Page?2-Thursday, November 8, 1979-The Michi an Daily..::::::......... .........
W, < ., d
Miller
pushes
$1.5 billion
Chrysler
aid bill
WASHINGTON (UPI) - Treasury Secretary
William Miller urged Congress yesterday to ap-
prove a $1.5-billion loan guarantee for the
Chrysler Corp., saying taxpayers could lose $2.75
billion if the automaker goes out of business.
The administration, however, received deman-
ds from Senate Finance Chairman Russell Long
(D-La.)-, and several congressmen that any
government aid be tied to providing Chrysler
workers with stock in the firm.
MILLER,, APPEARING be'fore a House
Banking subcommittee, ruled out reorganization
of Chrysler under federal bankruptcy laws as a
means of solving the company's financial dilem-
ma which resulted in a record $460 million loss in
the third quarter.
He said there was a "reasonable possibility" the
loan guarantee plan would be successful but,
citing the Iranian situation, said if there is an in-
terruption in importation of oil, "We don't know
what that will mean."
"We cannot give you a guarantee," he told sub-
committee Chairman William Moorhead (D-Pa.)
SUBCOMMITTEE leaders plan to take several
days to draft legislation before sending it to the
full committee that is tentatively scheduled to
consider the bill next Wednesday. In the Senate,
hearings begin Monday.
Miller said the psychological impact on
Americans of a Chrysler bankruptcy proceeding
made it "highly unlikely" the firm could survive.
"Whether Mr.. and Mrs. America would continue
to buy Chryslers.. . I think that's questionable,"
hesaid.
HE ESTIMATED a Chrysler shutdown might
widen the federal deficit by $1.billion in 1980 and
$1.75 billion in 1981 to cover loss of revenues,
unemployment claims, welfare costs and other in-
cidental costs. In addition, there is a potential $1
billion liability to the Pension Benefit Guaranty
Corp. that could accrue over 30 years.
He said the $3 billion attained equally from
government and private sources under the ad-
ministration plan would finance Chrysler's
operations through 1983 "and enable it to re-
emerge as a commercially viable, self-financing
entity."
Long testified an hour earlier and insisted
government aid be conditioned on a Chrysler em-
ployee stock ownership plan.
"AT THE moment, I've not decided whether
financial aid should be given," Long said, but ad-
ded Congress "should not go along with providing
a windfall benefit for that corporation's
shareholders.
"We should require that Chrysler provide an
employee stock ownership plan," he said, telling
the subcommittee such a program was not in-
flationary.
"WHEN THE.government comes up asking f r
taxpayers' money ... they've got to have em-
ployees in on the deal," he said.
Rep. Stanley Lundine (D-N.Y.), told Miller an
employee stock ownership plan would make
repayment of the loan more likely since it wouldl
increase productivity.
Miller said the administration opposes making-,
the stock program a condition to the loan but he,
feels it "would be'very desireable" if Chrysler
could acquire $250 million of the needed matching
funds by selling stock to its workers.
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Murphy blasts UAW
post on Chrysler bd.
ENERGY.
We can't afford to waste it.
DETROIT (UPI) - General Motors
Chairman Thomas Murphy said
yesterday it was senseless to appoint a
union representative to a corporation's
board of directors - as has GM's ailing
competitor, Chrysler Corp.
"How can a leader of a union sit on a
board.. . and move over and in-
telligently address negotiations with
another member of the industry?"
Murphy asked.
IT JUST doesn't make any sense to
me at all."
As part of an historic contract
agreement, Chrysler last month agreed
to appoint United Auto Workers union
President Douglas Fraser to its board.
He said a union leader has no more
place on a corporate board - with a
pipeline to inside information - than a
corporation official does on a union
governing board.
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"THE DIRECTORS, in my opinion,
should not be selected because they
represent a constituency," Murphy
said.
"I don't think a constituency
representation is the way to go at it."
Murphy said board members should
represent stockholders and be "people
who understand business and dedicate
themselves to operating that business."
HE SAID Fraser "shouldn't have to
be on the board" to adequately
represent his union's membership.
In a speech later to civic leaders,
Murphy said GM is standing by early
predictions it will sell 11 millign cars
and 3,750,000 trucks in 1980.
"But even as we look optimistically
at vehicle sales, we still have this con-
cern over energy," he said.
