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Vol. LXXXIX, No. 141
Ann Arbor, Michigan-Wednesday, March 28, 1979
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Ten Cents
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TLight ants
Plan for new 'U'
hospital in trouble
OPEC
approves
oil price
increase
Front Reuter and AP
The Organization of Petroleum Ex-
porting Countries (OPEC) voted
yesterday to raise the price of its oil by
almost nine per cent beginning Sunday
and declared its 13 member states free
to add an even higher surcharge if they
could get it on the market place.
Analysts said the base price hike
would raise American retail gasoline
prices by about two cents a gallon and
increase the American bill for foreign
oil by at least $4 billion over last year's
total of $43 billion. Surcharges adopted
by at least seven members of the 13-
nation cartel could add another penny a
gallon to the U.S. gasoline price.
SAUDI ARABIA, the world's biggest
oil exporter, said it would not impose
the additional surcharge.
However, there were indications
most of the other oil ministers had
decided to impose a surcharge of $1.20 a
barrel on top of the official price in-
crease.
Iranian Economy Minister Ali Ar-
dalan told reporters earlier the $1.20
premium would be imposed by all
OPEC states.
AN OFFICIAL statement issued after
the OPEC meeting said each country
would ' impose a $1.20 "market
premium" on each barrel "in the light
of its own circumstances and those of
the market."
Among those who confirmed that
their countries would impose the sur-
charge were delegates from Kuwait,
Venezuela, and the United Arab
Emirates.
Meanwhile, the United States yester-
day called the decision by the world's
major oil exporters to raise oil prices
unjustified, and Common Market of-
ficials said the hike underscored the
See OPEC, Page 2
Health council committee
recommends disapprovat'
By JOHN GOYER
The planning committee of the area
health council for southeastern
Michigan voted yesterday to recom-
mend to its executive committee disap-
proval of the University's plan to build
a new $244 million University Hospital
here.
Planning committee chairman Mel
Ravitz during the meeting summed up
the committee's reasons for not
recommending support of the Univer-
sity's plans. Although the committee
realized the need for a new hospital, the
University should reassess the size and
cost of its plans, Ravitz said. He added
that he was not impressed by the
University's claims that it could not
delay the project.
UNIVERSITY HOSPITAL director-
Jeptha Dalston said the plans could not
be, postponed because state officials
have given the University a strict
timetable for the project. Governor
William Milliken has said he supports
giving the University $200 million in
state funds for the new hospital.
Dalston also said he could not agree
to a delay without consulting the
University's Board of Regents.
As a result of yesterday's vote, the
Comprehensive Health Planning Coun-
cil of Southeastern Michigan (CHPC
SEM) will recommend to its executive
committee that it also discourages ac-
ceptance of the University's application
for a certificate of need. Without a cer-
tificate of need, the University cannot
feasibly construct the new hospital.
ON APRIL 10th the executive com-
mittee is slated to make its recommen-
dation to the Michigan Department of
Public Health, which will make the
final decision sometime this summer
whether to grant the certificate of need.
Although the committee disapproved
the University's application, Ravitz
said he would privately seek a delay in
the review process, so that University
planners, CHCP-SEM staff and plan-
ners from Michigan Blue Cross and
Blue Shield may work out a com-
promise plan.
University officials first defended
their plan before the committee, then
listened to CHCP staff criticisms of the
plan.
THE UNIVERSITY maintains that
the University Hospital plans should be
given special consideration by the
committee because the hospital is a
large, specialized care unit that serves
patients statewide, and that such a
hospital is indispensible to the Univer-
sity's medical training programs.
University officials say that for these
two reasons the project is entitled to
special consideration by the CHCP, as
provided for in a federal health plan-
ning law.
CHPC staff members refused to
review the University Hospital by
methods other than their own standard
guidelines.
They maintain that the new hospital,
would add to the overbedding problem
in southeastern Michigan, and that it
See HOSPITAL, Page 8
.aiy. "o ty ^UIEN O MALEY
THIS IS THE University Hospital as it now stands. A planning subcommittee of the regional health council put plans to build
a new hospital in jeopardy yesterday by recommending disapproval of the University's application for a certificate of need.
Without the certificate of need, the University could not feasibly proceed with the project. The final decision rests with the
state Department of Public Health.
MILITAR Y BACKING 'VITAL':
Sadat Begin
From Reuter and AP
WASHINGTON-Egyptian President Anwar Sadat and
Israeli Premier Menachen Begin yesterday asked for a new
military relationship with the United States to counter
Soviet-backed intervention in the Middle East and Africa.
