Banner Graphic, Volume 22, Number 102, Greencastle, Putnam County, 2 January 1992 — Page 2

THE BANNERGRAPHIC January 2,1992

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Bush holds firm on U.S. agricultural subsidies

CANBERRA, Australia (AP) President Bush today blamed Japan’s trade barriers for furthering the U.S. recession, but refused to give ground on American policies that hurt Australian farmers, saying “nobody’s pure.” Wrapping up a two-day visit the first by an American president since Lyndon Johnson’s trip here in 1967 Bush also told the Parliament the United States will honor its historic security commitment to the Asia-Pacific region. THE U.S. POSITION wifi remain firm, he said, “no matter what changes may come about in the defense expenditures in the United States or in the nature of the threats to international peace.” The president acknowledged in a news conference with Prime Minister Paul Keating that the one issue marring otherwise warm relations is that of U.S. agricultural subsidies, mostly to its wheat farmers. But Bush declared anew that he will not alter the subsidy policy, which he contends is aimed not at Australia but at protecting U.S. fanners against subsidized European competition. “WHILE I DON’T like having to use these remedies I will safeguard the interest of American farmers,” he told the Parliament in the first-ever address to the body by a U.S. president. Bush was asked at the news conference whether that attitude might undermine his insistence that Tokyo lower its trade barriers to permit more U.S. imports, especially in auto parts and rice. “No, because nobody’s pure,” he said, adding that he had mentioned to Keating some of Australia’s protectionist policies. “We’ve never said we’re totally pure,” he said. “We arc working for freer and fairer trade. And certainly the Japanese should be working for freer and fairer trade.”

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HE WASL ALSO asked whether he agreed with his Commerce Secretary Robert Mosbacher, who said last Sunday that Japan’s trade policies had contributed to the nagging U.S. recession. The United States has a more than s4l billion trade deficit with Japan. “Anytime you have an extraordinarily big trade imbalance, I think that you would say that would be contributing to a lack of economic growth,” replied Bush, who travels next week to Korea and Japan. BUSH, FETED later at a dinner hosted by Keating, heads Friday for a stop in Melbourne before flying on to Singapore, the second country on his 12-day Asia and Australia trip. The journey, originally scheduled for late November and early December, had been postponed for six weeks. The White House also refocused the trip’s primary mission to give trade and economic issues greater attention than diplomatic concerns. In Melbourne, Bush will meet with the Coral Sea Commemorative Council, honoring the World War II sea battle off Australia that historians count as a key turning point against Japan. ALTHOUGH HE didn’t offer any relief to hard-pressed Australian wheat farmers, Bush appeared to assuage some of their concerns by promising that he would consult with Australia on the subsidy question. Bush told the Parliament the sole aim of the U.S. farm subsidies was “to force the (European Community) to stop its avalanche of subsidized exports.” Bush said he assured the farm leaders the U.S. program “was not aimed at Australia.” It was an attempt to get the Europeans “who were subsidizing ten times as much hoosier lottery. Lotto America Lottery Line INDIANAPOLIS (AP) Here are the winning numbers selected Wednesday in the Hoosier Lottery: Daily Three 8-7-2 Daily Four (F 9-3-6 Estimated Lotto Cash jackpot: $1.5 million Lotto America 6-9-10-30-46-53 No winners. New estimated jackpot: $8 million

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as the United States, to come into line and to get on board on a sound GATT (General Agreement on Tariffs and Trade agreement,” he said. KEATING SAID he was pleased that Bush agreed to examine U.S. subsidies in markets where U.S. producers are not competing with the heavily subsidized European Community producers. The EC subsidies are the target of the U.S. subsidy program. Bush, in his speech, also proposed a U.S.-Australia Trade and Investment Framework Agreement to work on expanding trade opportunities. “He can’t obviously give a clear commitment on the markets, but he agreed to look at and examine them and we’re very happy about that,” Keating said. “IT’S THE FIRST time the U.S. side has undertaken to consider,” the problems its export subsidies cause the Australians, said an Australian official who spoke on condition of anonymity. Earlier today, some 3,000 farmers marched in front of the Parliament House to protest the U.S. subsidies that they claim cost them $1 billion a year in lost exports. Bush has focused his trip on improving Japanese market access for American businesses as a way to help the U.S. economy rebound. BUSH ACKNOWLEGED Australia’s own economic recession, and said “The answer to all of this, whether it’s Japan-U.S. or Australia-U.S., is to get these economies going through expanded trade.” Bush said it was “very heartening” that Prime Minister Kiichi Miyazawa this week urged Japanese auto makers to buy more American-made parts. Illness still plagues aged nun LA JOLLA, Calif. (AP) A pneumonia-stricken Mother Teresa has shown little improvement after a week in the hospital and could suffer a setback at any time, doctors say. The 81-year-old Roman Catholic nun, who won the Nobel Peace Prize for her care of the world’s poor, sick and dying, remained in serious condition early today at Scripps Clinic and Research Foundation. She was admitted Dec. 26. “We are very concerned about her,” Dr. Paul Teirstein said. “I think that she could have a setback at any time.” Dr. Patricia Aubanel said Mother Teresa’s condition was essentially unchanged. Mother Teresa became ill a week ago in Mexico and was admitted with pneumonia.

