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March 21, 1979 - Image 2

Resource type:
The Michigan Daily, 1979-03-21

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Page 2-Wednesday, March 21, 1979-The Michigan Daily
GOP'lawyer heasCr

WASHINGTON (AP) - Paul Curran,
a Republican New York lawyer who
was a federal prosecutor during the
Nixon and Ford administrations, was
named yesterday to head a special in-
vestigation into bank loans involving
President Carter's family peanut
Attorney General Griffin Bell appoin-
ted Curran, 46, as a special counsel to
continue an investigation that was
begun by the Justice Department.
pressure, particularly from Republican
members of Congress, Bell said that
"because of the unique combination of
circumstances in this matter, it is in the
best interest of the administration of
justice and the public's perception of
the fairness and impartiality of justice
than an independent special counsel be
Curran's powers will stop short of
those of a special prosecutor like the
ones appointed during the Nixon ad-
ministration to investigate the
Watergate scandal. Decisions in the
Carter business inquiry on such mat-
ters as whether to seek an indictment or
to grant immunity to a witness
ultimately will remain with Assistant

Attorney General Philip Heymann, who1
heads the Justice Department's
criminal division.
BUT CURRAN told a news conferen-
ce he was "satisfied I have all the
powers" to conduct a thorough and im-
partial investigation.
"I'm going to call the shots as I see
them as best I can and I'm going to
finish it (investigation) as quickly as i'
can," he said.
The investigation of the Carter family
warehouse began late last year. A
special report issued by two directors of
the National Bank of Georgia concluded
in January that the bank did a poor job
in handling $5.8 million in commodity
loans in 1975 and 1976 to the Carter
warehouse. The family business also
borrowed about $1 million to finance
other improvements.
While there has been no official
public accusations of wrongdoing
against the President, his brother Billy
or any other member of the Carter
family, there have been numerous
reports questioning the legality of some

banking practices and whether loans
were diverted to the President's elec-
tion campaign in 1976.
ROBERT GUYTON, president of the
National Bank of Georgia, said the
"loan in question to the Carter
warehouse was paid in full over one
year ago." Guyton added that "we will
cooperate fully with any governmental
agency that has the authority and
wishes to look at this particular loan
The President had legal authority
over the peanut business until July 1976
when he authorized Billy Carter to act
on his behalf. The President's 63 per
cent interest in the business was put in
a blind trust managed by Charles H.
Kirbo, an Atlanta lawyer and Carter
The questionable loan practices con-
cern alleged double use of collateral
and failure to repay loans on time.
CURRAN WAS U.S. attorney for the
southern district of New York from 1973
until Oct. 31, 1975. He is a member of
the Park Avenue law firm of Kaye,'
Scholer, Fierman, Hays & Handler.
His job will be to investigate the han-
dling of $6.5 million in loans made to the
Carter family's peanut warehouse in
Plains, Ga., by the National Bank of
Georgia in 1975 and 1976 when Bert
Lance was bank president.
Lance, former director of the Office
of Management and Budget and a close
personal friend of the President, has
been under investigation by a federal
grand jury in Atlanta for more than 16
months. The Justice Department is
reported to be ready to seek Lance's in-
dictment in connection with his banking
BELL SAID the warehouse case was
unique in part because it may touch on
the conduct of the President.
"It is important to the American
public's confidence in the ad-
ministration of justice that they be.
assured that the ultimate resolution of
the investigation. . . was reached
fairly and impartially and without even
the possibility of deference to high of-
fice," Bell said.
YESTERDAY, a real estate agent
said Billy turned a profit about $1,375
per acre March 1, when he sold 157 un-
developed acres adjacent to President
Carter's Plains, Ga. home to the

President's trust.
Gainesville, Ga., agent Don Carter,
no relation to the President's family,
said he negotiated the deal with Atlanta
attorney Charles Kirbo, administrator
of the blind trust which holds Jimmy
Carter's property while he is in office.
Records at the Sumter County cour-
thouse show the 157-acre tract was sold
to the trust for $314,000, or $2,000 per
Don Carter said the tract was part of
171 acres Billy Carter purchased in 1975
for about $625 per acre "when Jimmy
Carter was a 100-1 chance to be the
"This was before the New Hampshire
primary," the agent said. "Billy Carter
was willing to gamble on it. He was
thinking it would be a good investment,
which it turned out to be."
THE AGENT said Billy Carter also
considered the land as a possible home
site for himself when he made the pur-
chase, but abandoned that idea with the
impact of publicity that accompanied
his brother's election as President.
About six months ago, the agent said,
Billy Carter instructed him to find a
buyer for 157 of the 171 acres.
Don Carter speculated that Kirbo was
interested in the tract both as invest-
ment for the President and to provide a
buffer against development close to the
President's home.
He said Billy Carter retained owner
ship of the remaining 14 acres, which
includes the softball diamond where
President Carter's entourage often
plays softball.
Psychologists visit Russia
Two University psychologists will be
in Russia March 25-April 7 to par-
ticipate in the US/USSR Interacademy
Seminar in Mathematical Psychology,
University Information Services
Profs. Clyde Coombs and Robyn
Dawes will be among 13 American
mathematical psychologists meeting
with 30 from the Soviet Union. The;
seminar will/ be held in Tbilisi with
visits to laboratories and universities in
Moscow and Lepingrad.d
Dawes, an alumnus of the University,
is here on a sabbatical fellowship:
through June from the University of:

