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Vol. LXXXIX, No. 77
Ann Arbor, Michigan-Saturday, December 9, 1978
Ten Cents
Ten Pages
Carter slams GOP
at Dem convention
MEMPHIS, Tenn. (AP)-President
Carter rejected demands from within
his party yesterday to water down his
anti-inflation program where it conflic-
ts with the Democratic Party's
traditional commitment to social
welfare programs.
Addressing the opening session of the
Democratic midterm convention, Car-
ter 'mixed partisanship with calls for
economic belt-tightening. He resurrec-
ted the Watergate issue by lacing his
speech with references to "break-ins
and buggins and our nation's highest
trust betrayed."
APPLAUSE WAS frequent, if not
deafening, throughout the president's
speech. The longest, most enthusiastic
burst of applause came when he called
for making the Equal Rights Amen-
dment "the law of the land."
While Carter spoke, there were no
signs of the few but vocal critics of his
policies, particularly his determination
to make the fight against inflation his
top priority. That position has come un-
der sharp attack by liberals and
organized labor.
THE PRESIDENT contended his
administration has substituted a
Democratic partnership among
president, Congress, governors,
mayors, legislators, and local officials,
for Republican "leadership by veto and
government by stalemate."
It was a gloves-off speech in which
Carter's GOP predecessors were ex-
coriated.
"Republican presidential candidates
said they wanted to run government in
the worst possible way, and that is
exactly what they did," he said.
The president pictured his ad-
ministration as "cutting red tape,
throwing out ridiculous regulations,
reorganizing government, and
eliminating millions of hours of paper-
work."
And in an apparent reference to the
scandal-scarred General Services Ad-
ministration, he pleged to prosecute "to
the full extent of the law" all those who
"rob from government through theft,
fraud, and abuse."
IN THE SECTION of his par'tisan ad-
dress devoted to drawing a contrast
with his political opponents, Carter
said:
"We are tearing down the barriers
between Americans and our gover-
nment. We have passed new ethics
legislation. The government of the
United States today belongs to the
people of the United States-not to the
power brokers.
"We have restricted the use of
wiretaps. No law-abiding American
should live in fear that our government
will open mail, break into a home, or
eavesdrop on private conversations.
Under this administration, we will
honor personal privacy."
Carter went on to catalog ad-
ministration achievements ranging
from the creation of 6.5 million new jobs
to near-completion of a Strategic Arms
Limitation Treaty (SALT) with the
Soviet Union.
Daily Photo by CYRENA CPANG
Fruit for finals-frayed frosh
Business students prepare fruity care packages at the Business School for today's delivery to lucky freshpersons. Working
for AIESEC, the International Association of Students in Economics and Business Management, the packagers successfully
raised enough money to send six University delegates to the organization's Seattle convention.
WOULD BAR CURRENT 'U'PRACTICES:
State anti-bug bill OK'd
By ELISA ISAACSON
A bugging system employed by the
University to monitor phone
conversations between the school's
information operators and the public
may soon become illegal.
That will result if Governor William
Milliken signs into law legislation
which would make eavesdropping on
telephone conversations a felony with
penalties of up to two years in prison
and a $20,00 fine.
The bill would also prohibit the
manufacture, distribution, and transfer
of equipment used for phone bugging. It
passed in the Senate Thursday and was
earlier approved by the State House of
Representatives.
ACCORDING TO University
Telephone Operations Manager Don
Gagnon, the University's monitoring
system allows supervisors in his office
to keep tabs on the progress of new
employees.
The legislation would permit'
eavesdropping only in cases involving
medical, fire, or police-related
emergencies. The, Michigan Bell
Telephone Company would also be
exempt from the law, provided it
supply a "beep tone" throughout all
conversations where eavesdropping
takes place or obtains consent to be
monitored from all parties involved.
,Howard Simon of the Michigan Civil
Liberties Union said Michigan Bell has
distributed monitoring systems to 99
businesses throughout the state - a
total of 360 phones. Simon said his
group has pushed for legislation
prohibiting telephone monitoring ever
since last year, when the Public Service
Commission approved Michigan Bell's
request to sell bugging equipment to
several businesses and organizations.
State Representative Mark Clodfelter
(D-Flint) introduced the House bill
shortly thereafter.
SIMON CALLED the bill's passage in
the Senate "a major victory in our
effort to bring privacy rights into the
workplace." He predicted that Milliken
will sign the legislation.
But Michigan Bell issued a statement
urging Milliken to veto the bill,
charging that its passage would hinder
telephone staff training programs.
Though measures have been taken to
inform citizens that their conversations
are being monitored, the system is not
fool-proof. The recently-issued
Michigan telephone books are supposed.
to designate with an asterisk the phone
numbers of companies that employ
monitoring services.
Callers who use local'information or'
the University phone directory,
however, aren't given any indication
that bugging systems are used.
ALTHOUGH Michigan Bell said it
marks those numbers that may be
bugged, that practice isn't followed to
the letter. University information is
listed in the phone book under two
separate headings, but only one
heading is accompanied by an asterisk.
Another University phone number
listed with an asterisk is that of the
See LEGISLATURE, Page 7
Cancer
claims
Israel's
Golda Meir
TEL AVIV, Israel (AP)-In her
time, Golda Meir was one of the
most famous women in the world.
