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