Banner Graphic, Volume 21, Number 44, Greencastle, Putnam County, 24 October 1990 — Page 2

THE BANNERGRAPHIC October 24,1990

King Fahd firm, human shields revolt, U.S. ponders more troops

By the Associated Press _ Saudi Arabia’s King Fahd denied today that he has softened his stance on an Iraqi pullout from Kuwait, reacting to reports the Saudis are willing to accept territorial concessions as a way out of the Persian Gulf crisis. Fahd stressed that the Saudis demand an unconditional Iraqi withdrawal and the return to power in the oil-rich emirate of exiled Sheik Jaber al-Ahmed al-Sabah, who was deposed in the invasion ;nearly 12 weeks ago. HIS REMARKS followed what some interpreted as a weekend peace overture from the Saudi government. Also today, a jetliner landed outside London with former British Prime Minister Edward Heath and

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the 32 countrymen whose release from Iraq he had helped secure a day earlier. Airport officials initially said 37 Britons were aboard the plane, but Heath later said they numbered 32. About a dozen Americans also freed on Tuesday were headed home. JIM THOMPSON, one of the freed Britons, told reporters on the flight that he and 14 other foreigners held as human shields at an Iraqi armaments factory had rioted to protest bad conditions. Thompson, 50, an engineering company manager, said they were held without enough food and with no proper toilets. He did not say if any Americans were in the group. “We were in really bad shape. We told the guards, unless you do something ... we are going to have a disturbance,” he was quoted as saying. HE SAID WHEN nothing was done, they tore down fences, broke windows, daubed anti-Saddam remarks on walls and shouted antiSaddam slogans until guards forced them back into their rooms at gunpoint. He did not say where the factory was located or when the incident happened. In Iraq on Tuesday, Saddam Hussein’s parliament endorsed his proposal to allow all 330 French citizens in the country to leave, a gesture seen in Paris as an attempt to divide the West’s anti-Iraqi alliance. The French demanded that Iraq free all foreign hostages. PRESIDENT BUSH also stood firm, reiterating his demand for an

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A long line of M-1 tanks stands ready to move out for deployment in Saudi Arabia. Indiana Senator Richard Lugar says the nation is moving unconditional Iraqi withdrawal from Kuwait, and the Pentagon announced that it was considering sending more troops to the Persian Gulf than the planned 240,000. Fahd’s statement today, distributed by the official Saudi Press Agency, demanded that Saddam pull his troops out of Kuwait and called for “guarantees that the Iraqi ruler will not repeat his aggression on any other gulf Arab state.” It did not elaborate. He said that any “speculation and presumptions by the media on our stand toward the gulf Arab crisis should not be taken into consideration because they are utterly baseless.” AFTER MEETING with Egyptian President Hosni Mubarak on Tuesday in Jiddah, Saudi Arabia, Fahd said “we would be thankful” if Iraq withdrew from Kuwait. Diplomatic sources said the two agreed that Iraq’s withdrawal could be followed by negotiations on Iraq’s demand for territorial and financial concessions from Kuwait, including the islands of Warba and Bubiyan in the Persian Gulf and the Kuwaiti section of the Rumailah oil field. Possession of the islands would vastly improve Iraqi access to the gulf, and complete possession of the border-straddling oil field would end Iraqi concerns about the

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closer to an armed conflict with Iraq, and it is a war that Saudi King Fahd apparently is now willing to support. (AP photo) Kuwaitis taking more than their share of crude from it. PRINCE SULTAN, the Saudi defense minister, was reported to have raised the possibility on Sunday of allowing Iraq to keep some Kuwaiti territory if it withdraws. The Saudi ambassador in Washington denied on Tuesday that his government had made such a proposal. “Saudi Arabia has not suggested there should be concessions made to anyone,” Prince Bandar, the defense minister’s son, said after reviewing the situation for 85 minutes with Secretary of State James A. Baker 111. THE 14 AMERICANS flown Tuesday from Baghdad to Amman, Jordan, were to leave today aboard two Royal Jordanian Airlines flights. Nine men were to fly to London today, then take a Pan Am flight for New York on Thursday. The rest of the group, five men, were to fly to New York via Amsterdam. The number of Americans held in Iraq and Kuwait is estimated at 1,000. None of the 14 freed Tuesday had been among Americans held at strategic installations as human shields against a feared U.S.-led attack. She said 63 Americans with health problems have not been allowed to leave.

