Banner Graphic, Volume 13, Number 124, Greencastle, Putnam County, 1 February 1983 — Page 2

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T he Putnam County Banner-Graphic, February 1, 1983

Little chance for Reagan budget: congressmen

WASHINGTON (AP) Less than a day after President Reagan sent his 1984 budget to Capitol Hill, the $848.5 billion spending plan is under bombardment from Democrats who have their own proposals for reducing federal deficits. “I don’t think his (Reagan’s) budget would have much chance of passing the House.” said Speaker Thomas P. O’Neill, DMass. “It's going to be pretty difficult,” for Reagan to get his budget enacted, said Sen. Lawton Chiles of Florida, the senior Democrat on the Senate Budget Committee. “This is the same stay-the-course budget we have seen for the past two years,” said Rep. James Jones, D-Okla., chairman of the House Budget Committee. Republican criticism was more muted, but members of the president’s party freely agreed that Congress would make big changes in the budget blueprint which Reagan formally submitted Monday. All three of Reagan’s chief economic advisers were called to defend it before the House Appropriations Committee. David Stockman, director of the Office of Management and Budget; Martin Feldstein, chairman of the Council of Economic Advisers; and Treasury Secretary Donald Regan, were scheduled to testify today. On Capitol Hill Monday, congressional leaders of both parties were talking about significant changes they plan in Reagan's proposals for federal spending starting Oct. 1. Jones said he believes Democrats can produce a lower

Banner-Graphic "It Waves For All" USPS 142-020) Consolidation of The Daily Banner Established 1850 The Herald The Daily Graphic Established 1883 Telephone 653-5151 Published daily except Sundays and holidays by LuMar Newspapers, Inc. at 100 North Jackson St.. Greencastle. Indiana 46135. Entered in the Post Office at Greencastle. Indiana, as 2nd class mail matter under Act of March 7,1878. Subscription Rates Per Week, by carrier *I.OO °er Month, by motor route *4.55 Mail Subscription Rates R.R. in Rest of Rest of Putnam County Indiana U.S.A. 3 Months *13.80 *14.15 *17.23 6 Months *27.60 *28.30 *34.50 1 Year *55.20 *56.60 *69.00 Mail subscriptions payable in advance . . . not accepted in town and where motor route service is available. Member of the Associated Press The Associated Press is entitled exclusively to the use for republication of all the local news printed in this newspaper

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deficit than Reagan. “That is my personal goal,” he said. First on the list is deeper cuts than Reagan has said he will allow in his $238.6 billion defense budget for next year. Chiles, for one, said $8 billion in cuts to which Reagan has already agreed is the product of a decision by Reagan's aides to use different guesses about the impact of inflation than members of Congress are employing. “It’s as if you had a sale and announced 25 per cent off, but you had marked up your products 26 per cent before the start of the sale,” said Chiles. “You really don't have a cut in defense in those numbers,” he said. Assistant Democratic House leader Jim Wright, Jones and Senate Minority Leader Robert C. Byrd, called for a 5 percent increase in defense spending, not including other increases allowed for inflation. That would save SIOO billion over three years, Jones said, and the cuts are expected to be made by delaying production of some big strategic weapons programs. Reagan is seeking a S3O billion, 10 percent increase in spending, also excluding inflation Byrd said the Reagan budget is “short on jobs and long on Pentagon spending.” Senate Majority Leader Howard Baker and Pete Domenici of New Mexico, chairman of the Senate Budget Committee, were among Republicans agreeing that Reagan's defense proposals are vulnerable.

