Banner Graphic, Volume 15, Number 228, Greencastle, Putnam County, 23 May 1985 — Page 2

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The Putnam County Banner-Graphic, May 23,1985

Company chairman to resign

General Dynamics, Pentagon quarreling

WASHINGTON (AP) porate honesty, public policy and billions of dollars, but like a lovers’ quarrel, the battle between the Pentagon and General Dynamics Corp. is headed for reconciliation because they desperately need each other. On one side is a corporate giant, accountable to shareholders, that can’t survive without the $6 billion it earns each year from the Defense Department. On the other side is the Pentagon, which depends on General Dynamics’ factories, engineers and know-how for missiles, tanks, airplanes and submarines that no other company makes. At the height of the dispute this week even as he was announcing punitive action potentially worth hundreds of millions of dollars in lost contracts Navy Secretary John Lehman said destroying the Pentagon’s third largest contractor “would cut off our nose to spite our face.” There were these major developments this week:

Banner-Graphic (USPS 142-020) Consolidation of The Dally Banner Established 1850 The Herald The Dally Graphic Established 1883 Telephone 653-5151 Published daily except Sunday and holidays and twice on Tuesdays by LuMar Newspapers, Inc. at 100 North Jackson St., Greencastle. IN 46135. Secondclass postage paid at Greencastle, IN. POSTMASTER: Send address changes to The Banner-Graphic, P.O. Box 509, Greencastle, IN 46135. Subscription Rates Per Week, by carrier -1.10 Per Month, by motor route -4.95 Mall Subscription Rales R.R. In Rest of Hest of Putnam County Indiana U.S.A. 3 Months *15.75 -16.00 -17.25 6 Months -30.30 -30,80 -34.50 1 Year ‘59.80 -60.80 *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 republicatlon of all the local news printed In this newspaper.

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—General Dynamics Chairman David S. Lewis, whom the Pentagon’s inspector general wanted to bar from doing business with the government, announced Wednesday he would retird before the end of the year. —Stanley C. Pace, vice chairman of another defense contractor, TRW Inc., was named to suceeed Lewis and promised he would “make sure we conduct business in all propriety ... to the satisfaction of our customer, which is the Defense Department.” —The Navy, citing evidence Monday that General Dynamics had improperly billed the Pentagon for overhead costs and had violated ethical standards in handling its insurance and public information programs, froze processing of contracts potentially worth $1 billion to the company. —Navy Secretary Lehman ordered General Dynamics to devise a code of ethics and settle billing disputes with the Pentagon a process he estimated could

Shiites seize camps;bombkills6o

BEIRUT, Lebanon (AP) Backed by tanks and armored vehicles, Shiite Moslem militiamen and army units seized key points in two Palestinian refugee camps in house-to-house fighting. Police said at least 155 people had died and 800 had been wounded in three days of street battles in Moslem west Beirut. Another 60 people died Wednesday in the explosion of a car bomb in a suburb of Christian east Beirut, police said. In Amman, Jordan, Chairman Yasser Arafat of the Palestine Liberation Organization appealed for an urgent meeting of the U.N. Security Council, and U.N. intervention to stop the fighting. U.N. Secretary-General Javier Perez de Cuellar appealed from U.N. headquarters in New York for an end to the violence. Leaders of Amal, the main Shiite militia,

take several weeks. —ln a move that drew fire from Democrats in Congress, Lehman censured 85-year-old retired Adm. Hyman G. Rickover for soliciting and receiving $67,628 in jewelry and other “trinkets” from General Dynamics’ Electric Boat Division. Lehman fined the company $676,283. —Lehman canceled $22.5 million worth of engineering and missile maintenance contracts and said they would be put up for bid. Slashing major contracts to General Dynamics, however, would effectively cut major weapons programs that have been supported not just by the Reagan administration but by his Democratic predecessor, Jimmy Carter. General Dynamics makes the Army’s new M-l tanks, designed to be the core of U.S. armored attack forces in Western Europe. It also supplies the Air Force’s premier jet fighter, the F-16. It builds Tomahawk cruise missiles that the