"IF OUR country has not learned its
lesson by now - that we must end our
increasing and costly dependence on
foreign oil - then the next shortage
could be much worse. And that would
be ironic, since we are the richest
nation on earth in fossil fuel resources
- richer than Saudi Arabia, richer than
Iran, richer than anyone."
Murphy said the obstacles standing
between the United States and energy
independence are "largely economic
and political" and urged further
development of nuclear and solar
energy.
Despite gloomy economic predic-
tions, M4urphy said he expects
moderate growth in the auto industry
next year.
"As we see it, there is optimism for
us," he said. "The economy has been
surprising a lot of people. We're still
around. The economy seems to be going
on at a pretty good pace."
Daily Official Bulletin
THURSDAYNOVEMBER8,1979
Daily Calendar:
WUOM: National Press Club: Joan Baes, folk
singer and' human rights activist, discusses recent
visit to Cambodia, 10: 15 a.m.
Western European Studies: Rudolph Wildenmann,
Mannheim-U., "The German Federal Reoublic,"
League,noon.
Japanese Studies: Richard Park, "Military
Government in Japan: The First Year," Lane Com-
mons, noon.
Physics/Astronomy: N. Christ, Columbia-U.,
"Conservation Law violation by Anomalies in
Minkowski Space," 2038 Randall, 4p.m.
Industrial/Operations Eng.: vaclav Chvatal,
McGill, 229 W. Eng., 4 p.m.
Comparative Literature: Louis Marin, "A Reading
of The Arcadian Shepherds by Poussin: Towards a
Theory of Reading a Painting," Lec. 2, MLB, 7 p.m.
Chemistry: Derek A. Davenport, Purdue, "From
Genesis, to the Book of Revelation," 1300 Chem, 8
p.m.
Music School: Collegium ,Musicum, Thomas
Taylor, director, Recital Hall, 8p.m.
AP Photo.,~
IRANIAN STUDENTS burn an American flag outside the U.S. Embassy in
Tehran, as the stalemate involving some 60 American hostages continues.
Khomeini refuses to allow
U.S. envoys to enter Iran
(Continued1from Page 1)
Among, steps being considered, h~e
said, are speeded-up conseration ef-
forts,'a boost in U.S. production of oil,
efforts to find different sources of im-
ported oil, substitution of coal and
natural gas for oil, and a more effective
federal system of allocating oil supplies
during a shortage.
The U.S. government urged
Americans still in Iran to leave, as at
least two more U.S. citizens were
reported seized yesterday and placed
with about 60 hostages held by students
demanding the United States return the
exi led1shah for trial.
In London, the British Broadcasting
Corp. (BBC)- reported without at-
tribution that two Americans were
taken from the Hilton Hotel.in Tehran
and put with the hostages at the em-
bassy. BBC television also reported
Americans were being rounded up
around Tehran.
IN WASHINGTON, the State Depar-
tment said about 200 Americans had
left {Iran on commercial flights since,
the embassy takeover. It urged the 300
to 400 still in the cou try to leave.
Department sources wh did notwant
to be identified said some U.S. citizens
working on construction and technical
assistance projects had n'o plans to
" FAT CATS
E1
depart immediately.
Tehran radio did not say, whether,
Khomeini would also refuse to meet
with a special Palestine Liberation
Organization (PLO) delegation going to'
Iran in efforts to free the hostages. The'
PLO group was "already on the way"'%
to Tehran, said a spokesman for U.N.
Secretary-General Kurt Waldheim.
"IT LOOKS TO us that the PLO
initiative is now much considered as an
important step," Waldheim's
spokesman said.
U.S. national security adviser
Zbigniew Brzezinski welcomed th
support of the PLO mission, saying:
"Anybody who can help would be
playing a constructive role.
Hassen Abdel Rahman, deputy PLOT
observer at the United Nations in New
York, said Tuesday night that the
delegation would fly to Tehran from
Beirut, Lebanon.
REVOLUTIONARY Iran has
established close ties with the PLO and
bitterly condemned Israel. Helping to
free the Americans could boost the
PLO's stock around the world.
The United States does not officially
recognize the PLO guerrilla chief
Yasser Arafat, who visited Khomeini
shortly after he returned from exile in
France last February.
THE MICHIGAN DAILY
(UISPS 344-9Q0)
Volume LXXXX, No.55
Thursday, November 8, 1979
is edited and managed by students at
the University of Michigan. Published
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