Banner Graphic, Volume 16, Number 124, Greencastle, Putnam County, 8 January 1986 — Page 2

The Putnam County Banner Graphic, January 8,1986

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Reagan: Further steps if sanctions don't work

WASHINGTON (AP) - Calling Libyan leader Moammar Khadafy “flaky” and “a barbarian," President Reagan ordered all American companies and workers to quit doing business in Libya and get out by the end of the month to show the United States won’t tolerate terrorism. Addressing a national television audience at his first White House news conference in nearly four months, Reagan said Tuesday night there was "irrefutable evidence” of Khadafy’s involvement in the Dec. 27 airport massacres in Rome and Vienna and called on the European allies “to join with us in isolating him. ” He promised unspecified “further steps will be taken” if the latest round of U.S. sanctions fails to end Khadafy’s terrorist activities. White House spokesman Larry Speakes said today the United States would begin immediately consulting with friendly nations in Europe and the Middle East to encourage cooperation and would “make it clear our position is that all nations must act in concert if we are to halt terrorism.” “Europe has borne the brunt of Khadafy’s latest outrages,” Speakes said, adding, “Many Arab states have suffered also from terrorism.” “The cost in lives and property is enormous and this will surely increase if terrorist acts continue,” he said. “Many actions will be taken and we will hold in abeyance any further decisions that we make,” Speakes added. “The United States will continue to reserve the right to act in an appropriate manner in our own self-defense.” The president refused to disclose his evidence against the Libyan leader, saying, “There are things that should not be revealed.” “But I can assure you that we have the evidence,” Reagan told a questioner. An administration official, speaking on condition he not be identified, said the evidence includes Tunisian passports that were said to have been confiscated by Libyan authorities. The passports then “found there way into the hands of those who perpetrated these acts” in which 19 people, including five Americans and four Palestinian terrorists, died. ■ »U.S. officials, hewever-,I acknowledged

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PRESIDENT REAGAN Promises further steps

that the imposition of unilateral trade sanctions against Libya are unlikely to have much effect, and the prospects are slim that Libya’s major Western trading partners such as Italy and West Germany will go along. “Civilized nations cannot continue to tolerate in the name of material gain and self-interest the murder of innocents,” Reagan said in his prepared statement. “Khadafy deserves to be treated as a pariah in the world community.” Asked if the failure of the allies to go along wouldn’t severely curtail the impact of the sanctions, Reagan said, “It may be frustrating, but we’re going to go on with what we think has to be done.” And he warned in his statement that “Americans will not understand other nations moving into Libya to take commercial advantage of our departure.” Acting under his emergency powers, Reagan ordered all U.S. companies to halt their Libyan operations and pull out by Feb. 1. That would affect Occidental Petroleum, Oasis, Conoco, Amarada Hess and the Houston-based Brown and Root construction firm that is building a giant irrigation system in the Libyan desert.

Rumors send stock soaring $19.75 a share Pennzoil rejects Texaco takeover to settle judgment

c. 1986 N.Y. Times News Service NEW YORK - After a day of frantic stock market speculation and secret meetings, the Pennzoil Co. announced Tuesday night that it had rejected the latest offer by Texaco Inc. to settle the companies’ legal battle. Widespread rumors that Texaco had offered to acquire Pennzoil to avoid a record damage award had sent Pennzoil’s stock up an extraordinary $19.75 a share, to a closing price of SB3 on the New York Stock Exchange, before the company announced its rejection. Although Pennzoil did not specify the terms of the Texaco proposal, investors said they understood that it had involved