claimed they had seized the Sabra and Chatilla refugee camps and captured scores of Palestinian defenders. Most of the Moslem area in west and south Beirut was dimmed by gray smoke from fires, exploding shells, and rockets whizzing in from Palestinian positions in the hills east of Beirut. Fighting began Sunday night as the Shiites sought to prevent Palestinians guerrillas, who controlled west Beirut prior to Israel’s 1982 invasion, from reestablishing themselves. Palestinian spokesmen denied the two camps had been overrun, but said the Shiites had managed to take several points that had been heavily defended. “Our men are still fighting,” said one Palestinian official who spoke to The Associated Press on condition he not be identified.

Western alliance decided in the face of massive protests between 1980 and 1984 to deploy in Europe against Soviet SS-20 missiles. It makes surface ships and submarines, notably Trident missile subs that are the flagships of America’s undersea strategic nuclear deterrent. And it builds dozens of relatively minor weapons such as the Phalanx close-support guns that defend U.S. ships against plane and missile attacks. As evidence of General Dynamics’ importance, on the same day the company was being fined and stripped of a few contracts, the Defense Department coincidentally and quietly issued an announcement it was proposing the sale of 10 Phalanxes worth $64 million to Britain. Officials speaking privately said they expected the company’s problems with billing to be solved in time for the sale to go forward. Lehman said on Tuesday the problems might be cleared up within a few weeks.

Amal militiamen in camouflage herded jeeploads of blindfolded Palestinians, apparently captured in the fighting, to an interrogation center in a 40-story skyscraper. They pushed their prisoners into the building, slapping and beating them. The militiamen refused to let photographers take pictures. The fighting around Sabra and Chatilla was the heaviest since Israeli troops besieged them for a month after they invaded in 1982 to drive the PLO out of Lebanon. Three months after the invasion, Christian militamen massacred hundreds of Palestinians in Sabra and Chatilla PSThe bomb left a crater 10 feet deep and 26 feet wide, ripped walls from apartment buildings and set more than 50 cars on fire.

'Holding their own' Doctors optimistic on Frustaci babies' survival chances

ORANGE, Calif. (AP) Doctors say they are optimistic about the chances of survival for the six remaining Frustaci septuplets, the smallest a boy nicknamed Peanut because he weighs only a pound. The two-day-old infants, four boys and two girls, struggled for life as doctors treated them Wednesday for lung and liver problems and an ailment that flooded their lungs with blood. “We still feel optimistic about the survival of all of these babies,” said Dr. Carrie Worcester, director of newborn intensive care at Childrens Hospital of Orange County. “They are holding their own. There are no impending deaths at this time.” “The smallest one is at the greatest risk right now,” she said, adding that the babies had a 50-50 overall chance of sur-

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Ex-Sailor of Month charged with spying

WASHINGTON (AP) - A 22-year-old Navy seaman, in the brig aboard the aircraft carrier Nimitz on charges he helped his father spy for the Soviets, had sardonically recounted how he was named Sailor of the Month, saying: “If they only knew how much I hate this carrier.” Seaman Michael Walker also wrote his father, for whom he coined the code name “Jaws,” asking advice on how to store the classified documents he had been photographing and hiding next to his bunk, the FBI said in documents filed in federal court in Baltimore. Walker, a member of the Nimitz crew since early 1984, was working as a clerk in the administrative office of the operations department, A Naval Investigative Service inquiry aboard the Nimitz, now berthed in Haifa,Israel, implicated the younger Walker in the spy case against his father, John A. Walker Jr., a retired Navy chief warrant officer, the Navy said Wednesday. In Baltimore, U.S. Attorney Michael Schatzow said Michael Walker had been charged with espionage. The elder Walker, arrested in Rockville, Md., on Monday, was being held in a Baltimore jail on espionage charges. Walker, who works as a private detective in Norfolk, Va., was ordered held without bond pending a bail review hearing May 2. The FBI said John Walker, 47, had tried to deliver classified documents to the