Leftist guerillas leave city of Berlin in flaming ruins

MERCEDES UMANA. El Salvador <AP) Leftist guerrillas have claimed their biggest prize of the 39-month-old war, seizing the city of Berlin after two days of heavy fighting and bombing that witnesses said left the town in flaming ruins. Forty civilians were killed in the battle for the coffee and sugar cane center, Red Cross spokesman Humberto Castellanos said late Monday. Journalists coming out of Berlin reported seeing the corpses of two soldiers and said they saw at least three policemen taken prisoner. The Berlin garrison numbered about 100 government troops

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and police. The guerrillas’ clandestine Radio Venceremos said 22 prisoners had been taken. The military offered no immediate comment on the fighting, the claims of prisoners or casualties. Journalists who witnessed the attack gave this account: Just before dusk Monday, government troops made what appeared to be their last stand in the national police headquarters in downtown Berlin. The rebels fired potshots at the building for an hour, and repeatedly ordered the garrison to surrender. When no one left the barracks, rebels fired a power-

Gulf lowers oil by $1 per barrel

c. 1983 N.Y. Times NEW YORK - The Gulf Oil Corp., in a move attributed to widespread expectations that the price of oil on the international market will fall, said Monday it was lowering the price it will pay for domestically produced crude oil by $1 a barrel, to s3l. The reduction by Gulf, the nation’s fifth largest energy concern, was expected to be followed by similar moves by other major oil companies and lead to lower prices for refined products. Meanwhile, in what Western analysts believe provides further evidence of an impending reduction in international oil prices, the government of Venezuela said nine of the the 13

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ful bazooka blast followed by a salvo of rocket-propelled grenades that set the building ablaze. They seized several boxes of ammunition and new rifles that had been stored inside and declared total control over the city. Berlin, whose population normally is about 30,000, was largely in flames by that time and the journalists said the claim of control appeared justified at least temporarily. They said the guerrillas vowed to stand and fight if the government tried to recapture Berlin. Late Monday, about 500 of the 2,000 residents who were unable to flee the city when the fighting

member nations of the Organization of Petroleum Exporting Counties would be represented in an informal meeting in Caracas on Feb. 9. A meeting of all the OPEC nations in Geneva, which had been called to negotiate an agreement on production limits, broke up in acrimoniously on Jan. 24 with no final agreements reached. “We hope to make new consultations regarding the current oil situation and the internation reaction following the Geneva meeting,” Berti was quoted as saying by the official OPEC news agency. The Caracus meeting was scheduled to coincide with the official opening of a new refinery in Venezuela’s

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broke out were huddled into temporary structures set up by the Red and Green Cross. Large white crosses were stretched out on the street to prevent air force bombers from accidentally bombing civilian targets Until this week Berlin, about 70 miles east of the capital of San Salvador and seven miles south of here, was untouched by guerrillas in their war against the government. In the attack that began at midnight Saturday, about 500 rebels overpowered less than 100 government forces, including national guardsmen, policemen and local members of the civil defense force.

Paraguana Peninsula. Berti said the informal meeting would lead to to a second “consultative meeting,” which he said may be called “in the coming weeks,” and would be similar to the meeting in Geneva. Venezuela, a member of OPEC, did not disclose which of the organization’s members were not scheduled to attend the Caracas meeting. Western analysts, however, said they believe the four nations to be Saudi Arabia, Kuwait, the United Arab Emirates and Qatar. The reduced output in January resulted from the relatively warm winter, which has reduced worldwide demand for heating oil, and from

Harvard tuition rises to $13,150 for next year

CAMBRIDGE, Mass. (AP> The cost of tuition, room and board at Harvard College will hit $13,150 next school year, but officials say they are happy the increase was only SI,OOO. The total rose 8.7 percent, up from $12,100. ‘‘After three years of doubledigit increases, I am pleased, to be able to announce that the increases for 1983-84 will be less than 9 percent,” said Henry Rosovsky, dean of the faculty of arts and sciences.

