Reagan bans
By MERRILL HARTSON
Associated Press Writer
WASHINGTON, D.C. President
Reagan moved yesterday to ban all
U.S. imports from Iran, citing "the
continued and increasingly bellicose
behavior" of Ayatollah Ruhollah
Khomeini's government in the Per
sian Gulf.
Reagan also said he was directing
the departments of State and Trea
sury to bring about a ban on the
export to Iran of 14 broad categories
of U.S. products "with potential mili
tary application. -
The punitive economic measures
follow the military retaliation Rea
gan ordered last week against Iran
after a Silkworm missile strike
against a U.S.-flagged Kuwaiti oil
vessel in Kuwaiti waters.
"These measures will remain in
place so long as Iran persists in its
aggressive disregard for the most
fundamental norms of international
conduct," the president said in a
statement.
Reagan had been weighing the
moves for several days after a team
or sale?
hpriawantly stmtecemni idea Oa feini, this For Sale sign was pilled la front of Old Mein recently. It comes complete with a bell tower and grand foyer.
Cuomo denies family ties to mob bosses
By MARC HUMBERT
Associated Press Writer
ALBANY, N.Y. Gov. Mario Cuomo said
Monday that rumors linking him and his family to
mob figures were "political garbage distributed
by political garbage dealers."
The New York Democrats' comment. in the
form of a three-paragraph statement issued by
aides, came a few hours after New York magazine
hit the streets with an article by an expert on
organized crime that outlined and debunked such
rumors.
"The most prevalent rumors about the 'mob'
skeletons in Cuomo's family closet turn out to be
misleading or false, - wrote Nicholas Pileggi, the
author of "Wiseguy," in a five-page article.
"If it's the price I pay for being Italian-
American, then being Italian-American is well
worth the price," said a proudly defiant Cuomo.
In his article, Pileggi noted that among the
sources of the Cuomo-mob rumors were Harry
Daley, who helped run Nassau County District
Attorney Denis Dillon's anti-abortion. Right To
Life Party campaign for governor against Cuomo
last year; and an unidentified "veteran, politically
conservative legislative aide who has long been a
source for the press on organized-crime matters."
"I think it's all obviously politically motivated."
said Cuomo press secretary Gary Fryer of the
rumors.
For his part, Cuomo told the New York Post on
Sunday night that he was "very happy" about the
Pileggi article.
the
daily
of advisers in both the national secu
rity and economic areas had recom
mended them.
In ordering the bans, Reagan was
using authority granted him by Con
gress under a section of the Interna
tional Security and Cooperation
Development Act.
White House spokesman Roman
Popadiuk said oil imports from Iran
last year were around $5OO million,
and had reached about $9OO million by
the end of July 1987.
Non-petroleum imports from Iran
in 1986 were valued at around $lOO
million, he said, and he added, "We
expect that number would have de
clined by 25 percent in 1987. even with
no trade controls in place."
Total U.S. exports to Iran
amounted to roughly $34 million, said
Popadiuk. "That number is declining
in 1987. Those U.S. exports covered
by the new controls amount to less
than $lO million," he said.
In announcing the moves, Reagan
said he had consulted with Congress
in advance.
He said, "The measures I am di
recting are a direct result of the
"There never should have been any rumors,"
Cuomo said at a reception for his just-married
daughter Maria and her husband. Kenneth Cole, at
the Tavern on the Green restaurant. "That is the
price you pay for being Italian."
Asked if the report might revive his interest in
running for president, he replied. "nothing has
changed."
Cuomo had said several weeks ago that once he
felt the rumors about he and his family's alleged
links to mob figures had been cleared up, he might
flatly rule out running for president next year. To
do so before then would simply lend credibility to
the idea that he wasn't running for president
because of some skeleton in his closet.
While Cuomo said in February he would not seek
his party's nomination, he has since then refused
to close the door to accepting a draft if there's a
deadlocked convention next year.
Noting that rumors about Cuomo and the mob
had been circulating for several years, aides to
Cuomo seemed pleased Monday by the Pileggi
article. One top Cuomo political adviser. Meyer
Frucher, said the governor "feels a great sense of
relief that someone has taken the time to look at
the sources."
"Hopefully, this will liberate him once and for
all politically," said Frucher.
