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Vol. LXXXX, No.54 Ann Arbor, Michigan-Wednesday, November 7, 1979 Ten Cents Ten Pages
Iran's oil exports halted;
U.S. tries to free
From AP and Reuter
WASHINGTON - President Carter convened an
unscheduled meeting of the National Security Council
late last night as U.S. diplomats struggled to free
some 60 Americans held hostage in the U.S. Embassy
Carter called the council together only hours after
a meeting with his top foreign policy advisers. A
White House official who asked not to be named said
the Security Council, which includes Carter's top
military advisers, met to discuss the situation in
Iran. He refused to give further details.
The meeting, which lasted more than an hour,
coincided with U.S. intelligence reports that Iranian
oil exports have been choked off by what may be a
strike at the country's only crude oil port.
PALESTINE LIBERATION Organization (PLO)
chairman Yasser Arafat, meanwhile, is sending a
delegation to Teheran today to "secure the safety of
the Americans" and others held hostage in the U.S.
Embassy there, a PLO spokesman said here last
Il industry.sources in New York said last night
workers at Iran's Kharg Island had apparently gone
on strike in sympathy with students holding the
The students are demanding the extradition of the
deposed shah, who is under treatment in New York
PROTECTION OF the embassy captives is now the
responsibility of Ayatollah Ruhollah Khomeini's
Revolutionary Council, which the religious leadered
ordered to run the country after Prime Minister
Mehdi Bazargan and his Cabinet resigned yesterday.
Both Khomeini and his council have been issuing
statements backing the embassy invaders' demand
that ousted Shah Mohammad Reza Pahlavi be retur-
ned for trial. The United States has said it will not
send him to Iran.
Hasan Abdel Rahman, the PLO's deputy UN ob-
server, told reporters Arafat has sent instructions to
the PLO office in the Iranian capital to use "all
possible means to secure the lives of the hostages at
the U.S. Embassy."
THE SPOKESMAN, who said he just had spoken to
Arafat's office, said the PLO was acting on its own
initiative and out of concern for human.lives.
"The PLO have good offices available for any con-
structive role in this affair," he added.
A State Department official said initial reports in-
dicated that the halt in oil shipments involved all
tankers at Kharg Island, not just U.S. tankers, as
originally had been believed.
THE STUDENTS holding the hostages have called
for a cutoff of oil exports to the United States if their
demands are not met.
U.N. Secretary-General Kurt Waldheim sought
help to end the three-day embassy occupation in a 40-
minute meeting with Jamil Shemirani, charge d'af-
faires at Iran's U.N. mission.
"'He (Waldheim) asked him to convey urgently to
the Ayatollah Khomeini and the government of Iran
his grave concern about the situation at the U.S. EM-
bassy in Tehran," a spokesman for Waldheim said.
HE TOLD REPORTERS that Waldheim also was
See SECURITY, Page 5
Premier's action inevitable?
AYATOLLAH RUHOLLAH KHOMEINI announces to reporters in Feb-
ruary, 1979 that Mehdi Barargan (right) has been appointed prime minister
of the new Islamic republic. Yesterday, Bazargan resigned, reportedly
upset at Khomeini's escalating anti-American campaign.
By MITCH STUART
University experts agreed yesterday that the
resignation of Prime Minister Mehdi Bazargan was
all but inevitable given the chain of recent events in
According to Prof. K. Allin Luther of the Near
Eastern Studies Department, the "whole mess" of
hostage-taking and resigntion of the Prime Minister
"was precipitated by letting the Shah into this coun-
HISTORY PROF. Richard Mitchell attributes the
resignation to the fact that the prime minister had
been holding out for Ayatallah Ruhollah Khomeini
to establish some form of constitutional gover-
nment. As of yesterday, however, Bazargan could
"no longer hold together even a semblance of law
Mitchell added that the resignation was not a sud-
den thing. The upper middle class elite that
Bazargan represented "have been gradually un-
dercut" by Khomeini's supporters.
