Banner Graphic, Volume 21, Number 217, Greencastle, Putnam County, 17 May 1991 — Page 2

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THE BANNERGRAPHIC May 17.1!

Gorbachev using carrot and stick approach in new plan

MOSCOW (AP) President Mikhail Gorbachev is banning strikes in key industries but offering workers more of the profits in an effort to prevent economic chaos he says could throw millions of Soviets out of work. Gorbachev announced the ban Thursday after his prime minister revealed some details of an “anticrisis program” that aims to mesh the Kremlin’s reforms with those of the republics to halt further economic and political collapse. PRIME MINISTER Valentin Pavlov said 13 of the Soviet Union’s 15 republics had agreed to the new anti-crisis program. In-dependence-minded Estonia and Georgia boycotted the negotiations. “The situation calls for special measures,” Gorbachev said in a statement reported Thursday night by the main television evening news program “Vremya” and the state news agency Tass. Gorbachev, using emergency powers granted him by the national legislature, threatened criminal proceedings against those who instigate strikes in the coal, oil, natural gas, chemical and petrochemical industries. IT WAS UNCLEAR how Gorbachev could enforce the order, or whether it could prevent a planned walkout by air traffic controllers next week. Gorbachev’s anti-strike order repeated an element of the April 23 deal that allows enterprises in key sectors to sell 10 percent of their production on world markets, retaining the hard currency profits. Currently, the central government owns major enterprises and controls their sales and profits.

Many remain optimistic

Iraq an explosive mix of rich and poor

BAGHDAD, Iraq (AP) Topline running shoes sell for $lO. Sports shirts with alligator trademarks go for three bucks. These are some of the bargains in the “Thieves’ Market,” so named because most goods come from Kuwait. Cameras, watches, jewelry all are a good deal in the alleys and avenues downtown near the Tigris

Banner Graphic (USPS 142-020) Consolidation of Ths Dally Barna Established 1850 Ths Harald The Dally Graphic Established 1883 Totophone 883-8181 Published dally except Sunday and Holiday* by Banner Graphic, Inc. at 100 North Jackson St., Qreencaetle, IN 48135. Second-dan* postage paid at Greencastle, IN. POSTMASTER: Send address change* to The Banner Graphic, P.O. Box 800, Greencastle, IN 48135 Subscription Rate* Per Week, by cvrlor ’1.40 Per Wook, by motor route. *1.46 Mall Subecrlptlon Rato* R.R. In Rest of Rest of Putnam County Indiana U.S.A. 3 Month* *21.00 *23.00 *25.00 8 Month* *40.00 *45.00 *50.00 1 Year *78.00 *BB.OO *85.00 Mail subscriptiono payable In advance...not accepted In town and whore motor route service Is available. Member of the Associated Press The Associated Press Is entitled exclusively to the use for republication of all the local nows printed In this newspaoer.

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MIKHAIL GORBACHEV: Merges reforms

THE REFORM measures are the latest attempt to halt the collapse of the Soviet economy, which has been hit by rising costs, declining production, shortages of many basic consumer goods and strikes. Coal miners this month ended their two-month walkout which the government said idled many factories. There is no shortage of bad news about the Soviet economy and prospects for recovery In Washington, the Central Intelligence Agency told Congress the Soviet economy is likely to become “radically worse” this year, especially if Gorbachev does not speed the transition from a centrally planned to a market economy. GORBACHEV released economic statistics that in some ways were more alarming than those reported to Congress by CIA

River as long as bargain hunters pay hard currency. Bui Iraq’s postwar economy is a mix of riches and poverty. Those with dollars can live like kings. Those without may soon be doomed to poverty as inflation and shortages eat away the value of their money. AT THE OFFICIAL exchange rate, 1 Iraqi dinar is worth $3.20. On the black market a dollar can buy 5 or 6 dinars. The margin widens the gap between the haves and have-nots, adding to the undercurrent of uncertainty about how long Saddam Hussein can hold the country together after U.S. and allied forces crushed his occupation of Kuwait. The economic crisis also adds to the urgency government leaders

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analysts. Tass quoted Gorbachev as saying the Soviet equivalent of Gross National Product has dropped 10 percent, and that strikes and other economic disruptions “threaten to stop thousands of enterprises, which will have to lay off millions of people.” Specifics of the latest “anticrisis” plan would be released Monday, apparently when Pavlov addresses the Supreme Soviet legislature, said his deputy, Vladimir Shcherbakov. PAVLOV SAID A key clement was closer economic cooperation with Europe that “should be finked with our ability to supply energy. This will serve as the locomotive that will draw our economy toward Western economies,” he said. Estonia said the plan was unrealistic. Ukrainian Prime Minister

face to get the United Nations to lift sanctions so the country can trade again, free frozen foreign assets and start selling $1 billion a month worth of oil. Iraq has the second-largest oil reserves in the world. BRITISH PRIME Minister John Major recently vowed to use his country’s U.N. veto power to foil any further lifting of sanctions apparently including oil sales as long as Saddam remains in power. “People are turning to crime. My house has been burglarized twice since the war started. People have to eat. What are they going to do?” said a businessman, who asked not to be identified. Inflation has hit many people hard. A source in the Finance Ministry said the official inflation rate from the end of the war through March was 240 percent. Eggs and meat have doubled in price since January. AMER, AN engineer and builder, said a ton of cement once cost 27 to 30 dinars. Recently, he bought it for 250 dinars and that was only because “someone did me a favor,” he said. But on Sheik Omar Street, a mile-long stretch of auto parts and