Noting that the rumors about Cuomo and his
family are everywhere.• Pileggi said - several
major news organizations have hired private
detectives and former city cops to help
investigative reporters sort out stories."
He quoted an unidentified reporter for a major
Collegian
all Iranian imports, exports
Iranian government's own actions,
including its unprovoked attacks on
U.S. forces and U.S. merchant ves
sels."
Reagan also cited as reasons for his
moves Iran's "refusal to implement
U.N. Security Council Resolution 598.
its continued aggression against non
belligerent nations of the Persian
Gulf and its sponsorship of terrorism
there and elsewhere in the world...
The president said the ban on im
ports will take effect "as soon as
possible" and said the additional con
trols on exports - will go into effect in
a week to 10 days."
"Let me emphasize that we are
taking these economic measures only
after repeated but unsuccessful at
tempts to reduce tensions with Iran
and in response to the continued and
increasingly bellicose behavior of the
Iranian government," he said.
"The United States believes that
more normal relations with Iran will
evolve as Iranian belligerence and
tensions in the area diminish, - Rea
gan said. "We have made these
points known repeatedly to Iran,
through diplomatic channels.
Iranian leader urges war plans
By MARTIN MARRIS
Associated Press Writer
KUWAIT An Iranian leader yesterday urged Iran
to mobilize for an all-out war against the United States,
and senior officials from► Iraq and Kuwait met to
discuss a coordinated defense against Iran.
British officials meanwhile confirmed that Kuwait
has registered two of its tankers to fly the British flag
and is in the process of registering a third.
A prominent Palestinian guerrilla 'fader pledged
that Palestinians would fight alongside Kuwait to help
gulf Arab states deter Iranian "aggression."
The British move would entitle the Kuwaiti vessels to
the protection of British warships. At least three
British warships and four mine sweepers are stationed
in the Persian Gulf.
Eleven of Kuwait's 22 tankers have been registered
under the American flag, giving them U.S. naval
protection from attack by Iran, which considers
Kuwait an ally of Iraq in the seven-year Iran-Iraq war.
One tanker, the Sea Isle City, was hit by an Iranian
missile in Kuwaiti waters Oct. 16, wounding 18
crewmen, including the American captain.
out-of-town newspaper" as saving: "We scrubbed
him pretty good (a year and a half ago and didn't
come up with anything."
In a separate interview, Pileggi declined to
identify the news organizations he said had hired
private detectives and former police officers to
work with their reporters investigating Cuomo.
While Cuomo recently told a New York Times
reporter that he felt the rumors he was hearing
were "organized," Pileggi wrote that "the
governor's suspicion that there's an organized
campaign of slander against him doesn't seem to
be borne out."
Several of the rumors involve Cuomo's father-in
law. Charles Raffa. who was mugged in 1984 at an
empty supermarket he owned in Brooklyn. One
rumor. Pileggi says. was that the mugging "was a
mob beating that grew out of a dispute over arson"
and that Cuomo "interfered with the police
investigation of the beating.-
Pileggi reports that the Raffa mugging remains
unsolved. but "nothing substantial has come out to
link Raffa with organized crime." Pileggi also
quotes police investigators as saying the governor
didn't interfere with the investigation.
The writer does report that Raffa, 83, was
arrested in 1973 on a misdemeanor charge of
offering an illegal gratuity.
"Details of the alleged crime aren't clear, but
police said charges of that sort typically involve
giving small gifts or tips to city or state
employees." Pileggi wrote. "In this case, the
charge against Raffa was dismissed in 1974."
Tuesday, Oct. 27, 1987
Vol. 88, No. 75 16 pages University Park, Pa. 16802
Published by students of The Pennsylvania State University
1987 Collegian Inc.
Stocks
largest
By PETER COY
AP Business Writer
NEW YORK The Dow Jones
industrial average suffered its sec
ond-largest point loss ever yesterday,
falling 157 points and wiping out most
gains made after last week's stagger
ing 508-point plunge.
The selling followed a record loss
on the prime Hong Kong exchange,
which lost one-third of its value on the
first day of trading in a week. Tokyo,
London and other foreign markets
also had large losses.
Investors appeared to be unmoved
by deficit-reduction talks between
President Reagan and congressional
leaders that were called after last
week's market panic.