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Except for journalists, who are specifically exempted from the order, all Americans must be out of the country by the end of the month or face criminal charges should they return to the United States. U.S. officials said they could, if convicted, be sentenced to 10 years in prison and be fined for disobeying Reagan’s order. The State Department estimates there are 1,000 to 1,600 American citizens in Libya, many of them dependents of petroleum engineers and others whose skills are much in demand in Libya’s oil fields. Asked how seriously he takes Khadafy’s threat to launch suicide missions in the United States if Israel or the United States retaliates for the terrorist attacks, Reagan said, “I wish he was planning to do that himself. I’d be happy to welcome him. “How can you not take seriously a man that has been proven that he is as irrational as he is on things. I find he’s not only a barbarian but he’s flaky,” Reagan said. While refusing to elaborate, Reagan revealed that U.S. authorities had thwarted 126 terrorist missions in the past year. On other matters raised during the 35minute session: —Reagan defended the use of polygraph tests as “a useful tool” to investigate suspected espionage and said they often have been responsible for confessions. But he acknowledged that Secretary of State George P. Shultz, who threatened to resign rather than take a test, “does not have too high an opinion of them.” —He said he remains opposed to a tax increase, even to bring the S2OO billion annual federal deficit under control, because a tax hike “would set back the economy and could even trigger, possibly, a slump.” —Reagan said he intends to ask Congress to raise Pentagon spending by 3 percent after inflation in the fiscal 1987 budget that he submits to Congress next month. At the same time, he is expected to propose more than SSO billion in politically painful domestic program cuts needed to meet the.deficjt reduction goals in the new Gramm-Rudman budget legislation.

an offer of 3.5 Texaco shares for each of Pennzoil’s 42.7 million common shares. At Tuesday’s closing prices, such an offer would have been worth $107,625 a share to Pennzoil’s shareholders, or a total of about $4.6 billion. The companies are fighting over whether Texaco improperly interfered with Pennzoil’s agreement to purchase part of the Getty Oil Co. two years ago. After Pennzoil reached what it considers a binding contract for the Getty purchase, Texaco stepped in and made a higher offer that was accepted by Getty two years ago this week. Pennzoil sued, and in November was awarded $10.53 billion, plus interest, in damages by a jury in a Texas state court. It was the largest damage award in U.S. judicial history. Texaco has said it will appeal, but for the past two and a half weeks the companies have been attempting to negotiate an out-of-court settlement. In its statement Tuesday, which came

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Three disc jockeys at radio station WGUY-FM in Bangor, Maine, pose with some of the garbage they plan to send to Libyan leader Moammar Khadafy. From left

Trash-to-Khadafy makes its point

PORTLAND, Maine (AP) trash actually has been neatly packed up and mailed to Moammar Khadafy. But whether it’s enough to fill a wastebasket or a landfill, an unmistakeable point has been made, says the manager of a Maine radio station that called on its listeners to use parcels of “clean garbage” to send the Libyan leader an anti-terrorist message. “I think we’ve been on every talk show in America,” said Jack Roberts of WGUY-FM in Bangor on Tuesday, five days after the campaign began. From as far away as Brazil and Europe, hundreds of calls have poured in on the station’s listener line, 90 percent expressing support, said Roberts. Broadcasters in Georgia also picked up the campaign and reported strong support. The effort was billed by WGUY as a way to direct the public’s attention to Khadafy’s threats against the United States and his alleged support of terrorism. “Obviously, sending trash to (Libya’s) U.N. mission won’t stop terrorism. But it does show people that Americans are concerned, that they do care,” Roberts said. The mjschjef* began at the S.OW-watt rock.musjc station following a Jiewts report in which ILS. ofTicialsiaiKiusedLiteya

after a three-and-a-half-hour meeting of the board of directors, Pennzoil adopted a combative tone, suggesting that the settlement efforts might be collapsing. Pennzoil said it “previously has repeatedly advised Texaco that this type of proposal is unacceptable.” Sources close to the negotiations said Tuesday that Texaco’s latest offer had been formulated during an all-day, allnight strategy session at Texaco’s headquarters in Harrison, N.Y., on Monday, and transmitted to Pennzoil Tuesday morning. The sources declined to say what the offer consisted of, but said it included both a structure and a value. To date, the companies have remained far apart on how to structure a settlement and on how much any deal should be worth, despite intensive settlement negotiations. Over the course of four face-to-face meetings, the latest of which was held Sunday in Nashville, according to sources

are Brian Mathews, Scotty Moore and J.J. Wright. (AP Laserphoto)

