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January 06, 1979 - Image 1

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Publication:
The Michigan Daily, 1979-01-06

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MSU
DIVESTITURE
See editorial page

C r Ft i1w

a- t

HAT
TRICK
High-18
Low--3
See Today for details

Vol. LXXXIX, No. 80 Ann Arbor, Michigan-Saturday, January 6, 1979 Free Issue EightPages

Blues'
plea no
threat
-Dalston
By PAULA LASHINSKY
A recent plea by the president of Blue
Cross-Blue Shield to curb $600 million in
requests for hospital expansions across
the state does not pose a serious threat
to University Hospital plans, according
to Dr. Jeptha Dalston, director of
University Hospital.
The plea was issued Dec. 29 in a letter
from Blues president John McCabe to
Dr. Maurice Reizen, director of the
Michigan Department of Public Health.
McCabe called for an emergency
meeting to evaluate the large sums
being requested by area hospitals.
REQUESTS FOR such funds in past
years have been approximately $200
million according to Dick Femmell,
vice-president corporate com-
munications for Blue Cross-Blue Shield.
Faced with a state-imposed 14-month
moratorium on capital construction,
which takes effect May 1 requests for
this year have risen to $600 million,
Femmell said.
"The moratorium on expansion has
prompted many hospitals to file for
ifunds. We suspect in many cases there
is not a real need for construction,"
Femmell said.
According to Dalston, the proposals
for University Hospital are not last-
minute plans thrown together to beat
the deadline.
"OUR PROJECT has been in
development for many years, and we'
feel we have very persuasive reasons
for initiating work on the 55-year-old
building," Dalston said.
The University expects its proposals
to be challenged according to Dalston,
but it does not feel that McCabe's letter
presents a direct threat.
Femmell said the Blue's intent is to
inform the public of existing situations
and to further alert the state health of-
ficials who must approve all hospital
construction in the state.
"IT IS IMPORTANT to get a careful
look at the entire picture," Femmell
said. "Expansion raises costs and we
need some type of leverage if there is to
be any type of cost curtailment."
The University is requesting ap-
proximately $309 million for a
replacement program. Its proposal is
not to expand facilities but to improve
existing conditions.
"It is important to note that we do
plan replacement. We are currently
See BLUES, Page 2

U.S. backs
new Iran
leadership

Playing bridge
This fellow had the right idea for getting away from the crazy Briarwood crowds
a few weeks ago when he headed for the fountain and turned himself into a bridge.

VIETNAM MAKES ADVANCES:

From UPI, AP, and Reuter
The United States voiced increased
confidence yesterday that Iran's
premier-designate Shapur Baktiar will
be able to put together a new civilian
government and win parliamentary
approval by next week.
The State Department said it now ap-
peared possible 'that the former op-
position leader \would present his
cabinet to theShah today.
"IT IS THEREFORE possible that
there could be a formal parliamentary
ratification by early next week,"
spokesman Hodding Carter said.
He cautioned, however, that this was
not certain, and further developments
remained unclear.
Other officials said it remained to be
seen whether a Baktiar government -
or any government - could effectively
deal with the turmoil at this time.
BUT THESE assessments, based on
reports from the U.S. embassy in
Tehran, signalled a shift from skep-
ticism widely voiced in the ad-
ministration earlier this week that Dr.
Baktiar had less than a 50-50 chance of
putting together a government.
Meanwhile, striking anti-shah oil
workers began returning to their jobs
yesterday to ease the hardships of the
fuel-starved Iranian people. The back-
to-work move also is likely to boost the
fortunes of the new civilian gover-
nment.
But some oil workers had not yet
decided whether to return to work, and
industry sources said it will be at least a
weekbefore. normal fuel4istbutianAu.n
the capital is restored.
TEHRAN WAS reported generally
peaceful for the third straight day
yesterday as many anti-shah Iranians

