France hijackers
give up, none hurt
TEHRAN, Iran ( AP) Arabic-
Speaking hijackers freed their last
15 hostages from an Air France
jetliner in Tehran yesterday and
then surrendered, ending a five
, clay ordeal during which they
forced an American passenger to
kneel on the tarmac for 45 minutes
-.ivith a glm to his head.
Iranian officials said five hijack
.: ers gave themselves up, but Air
France and the freed hostages
said there were four in the group
that seized the jet Saturday on a
- flight from Vienna to Paris and
diverted it to Tehran Sunday.
They released more than 90 oth-
Shuttle launches satellite despite 'fire'
.By HARRY F. ROSENTHAL
'•'Associated Press Writer
CAPE CANAVERAL Fla. Challenger's as
,
', , ,;tronauts launched a triple duty satellite for India
',-yesterday and were told by President Reagan
:-;that the space flight of America's first black
:,astronaut demonstrates "we are in an era of
.brotherhood here in our land '
But the astronauts were later startled by the
high, piercing sound of an alarm signaling the
possibility of fire in an instrument bay. The
;:":alarm turned out to be false.
Reagan also found inspiration in the part being
:':played by Dr. William Thornton. who is aboard
• 'the shuttle to learn why some astronauts get sick.
' "Bill, at 54 the oldest astronaut ever to fly in
'space. you have an especially warm place in my
heart." said the president who likes to joke about
the fact that he is 72. "It makes me think some
day I might be able to go along."
The president was at his ranch near Santa
Barbara, Calif.. and the shuttle was 184 miles
high, en route from Hawaii toward' the West
Coast on its 23rd trip around Earth. The astro
nauts were ending a day in which they made their
$8.36 million satellite delivery, the most impor
tant part of their six-day flight.
"I caught you on the way to your bunks for
some well deserved sleep, so I'd better cut this
short," said Reagan. . . .
He told Lt. Col. Guion Bluford, the first black
man to earn the gold pin that denotes an astro
naut who has flown, that he is paving the way for
many others
"You are making it plain we are in an era of
economy
Composite Index of
Leading Economic
Indicators
156- Economic
Activity
1967=100
152-
140- I I
136-Ndl
ASONDJ FMAMJ
1982 • 83
Source: Commerce Dept
prices, money supply and other
areas.
The Commerce Department
also revised upward its estimate
of the June index of leading indica
tors, to a 1.9 percent gain from the
previously reported 1 percent
gain.
In other economic developments
yesterday:
• The government. said the
median value •of single-family
homes built in the last 13 years
climbed $3,600 between 1980 and
1981, to $70,900. One-quarter of all
homes were 'built in that period.
The median value of all single
family homes, regardless of when
built, was $55,300 in 1981, up $4,000
from the year before.
• El Paso Co. said its chemical
manufacturing unit, El Paso Prod
ucts Co., is laying off about 400
workers in Odessa, Bayport and
Corpus Christi, Texas. Company
president J. Virgil Waggoner said
the cutback, "although regretta
ble, is the only way to keep our
chemical manufacturing business
in a competitive cost position." He
said the company had lost money
for nine consecutive quarters.
er passengers at stops along the
way.
Dr. Clayton Thomas, 62, and his
55-year-old wife, Margaret Ann, of
Brimfield, Mass., were among the
eight passengers and seven crew
freed in Tehran. They and the
others were unharmed and will fly
to Paris today.
Reached by The Associated
Press by telephone from Nicosia,
Cyprus, Mrs. Thomas, in Tehran's
Hyatt Hotel, said her husband was
forced to kneel for 45 minutes on
the tarmac with a gun pointed at
his head Tuesday while negotia
tions for refueling.
brotherhood here in our land and you will serve
as a role model for so many others and be so
inspirational," Reagan said. "I . can't help but
express my gratitude for you."
Earlier, when Mission Control asked Com
mander Richard Truly how things were going, he
exclaimed: "Shoot, we never had so much fun in
our whole lives."
There are three types of alarms on the shuttle,
and flight director Harold Draughon said the one
that sounded at' 1:30 p.m. EDT "is the most
attention-getting system on the spacecraft."
It reacts to gases produced by combustion, but
is not a heat sensor. "It will detect things you
can't see or smell or sense," Draughon said.
The astronauts could have thrown switches to
activate two fire extinguishers in the avionics
bay. or used a hand-held extinguisher through
access ports.