Reagan offers ban on nuclear arms

c. 198;) N.Y. Times WEST BERLIN, Germany President Reagan, in an open letter read here Monday night by Vice President George Bush, called on Yuri A. Andropov, the Soviet leader, to meet him to sign a treaty banning all intermediaterange, land-based nuclear missiles. Addressing the people of Europe, Reagan’s message said he would meet with Andropov “whenever and wherever he wants” to conclude an agreement totally eliminating the weapons. “I make this offer,” the president said, “out of the conviction that such an agreement would serve the interests of both sides, and, more importantly, that the people of Europe want nothing more.” Coming on the first full day of Bush’s 12-day tour of Europe, the surprise message, read at a dinner Monday night, was an apparent attempt to counter a series of recent Soviet proposals on disarmament. Western European leaders have suggested that these initiatives gave the Soviets an advantage, particularly in West Germany, in influencing public opinion on the missile debate. The Soviet Union now has about 600 landbased intermediate-range nuclear missiles, including more than 300 advanced SS-20s, the majority targeted on Western Europe. NATO has no such modernized missiles of this range, and will begin deploying U.S. Pershing 2 and cruise missiles at the end of the year if no agreement is reached at the U.S.-Soviet talks now under way in Geneva. The NATO position thus far sustained by Reagan in his message is that deployment would be abandoned if the Soviets scrapped their entire intermediate-range arsenal. The Soviets have frequently rejected this proposal, widely known as the “zero solution.” It is thought highly unlikely that the Soviet Union would be willing to junk its total in-termediate-range force, particularly since important segments of opinion in the countries scheduled for deployment continue to oppose stationing the missiles. Reagan’s message said specifically that he wanted to meet Andropov “in order to sign an agreement banning U.S. and Soviet in-termediate-range land-based nuclear missile weapons from the face of the Earth.” It was unclear from the text of the message if the offer for a meeting was restricted only to Andropov’s

The U S.-supported government fought the guerrillas’ attack on Berlin with bombing runs that began before dawn Sunday and ended at about 3 p.m. EST Monday. Many residents of Berlin fled to Mercedes Umana. where about 500 of them gathered in groups to talk over their ordeal. Some said at least six people were killed in bombing runs by U.S.-made A-37 “Dragonfly” warplanes. ‘‘We were all in the house and the bomb fell in front,” said one resident who did not identify himself. “A man and wife died, and four others. My father has his legs cut off. No one has slept, no one has eaten, there is

reduced sales to several industrialized nations that are now electing to to buy oil on the international spot market because it is priced below official OPEC levels. The reduced oil output, as well as the meetings in Riyadh and Caracas, fueled speculation that OPEC prices will be reduced soon, with most Western analysts maintaining that the prices will be cut $2 to $4 a barrel. On the European spot market Monday, prices for crude oil declined slightly in light trading after remaining largely unchanged during the last three trading days last week. British oil produced in the North Seas traded at $29 a barrel, down from a range of $29.50 to S3O .

Increases the past three years have been 14.8 percent, 14.9 percent and 12.7 percent, the college said Monday. Financial aid available to needy students will be 9.9 percent greater than last fall, said L. Fred Jewett, dean of admissions and financial aid. Jewett said Harvard will continue its “aid-blind policy” of admission, accepting students for entry without reference to their financial need.