"It's a slow fade, sinking in the
sunset," said Dennis Jarrett, a tech
nical analyst for the investment firm
of Kidder, Peabody & Co.
Analysts said the market was still
reeling from the history-making
plunge Oct. 19, when the Dow indus
trials fell a record 508 points. In six
days of seesaw trading, the Dow has
dropped about 450 points.
The value of all U.S. stocks yester
day fell $203 billion to $2.23 trillion, or
8.4 percent, a one-day evaporation of
USG Supreme Court
to review bylaw case
By PAMELA WEIERS
Collegian Staff Writer
The Undergraduate Student Gov
ernment Supreme Court will hold a
public hearing to decide whether
Town Senator Bruce Fox is violating
USG bylaws by representing town
students while living in a fraternity.
Fox said in an interview yesterday
some of the justices reviewing his
case are biased. Two have already
told him he is violating USG bylaws,
he said.
"I'll go in there and justices) will
have their minds made up. - Fox said.
Fox boards at Zeta Psi Fraternity,
225 E. Foster Ave., but is not a mem
ber of the fraternity. USG's Constitu
tion states that town senators must
live in non-fraternity, off-campus
housing.
This weekend the USG Supreme
Court decided to consider a complaint
filed last Friday by Senate President
Joe Scoboria. It asks the court to
review the legality of Fox's position.
Scoboria stated in his complaint.
"USG Senate representation is cur
rently based on an area or precinct
system, and I think that an exception
to this would weaken the process for
our student government representa
tion."
Scoboria will submit another
statement to the court and Fox will
have the opportunity to respond be-
tUerakty _
weather
Get out your umbrellas! This afternoon, cloudy and dreary with rain,
high 53. Tonight. rain ending by morning. low 35. Tomorrow, mostly
cloudy and cool, high 47 Ross Dickman
Iran's official Islamic Republic News Agency quoted
Interior Minister Hojatoleslam Ali Akbar Mohtashami
as urging "people in every Iranian city and village to
be prepared for a full-fledged war" with the United
States in the gulf.
"Since we are facing a savage enemy, we should
mobilize all our resources and manpower to deal
effective blows against" the United States,
Mohtashemi, a leading radical, was quoted as telling
regional governors in Tehran.
He branded the Americans as "weak and cowardly"
and declared that "any slight blow" would intensify
President Reagan's political problems over the
deployment of U.S. warships in the gulf.
Iraq's First Deputy Prime Minister Taha Yassin
Ramadan and Foreign Minister Tariq Aziz wound up
several hours of defense talks with Kuwaiti officials.
In the past 11 days, there have been three trainan
missile attacks on Kuwait. Kuwaiti newspapers also
have blamed Iran for Saturday's bombing of a *int
agency representing Pan American World Airways.
State-run Kuwait Radio said the Iraqi officials
discussed Tehran's "repeated aggressions" aphid
Iraq, Kuwait and Saudi Arabia with the Kuwaitis.
suffer 2nd
loss ever
wealth exceeded only by the $503
billion drop one week earlier. The
Dow average of 30 industrials fell
156.83 points to 1,793.93.
"It was a panic and it's still to some
degree continuing," said Morton
L. Brown Jr., research director for
Edward D. Jones & Co., a St. Louis
based brokerage company.
"There's always been the feeling
that stocks are a substantial risk, and
now people say, 'How do I have a
chance against the gunslingers?"'
Brown said.
Trading volume on the New York
Stock Exchange continued at a heavy
pace.
The New York and American stock
exchanges, the Chicago Board Op
tions Exchange and the Midwest
Stock Exchange announced they
would close two hours early through
out the week, a policy begun late last
week to cope with the heavy trading
volume.
There was violence yesterday when
a Florida investor who reportedly
suffered heavy losses in the market
killed one broker and critically
wounded another in their Miami bro
kerage office. The man then shot and
killed himself, police said. (Please
see Page 4.
fore the hearing, said Chief Justice
Mike Sosnowski.
No date has been set for the hear
ing.
Sosnowski said he has instructed all
the justices not to speak to Fox or
Scoboria
Fox said on Sunday night that two
justices. Ben Siegel and Alistair Rae,
told him he was in violation of the
USG Constitution by living in a frater-
Please see FOX, page 16.
Joe Scoboria