A day after signing a treaty ending 30 years of hostility,
the two leaders told members of Congress that U.S.
military aid to their countries was vital for maintaining
peace.
Both also appealed, in separate appearances before
members of the Senate and members of the House of
Representatives, for continued support in coming talks on
the Palestinian problem.
BEGIN'SAID no one should doubt his country's desire for
peace with all its Arab neighbors and said Israel wanted a
humane solution of the Palestinian issue.
Sadat, in talking about a new U.S-Egyptian military
relationship, said: "I am not proposing an alliance ... I am
proposing a relationship among equals. We want to be
strong enough to maintain peace.''
i request aid
Egypt wanted to help other Arab and African nations
which could not defend themselves but did not want the
United States or Egypt to be a policeman in the area, he
said.
BEGIN, IN ASKING for continued U:S. support, said that
in the past few years the Soviet Union had taken over six
countries by proxy-Angola, Mozambique, Ethiopia,
Afghanistan, South Yemen and Cambodia.
"Liberty is in danger," he said. "Let us work together to
safeguard liberty throughout the world."
Even Saudi Arabia, which is threatened by South Yemen,
could be a victim of takeover by proxy, Begin said.
HE COUPLED HIS concern with a plea for special atten-
tion to Israel. "Please take into consideration that you have
a real ally, a stable ally in the Middle East. It's name is
Israel."
Israel, which alrady gets $1 billion in annual U.S. military
aid, will receive $800 million in grants and $2.2 billion in
loans to pay for relocating two air bases and troops after
See SADAT, Page 2
HOA,
' to sign
new contract
By RON GIFFORD
bership an op
Ballot"proposal may aid city
By ELISA ISAACSON
To many voters, the eight bonding
proposals on next week's city ballot
may be tedious to wade throughand
seem nothing more than a potential
property tax increase, but the facilities
to be financed by passage of the
proposals supply some of the most
basic human services.
The collective price tag for the
proposals is $6 million, and the bond
sales, which will result in a property
tax increase, must now be approved by
the voters, due to the recently-passed
Headlee amendment.
t HEvsEviCs. up for tunding under
the ballot proposals range from gar-
bage disposal to fire stations.
city elections '79
Proposal A requests voter
authorization to borrow $525,000 to
reconstruct several streets so they
would last at least five-ten years, ac-
cording to City Administrator Sylvester
Murray. The city's money would sup-
plement a $1,725,000 government grant.
Five street miles would be resurfaced,
including three University streets -
Ann, Maynard, and South University -
and the job is scheduled to be com-
pleted by the time students return in the
fall.
Several areas were patched under
Mayor Louis Belcher's street program
last year, but according to Streets,
Traffic, and Parking (STP) Depar-
tment officials, they are destined to be
resurfaced within the next few years.
The potholes were, in most cases,
merely filled, while the general poor
quality of the streets - which induced
the potholes in the first place - was not
adequately addressed.
UNDER PROPOSAL A, the resur-
facing of the three streets is intended to
eliminate the present bumpy pavement
and alleviate traffic noises. The cost of
those repairs - $206,000 - will be split
evenly by the city and the University.
Proposal B asks the voters to approve
the borrowing of $150,000 to revamp the
central city drainage system - the
Allen Creek Drain. Drainage problems
occurred in the downtown area during
floods in 1968. Murray, in a ballot
proposition fact sheet presented to City
Council March 12, said the redesigning
of Allen Creek Drain is "the first step
toward realizing a solution to central
Ann Arbor drainage problems."Should
this proposal pass, another will have to
be presented in the future to cover
repair and maintenance of the system.
Proposal C would authorize the sale
of up to $400,000 worth of Special
Assessment Bonds to construct sewers
and water mains for specific residential
areas in the city. The projects would be
paid for by the property owners benefit-
ting directly from the new sewage ser-
vices.
PROPOSAL H would authorize the
issuance of $24,000 worth of general
obligation bonds to pay for intersection
improvements in the Archwood
district. Those improvements would be
covered by all city taxpayers, rather
than by only residents living in the
district.