apparently waited to see how effective
the new government will be and what
the future role of Shah Mohammad
Reza Pahlavi will be.
Most top aides, however, believe the
shah's powers will be drastically pared
if the civilian government takes over.
The National Front opposition group,
which expelled Bakhtiar from its ranks
for agreeing to form a government un-
der the shah, has called for a general
strike Sunday to protest against the
Bakhtiar government and to mourn the
estimated 1,500 or more persons slain in
the year-long anti-shah upheaval.
A SPOKESMAN for the Front, which
demands that the shah abdicate, said
Sunday's protest will not include public
marches. Because massive strikes are
already under way across the nation,
response to the Front's strike appeal
probably will not be a true gauge of an-
ti-Bakhtiar sentiment.
In Paris, a spokesman for Ayatullah
Khomaini, the exiled Moslem holy man
who leads the powerful religious op-
position to the shah, said Khomaini has
not associated himself with the Sunday
action. This further underlined the
diversity of the shah's opposition - or-
thodox Moslems who oppose the shah's
non-Islamic modernization of Iran, and
political activists who demand an end
to his authoritarian rule.
The U.S. has sent a four-star general
to Iran to help assess whether top
secret U.S. Military and spy equipment
will remain safe and whether Iran's
military will retain influence if a leftist
governament takespowe
DEFENSE SOURCES said
discussions included the sensitive
See DEPORTATION, Page 8

Cambodia on the run

BANGKOK, Thailand (UPI)-Cam-
bodian Prime Minister Pol Pot said
yesterday Cambodian forces are in a
"life or death" battle with invading
Vietnamese and hinted his regime may
flee the capital to carry on a guerrilla
war.
The Vietnamese tank-led forces now
have engulfed 10 of Cambodia's 19
provincial capitals and are battling for
control of Phnom Penh's main route to
the outside world, intelligence sources
said.
ONE ARM OF the three-pronged in-
vasion was reported closing in an
Highway 4-the American-built
"Friendship Highway" which brings all
military aid from China to Phnom
Penh's six defense divisions.
A radio Station broadcasting for the
pro-Hanoi Cambodian rebels claimed
the 12-day-old offensive had overrun
Svay Rien, Prey Veng and Takeo cities
yesterday. Intelligence sources said

Govt files lawsuits
against oil companies

Kampot and Kampong Cham cities
were already encircled and well behind
the spearheads.
The invasion forces bypassed two
cities to roll up territory, the sources
said.
A BROADCAST by the pro-Hanoi
Cambodian National Front claimed the
front was the only true representative
of the nation, directly disputing Phnom-
Penh plans to protest the invasion at the
United Nations next week.
Chinese Vice-Premier Teng Hsiaso-
ping said yesterday Vietnam's invasion
of Cambodia threatens world peace and
demanded the United Nations act im-
mediately to halt the Vietnamese drive.
Teng blamed the Soviet Union for
supporting Vietnam, whose forces were
Saturday
- Superman, the cinematic
saga of the Man of Steel, flew into
town over Christmas vacation.
See Page 5 for a review.
* The Ann Arbor School Board
has named a panel to study op-
tions for complying with the
state's desegregation guidelines.
See story, Page 3.
" Eastern Michigan Univesity
is also preparing to choose a new
president. See story, Page 3.
" Chinese scientists claim to
have perfected a birth control pill
for men which is nearly 100 per
cent effective. See the story,
Page 8.
* The Wolverine hockey team
played the Minnesota Gophers
last night. See story, Page 7.
}Reed the Today
column, Page3

reported within 50 miles of the Cam-
bodian capital of Phnom Penh.
Teng said, "The flagrant large-scale
aggression by the Vietnamese is not an
isolated event but part of the global
strategy of big power hegemonism.
"Its impact is not limited to Vietnam
and Kampuchea (Cambodia), nor even
to the Asian and Pacific region."
T'eng said Indkohir~hgemg hisin,
China's code word for Soviet expan-
sionism, threatends "international
peace, security and stability."

Sadat- says nothing
should stop talks

ASWAN, Egypt (Reuter) -
President Anwar Sadat said yesterday
there were no remaining problems ob-
structing the resumption of peace talks
with Israel and he hoped a date would
be fixed next week.
Speaking to reporters, Sadat said:
"Egypt, Israel and the U.S. want to
resume the negotiations."
Asked if there were any obstacles
hindering an agreement on resuming

the negotiations, Sadat said: "Not at
all."
He said Prime Minister Mustapha
Khalil would be sending U.S. Secretary
of State Cyrus Vance a letter within one
or two days setting out Egypt's points of
view on the resumption of the talks.
"After Khalil's. letter to Vance we
hope to reach an agreement within next
week on resuming negotiations," Sadat
said.