Luther contended that the U.S. knew it would face
"drastic consequences" if the Shah were allowed to
live here, but the taking of hostages is an extreme
MITCHELL SAID that embassies have always
been considered "sacred territory," and added that
"under no circumstances should they (the
See PREMIER'S, Page 5
By TOM MIRGA
The Michigan Student Assembly
(MSA), acting on a' request from
President Jim Alland, took steps last
night to establish a task force obliged to
investigate the current status of the
Central Student Judiciary (CSJ). It
would report back to the assembly in
CSJ is the judicial branch of MSA. Its
main function is to certify all student
government elections, including those
of the assembly.
THE JUDICIARY'S troubles began
last April when the body decided not to
certify that month's hotly contested
MSA elections and was overruled two
months later by Vice President for
Student Services Henry Johnson. 1
"That act essentially destroyed CSJ's
credibility," the body's Chief Justice
Dennis Presinger said in an interview
in September. "Now. it's assumed that
an unfavorable CSJ decision can be
overturned by appealing to the ad-
Since that time, CSJ has ceased to be
a functioning body. According to Per-
singer, there are perhaps four justices
currently sitting on the ten-member
"IN ALL actuality," Alland said last
night, "CSJ has not been stricken from
the books. But there are serious
questions about its authority." The
assembly has the obligation, he ex-
plained after last night's meeting, to
change CSJ, abolish it, or endorse its
present procedures and policies.
Alland said he had four main concer-
ns about the body's procedures: the-
way hearings were conducted; the
manner in which evidence was accep-
ted; a lack of judicial training, and;
political motivations on the part of CSJ
"This has been a subject that has
See CENTRAL, Page 5
Young: No Detroit KKK march
DETROIT (UPI) - Mayor Coleman
Young, reacting to reports the Ku Klux
Klan planned a march in downtown
Detroit, vowed yesterday not to allow
But a former Klan official said he
believed the alleged Detroit march was
Young said he would not permit the
Klan or any other group "to take over
the streets of Detroit."
YOUNG ISSUED a statement saying
he considers any Klan activity in
Detroit "a physical threat to the safety
and well being" of Detroiters in light of
Saturday's Klan violence in Green-
There was confusion, however, over
whether the Klan was indeed making a
bona fide attempt to march in Detroit, a
city whose population is at-least 60 per
"First of all, why would any white
man want to hold a march in Detroit?"
said Robert Miles, former grand
dragon of the Michigan Klan. "I called
people I know who are active in other
groups and nobody even heard of it
A MAN who claimed to be a KKK of-
ficial called the city Department of
Recreation late Monday and said 1,500
to 2,000 Klansmen would march "with
or without a permit" at 1 p.m. Friday in
Barbara Tait, the department's
director of special activities, said the
man identified himself as Edward
Miles of Ypsilanti. He told Tait his at-
torney, Randolph Johnsson, would
request a parade permit from the City
There is no listing under the ,name
Edward Miles in the Ypsilanti
telephone book. In Lansing, the State
Bar of Michigan said it had no listing
for an attorney under the name Ran-
dolph Johnsson or Randolph Johnson.
AND, AS OF midday yesterday, no
such request had been filed with the
"We have no request for anything in
connection with the Ku Klux Klan -
neither pro nor anti - as of the
moment," said Richard Anderson,
committee clerk for the council.
Andersondsaid it was possible a
request could come later in the day.
But Robert Miles, of Howell, said he
believed the whole thing was a hoax.
"I don't think you've got anything to
worry about," said Miles, who was con-
victed of conspiracy in 1973 for a bus
bombing plot two years earlier in Pon-
CIA recruiter meets prospects
By STEVE HOOK
The Central Intelligence Agency
made its annual public recruiting ap-
pearance on campus yesterday in the
person of Steve Gunn, the agency's
regional personnel officer.
"I'm not really recruiting," pe said.
"I'm like a preliminary screener - get-
ting a feel of the people's backgrounds,
giving them information.
