Banner Graphic, Volume 9, Number 251, Greencastle, Putnam County, 28 June 1979 — Page 2

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The Putnam County Banner Graphic, June 28,1979

world

Price increase could add four cents a gallon to fuel

GENEVA, Switzerland' (AP) The Organization of Petroleum Exporting Countries today raised the base price of its crude oil to a range of $lB to $23.50 a barrel. The 13-nation oil cartel set its new base price at $lB, up from $14.55. It also said members could add surcharges of as much as $2 a barrel as market conditions permit, but set the maximum price of a barrel of OPEC oil, including allowances for quality, at $23.50 a barrel. Experts calculate that the rise in OPEC prices probably will add about 4 cents a gallon to prices of gasoline and heating oil in the United States. It is the biggest boost in OPEC prices in five years. The decision leaves OPEC with a two-tiered price structure, much like the one the cartel had in the first half of 1977. , Saudi Arabia, which had held out for a low- price, Qatar and the United Arab Emirates will be the only countries actually charging $lB a barrel, Saudi Oil

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Minister Ahmed Zaki Yamani told a news conference. The agreement was worked out late Wednesday night, prolonging the meeting into a third day, after moderate and radical members “narrowed the gap gradually until they got where they are,” said Cyrus Ebrahimzadeh of the Iranian delegation. Libya, Iran and Iraq had demanded that the price of OPEC’s benchmark crude oil, Arabian light, be raised to between $23 to $27 a barrel from $14.55. Under the new system, the price rises to only $lB, but that amounts to a 24 percent hike. The 10 other nations will be able to add surcharges to the benchmark price to bring it to as much as S2O. As always, additional surcharges could be tacked on to take into account differences in the quality of their oils. The increases in the base price are the largest since 1974, when prices quadrupled during the Arab oil embargo. Analysts estimate that retail prices of

gasoline and heating oil in the United States rise a penny per gallon for each 5 per cent rise in the base price of crude oil. But because the surcharges in the past three months have raised the average price of OPEC oil to sl7, experts say the rise at the gas pump and on heating bills will work out to about 4 cents a gallon. The new price structure would be effective July 1. Sources said the Ministers would meet again in Geneva in late September to consider changes. U.S. Energy Secretary James Schlesinger said on Wednesday that if OPEC raised its base price to S2O a barrel, the U.S. bill for imported oil next year would be $65 billion to S7O billion. The U.S. Treasury Department estimated earlier this year that the United States, although it was the second largest producer of oil in the world in 1978, would spend more than SSO billion on imported oil this year, compared with $42 billion in 1978 and $5 billion in 1972.

U.S. asylum Admission of refugees will double: Carter

TOKYO (AP) - President Carter announced today the United States will admit 14,000 Vietnamese refugees a month double the current level as he and other economic summit particpants called for an urgent United Nations conference on the problem. The action on refugees was the first concrete result of the seven-nation meeting that was pictured as moving toward a compromise on its No. 1 agenda item, energy. American officials, who asked not to be identified, estimated the additional influx of refugees would cost an added $l5O million a year, compared

Senators dennounce Gromyko's demands

WASHINGTON (AP) - Senate Democratic leader Robert C. Byrd is flying to Moscow to tell the Russians they will have to expect the Senate to puts stamp on the SALT II treaty. And Republican leader Howard H. Baker says he will actively oppose the strategic arms agreement unless the White House and the Soviet Union signal a willingness to consider “reasonable amendments.”

COIN urges consumer strike as inflation protest

WASHINGTON (AP) - Consumers are being urged to strike for one day this fall to protest the government’s failure to dampen inflation, which has skyrocketed to an annual rate of 13.4 percent. “Unless consumers stand up in an organized manner...they will never be able to deal with the deterioriating and fast crumbling” economy, consumer advocate Ralph Nader told a coalition of 70 consumer, labor, religious and senior citizen groups here Wednesday. The coalition Consumers Opposed to Inflation in the Necessities launched what its leaders hope will be a series of teach-ins reminiscent of the grassroots protest of U.S. involvement in Vietnam. The group, calling itself COIN, unveiled a 100-page antiinflation program, highlighted by immediate calls to reimpose oil price controls, place a clamp on health care costs, subsidize

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with current outlays of $250 million. In addition to the U.S. action, the other summit participants not only called for a U.N. conference on refugees, but also pledged to set aside more money for relief and resettlement efforts and admit more refugees. “This is basically what we sought," one U.S. official said. Carter said in a statement, “We can and will work together to find homes and jobs for Indochinese refugees.” U.S. sources said the U.N.. meeting would be convened in Geneva during the third week in July.