Lugar says conflict, not peace, is at hand

WASHINGTON (AP) Sen. Richard Lugar, R-Ind., said today “we are very close to conflict” in the Persian Gulf and that people should not misinterpret recent developments as indicating peace is at hand. “The fact is that we’re headed toward conflict,” Lugar, a member and former chairman of the Senate Foreign Relations Committee, said during an interview on NBC’s “Today” show. “WE’RE HEADED toward conflict because Saddam (Hussein) is reinfacing, as far as we can see, his forces in Kuwait, shows no sign whatsoever of giving up anything, and the United Nations is on a collision course to make sure he does give it up,” Lugar said. He was asked about reports that the Saudi defense minister, Prince Sultan, had raised the possibility Iraq might gain territory in return for ending its occupation of Kuwait. “I don’t think the Saudis are prepared to compromise,” Lugar said. “I think the remarks were unfortunate for two reasons. First of all, they gave an impression to world markets that peace was at hand. ... Secondly, it has raised once again questions as to how fragile the coalition of all the forces trying to undergird the United Nations resolutions may be.” PRINCE BANDAR, the Saudi

Canadians are first to blurt out the dreaded ‘R’ word

TORONTO (AP) Canadians abhor being seen as following in American footsteps, and this time they got out in front by officially tumbling into recession on their own. The United States, however, may not be far behind. Finance Minister Michal Wilson, after weeks of dodging the dread “R” word, finally acknowledged to a House of Commons committee Monday night that Canada had slipped into a recession, though he expected it to be short. THE COUNTRY’S largest bank, the Royal Bank of Canada, also predicted negative growth for the third and fourth quarters of this year, saying a slow recovery would begin next year. Wilson said the current recession would be nothing like the 1981-82 version, which involved a precipitous drop into a “black hole.” “The partial information that is now available for the third quarter, together with some major work stoppages, the crisis in the Middle East and the weakening U.S. economy, suggest a further decline in output,” Wilson said. “However, we do not expect this to be a severe recession.” DR. EDWARD Neufeld, chief economist at the Royal Bank, said the current situation differed from the 1981-82 recession in that the economy since 1988 has slipped slowly into economic malaise and will work its way out slowly. Neufeld said the Canadian economy has never gone into recession when the American economy did not “no matter how far back you want to look.” Some economists says the U.S. economy already is in recession, others say it will hit recession in the fourth quarter of this year, and still others predict the United States will escape recession by a narrow margin. THE OPPOSITION in the Canadian Parliament has blamed the conservative government’s policy of high interest rates an

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SEN. RICHARD LUGAR Notes intransigence envoy in Washington, denied his country had suggested that Kuwait make a deal with Iraq. “I think the possibility of armed conflict depends entirely upon our ability and willingness to bring it about,” Lugar said. “I would hope that it would be perfectly clear to Saddam Hussein and to the rest of the world that we are very close to conflict, if the Iraqis don’t move they’re likely to be pushed out, peace is not at hand, and that people would not misinterpret or try to misinterpret these small signs as they see them,” Lugar said.

effort to cure inflation for the recession. Recession usually is defined as two consecutive quarters of negative growth. The Canadian economy shrank 0.4 percent in the second quarter of 1990 and Wilson predicted there would be negligible growth for four quarters. “Consumers will be looking over the next year or so at no increase in their standard of living,” Neufeld told a group of reporters at an economic briefing. HE SAID IT WOULD be a period when consumers pay “tremendous attention to managing their financial affairs,” and a time to focus on “keeping your job if you have a good one.” Canadians seem to have the word already. Retail sales in August were down 0.2 percent from July as consumers spent less on big-ticket items such as vehicles, furniture and appliances, according to Statistics Canada, the government’s number crunchers. The Royal Bank’s forecast said unemployment probably would rise from the current 8.4 percent to about 9 percent at the peak of the downturn. STATISTICS CANADA figures showed a drop in the composite leading indicator for the sixth straight month. Corporate profits have plunged 23 percent below a year ago, and personal bankruptcies are 37 percent above 1989. Canadian inflation has dropped from 5.5 percent in January to 4.1 percent in August, but that at the cost of extremely high interest rates. The rates have been edging down a bit recently. The prime lending rate has gone from 14.75 percent to 13.75 percent. Various business groups have been pleading with Prime Minister Brian Mulroney’s government to get a handle on the deficit THE LATEST PLEA came this week from the Canadian Manufacturers’ Association which has created a new “competitiveness index” measuring labor productivity, wholesale prices and exports.

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