acceptance of the president’s plan for eliminating intermediate-range weapons. When a press aide to Bush was asked about the possible extent of the offer to meet, he transmitted a somewhat ambiguous answer from the vice president, suggesting that if the two men did agree to a conference, the agenda would necessarily be a wide one. The offer to meet Andropov was warmly greeted by Chancellor Helmut Kohl of West Germany, who accompanied Bush to West Berlin after talking with him twice during the day for an hour and 35 minutes. Kohl had called for such a meeting between the Soviet and American leaders over the past month, and the announcement of Reagan’s offer Monday night came as a political bonus to him just five weeks before the West German national elections on March 6. The chancellor described Reagan’s statement “as a message of peace, a testimony of the desire for peace of our American friem ds.” “I can hope,” he continued, “and I think I talk for the great majority of our citizens, and those Germans on the other side of the wall, that this readiness for discussion will find open ears and an outstretched hand” in the Soviet - Union. Reagan’s open letter was read aloud by Bush at the end of a speech in which he stressed American willingness to come to an agreement at Geneva, but not at the cost of giving the Soviets a monopoly or advantage in in-termediate-range weapons targeted on Europe. In the letter, the president said that the United States will continue to urge the Sovietsto agree on a complete ban of the weapons class But, he went on, the Soviet Union was insisting on “maintaining a nuclear threat to . America’s allies while denying them the corresponding means to deter that threat.” This was the essential obstacle at the Geneva _ talks, Reagan said. Members of the vice president’s party said that the president’s initiative had been under study for about two weeks in Washington. It was approved last Friday, an aide said, after discussion with the vice president, Secretary of State George Shultz, Defense Secretary Caspar M. Weinberger, and William Clark, chairman of the National Security Council.

no water, no electricity.” Other residents were reported killed and wounded by rebel mortar and bazooka attacks. The town market was leveled by a 500-pound bomb dropped by one of the A-37s and a sevensquare block area was burned to the ground, either by bombs or rebel attacks, witnesses said. Gilfredo Rosales, 41, said he waited in a basement until Red Cross volunteers managed to enter the town early Monday and evacuate several hundred people. “I had only seen this in films before. Now the bombs dropped and they made me tremble,” Rosales said. The guerrillas now claim to

Ragtop revival for car industry DETROIT (AP) The nation’s automakers, trying to spruce up their image and boost their profits, are reviving a tradition as venerable as the rumble seat: convertible tops. Dirty city air and noise, rising theft rates, safety concerns and increased use of air conditioning contributed to the demise of ragtops. Fresh-air fans and nostalgia buffs mourned in 1976, when a white Cadillac, billed as the last U.S.-built convertible, rolled off the assembly line, but the soft tops are back in force. “People say, ‘I think I want to get a convertible, they’re one of the prettiest cars around,” said Bud Barish, owner of Barish Chrysler Plymouth in Los Angeles. He said he has been selling 10 convertibles a month, even in winter, including one to actor George Hamilton. “Performance and a sporty image have come back a little (and are important in the marketplace),” said Donald DeScenza, analyst at Donaldson, Lufkin & Jenrette in New York. “All the (auto) companies have got to have products out there that provide that kind of image. If they don’t, they will look as though they’re stodgy.” Harvey Heinbach, analyst at Merrill Lynch, Pierce, Fenner & Smith Inc. in New York, said the Big Three also can get good profits on convertibles because they command higher prices, ranging from $9,995 for the Dodge 400 to $24,960 for a Buick Riviera. ‘They can get a couple thousand bucks extra (compared with hardtop models) that bolsters profitability, and every little bit helps,” Heinbach said. A convertible Ford Mustang has a manufacturer’s suggested retail price of $12,467, while a comparable hardtop goes for $7,475. The Buick Riviera ragtop’s $24,960 compares with a $15,238 hardtop. Chrysler led the ragtop revival, bringing back U.S.-made convertibles in the 1982 model year. Chrysler says it delivered 21,400 soft tops to U.S. dealers during 1982, although it had only expected to sell 3,000 of them. The convertible’s heyday was 1963, when 540,000 were sold, amounting to 7 percent of the U.S. car market. By the mid--19705, the market Share had dropped to around 1 percent.

control a 40-mile stretch along the eastern shore of the Lempa River in Usulutan province that includes three small towns south and east of Berlin Traffic across the Lempa has been limited to the Cuscatlan Bridge, about 15 miles from Berlin, because of recent rebel sabotage. In the northeastern province of Morazan, an offensive against guerrilla strongholds by 6,000 government troops entered its 16th day today. RadioVenceremos claimed Monday that rebels were attacking behind army lines and sniping at government troops in the towns of Osicala and Delicias de Concepcion.