Sadat

WASHINGTON (AP) - The federal
government accused nine major oil
companies yesterday of overcharges
totaling more than $1 billion for natural
gas liquids, a source of such products as
propane, butane and heating oil.
The government, in a suit filed jointly
by the Energy and Justice departmen-
ts, asked that the companies be ordered
to refund the excess charges plus,in-
terest.
"Since many of the alleged violations
have continued beyond the period
covered by the government audit and
are in some cases continuing today, the
total of these alleged pricing violations
will certainly exceed $1 billion," the
Energy Department said in a
statement.
The government's action includes a
lawsuit filed earlier against Exxon for
some $316 million. The new action, filed
yesterday against eight other oil
refiners, alleges additional over-
charges of at least $624 million.
Defendants in the new case are

Texaco, Phillips, Mobil, Amoco, Shell,
Cities Service, Atlantic Richfield and
Gulf. Paul Bloom, Energy Department
special counsel for enforcement, said
there was no accusation of criminal
conduct or conspiracy on the part of the
companies.
Several companies replied yesterday
that their pricing systems complied
with "ambiguous pricing regulations"
as they were generally understood, but
that the department changes the inter-
pretations and then applies the changed
rules retroactively.
The companies said they had been
asking for further interpretation of the
rules, and some said they had filed suit
against the government asking for a
judicial explanation of the pricing
regulations.
The lawsuits accuse the companies of
either charging customers too much for
products derived from natural gas
liquids - such as propane, butane and
heating oil - or "banking" excessive
costs on their ledgers to serve as the
basis for boosting consumer costs later.

Missing guard and $1.5 million
recovered by FBI in Livonia

From UPI, AP, and Reuter
DETROIT-A 28-year-old security guard for an armored
car company was arrested yesterday and charged with the
robbery of more than $1.5 million.
The guard, Fred Michael Dixon, of Pontiac, was arrested
at his father's house in Livonia where FBI agents also
recovered three suitcases filled with money.
THE ARREST TOOK place about 11 hours after the
money and guard disappeared from an armored car parked
outside a restaurant in Lakeport, a resort community north
of Detroit.
Three guardmen, including Dixon, were assigned to the
vehicle, owned by Purolator Security Company, to collect
money from several area banks.
Two of the men entered a restaurant for a routine coffee
stop. When they returned, Dixon and three bags of money
were gone. A note left on the front seat read: "Don't report
this right away. Give me time to get away."
DIXON'S PARTNERS, Glen Harper' and Paul Pudick,
were stunned when they returned to the truck from the

restaurant.
The FBI confiscated the money, which was en route from
the Michigan National Bank of Flint to the Federal Reserve
Bank in Detroit on a routine run, and accounted for all but
$148 of the missing $1,516,900.
The three guards were Thursday regulars at the
restaurant, employees said. Two would go in for coffee while
the third remained in the truck.
RUSSELL DYER, Purolator's Detroit manger, said
Dixon had a flawless work record.
"I would have no reason to suspcet him of any wrong-
doing," Dyer said. "He has a good record. He's a quiet in
dividual."
Dixon said nothing during his arraignment on a charge of
bank larceny stemming from the largest bank theft in
Michigan history. No pleas was entered and a preliminary
hearing was scheduled for Jan. 25. He was released on $25,000
personal recognizance.
If convicted, Dixon could face either a $5000 fine or im-
prisonment for a maximum of 10 years, or both.

Ten students to help select new

University Pres.
nt in writing is something that "We (the faculty committee) will start
viewing rights," Rubin said. working on it (examining candidates) at the
n also created a seven-member end of this month. We've not put ourselves on a
ee of MSA members who will timetable," said chairman Harold Johnson, a

By MITCH CANTOR
After two months of debate over whether to
participate in the search process for the next
University president, the Michigan Student

Regents last year, three advisory committees
- one composed of students, one of faculty, and
one of alumni - are to submit separate lists of
presidential candidates to the Regents before a

tended to help the eight-member body get a
better idea of the qualifications the next
University president must have.
The student committee, which has not yet

"What we wa
assures us inter
The resolutio
liason committ

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