vival. The infants were listed in critical but stable condition. The babies were delivered 12 weeks prematurely Tuesday, along with a stillborn girl, by Patricia Frustaci, 30, a high school English teacher. Ms. Worcester said the infants have an ailment called patent ductus arteriosis, which causes blood to flood their tiny lungs because a channel connecting the pulmonary artery to the aorta failed to close, as it does immediately after the birth of full-term children. The babies also have hyaline membrane disease, in which their lungs fail to produce a substance called surfactant that is responsible for keeping the lungs from collapsing during exhaling, she said. They were given oxygen with the aid of respirators to combat the condition.

Soviets. It also said he may have spied for the Soviet Union during his career in the Navy, which he left in 1976. John Walker, in a telephone interview Wednesday from the Baltimore city jail, replied “no comment” when asked if his son was working with him. However, he told the Norfolk Virginian-Pilot he hoped his own arrest had not “ruined Michael’s career.” The two letters to John Walker, signed “Michael,” were discovered in a search of the elder Walker’s Norfolk home, the court papers said. In a letter dated March 6, .the seaman said he had been designated Sailor of the Month. “Do you believe that?” he wrote. In that letter, the affidavit said, he also described the growing volume of classified material he had obtained, saying: “Storing it is becoming a problem.” In an April 23 letter, he asked for advice about what to do with “the increasing amounts of photos I have been acquiring ...” and said: “At the rate I’m going, I’ll have over a hundred pounds of souvenirs.” Michael Walker’s wife, Rachel, told a Norfolk newspaper she didn’t know what to think about the charges against her husband. CBS News quoted an unidentified source close to the investigation as saying John Walker’s wife and daughter had turned him in to the FBI.

Doctors also continued blood transfusions to maintain adequate blood pressure and put the babies under lamps to combat jaundice, a yellow coloring of the skin caused by the inability of the infants’ premature livers to process old red blood cells. Meanwhile, Ms. Worcester said brain scans were normal, revealing no sign of bleeding into the brain a problem seen in many premature babies. Ms. Worcester said the children were in “slightly worse” condition Wednesday than immediately after their birth. The Frustacis’ four-bedroom house in Riverside was festooned with a “congratulations” banner draped across the garage door and six signs in the front yard four in blue reading “It’s a boy,” and two pink ones, “It’s a girl.”

U.S. building occupied by Seoul students SEOUL, South Korea ( AP) At least 30 students barricaded themselves in the second-floor of the U.S. Information Service building today, making political demands of the U.S. government and threatening mass suicide if police attacked. Embassy officials said negotiations were under way with the students, who occupied the public library of the building. The students placed signs in the library windows saying they would jump out the windows or take poison if U.S. officials called in South Korean police. Bernard J. Lavin, a U.S. public affairs official whose office is on the fourth floor of the same building, carried out one stage of the talks with the students. He said in a telephone interview that the students had taken no hostages. The students were protesting the deaths of at least 189 people in a 1980 military crackdown in Kwangju, a provincial capital south of Seoul. Critics of the government have charged the United States did not oppose the military action and may have condoned it. U.S. officials have denied any responsibility for the incident. The demonstrators placed signs stating their demands in windows where they could be seen from the street. Witnesses said the signs declared: ‘‘U.S. stop support of military dictatorship. ... Let us knock down the military dictatorship.” In leaflets thrown out of library windows, the students called on the United States: “Firstly, to apologize to the Korean people for approving the Kwangju massacre; secondly, to withdraw all economic measures disadvantageous to the Korean people, and, thirdly, to withdraw support of the present military regime which was the chief plotter for the Kwangju massacre.”