Draughon said that since a second alarm didn't
confirm a fire, Truly decided the extinguishers
weren't needed.
The malfunctioning alarm had been used on the
original, unpowered shuttle, Enterprise, and
Draughon said it has a history of being overly
sensitive. This was the first time such an alarm
had gone off in flight.
The flight director speculated that "outgas
sing" a release of .gas from electronic equip
ment might have triggered the alarm.
The satellite, which can handle more than 8,000
telephone circuits and beam television to receiv
ers in 100,000 rural communities, will also im
prove weather forecasting in India.
"The deployment was on time . . . and the
satellite looks good," mission specialist Bluford
Successor to be chosen in party vote
By MARCUS ELIASON
Associated Press Writer
TEL AVIV, Israel Foreign Min
ister Yitzhak Shamir and Deputy
Prime Minister. David Levy agreed
yesterday to put their contest to
succeed Menachem Begin to a party
vote tonight.
The shift from the Herut Party's
Cabinet caucus to the 930-member
central committee appeared to
boost Levy's chances, since he is
stronger in the committee • than
among the senior party leaders,
who overwhelmingly support Sha
mir.
Defense Minister Moshe Arens
said the committee vote would be by
secret ballot. No matter who won,
he added, "we will continue the
policies that have been followed
under' Mr. Begin."
Much depended on whether the
popular 70-year-old prime minister
would give his blessing to either
candidate. In the past, he has pre
ferred Shamir, a 68-year-old com
rade in the underground fight for
Jewish statehood in Palestine.
Supporters of each man claimed
they were certain of victory. But the
preliminary round went to the 45-
year-old Levy, who held out for a
committee election and rejected
Shamir's attempt to get him out of
the race by offering to make him
foreign minister.
Shamir's supporters, in urging
that the party leadership make the
choice, argued that the longer the
delay, the greater the risk that the
opposition Labor Party would lure
away enough Begin supporters .to
.put together a majority and take
over the government.
Labor outnumbers the Herut
dominated Likud bloc 50-46 in the
120-member Knesset, the Israeli
Parliament, and can count on the
two Shiniu Party members to join
any coalition it forms. Begin's coali-,
tion has 64 seats.
The Laborites were in touch with
members of at least two of Begin's
Stone having problems negotiating with rebels
By ISAAC A. LEVI
Associated Press Writer
SAN SALVADOR, El Salvador U.S. special
envoy Richard Stone yesterday accused leftist
rebel leaders of rejecting a democratic process to
end E. Salvador's 46-month civil war and trying
to seir a power if they do not get it by other means.
Stone also accused the leftists of breaking the
confidentiality of talks he held with them Monday
and Tuesday in Costa Rica to explore ways to find
peace,.
He spoke with reporters after briefing interim
President Alvaro Magana and other top officials
for three hours on the latest developments in his
peace initiative.
"We continue to respect the confidentiality of
these meetings," Stone said at Ilopango air force
base, seven miles east of the capital, before
taking off for Bogota for talks with Colombian
President Belisario Betancur.
Betancur arranged a meeting in Bogota be
tween Stone and leftist
,political leader Ruben
Zamo a on July 31 and another meeting Monday
between the Salvadoran peace commission and
two other rebel leaders.
"At the same time, I know that the statements
made yesterday by the FDR-FMLN during their
press conference in San Jose seem apparently to
partners, the National Religious
Party and TAMI, an ethnic faction
representing Sephardic ( Oriental)
Jews. They have ,nine seats.
The leader of another religious
party in the present coalition, Avra
ham Shapira of Agudat Israel,
made clear that Begin's successor
would have to negotiate to retain the
support of his party's four members
in the Knesset.
Telling reporters Agudat Israel's
commitment was to Begin only, he
said, "We never signed any blank
checks. Anything is possible."
A new complication arose when
four Begin supporters said they
would not support any coalition that
did not include both Likud and La
bor.
Likud members Dror Zeigerman
and Yitzhak Berman and ex-Labor
ites Yigal Hurwitz and Mordechai
Ben-Porat
\ told a news conference
only a broad-based "national unity
government" could reform the in-
New leader may face coalition breakurj
TEL AVIV, Israel ( AP) Here is a rundown of the
Israeli political situation at a glance following Prime
Minister Menachem Begin's decision to resign:
CANDIDATES: The top candidates to succeed him
are. Foreign Minister Yitzhak Shamir and Deputy
Premier David Levy. Shamir, 68, has the backing of
most of the ministers of his Herut (Liberty) faction in
the ruling Likud bloc. Levy, 45, feels he has more grass
roots support than Shamir, and is fighting for the
election of successor by the 1,000-member Herut cen
tral committee, where he believes has a majority.