A bit stout in her later years, deep-
voiced, her gray hair drawn into a
bun, she was to many "the gran-
dmother prime minister"-a
nickname she didn't like-but it ad-
ded something to the underdog
image of the country she directed
with a steel will.
MEIR DIED yesterday in a
Jerusalem hospital where she was
being treated for cancer of the lym-
ph system. She was 80.
The immediate cause of death was
not disclosed. A Hadassah Hospital
spokeswoman said the former prime
minister had suffered for more than
a decade from malignant lym-
phoma, a cancer of lymph organs
that causes overproduction of lym-
phocytes, one kind of white blood
cell.
The illness was a closely guarded
secret during her term as head of
government, 1969-74, which ended
with her resignation in the after-
math of the costly Yom Kippur War
against the Arabs.
"DEEP MOURNING has fallen on
all of Israel and on the whole Jewish
people," Foreign Minister Moshe
Dayan said in Switzerland, echoing
PHOTOS SHOW former Israeli Prime Minister Golda Meir, clockwise from
top left, in 1947, the year before Israel's independence; in 1956, the year of
the Suez Crisis; in 1969, as Israel's prime minister; and in 1977, during a
visit to New York. Meir died yesterday at age 80.
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the sentiments of Israel's other
leaders.
Similar sadness was expressed by
many in America as well. As a"
young Russian-born immigrant,
Meir had taught for several years in
Milwaukee before leaving for.
Palestine, and she later traveled of-
ten to the United States on fund-
raising missions.
American "have always felt a
special love and affection" for her,
President Carter said in a statement
released at the White House.
HE SAID Meir's first dream-a
See ISRAEL'S, Page 7
MSU to divest from S. Africa
By MICHAEL ARKUSH
The Michigan State University (MSU) Board of
Trustees voted 6-1 yesterday to sell its stock in cor-
porations doing business in South Africa.
The action mainly reaffirmed a March resolution
passed by the trustees which called on the school's
administration to begin "prudent divestiture" from
companies operating in South Africa. But unlike the
March resolution-which made divestitures depen-
dent upon the companies' future financial in-
volvement in that country-yesterday's move made
the withdrawal certain.
IN MARCH, the board declared divestiture would
be "in the best interests of the university, unless the
trustees receive sufficient evidence or assurances"
that the companies plan to pull out by December 1. At
that meeting, the trustees decided to send letters to
the corporations seeking those assurances before
divestiture.
But yesterday it was revealed that all but one cor-
poration-the A.H. Robinson company-refused to
begin action to pull out of South Africa.
* "We did not receive, the assurances which the
resolution required. Most of the corporations in-
dicated they just would not be in a position to comply
to our request so it makes commencement of
'In the long run unless the board
softens its posture, it will cost the
state's taxpayers, the board, and
the students several million dol-
seriously wounding the school's financial resources.
That problem, however, was cleared up-yesterday
when the university's money managing.firm, Scud-
der, Stevens and Clark, assured that "prudent
divestiture" could be accomplished without severely
endangering the school's financial security.
According to Krolikowski, the firm will begin
almost immediately to research possible transac-
tions to allow MSU to drop its $10 million worth of
holdings in those corporations.
Krolikowski said the firm will recommend several
sale offers which it assumes are consistent with
"prudent divestiture" and submit them to the
trustees for approval.
THE LONE DISSENTING vote was cast by
outgoing board President Patricia Carrigan who
charged the trustees were being naive. "The adverse
consequences of MSU in the short run are not going to
be upset by the potential social gains," she added.
Other opposition came from Merlin Tarrill, MSU
Development Council chairman. The council's is a
See MSU, Page 2
lars.'
-Merlin Tarrill, MSU
Daiy rnoto by CYRENA-H _
SMILES ABOUNDED at outgoing University President Robben Fleming's fare-
well party in the Union yesterday. Above, Fleming exchanges pleasantries with
Michigan Student Assembly President Eric Arnson while Sally Fleming chats with
another student.
Fleming 's farewell
Music and -me-mories
Development Council chairman
divestiture operative," said Raymond Krolikowski,
one of the trustees..
THE OTHER potential obstacle to full divestiture
presented at the March meeting was whether MSU
could implement "prudent divestiture" without
r
Saturday-
Em " Former
Ann Arbor congress-
By STEVE HOOK.
Outgoing University President Rob-
ben Fleming was honored yesterday by
student government leaders and enter-
tained by the Friars and University
Jazz Band at an afternoon farewell
reception in the Michigan Union.
he has been a part for some two
decades. Beginning in January,
Fleming will become president of the
Corporation for Public Broadcasting in
Washington, D.C.
The ceremony began with Henry
Johnson,' vice-president for student
man and unsuccessful GOP candi-
date for Senate Marvin Esch was
sharply criticized by Common Cause
for investing campaign funds and
using the proceeds for non-
campaign purposes. See story, Page
7.
* Doctors at this week's American
Anti-Shah rioters burn
U.S. firm's H.Q. in Iran
TEHRAN, Iran (AP) - About 1,000
anti-government rioters burned down
the Iranian headquarters of Grumman
Carter had expressed doubt Thursday
whether the shah could hang onto
power in the face of mounting dissent,
and yesterday, the White House press