.fir L Ifpiga D
Eighty-four years of editorial freedom
Edited and managed by students at the University of Michigan
Wednesday, February 12, 1975
News Phone: 764-0552
420 Maynard St., Ann Arbor, Mi. 48104
Sportswomen shortchanged
TIMES MAY BE changing for wom-
en in American society, but the
University, which always manages to
be at least one step behind the times,
isn't satisfied with ready - made
myths about women and has opted
to create one of their own - that
women don't sweat.
The "U" has chosen to demon-
strate their support of this original
thesis by merely "overlooking" a need
for a women's locker room in the new
Multi-Sports Building.
Perhaps Robben Fleming and Don
Canham don't really believe this the-
ory. After all, lots of strange ideas
pour out of Ann Arbor's ivory tower.
Maybe they just like their women to
smell natural. Or maybe having only
one locker room is their way of sup-
porting the sexual revolution.
BUT IT'S JUST too bad that they
don't realize some women might
not agree with their philosophy.
The problem can, no doubt, be eas-
ily corrected, but the flagrantly sex-
ist oversight of not providing wom-
en with a locker room is just as much
a moral problem as a physical one,
and the mentality that is responsible
cannot be changed by rectifying the
immediate lack of facilities.
It doesn't take a great mind to
see the problem should never have
arisen in the first place if women
were not regarded as second class
citizens when they leave their realm
of the prim and proper and choose to
work up a good sweat at a gym.
The University's predictable but
woeful decision is just another way
of reinforcing the ideology that has
kept women in their domestic seclu-
sion since time in memorial - if
women want to keep fit, let them
raise kids.
JT IS UP TO the women on this
campus to change this attitude
and see that such a "mistake" never
happens again.
-THE DAILY STAFF
Ask
By PATRICIA FLYNN
INSTEAD OF depositing their money
in U.S. banks, oil rich Arabs are now
buying the banks - or at least trying to.
In this Northern California town a lit-
tle over a week ago, overwhelming op-
position by stockholders thwarted the
attempt by Saudi Arabian businessman
Adnan Khashoggi to acquire control-
ling interest in the First National Bank
of San Jose. A few days earlier, a Le-
banese oil broker withdrew his bid to
purchase a half interest in the Com-
munity National Bank of Pontiac, Mich-
igan, after the bank's management filed
suit to prevent the acquisition.
In Detroit, however, a wealthy Saudi.
will apparently acquire controlling in-
terest in the Bank of the Commonwealth
- the state's sixth largest, with assets
of $1 billion. Announcement of the deal
led some angry customers to withdraw
their deposits, but this opposition is un-
likely to affect the purchase since the
bank management enthusiastically wel-
comes his capital.
THE PUBLIC outcry against the in-
flux of Arab money and the influence
that goes with it has certainly not gone
unnoticed by other Arab investors, who
are already wary of making long term
investments. Both Khashoggi and Ghaith
Pharaon (of the Detroit deal), who are
nericanr
independent credit card system. That"is,
if Khashoggi had gotten his way.
The bank's management and Board of
Directors approved Khashogi's offer to
purchase a one-third interest in the bank
for $14 million last November. But
mounting opposition from dissident direc-
tors and stockholders forced him to
withdraw his offer on the eve of the
stockholders' meeting.
As Khashoggi put it, the "emotion and
public controversy" surrounding the pur-
chase made it impossible for sharehold-
ers "to exercise rational and business-
like judgment." It was also clear that
if the matter had gone to a vote, Khash-
oggi's bid would have been defeated.
While some directors had argued
Khashoggi's investment would not be in
the shareholder's best interest, the ;ques-
tion of Arab control of the city's largest
and oldest local bank was clearly on
everyone's mind. In the midst of the
heated controversy, one bank director
said he wished Khashoggi would "pick
up his tent and go home."
FURTHER FUEL was added to the
controversy when Congressman Fortney
Stark - who once sold a bank to
Khashoggi - charged that the Saudi
was financing his activities with com-
missions on the sale of U.S. arms to
Us cot
vstment comes from Europe and Japan,
The oil producing countries - with a
$60 billion surplus to invest - have been
hesitant about coming into U.S. busi-
ness. They fear their holdings could be
targets for retaliation against oil pricing
policies. And, although anxious to convert
their dollars into real assets, the Arabs
are still waiting for some clarification of
the rules of the investment game - a
process that is slowly but surely under-
way in Washington.
At present, there are few legal restric-
tions on foreign investment in the Unit-
ed States. Publicly-held firms must re-
port when foreign ownership amounts to
more than five - in some cases ten -
per cent of their stock. An airline that is
more than 25 per cent foreign-owned los-
es its rights as a domestic carrier.