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Vitold Fokin said the plan “displays quite a few flaws and drawbacks,” although his government agreed to it “There is nothing novel about it. It is just another attempt to tackle problems without caring for republican sovereignty,” Fokin said in a report today by the independent Interfax news agency. THE UKRAINIAN prime minister, returning from the economic talks in Moscow, complained Gorbachev was trying to bypass the republican governments and “have denationalization and privatization proceed exclusively under the control of Moscow ministries and other government agencies.” All 15 Soviet republics have declared some form of independence or sovereignty from the Kremlin. Gorbachev sought to arrest the process by cutting a deal April 23 with Russian leader Boris Yeltsin and eight other republics. Under the “nine-plus-one agreement,” the republics would sign Gorbachev’s proposed Union Treaty that preserves the Soviet Union. Gorbachev would transfer control over most of the nation’s industrial and natural resources to the republics. ESTONIAN OFFICIALS complained Gorbachev was demanding $302 million as Estonia’s contribution to the Soviet budget. The anti-crisis plan calls for republics signing Gorbachev’s proposed new Union Treaty to have a common financial and taxation system, ETA reported. Republics that refuse to sign would be forced to pay hard currency for goods produced by other republics.

supply stores, business appears to be booming. “Everything is available, but it is very expensive,” one shop operator said. Many people wonder whether parts for everything from automobiles to machinery will be available at all if sanctions continue for many more weeks. ECONOMIC WOES are aggravated by joblessness caused by factories damaged in Gulf War bombing and sanctions that caused the shutdowns of other businesses. Recently, tens of thousands of young men were released from the army in a massive demobilization ordered by Saddam and the ruling Revolutionary Command Council. “Their best working life, between 24 and 30, has been wasted,” said Amer, who predicted the added men on the street could lead to lawlessness. “This will force people to look for business in not the straight way, in order to support themselves,” he said. Regardless of all the problems, there is still a sense of optimism for the country if it can get beyond the current crisis. “It’s a rich country. We’ve got oil. We’ve got water. We’ve got land. The potential is unlimited,” said Amer.

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PRESIDENT BUSH: Not the probe’s target

House intensifies probe; into hostage allegation

WASHINGTON (AP) House investigators are stepping up their inquiry into whether the 1980 Reagan-Bush campaign arranged to delay the release of American hostages from Iran, Democratic sources say. “It has intensified,” one source said Thursday of the inquiry that won quiet approval from House leaders this week after progressing less formally for several weeks. HOUSE SPEAKER Thomas Foley, D-Wash., along with Majority Leader Richard Gephardt, D-Mo., and the chairmen of several committees met privately early this week to discuss the overall issue, according to congressional sources who spoke only on condition they not be named. The leadership put their authority behind the efforts of several key staff members to review available evidence, the sources said. The probe already has led investigators to dismiss an allegation that President Bush, then the vice presidential candidate, secretly met with Iranian representatives in Paris in October 1980, one source said. ONE LEADERSHIP aide said the congressional Iran-Contra investigating committees already had in their possession Secret Service records from the 1980 campaign that verified Bush’s movements in the United States on the dates in October when others alleged he attended a meeting with Iranians in Paris. As part of the probe, the General Accounting Office’s Office of Special Investigations also is looking into some aspects of the case, according to an agency official speaking on condition of anonymity. A group of House members that has been conducting interviews on the matter met Thursday with Richard V. Allen, a former campaign official and Reagan’s first national security adviser. Allen staunchly denied the alleged scheme. “I HAVE NO record, recollection, memory or evidence of any Iranian trying to contact the Reagan campaign,” Allen told reporters after the closed-door session with lawmakers. •

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And he said he thought it “unlikely” that Reagan campaign chief William Casey attended an alleged meeting with Iranian intermediaries in Madrid in late July. Rep. William Broomfield, RMich., said Allen had provided convincing denials of any conspiracy to delay the release of hostages, and asserted that Democrats were having second thoughts about their inquiry. “I THINK IT’S evaporating very fast, and right now they’re on a fishing expedition,” he said. In its piivate meeting earlier this week, the Democratic leadership gave a more formal endorsement to the staff-level review, and asked for a report recommending whether to go to a second phase that could include subpoenaing documents and putting witnesses under oath, sources said. Asked about the development, Foley told a reporter only that he was looking for “other avenues of inquiry” into the matter. DEMOCRATS regard the issue as delicate because they fear their inquiry could be seen as an attempt to tarnish Bush or to gain advantage going into the 1992 presidential elections. “The politics cuts both ways on this,” one Democratic official said. “Bush is not the issue. That’s not what we’re after. The question is contact between the campaign and the Iranians.” The allegations, rumored for the past decade, took on new life after a recent article by Gary Sick, a Middle East scholar and former Carter administration official who has spent two years researching the charges. SICK FOUND A “curious pattern” that led him to believe the Reagan-Bush campaign had arranged with Iran to delay the release of hostages in return for a roundabout promise of weapons once the new administration was sworn in. The Carter administration had barred weapons sales to Iran, but Israel, a close U.S. ally, began to ship weapons to Tehran soon after Reagan’s inauguration and the release of 52 American hostages, who were freed within minutes of the swearing-in.

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