Banner Graphic, Volume 20, Number 194, Greencastle, Putnam County, 21 April 1990 — Page 2

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THE BANNERGRAPHIC April 23,1990

umtNOßte’eA... with, the P6KIN6 RIOTS

Bush buying time for response

ISLAMORADA, Fla. (AP) President Bush is giving Soviet President Mikhail Gorbachev a few more days to loosen the economic noose the Kremlin is tightening around breakaway Lithuania before the United States moves to respond. As the vacationing Bush planned to spend today bonefishing here in the Everglades, the White House put Moscow on notice Friday to expect an American response early next week unless Gorbachev eases the Soviet blockade of oil, gas and other materials. BUSH HIMSELF SAID nothing during political speeches Friday in Birmingham, Ala., and Orlando, Fla., about the crisis threatening a setback for U.S.Soviet relations. Asked as he toured Orlando’s Sea World why he needed more time to frame a response, Bush said only, “There’s a lot of consultations going on right now.” But amid reports the Soviets were intercepting food supplies and shutting off Lithuania’s oil and gas, and eyewitness accounts of troopers seizing a printing plant in Vilnius, White House spokesman Marlin Fitzwater decried what he called “another unfor-

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tunate step” in the Soviet economic crackdown. FITZWATER, STANDING in a hotel driveway in Birmingham, said Bush had “stepped up” consultations with U.S. allies and would meet early next week with leaders of Congress before taking action. Administration officials reiterated that Bush was contemplating making the Soviets pay an economic price for the campaign to force the Baltic republic to retreat from its March 11 declaration of independence. Bush has been treading cautiously, trying to promote a peaceful dialogue that would respect the Lithuanians’ right to self-determination and not cloud U.S.-Soviet relations and prospects for nuclear arms negotiations. Fitzwater said the United States still hopes “this matter can be resolved in a responsible manner.” He said the president would complete his deliberations “early next week,” and meet with lawmakers “to discuss possible courses of action.” “I WOULD ASSUME that we would be prepared to announce actions fairly soon after that,” the spokesman said.

Pro-Iranian paper urging release of captive

BEIRUT, Lebanon (AP) A newspaper that often reflects the views of Iran’s president today urged pro-Iranian hostage-takers in Lebanon to hasten talks to free an American captive. The Tehran Times said it hoped the release of one captive could be “the prelude to the release of one more hostage by another group.” The editorial was the latest in a series of hostage developments that began Wednesday, when one Lebanese group holding three American educators said it would release one hostage by Friday. HOWEVER, THE Islamic Jihad for the Liberation of Palestine said Thursday it had indefinitely postponed the release. It blamed the

delay on the refusal of the United States to send a senior diplomat to Damascus, as the group demanded. A Shiite Moslem cleric reputed to have influence over the kidnappers, Hussain Musawi, said Friday by telephone from his headquarters in the eastern Lebanese town of Baalbek that freedom for a hostage was certain despite the delays. Asked when he expected the release to take place, Musawi said: “That depends on how far-sighted the Americans might become. So far, their behavior is arrogant and one of cowboy mentality.” MUSAWI HEADS Islamic Amal, a faction within the proIranian Hezbollah group that advocates strong links with Syria.

Milken to plead guilty, pay S6OO million

NEW YORK (AP) The largest securities fraud case in Wall Street history will end next week if a federal judge approves a reported plea-bargain agreement by former junk-bond financier Michael Milken. After a year of maintaining his innocence, Milken agreed Friday to plead guilty to six felonies related to securities fraud and pay S6OO million in penalties, sources said. In exchange, the government would drop the most serious charges against Milken. THE FORMER HEAD of Drexel Bumham Lambert Inc.’s high-yield bond department who parlayed risky securities into a mul-tibillion-dollar business and fueled the takeover mania of the 1980 s had been named with two others in a 98-count federal fraud and racketeering indictment last year. Prosecutors last month threatened to submit an expanded indictment Friday unless an agree-

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Soviets put squeeze on defiant Lithuania

VILNIUS, U.S.S.R. (AP) The Kremlin tightened its vise on Lithuania by expanding its energy embargo to other products, and Soviet troops stormed a printing plant and beat at least 13 people, Lithuanians said. Lithuanian President Vytautas Landsbergis issued a new plea Friday for talks with Moscow on the standoff over the Baltic republic’s March 11 declaration of independence from the Soviet Union. He also reportedly said his government might consider suspending the declaration for two years as the basis for negotiations. VILNIUS RADIO quoted Landsbergis as saying: “All countries big and small ... can and must find a solution worthy of civilized societies to any complication if these countries are guided by the principles of humanity. And it is only political dialogue that must underlie the search for the wisest solution.” He also expressed confidence the Soviet leadership would punish the soldiers responsible for “that brutal assault and battery of ordinary people” at the printing plant. At a news conference Friday night, Landsbergis said the Kremlin “is seeking to stop the plants, put the workers on the streets and encourage social unrest.” HOWEVER, HE also was quoted as saying that a two-year moratorium on full independence could form part of a compromise with Moscow. “If somebody authorized by Moscow to negotiate presented us

