Banner Graphic, Volume 20, Number 159, Greencastle, Putnam County, 12 March 1990 — Page 2

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THE BANNERGRAPHIC March 12,1990

Gorbachev calls Lithuanian independence alarming

No plans yet to prevent break away VILNIUS, U.S.S.R. (AP) President Mikhail S. Gorbachev today called Lithuania’s declaration of independence “alarming” but gave no indication he plans any acBanner Graphic (USPSI42-020) ComoMatloa ts Tha Daly Baaaar TfeaNaraM Tte Daly IrapMa EstaMtaM IBM Trtapfcoaa ft Bill by iawaaKlrapS, 104*No*tJi Jackm It, Mb, M 4H31. laaoad nlaaa pa iiaga paM at toi—oyrtte, IN. POSIMASTEIt: Sand addraaa dung* to Tlm Baaaartorapfclc, F.O. Box Mf f Iw—tla, IN 4HM Nf Waok, by aarrior *l-40 Par Waah, by aiatar route. *I~4B Mai labaorlptloa Rotes IMttai Boat of Boat of Ratal Coanty lad lana «*-*•*• 3 Moatba *20.30 *20.70 *22.20 6 Moatba *17.00 *31410 *2*o 1 Yoar *73*o *71.00 **4.70 Moaibor of tbo Associated Pvosa Tbo AsasNatal Proas Is aatlfilod oxcbislvoly to tbo so ter Ntpabllcatloa of all tbo local

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tion to prevent the Baltic republic from breaking away. As he opened a new session of the Congress of People’s Deputies in Moscow, Gorbachev noted that the chairman of the Lithuanian delegation was absent from his chair on the stage with other members of the Presidium. “THE INFORMATION coming from Lithuania is alarming, and momentous decisions are being made there that will affect both Lithuania and the Soviet Union,” Gorbachev told more than 2,000 deputies. The lawmakers had assembled to consider constitutional amendments that would create a new, extraordinarily powerful Soviet president and revoke the Communist Party’s monopoly on power. Just two weeks after pro-in-dependence candidates won a twothird majority in Lithuania’s legislature, the body voted on Sunday to restore the Baltic republic’s sovereignty after 50 years of Soviet rale. LITHUANIAN lawmakers acknowledge, though, that true independence can only be won after long, difficult negotiations with the Kremlin. The hasty vote to secede was prompted by the convening of the Congress to consider giving a new

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President Mikhail Gorbachev: Momentous decisions being made

president extraordinary powers, including authority to dissolve republic parliaments and nullify their actions. The newly elected legislature of the Baltic republic of 3.7 million people voted 124-0 with six abstentions to secede. It also chose Vytautas Landsbergis, chairman of the nationalist Sajudis movement, as president.

New tax levies are coming from the same government that promised no new taxes

WASHINGTON (AP) Get ready, America. Your “no tax increase” federal government is about to start collecting another new tax. As taxes go, this one isn’t much. Most of the impact will be on businesses, at least at first. It could raise the price of a telephone by a dime but add $25 or so to the cost of recharging an automobile air conditioner. ON APRIL 1, the government will begin collecting this new tax, which is aimed at limiting use of chemicals ch 1 orofl uorocarbons, or CFCs that are deemed to damage the ozone layer protecting the Earth. It has the dual task of raising about $4.3 billion for deficit reduction over the next five years. The CFC tax is only the latest move by Congress and the Reagan and Bush administrations to reduce the budget deficit without raising income-tax rates. President Reagan signed 13 tax increases during his eight years in office; President Bush signed a package of miscellaneous increases in December and proposed another round this year. ‘THERE IS considerable feeling that the government will con-

Civilian panel meets to set anti-spy strategy

WASHINGTON (AP) New weapons to catch spies including rewards for reporting turncoat relatives and greater FBI access to tax records are being studied by a panel of private citizens working behind closed doors for the leaders of the Senate Intelligence Committee. Many of the ideas under discussion revolve around money now the most common motivation for those who deliver U.S. secrets to foreign governments. WITHOUT ANY public announcement, nine men usually at the beck and call of presidents were recruited last spring by Sens. David Boren, D-Okla., and William Cohen, R-Maine, chairman and vice chairman of the Intelligence Committee, for a unique effort to respond to “the decade of the spy.” Most of the nine are former

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“EXPRESSING THE will of the people, the Supreme Council of the Republic of Lithuania decrees and solemnly declares the restoration of the exercise of the sovereign powers of the Lithuanian state, which were annulled by foreign force in 1940,” the legislature decreed. “And from this moment, Lithuania again becomes a

PRESIDENT BUSH Can he read his own lips? tinue to look this way in the future as long as such sources can produce revenue,” says Thomas P. Ochsenschlager of the Grant Thornton accounting firm in Washington. If Bush gets his way this year, for example, the 8 percent federal tax on airline tickets will rise to 10 percent; the 3 percent levy on telephone service, scheduled to expire Dec. 31, will be made permanent; and about 3.8 million state and lo-

White House, CIA, State or Justice officials who, Cohen said, not only are trusted by the nation’s intelligence officers but also can rally political support if controversial new laws seem needed. In an interview, Cohen said he and Boren want “to enhance security measures without turning into a Stalinist paranoid state.” DURING THE 1980 s, the United States caught and convicted more spies than during the entire post-World War II era, but many already had worked inside the U.S. government for decades undetected. Members of the panel have visited the CIA, FBI, Justice and Defense Departments, National Security Agency and other intelligence agencies over the past nine months. Cohen said they’re looking for “common elements of these