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Muscovites took time off of work recently to line up in what was then a state-controlled food shop to buy smoked fish, a holiday favorite among Russians. This morning they woke up to find the state no longer controlled the prices,

Russians find higher prices but ask, ‘Where’s the beef?’

MOSCOW (AP) Wary shoppers in Russia and Ukraine took their first painful steps into a market economy today, finding higher pices but still seeing the same old empty shelves. “They have said there would appear a lot of goods as soon as the prices were deregulated, but where are they?” asked Galina Kornilova, an office worker who was searching for milk but found only boiled sausages. THE COST OF everything from meat to movies went up in Russia and Ukraine today and will rise in Belarus on Friday. Even the cost of basic goods such as bread, milk and baby food although still government-regulated will rise. In Moscow, a steady snowfall greeted shoppers out early today to see how much more expensive life has become. Among the eye-popping new prices: boiled sausages cost five times more; mandarin oranges more than tripled, carrots shot up more than fivefold as did the cost of a slice of pizza with pepperoni. AT FOOD STORE No. 2 next to the Foreign Ministry, refrigerated cases were filled with sausage, frankfurters, chickens and spiced bologna, but there was no beef. Despite windows that advertised milk, none was to be found; only displays of champagne for 156 rubles, more than 20 times its statecontrolled price just a few days ago. Bread prices, although still regulated, more than doubled. Although wages also are expected to rise, the average salary last year was about 350 rubles per month. MOST OFFICIALS, including

which had shot up between 300 and 500 percent overnight. But there was one similarity between the free market and the Communist system: The shelves were still empty. (AP photo)

President Boris Yeltsin, have expressed anxiety over the possibility of social unrest over the increases. Yeltsin’s government is leading the way with freed prices and privatization of state property, moves economists call crucial if production is to be boosted and economic collapse prevented. Some leading economists have criticized Yeltsin’s plan, however, saying eliminating central price controls before implementing swift privatization of state enterprises will do little to remedy chronic shortages. UKRAINE IS being more cautious, maintaining government ceilings while raising prices. Russia is allowing them to float free of controls, with each store manager charging what he or she thinks the market will bear. Russian shops, businesses and plants today set their prices according to supply and demand for the first time after 74 years of Communist rule. Soon they will lose the last of their government subsidies. People have hoarded food and goods in expectation of hard times, and many have been promised raises. But in a country where shoppers have to wait hours in line to buy most anything, it was impossible to know how long their private caches or patience would last. LINES FORMED in the snow today outside the Kiev train station in Moscow, but some of those waiting were philosophical. “I stood in line for bread for an hour and a half before the New Year and now it took only 20 minutes, so things evidently have turned out for the better,” Gennadi Fok, a 49-year-old mechanical engineer, said sarcastically. In the produce section of Food

Store No. 2, two women compared notes and complained about the dearth of dairy products. In the store’s meat department, another woman walked along the cases surveying the three varieties of sausage and checking their new prices. “It’s too expensive to eat!” she muttered. “OY!” LAMENTED another woman. “How much you have to pay!” Despite cheerful signs on store walls that wished them “Happy New Year,” shoppers were openly bitter toward the economic reforms. “This government should hang itself in disgrace because the leadership is so bad. This is not a government. They are bandits and they steal a lot. One group of bandits has followed another,’’ said one 65-ycar-old woman who identified herself only as Zinaida because she feared reprisals. PEOPLE GREW accustomed during Communist rule to artificially low prices, subsidized rent and free education. The price of bread, for example, was unchanged for nearly 30 years until 1990, when some reforms took effect. Low-income people, pensioners and others on fixed incomes arc expected to be the hardest hit by new price increases, even though the government has promised to help. Half of Muscovites questioned in a poll said they thought the tough times would get worse in 1992 in the city of 9 million, according to results published Wednesday in the government-run Rossiskaya Gazcta. That was far more pessimistic than two years ago and worse than last year’s gloomy prediction. Union backer dies at 77 GREENEVILLE, Tenn. (AP) Edwin Spotswood Dillard, the founding chairman of the National Right to Work Committee, died Monday. He was 77. An industrialist, Dillard helped form the group in 1955. For more than 35 years Dillard was president and chief executive of Old Dominion Box Co.

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