Iranian guerrillas
agree, to cease-fire

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From AP and Renter1
SANANDAJ, Iran - Kurdish
guerrillas agreed to a new cease-fire
yesterday and ended a bloody siege
against an Iranian army barracks, but
by late evening gunfire and mortars
were still exploding in the city.
State radio announced that the Kurds
around the barracks agreed to pull
back from their positions, and rebel
sources said a civilian delegation went
to the surrounded barracks in an effort
to persuade the trapped soldiers to
THE GOVERNMENT said 86 persons
have been killed and 200 wounded since
fighting erupted Sunday.
The Kurds are battling to win their
centuries-old dream of autonomy. One
resident told a reporter yesterday: "We
are Iranians and we love our country.
But we want to govern ourselves."
Kurdish fighters manned roadblocks
throughout Sanandaj and were still in'
control of most of the Kurdistan provin-
cial capital as night fell yesterday and
the cease-fire went into effect.
THROUGHOUT the day military
helicopters made low sweeps over the
city and fired on residents. Hospitals
were jammed with injured and doctors
working round-the-clock appealed for
medical supplies.
Deputy Prime Minister Abbas Amir
Entezam vowed to crush the insurgents
and announced the government was
dispatching troop reinforcements to the
city along with peace envoys, some of
them direct representatives of
Ayatollah Ruhollah Khomeini.
No troop movements were seen by
reporters driving to Sanandaj, 300


miles west of Tehran, but ten helicop-
ters landed at the local airport, ap-
parently loaded with soldiers.
SOME REPORTS said the fighting
erupted Sunday when the Kurds were
denied ammunition by barracks' of-
ficials. Many were killed by machine-
gun and rocket fire from helicopters.
T h:ere was a brief cease-fire Monday
night but it was shattered early yester-
day by rebels who opened fire on
helicopters dropping food supplies to,
soldiers in the barracks in the west of
the city.
Both Marxist Fedayeen and Islamic
Mojahedeen guerrillas, who played key
roles in the fighting that toppled Shah
Mohammad Reza 'Pahlavi, appealed
for the government to work out a
peaceful solution to the rebellion.
The Fedayeen also announced its
members will boycott the March 30
referendum in which Iranians will be
asked either to accept or reject an
Islamic republic. The choice is too
narrow and precludes other forms of
rule, they complain.
ENTEZAM SAID any rights to self-
rule for Iran's four million Kurds
agreed to by the government will be
written into Iran's new constitution, to
be made public shortly after the refer-
endum. He said the matter is under
In other developments yesterday:
* Some 200 Afghani students demon-
strated in front of the Afghanistan con-
sulate in Tehran demanding the ouster
of the pro-Soviet Afghan government
and the expulsion of all Soviet advisers.
" State radio announced that seven,
former officials of the shah's- regime
were arrested on unspecified charges.
* Iran's Ministry of Labor announced
that foreign employees in non-essential
jobs will be dismissed in two stages un-
der new regulations that will come into
effect in a month.
Yesterday's fighting was on the Per-
sian New Year's Eve. With Iranians
preparing for a five-day holiday,
several rallies were also held around
the country to mark the 28th anniver-
sary of the nationalization of the oil in-

t. _ -

WASHINGTON (AP) - The Carter
administration proposed yesterday that
colleges get out of the business of
collecting student loans and dispense a
streamlined package of federal aid op-
tions for students.
HEW Secretary Joseph Califano Jr.,
in testimony before a congressional
panel, described the ideas as
preliminary ones which would be
shaped into more specific 'proposals
CALIFANO appeared before a House
Education and Labor subcommittee
opening hearings on re-authorizing all
the government's higher education aid
programs. Some panel members ex-
pressed disappointment over the
Department of Health, Education and
Welfare's (HEW) failure to supply a
concrete plan.
The government is expected to
provide $7.4 billion in student aid this
year. An estimated $4.9 billion will be in
direct aid and is expected to generate
an additional $2.5 billion in loans and

Calijano proposes new
Iacka a for student loans"

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matching money from other public and
private sources.
"THE CURRENT student loan
programs are beset by problems,"'
Califano told the subcommittee.
"Loans vary widely in availability to
students. The forms and procedures for
obtaining loans are overly complex.
The programs have well-known cpllec-
tion and repayment problems.
"And because of their complexity,
their reliance on administrative mid-
dlemen and their generous incentive to
the private sector - the programs are
increasingly costly to the government.'"
Califano said, however, the gover-
nment should not stray too far from'the
present structure of federal student aid:,
HE OUTLINED a plan that would
simplify the institutional lending struc$
ture, which now includes banks, loan
guarantee agencies and a special
government-established association to
make student loans attractive to
private lenders. The plan also urges
consolidation of the five student loan
In a related development, thie private
Carnegie Council suggested all students
who seek federal or state aid for their
education should be expected to work
part-time or during the summer.
THE COUNCIL said Congressshould
use the review of student loan
programs to make them "more
equitable in their impact and more
sound in their administration" without
raising their cost.

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(USPS 344-900)
Volume LXXXIX, No. 135
Wednesday, March 21, 1979
is edited and managed by students at
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Maynard Street, Ann Arbor, Michigan
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MASTER: Send address changes to
Street, Ann Arbor, MI 48109.

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