Proposal D requests authorization to
borrow no more than $700,000 to con-
See BONDING, Page 8
The House Officers Association University re
(HOA) and the University will accept, health care issu
sign, and certify a new contract today, THE HOUSE
which HOA members call a "relatively input into healt
acceptable contract." she said, and w
HOA, which represents more than 600 problems in
physicians in residency training at the recommendati
University Hospital, was over- The contrac
whelmingly in favor of ratifying the procedures for
contract, according to Pauline Reisner, not in the old cor
an HOA staff member. Another inip
WHILE NOT .disclosing specific contract is a p
details, she said the group was work, or job:
"satisfied with the economic terms of physicians no
the agreement." The wage increases caring for the p
received were similar to what other the past had b
campus employees are getting, Reisner HOA members
said, and also within the voluntary supportive and
wage and price guidelines set by as intravenou
President Carter. drawing, transp
Laurita Thomas, chief University vices, thus tak
negotiator, could not be reached for their patients.
comment. Under the
According to Reisner, the contract agreement, th
contained "good language" that will required to do th
help improve patient health care at the
hospital. "It provides the HOA mem- See H
EgyptWednesday
Egyptannouncedyesterday that management
it will remain a member of the Arab unreasonable
League in name only. Meanwhile, an negotiations.Se
explosion ripped through an Israeli . Gustav Me
marketplace. See story, Page 2. University Syj
" The Literary College faculty re- talks about his
opened discussion on, providing the University.
credit for ROTC classes. See story,
Page 8.
" A University Cellar employee I
who is a member of the Industrial
Workers of the World Local 660
bargaining team accused the Cellar
pportunity to hold the
sponsible on patient
les," she said.
officers will have direct
th care for the patients,
ill be able to study the
this area and make
ons on any problems.
t outlines specific
doing this, which were
intract.
*rtant inclusion in the
provision for out-of-title
s performed by the
t directly related to
patients. A complaint in
een that too often the
would have to perform
ancillary services, such
us placement, blood
port and messenger ser-
king them away from
terms of the new
.e physician may be
his occasionally, but not
OA, Page 2
of taking an
stance during
ee story, Pager8.
eier, director of the
mphony Orchestra,
career, music, and
See story, Page 5.
Rnod tho Todai
column, Pogo 3
Co-op conversion for
Huron Towers stalled
By AMY SALTZMAN
For the past year and a half, Huron
Towersresidents havedbeen trying to
convert that complex into a
cooperative, but their efforts have con-
tinually been stifled by the red tape of
the Detroit offices of the Department of
Housing and Urban Development
(HUD)
And although the residents have the
Washington HUD office backing them,
the most recent correspondence from
HUD in Detroit indicated that they may
have to wait as long as six months
before serious consideration of conver-
sion can begin. The project would mark
the first such co-op conversion in the
city's history. ,
EFFORTS TO convert the twin 12-
story buildings into a co-op began in Oc-
tober, 1977 when HUD foreclosed on the
complex, which had been in default on
its mortgage since it was built 20 years
ago.
When HUD announced plans to put
whereby each resident would have a,
vote in decisions concerning rent and
levels of service provided.
Since that time, the group has made
little progress, despite the support of
HUD officials in Washington. "I told
them (Detroit HUD) that I didn't think
they should wait much longer," said a
Washington HUD spokesperson. "I'm
not opposed to any co-op conversion.
Our policy is to encourage co-op con-
version whenever there is sufficient in-
terest and a well-organized, strong
group like we have in this case."'
BUT OFFICIALS in the regional
HUD office said.they are trying to com-
plete an extensive repair program
before looking into the possibility of co-
op conversion. "We are currently
making a half million dollars in repairs
on the building, and haven't had time to
make a valid decision on the feasibility
of the project yet," said Irving.
Beaupied, the Chief of Multi-Family
Dispositions at the Detroit HUD offices.
Al lf ah thr *irt i ara D-.ai..
SABRE party stresses' political diversity
By JULIE ENGEBRECHT
First in a five-part series
Candidates for the Michigan Student
Assembly (MSA) this year are relying
more on party strength during the elec-
tion, a trend which has emerged in the
last few years of MSA elections.
Last year's MSA election brought the
creation of the Student Alliance for Bet-
ter Representation (SABRE), a party
which has 29 candidates running for of-
fice in the April 2, 3, and 4 election.
THIS YEAR, SABRE has again star-
ted a slick advertising campaign and
emphasizes that its candidates have
running on this year's slate predict the
same disintegration.
* SABRE presidential candidate
James Alland, a sophomore in the
Literary College (LSA) and current
Assembly member, said, "The people
on the party are mainly interested in
MSA elections '79
MSA, and they're committed to making
MSA work.
., . z