LABOR PARTY: The opposition Labor Party scents
a chance to put together a coalition and (mist the Likud
government. Its chances depend bn swing votes in the
120-member Parliament. If Labor, which outnumbers
Likud 50-46 in Parliament, can lure at least some of the
members of the ruling coalition to defect, Israel's next
prime minister could be Shimon Peres, leader of the
Labor Party and a former defense minister. Labor's
Yitzhak Rabin, a former prime minister, could become
the No. 2 man in the Israeli leadership.
COALITION PARTIES: As has been the case since
Israel won statehood in 1948, the National Religious
Party .( NRP) is the fulcrum of power. Its six members
reported as the payload spun away. He said the
crew felt a "slight clunk" as the satellite was
released.
It was the sixth successful communications
satellite launch for a shuttle crew.
Bluford gave the commands that started the
satellite spinning at 40 rpm for stability. At• 3:49
a.m. EDT, he pushed a button that sprung the
payload out of the cargo bay.
Truly fired Challenger's engines so the ship
was a safe 12 miles away when the satellite's
onboard rocket fired 45 minutes later to propel it
toward ,a parking space 22,300 miles above the
equator south of India.
INSAT is equipped to transmit weather photos
every half hour, a boon to many segments of
India's economy, including agriculture and avi
ation. Flood control, irrigation planning and
disaster warnings are important benefits antic
ipated.
The requirement to deploy INSAT in a precise
spot over the equator dictated the first night
launch in the shuttle program and the unusual
hours that have the astronauts working days
starting in late evening and ending in early
afternoon.
Bluford and Navy Lt. Cmdr. Dale A. Gardner,
a mission specialist, yesterday completed a cell
separation experiment that holds promise of new
treatment for diabetics. The test involved mov
ing living cells through an electrical field.
The astronauts' schedule for their third day in
space, beginning in the wee hours today, called
for them to put the shuttle's robot arm through its
paces by lifting and moving a dumbbell-shaped,
unbalanced object around.
`I know that the statements
made yesterday by the FDR
FMLN during their press
conference in San Jose seem
apparently to reject their
participation in the
democratic process.'
—Richard Stone, U.S. special
envoy
reject their paiticipation in the democratic proc
ess," Stone said
The FMLN is a coalition of five guerrilla
groups fighting to overthrow the government.
The FDR is a federation of outlawed leftist
political parties that works closely with the
guerrillas.
"If the FDR-FMLN intended to convey that
impression the impression that either they
would have to be granted power or that they
would seize it I would expect that would be
unacceptable here to the people of El Salvador as
it would be unacceptable to democratic people
anywhere," he said.
flation-torn economy and rescue the
Israeli army from its costly occupa
tion of Lebanon.
They claimed the support of Knes
set Speaker Menachem Savidor but
said he could not attend their news
conference for fear of impugning
his impartiality as speaker.
Begin, meanwhile, delayed sub
mitting his resignation to President
Chaim Herzog, apparently until his
party agreed on a successor. He and
his Cabinet remain in office as a
caretaker government until the new
Herut leader or Labor Party
leader Shimon Peres puts togeth
er a coalition.
Shamir, a native of Poland who
immigrated to Palestine in 1935,
was-chief of operations of the Stern
Gang, the anti-British terrorists
who assassinated Count Folke Ber
nadotte, the Swedish U.N. media
tor, in 1948.
Like Begin, he is a doctrinaire
believer in Israel's right to the West
of Parliament serve in Begin's coalition, but the party
is split between the hawkish nationalist wing which is
loyal to Begin, and the dovish socialist-leaning wing,
which. ould not mind joining Labor in a coalition.
Other swing votes are the ultra-orthodox Agudat
Israel Party, with four votes, and TAMI, a three-man
ethnic faction representing Sephardic Jews. Neither
has shut the door on an alliance with Labor.