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sovereign state.” The Lithuanian decree proclaims that the local KGB and police, for most of five decades instruments of Soviet terror and repression, must now obey Lithuania rather than Moscow. AFTER IT WAS approved, legislators stood and joined hands, chanting “Lietuva, Lietuva” (Lithuania). Outside, a small crowd broke into wild cheers. Earlier, people tore down a metal Soviet hammer-and-sickle seal over the building’s door and some stamped on it By itself, the decree effects little change in the relationship between the Baltic republic and the Kremlin. But it was the first crack in the union of 15 Soviet republics and more than 100 nationalities as a result of the burgeoning demands for autonomy fostered by Gorbachev’s reforms. In Washington, White House press secretary Marlin Fitzwater said the United States would urge the Kremlin to “respect the will of the citizens of Lithuania.” The United States has never recognized the forcible 1940 annexation of the three Soviet republics Estonia, Latvia and Lithuania. LITHUANIA’S declaration of independence represents perhaps the biggest crisis yet for Gorbachev, who marked his fifth anniversary as Soviet leader on Sun-

cal government workers who are not covered by a retirement plan will have to start paying Social Security taxes. In the same message that proposed those tax increases, Bush proclaimed his continued opposition to tax increases, just as Reagan did for eight years and just as many members of Congress do, even after voting for those higher taxes. The trick is that nobody is raising income-tax rates. IT ALL STARTED in 1982, when Congress had second thoughts about the huge 1981 tax cut that was the framework for Reagan’s economic policy and voted to boost taxes by $2% billion over five years. Nobody’s rates were raised but the deduction for medical expenses was diluted severely; the tax on cigarettes was doubled; the telephone tax was tripled; and tax withholding was imposed on interest and dividends. Because of public outcry, withholding was repealed a year later. In 1984, Congress passed another thick tax law designed to reduce the deficit by another $156 billion over five years. It boosted the tax on a gallon of liquor by $2;

cases” and new defenses. That sort of work normally would be done by the president’s National Security Council staff, but President Bush’s administration has no counterespionage proposals on the table. THE ADVISERS ARE: former deputy CIA Director and National Security Agency chief Bobby Ray Inman; former CIA Director Richard Helms; former Carter White House counsel Lloyd Cutler, and former Reagan White House counsel Arthur B. Culvahouse Jr. Also, former ambassador and senior State Department official Seymour Weiss; former ambassador and Xerox executive Sol Linowitz; former Deputy Attorney General and former Deputy Secretary of State Warren Christopher, and Boren’s friend Eli Jacobs, a venture capitalist who owns the Baltimore Orioles baseball team and has sowed on defense advisory panels. Columbia University law professor Harold Edgar is helping draft

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day. The outgoing president of Lithuania’s parliament, Communist Party chief Algirdas Brazauskas, said before the vote that approval of secession could have a “contagious effect” on other republics. Leaders of Sajudis, which dominates the new Lithuanian legislature, acknowledged that full independence would have to be won in long, difficult negotiations. GORBACHEV HAS said Lithuania will have to pay the Kremlin $34 billion for the factories and other infrastructure built during a half-century of Soviet rule. Lithuanians say their bill for decades of Soviet repression including mass deportations to Siberia under Stalin will be even higher. Landsbergis, a 57-year-old music professor, received 91 votes for the presidency in Sunday’s vote, with 42 against Brazauskas got 38 votes, with 95 against. He had led Lithuanian Communists into splitting oft from the Soviet party in December and joining the drive fra restoration of the independence. But he favored a more gradual approach. Stalin absorbed Lithuania, Latvia and Estonia all independent between the world wars under a secret agreement with Germany on the eve of the Nazi attack on Poland that started World War 11.

reduced the benefit of income averaging for those whose earnings fluctuate from year to year, killed a tax credit for homeowners who buy solar energy equipment and cut the value of several corporate tax deductions. ADDITIONAL TAX increases for deficit reduction were enacted in 1985 ($15.6 billion over five years), 1986 ($5.3 billion) and 1988 ($66 billion). The 1989 version will bring in $22 billion over five years, with one-quarter of the money coming from a Social Security tax increase on workers earning more than $50,400 a year. The CFC tax is more typical of recent increases because it is a hidden levy with little direct effect on voters. But consumers usually end up paying at least some of the taxes that are levied on business. - Jack Terher Jr., a Ford dealer in Denver, said that to avoid the CFC tax, he is spending up to $7,000 on equipment to recover freon, a CFC used as a refrigerant, from auto air conditioners being repaired. That probably will force an increase of about $25 in the bill fra recharging an air conditioner, Terher said.

legislative proposals, which Cohen expects in about two months. WHILE REFUSING TO discuss the panel’s deliberations, Inman said his personal observation is that in 90 percent of the spy cases since 1975, “Americans made the initial approach” to spy for foreign powers. “Back in the 1930 s and 19405, almost every case of espionage had one of two factors, either ideological sympathy or blackmail,” Inman said. The ideological sympathy evaporated among spies even before the wane of communism around the world during the last year. And “it’s pretty hard to blackmail people for lifestyle these days,” Inman said. But “look at the number of people who have taken money.” COHEN AGREED. “One of the weaknesses has been that we have not had laws on updating financial status,” he said. “If a guy goes from a Vega to a Jaguar in a year’s time, something’s wrong.”