of helping terrorists and Khadafy reacted angrily. “What a bunch of garbage,” exclaimed disc jockey Brian Mathews. And before long he, his listeners and other announcers dreamed up the rubbish mailing plan. So far, Libya’s U.N. mission in New York has apparently received only a handful of candy wrappers, cigarette butts and a wadded napkin. That refuse spilled from an envelope sent to the mission, said a secretary who refused to give her name during a telephone interview Tuesday. There have been no foul-smelling p ckages, no suspicious parcels, and, as far as she knew, no requests to postal authorities to intercept any such mail addressed to the Libyans. “If we get anything, we’ll just toss it in the trash can without opening it,” she said. In Bangor, Maine, post office window supervisor Joyce Brown said Tuesday that only one package had been sent to the Libyan mission. Weighing just under two pounds, it was sent Friday. No garbage had reached the Gulf nation’s embassy,, onofficfai there said. f(V 31 ,,. (i rilrt ,' v

close to the talks, little progress has been made in narrowing the differences between the companies. Top-level negotiating teams, headed by James W. Kinnear, Texaco’s vice chairman, and Baine P. Kerr, a former Pennzoil president who is now a director of the company, have discussed a variety of settlement possibilities. Among them, the sources said, are selling Texaco oil reserves to Pennzoil for a discount, a cash payment and various exchanges of stock. Analysts said it was not surprising that Pennzoil had rejected Texaco’s latest offer, if it was in fact a proposal to purchase the company. Sources close to Pennzoil suggested that Pennzoil’s management, led by its chairman and chief executive, J. Hugh Liedike, had no desire to sell the company. They added that even at the huge premium apparently being offered by Texaco, Pennzoil might not be getting a good deal if it concluded that it could eventually collect the judgment awarded by the

Mother who was reunited with son on Today' slain by former husband

c. 1986 N.Y. Times News Service BOISE, Idaho A four-year custody battle for 6-year-old Jeffery Hayden has ended in the shooting death of both his adoptive parents. The custody dispute included a kidnapping and national television appearances by the boy’s adoptive mother in an effort to find her son. Those killed in the exchange of gunfire Saturday in the small southeast Idaho farming community of Paul were Judy Hayden McLean, 35 years old, and her former husband, Ken Arthur Hayden, 38. On Tuesday, Mrs. McLean’s second husband, Kermit McLean, 30, was exonerated in the slaying of Hayden. According to Police Chief C.K. Harkness, Hayden burst into the bedroom of Mr. and Mrs. Mclean through a window at 4 a.m. and began firing with a 20-gauge shotgun equipped with a flashlight along the barrel. Mrs. McLean was killed instantly and Mr. McLean was wounded very slightly, according to Harkenss, who said, Mr. McLean managed to reach a .22caliber pistol under his pillow and shoot Hayden in the head. Jeffery was at home at the time of the shooting, Harkness said.

Texas court. In addition, personal animosity between the top executives of the companies is said to run high, complicating any deal in which both managements might eventually take a role in running the combined companies. “Those guys hate each other,” said one analyst. But if Pennzoil did reject an offer worth more than $lO7 a share, almost 70 percent higher than the stock’s price before rumors sent it surging upward Tuesday, it could open Pennzoil’s board to suits from shareholders who might have wanted to accept the offer. In addition to clouding the prospects for a settlement of the case, Pennzoil's rejection of the Texaco offer is likely to cause huge losses for arbitragers and other investors who bet that a deal was near during Tuesday’s run-up in Pennzoil’s stock.

In 1981, Hayden and his wife were divorced in Chula Vista, Calif. She moved to Paul to be near relatives and to escape the threats of her former husband, according to Harkness. She had been awarded full custody of Jeffery. Later that year, on a court-ordered visitation, Hayden said he would take the boy on a camping trip. He never returned. His former wife began a nationwide campaign in the search for her son. She appeared on the “Donahue” and “Good Morning America” television program examining the plight of single parents whose children had been kidnapped by former spouses. In May 1982 the police in Stamford, Conn., found Jeffery with Hayden in a routine check of a parked motor home at a shopping mall. Hayden was arrested and eventually was convicted of a misdemeanor custody violation in California. Jeffery and his mother were reunited on the “Today” television program. Jeffery’s mother and Mr. McLean were married Aug. 19,1983. She worked as city clerk and Mr. McLean was employed by a local farm implement concern.