A UNITY GOVERNMENT: The idea of a national
unity government invariably crops up in',lsraeli politi
cal crises. Labor and Likud would join forces in a
coalition that would include as many other parties as
possible. Four members of the present coalition are
calling for a unity government. The National Religious
Party's Yosef Burg, interior minister and at 74 the
most veteran politician in Israel, is mentioned as the
possible prime minister in such a government.
BEGIN'S STATUS: Begin is delaying his formal
resignation until a successor is picked. He continues to
function as prime minister and is the most respected
figuie in the Likud bloc. He has never publicly named
his preferred successor, but if he wishes to pick an heir,
his choice is sure to be acceptable to the entire party.
1 1111*
' e
Mission Specialist Dale A. Gardner gives a wave as he sits at the middeck
controls yesterday during preparations for the launch of the Indian National
Satellite.
The Daily Collegian
Thursday Sept. 1,.1983
Bank of the Jordan River as part of
the Promised Land. He also refused
to support the Camp David peace
accords with Egypt when they came
to a vote in the Knesset —contend
ing that they gave away too much
the Sinai Desert in return fcir too
little.
As foreign minister, he proved to
be an accomplished diplomat and
was instrumental in the recent Im
provement of Israeli relation& With
black African and Latin Ameilcan
nations.
Levy immigrated from Morocco
in 1957 and was a farm laborer who
made his mark in union politics and
as a leader of the Sephardic com
munity, which comprises 65 percent
of the Jewish population. He is re
garded as e pragmatiit whose chief
priority as premier would be to heal
the national split over the min
He would be Israel's first Sephar
dim prime niinister and its young
est.
Later, in response to a question, he said: "I just
want to repeat and reiterate that we are fully in
support of the approach of the Salvador peace
commission, which is to offer a democratic
process and elections to all Salvador citizens.",
Earlier Wednesday in San Jose, Stone said his
meetings this week with Salvadoran rebel lead- 1
ers were a "positive step" toward 'peace. A
Salvadoran government source said they
peared "to have some substance."
However, one of the rebels Stone met with in
Costa Rica for 4 1 2 hours Monday and Tuesday
said the United States "has no real desire to
arrive at any agreement for ending the civil war
in El Salvador."
'The rebel leader, Mario Aguinada, said in
radio interview in Bogota, that the leftist political
and guerrilla coalitions must be included in a
provisional government if there is to be any
chance of peace and free elections.
President Reagan's personal representative
met for three hours Wednesday with Salvadoran
government leaders including Magana, Francis
co Quinones, head of the government's peace
commission; Defense Minister Carlos Eugenio
Vides Casanova and Roberto d'Aubuisson,
presi
dent of the Constituent Assembly.
A Salvadoran source said Stone "brought with
him the result of those meetings and discussed
alternatives with government officials."
state news briefs
Medicine recalled on AIDS possibility
PHILADELPHIA (AP)'— The American Red Cross is recalling
almost 6,000 vials of a blood-clotting agent used to treat hemophi
liacs because a donor whose blood was used In preparing the
concentrate died of AIDS.
The Red Cross said the risk of hemophiliacs contracting AIDS
Acquired Immune Deficiency Syndrom from the blood product
was "highly unlikely." The recall is voluntary and "purely precau
tionary."
In Philadelphia, where 1,428 of the 5,592 vials were distributed,
the recall began last Friday.
Dr. William Sherwood, director of the Red Cross Pennsylvania-
New Jersey Regional Blood Service, aknowledged some of the
concentrate had been administered to people in the area.
He said those people between two and 15 had been contacted
by their doctors and would be monitored.
College classes free to unemployed
BETHLEHEM, Pa. (AP) Unemployed workers will fill empty
classroom chairs at the Northampton Area Community College this
semester in a free program designed to restore self-confidence and
build skills. , -
Tuition-paying students, who began school Monday, have until
tomorrow to change their schedules, and then the unemployed will
get a chance to fill the openings, said William Connor, dean of
academic programs at the college.
"In many classes, we had a number of empty chairs," said
Connor. "The logic was to take the seats and donate them to bona
fide unemployed people who may be having some concerns about
their self-worth, their self-esteem. •
Although the school serves the Lehigh Valley, which has an
unemployment rate of about 12.6, the program will be open to only
Northampton County residents, Connor said Tuesday.
Since local newspapers began running free ads Monday, more
than 90 unemployed workers have called about the program,
according to Connor. .
nation news briefs
Slain Marines returned to U.S.