Before leaving for Moscow today, Byrd pleaded with senators not to rush to judgment on SALT II and to avoid taking hardened positions at least until the conclusion of hearings now set to begin July 9. Many supporters of the treaty expressed regret at Baker’s conclusion that the pact is fatally flawed in its present form because it unfairly

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RALPH NADER Addresses coalition

consumers’ food bills and lower mortgage rates. All but the health-care proposal came under strong criticism from Alfred Kahn, the Carter administration’s chief inflation fighter, who participated in one of the many sessions during the day-long teachin. While applauding many of the

They said they hoped that the increased number of refugees could reach the United States by next month. The exact timing is uncertain, but Carter said he was making a one-year commitment. U.S. sources said an administration emissary met with Vietnamese representatives in New York City at Carter’s direction before the president flew to Tokyo last weekend. They said they hoped Vietnam would participate in the conference. Most of today’s summit talks focussed on energy, with the aim of restraining oil imports by the seven nations represent-^

provides the Soviet Union with “a substantial strategic superiority.” But supporters as well as opponents joined in denouncing demands by Soviet Foreign Minister Andrei Gromyko that the Senate make no changes in the treaty whatsoever. In a news conference Wednesday, Baker said he is not willing to work to improve and ratify the treaty “under Soviet

coalition’s long-term proposals including efforts to expand and diversify the nation’s energy supply and to deregulate the trucking industry Kahn said controlling oil prices is “pretending” about its real cost. Such a move back to energy price controls, he said, would discourage conservation and intensify demand for the fast-di-minishing product. And that, he said, would only feed inflation. Similarly, Kahn said subsidizing food and cutting mortgage rates would increase demand and cause prices to rise even more if the supply of foodstuffs and housing can’t be increased fast enough. COIN is focusing its campaign on the acute impact inflation has on necessities energy, food, housing and health care. Those areas comprise two-thirds of an average family’s budget and have increased at more than double the rate of all other goods and services this year.

ed here the United States, Japan, France, Britain, Germany, Canada and Italy. A senior American official, who asked not to be named, told reporters “I think we’re clearly tending in the direction of a compromise.” He said he expects the summit to develop specific import ceilings for the seven countries for the balance of this year and all of 1980. But he emphasized that many technical details had to be resolved before the summit adjourns Friday afternoon. A special statement issued on the first day of the seven-nation economic summit asked U.N.

threats of ‘grave consequences’ if the Senate and the American people don’t knuckle under.” % Byrd said that while in Moscow he will attempt to impress on the Soviets the constitutional role of the Senate in the consideration of treaties. And one SALT supporter, who asked not to be identified, said Gromyko’s remarks have been widely resented and are proving counterproductive.

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Drillers For Amoco Production Co., using this 90 by 180 foot offshore-type drilling barge, struck what they say could be a major new oil field Friday in the northern portion of Utah's Great alt Lake. Initial tests show the 2,300 foot deep test well producing up to 1,500 barrels of oil a day. (AP Wirephoto).

California plagued by fires, weather

LOS ANGELES (AP) - Brush fires and temperatures up to 120 degrees made an inferno of parts of Southern California, where officials warned today’s air would be the smoggiest of the year. Authorities activated a standby emergency plan for the Los Angeles area that requires oil refiners to cut emissions and some businesses and government agencies to cut employee driving by 65 percent. Fires in Riverside, San Bernardino and Los Angeles counties including two believed deliberately set blackened more than 6,000 acres Wednes-

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Secretary-General Kurt Waldheim to call for a conference “as soon as possible” and said such a meeting should be aimed at “attaining concrete and positive results.” It said the plight of refugee; from Vietnam, Laos and Cam bodia “poses a humanitariar problem of historic proportion; and constitutes a threat to tlx peace and stability of Southeas Asia.” Meanwhile, President Carter reported “it’s too early to tell” whether agreement can be reached at the summit on fixing country-by-country targets to limit oil imports.

“Gromyko shouldn’t be talking about what the Senate should do on treaties,” he said. “He obviously hasn’t passed fifth grade civics and untilhe does I think he should keep his mouth shut.” Sen. John Culver, D-lowa, took exception to Baker’s assertion that SALT II allows the Soviet Union 308 heavy SS-18 missiles while the United States has none.

day and destroyed several dwellings. The outside of a fireworks factory was scorched but the there were no explosions. Four firefighters were injured in one fire Wednesday, including two who suffered heat exhaustion battling the blaze in near 100-degree weather. Six farm animals were killed in another fire. The mercury topped 100 degrees in many parts of the Los Angeles area and even climbed as high to 120 degrees in the desert resort of Palm Springs, 100 miles to the east.

But more summer misery was in store, as officials said an inversion layer a stagnant mass of hot air trapped below a mass of cold air would produce the smoggiest day of the year. “You can safely say that this (today) will be the highest smog level recorded so far this year,” said Jeff Schenkel of the Air Quality Management District. The agency predicted firststage alerts in 20 areas, mostly in the western part of the Los Angeles basin, and moreserious second-stage alerts in eight areas from the central to the eastern part of the basin. Under a first-stage alert, residents are advised to restrict their physical activity and drive only when necessary.