Hezbollah is believed to be the umbrella for Shiite Moslem groups holding most of the 18 Western hostages in Lebanon. Thousands of Hezbollah members joined a military parade Friday through Beirut’s southern slums, two blocks from where many of the hostages are believed held. SYRIA HAS SAID it is working to free one by Sunday. In Damascus, officials have met frequently with U.S. Ambassador Edward Djerejian since he returned to the Syrian capital Thursday. The Islamic Jihad for the Liberation of Palestine had demanded the United States send John Kelly, the assistant secretary of state for Near Eastern affairs, to Damascus for

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MICHAEL MILKEN Agrees to plea deal

ment was reached. Last year’s charges stemmed from the confessions of speculator Ivan Boesky, who cooperated with the government in setUing charges

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with a package of proposals including this, we could have a discussion,” The New York Times quoted him as saying in today’s editions. He also reportedly said Lithuania would not agree to revert to the authority of the Soviet constitution. Algimantas Cekuolis, a newspaper editor and former Lithuanian representative in the Soviet parliament, told reporters Lithuanians might make such an offer “if Moscow gives us guarantees of something.” LITHUANIA WAS forcibly annexed by the Soviet Union in 1940. Despite the Soviet military and economic pressure, the republic has refused to back off its declaration of independence and has sought Western material and political support. President Mikhail S. Gorbachev has refused to negotiate unless Lithuania rescinds the declaration. In Birmingham, Ala., where President Bush addressed a political rally, spokesman Marlin Fitzwater said the White House is “increasingly concerned” by

final coordination of the release. He was the ambassador to Lebanon from 1986 to 1988, and he conducted secret hostage negotiations in what became known as the IranContra affair. IN WASHINGTON, Kelly said Djerejian was in Damascus and “- fully capable of handling all the details of bringing a hostage out safely, and quickly, and efficiently.” “You know American policy is that we do not make concessions to those who hold the hostages,” Kelly said. “We want the hostages out, but we are not going to bow to the demands of the hostage-hol-ders.” The English-language Tehran

that he ran a stock trading network based on illegal inside information. Boesky, who fingered Milken and Drexel as key participants in his schemes, pleaded guilty to a single felony count in November 1986, agreed to pay a SIOO million fine and completed a prison term this month. DREXEL PLEADED guilty last fall to six criminal charges that described Milken as being at the center of schemes to cheat clients, trick companies into being taken over, and manipulating the marketplace. Drexel agreed to pay $650 million in fines. It never recovered from the plea deal and the sharp decline of the junk bond market starting last fall; in February the company collapsed and is now being liquidated. Milken repeatedly said he would be vindicated. But for both sides the plea deal would remove the risk and cost of a lengthy jury trial.

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reports of the economic crackdown on Lithuania and that Bush will brief Congress early next week on possible retaliation. THE SOVIETS started the embargo by cutting off oil and gas supplies, and they expanded it Friday by diverting two ships from Cuba carrying raw sugar to the Lithuanian port of Klaipeda. Also, a Latvian fish shipment intended for Lithuania was sent elsewhere, Deputy Prime Minister Romualdas Ozolas told reporters Friday night. Lithuanians produce more meat and milk than thev consume. Armed soldiers stormed a Communist Party printing plant in Vilnius during the afternoon and beat at least 13 people, witnesses said. Lithuanian legislator Zigmas Vaisvilas said civilian guards arrived Friday at the plant, which already was occupied by a few Interior Ministry troops without weapons. The Soviet news agency Tass said the colonel in charge asked the civilians to leave and called in reinforcements when they refused.

Times said the kidnappers should consider Djerejian’s presence “good enough to conduct the arrangements for the release of the hostage.” IT REPEATED AN appeal, first made in February, for “freedom of all hostages without any conditions and immediately.” The Islamic Jihad holds Alann Steen, a native of Boston who turns 51 on Sunday; Jesse Turner, 42, Boise, Idaho; and Robert Polhill, 55, New York. It had not said which of the three it had considered freeing. They were kidnapped from the campus of the U.S.-affiliated Beirut University College on Jan. 24, 1987, by gunmen.

UNDER THE DEAL, the government would drop the most serious charges against Milken insider trading and racketeering but he still could face as much as 30 years in prison, or five years if the sentences run concurrently, said individuals close to the case who demanded anonymity. Milken, his brother, Lowell, and former Drexel trader Bruce Newberg were indicted in March 1989 on charges related to insider trading and other alleged securities violations in a series of takeover deals from 1985 to 1987. lOT WAS UNCLEAR exactly which counts Michael Milken agreed to plead guilty to, but the sources Friday said none of them related to insider trading or racketeering. A single racketeering count would have carried a 20-year prison sentence. It also was unclear what sentence the government would recommend to Wood.

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