DOVER, Del. (AP) -- The bodies of two U.S: Marines killed in
Lebanon arrived at Dover Air Force Base yesterday, and officials
said they will be escorted to their hometowns by military represen
tatives. •
The bodies of 2nd Lt. Donald Losey, 28, of Winston-Salem, N.C.,
and Staff Sgt. Alexander M. Ortega, 25, of Rochester, N.Y., arrived
at the base outside the Delaware capital at 8:26 a.m. aboard a C-141
plane.
The men, part , of the international peacekeeping force in Leb
anon, were-killed Monday morning in Beirut during fierce fighting
between the Lebanese army and members of a Shiite Moslem
militia. Fourteen other Marines were wounded.
Staff Sgt. Shirlee Taylor, a base spokeswoman, said the aircraft
carrying the bodies stopped for fuel in Fiankfurt, West Germany.
The flight was delayed about an hour because of strong head winds.
Base officials said the bodies of the Marines were not expected to
remain at the base for more than 24 hours.
Citizens favor sales over income tax
WASHINGTON (AP) By a 2 to 1 margin, Americans would
prefer a new national sales tax over higher income taxes if soaring
budget deficits force the government to find new revenues, accord
ing to a Gallup poll commissioned by a federal-state panel.
The Advisory Commission on Intergovernmental Relations said
yesterday the survey found that the income tax, considered by
most economists to be the most progressive form of taxation, is
viewed by the public as the least fair tax it pays.
The revolt against the income tax follows pocketbook interests,
the survey also found, with higher income groups giving much
more support for the sales tax than lower income respondents.
Asked what would be the best way to raise federal taxes, if that
becothes necessary, 52 percent olthose polled chose a new national
sales tax on all purchases other than food. Twenty-four percent
preferred higher income taxes and 25 percent said they didn't
know.
world news briefs
Greece wants to restore Parthenon
ATHENS, Greece ( AP) The Parthenon, one of the glories of
ancient Greece, has lost some of its glory over 2 1 / 2 millennia and the
government has announced an ambitious project to restore some of
the vanished luster.
Culture Minister Melina'Vercouri announced yesterday that a
way had been found to restore the temple without marring its
famous silhouette with scaffolding.
For eight years experts have been working out a plan to save the
Parthenon and the Erechtheum temple, which share the summit of ,
the Acropolis, high above Athens. In addition to the wear and tear
of nearly 25 centuries, both monuments have suffered the modern
ravages of industrial pollution.
Village burned,
N'DJAMENA, Chad (AP) The government said yesterday that
Libyan-trained rebels in southern Chad burned a village and killed
at least two people in an anti-government raid, last week.
But missionary sources said government troops razed the village
in a reprisal raid
Information Minister Soumaila Mahamat said a well-armed
rebel gang recruited, trained and supplied by Libya, crossed the
border from the Central African Republic and burned down the
village.
Western diplomatic and military informants confirmed that
rebel activity in the densely-populated southern region, Chad's
economic heartland, has increased sharply since the beginning of
the 17-day-old undeclared truce in the battle between government
and rebel forces in the north.
However, Roman Catholic missionary sources said the village in
question was burned down by government soldiers in a reprisal
raid for alleged collusion between the villagers and the rebel gangs
based in uncontrolled forest areas across the border.
•
stock repor t
Sharpest rise Volume Shares
in six weeks 93,456,000
------_
NEW YORK (AP) Blue- Issues Tradedl,947
chip and technology issues led
the way as the stock market Up
rolled up its sharpest gain in 1,048
six weeks yesterday.
Trading picked up from its Unchanged
recent sluggish pace. 397
The Dow Jones average of
30 industrials jumped 20.12 to Down
1,216.16, for its best showing 502
since it rose 30.74 points on
July 20. • NYSE Index
The upsurge rescued August 94.89 + .92
as a winning month for the • Dow Jones Industrials
Dow, leaving the average with cp 1,216.16 + 20.12
a,16.94 gain from the last trad
ing day in July.
Chad blames rebels
Today's
Soft-Serve Special
at Dairy Queen
will be
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brazier
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We Serve Pepsi• Cola
riC; C r4p , ajliCbt fi7
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ECIAL
. ..• • •••
•
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. . . . .
. .
•
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• •
.
... • .
.
. . •
Matches
don't start
r forest fires.
People do.
an Thursdpv. Sept. 1, 1983-7
The liai