"I GIVE out some applications, but I
don't hire people," he said.
Gunn said that he analyzes the
"background and character" of
prospective CIA members during the
interviews. He gives applications to
those who are "what we are looking
There have been no problems during
his four months as a CIA interviewer,
Gunn said. The past controversies con-
cerning CIA campus recruitment have
not touched him.
"It seems like I have overflowing
schedules just about everywhere I go,"
he said. "Much like I had today."
GUNN SAID that the CIA is not
looking for agents among college
students. "We offer students a variety
of fields, like engineering, accounting
and mathematics." He said prospective
agents "come to them," that they
rarely come out of an academic en-
"Our agents usually have experien-
See CIA, Page 2
'not really recruiting'
BUT TIGHT MONEY MARKET COULD INTERFERE:
EDC bonds may soon fund five projects
By JOHN GOYER
For the first time since its estab-
lishment a year-and-a-half ago, Ann
Arbor's Economic Development Cor-
poration (EDC) appears to be close to
authorizing the issue of low interest, tax
4empt bonds to finance development
projects in the city.
There are now five projects that are
hear to winning a total of some $27
million in low interest funds under the
authority of the EDC.
UNDER STATE law, a city's EDC
can authorize the issue of low interest, tax
"/ V V
exempt bonds to attract business to the
city or to retain or expand existing
The tax-exempt status of the bonds
means that the buyer-typically a bank
or insurance company-pays no tax on
the interest it earns. Thus, it can afford
to accept a lower return on the money it
lends to the developer, who pays less in-
terest on money borrowed.
Henry Landau, chairman of the
EDC's Board of Directors, said yester-
day morning at the board's monthly
meeting that the bond issue could come
as early as December. Landau,
however, indicated that present high in-
terest rates might discourage the spon-
sors of the five projects from going
ahead with the bond issues.
"THE PRESENT economic situation
notwithstanding, I think we might have
some problems," Landau said,
"because of the present bond market."
According to Peter Long, counsel for
the EDC, interest rates on EDC bonds
are likely to range between eight and
ten per cent, somewhat less than the 15
per cent banks charge to their best
customers and the 12 per cent charged
for long term loans.
But Long stressed yesterday in a
telephone interview that the bond
market had taken a "nose dive" in the
last month, following the Federal
Reserve Board's decision to hike its
prime lending rate an entire percen-
tage point. 0
LONG GAVE the example of the
proposed Cranbrook development,
primarily senior citizen housing to be
built on the city's South side, which will
See EDC, Page 2
'Doily Photo by PAUL ENGSTROM
Climbing the walls
As students inside the structure watch, freshman Derek McCalmont lowered
himself down the side of the Dental Building as part of .a Reserve Officers
Training Corps drill yesterday morning.
I I I-
Mike Foley said it will be worth it if attendance at the con-
sports newscaster Jinn Miller of WTVN accepted the dare.
"Fun and games sometimes isn't allowed in college foot-,
ball," Miller said. "It's good publicity, good hype for the
game." Miller predicted another black and blue skirmish
between the arch rivals but said OSU would take the contest
by a 17-10 margin. No doubt this is one of the most extreme
examples ever of someone airing his gripes. E
"I've never seen one larger. It's a third of a football
Mike Foley said it will be worth it if attendance at the con-
cert is high. O
Delinquent seniors who missed weeks of opportunities
to have their pictures for the year book will get a reprieve.
The Michiganensian photographer will return for two days,
Monday, Nov. 12 and Tuesday, Nov. 13. Call 764-0561 to
make appointments for your final chance to be included in
the yearbook. Q]
primary in February. The primary will determine which of
the two candidates will run on the Democratic slate.in the
heavily student populated Second Ward. If elected,
Stephanopoulos would be the first student to serve on coun-
cil since 1975.
On the inside
Sportswriters from Purdue's student newspaper give
their predictions for Saturday's game in Purdue.. . An
analysis of the Iranian situation, on the editorial