The Defense Department may deny se-
curity clearance to any company with'
more than six per cent foreign owner-
ship, which effectively makes it inelig-
ible for defense procurement contracts.
There are also restrictions on foreign
control in the fields of atomic energy,
hydroelectric power, radio and coastal
shipping.
NONE OF THE moves to pass more
restrictive legislation last year were suc-
cessful, and scores of new bills are al-
ready being prepared in the new Con-
gress. Those who support stricter limi-
tations will probably be reinforced by
the expression of public concern in
the recent Michigan and California bank
cases.
But the Ford administration shows few
signs of responsiveness to the p u b l i c
mood. Ongthecontrary, several key gov-
ernment agencies appear on the verge
of giving their approval to a substantial
Iranian bid to buy into Pan American
World Airways.
The argument for maintaining the pre-
sent free flow of investment is that it
will benefit the U.S. balance of pay-
ments, stabilize the international econ-
omy by allowing excess petrodollars to
be easily absorbed, and guarantee re-
ciprocal freedom for U.S. capital abroad.
And as one administration official put
it, a growing Arab investment stake in
this country is likely to make them more
"responsible" in their behavior.
THE CURRENT domestic credit
crunch is another reason to welcome
Arab capitalists - both government and
business would like to see some of the
aproximately $9 billion the Arabs de-
posited in U.S. banks and Treasury bonds
last year channeled instead into direct
'SCOtS
investments. Arab investments, says As-
sistant Treasury Secretary Gerald Par-
sky, should be seen "not as a threat
but, to the contrary, an important oppor-
tunity."
This point has not been missed by
U.S. businessmen, such as Henry Ford
II, who is known to be seeking Arab
financing for a huge apartment-hotel-of-
fice complex planned for the center of
Detroit. Ford, in fact, was rumored to
be involved in the Pharaon acquisition
of the Bank of the Commonwealth - a
rumor denied by the Ford Motor Com-
pany office, although Bank President
James Barnes says he has talked to
Ford about the deal. Pharaon has said
that he would like to use the bank to
channel Arab money into this country,
Q ; > s U.S. investments in the Mid-
dle East.
"Khashoggi does a lucra-
tive business in the Middle
East representing arms and
(tircraft manufacturers such
as Northrup, Litton, Ray-
theon, and Lockheed..."
WHILE U.S. business and government
officials see no threat so far in Arab
investment, officials in West Germany
fear a mass buying up of German in-
dustry. Late last year they were faced
with the Iranian purchase of 25 per cent
of the Steel Division of the giant Krupp
Industries and the attempted purchase
of almost 30 per cent of the Daimler
Benz Corporation, which makes Merced-
es Benz cars. The Kuwaitis had already
acquired 14 per cent of the Mercedes
corporation. In order to thwart the Iran-
ian bid for Daimler Benb, the Deutsche
Bank put out almost a billion dollars for
the auto stock - reportedly under the
instructions of the German government.
Concerned about the Arab inroads, but
anxious to avoid governmental regula-
tion, German industrial and financial
leaders agreed just over a week ago
to set up a voluntary information pool
to keep each other informed of any
future attempts to buy them up.
The obvious question is: can it happen
here?
Patricia Flynn is a San Francisco Bay
Area freelance writer and researcher in
in/ernational affairs.
...:{.}; .'.,{::i *ie . {. a. }i : : :.... . . m . . . . . . . . . . . : . _ . ". . . . . . . . . . . . . . . .
"In the midst of the heated controversy, one bank director
said he wished Khashoggi would "pick up his tent and go
home."'
CDRS a political football
EPUBLICAN COUNCIL members
ramrodded an application to the
federal government at council Mon-.
day night full of pet GOP alloca-
tions for a $2.5 million revenue shar-
ing grant.
Many of the proposed programs to
be funded clearly violate the inten-
tion of Congressional revenue sharing
guidelines - perhaps to the point of
illegality.
The grant, dubbed Community De-
velopment Revenue Sharing (CDRS)
fund is aimed at aiding low and mod-
erate income residents, according to
the Congressional CDRS Act and the
office of Housing and Urban bevel-
opment which administers the grant.
Republican Mayor James Stephen-
son has played politics with CDRS'
since the city began to put together
an application for HUD.
STEPHENSON LOADED A task
force, set up to advise council
how to spend the $2.5 million grant
to the city, with Republicans experi-
enced in parliamentary procedure
who could easily intimidate liberal
committee members with less experi-
ence.
The mayor was blatantly obnoxious-
in his manipulation of the task
force by appointing his favorite for-,
mer GOP councilman, speech pro-
fessor William Colburn, to chair the
committee.
Council did make an effort to have
TODAY'S STAFF
News: Mary Harris, Jay Levin, Cheryl
Pilate, Stephen Selbst, Curt Smith,
Jeff Sorensen, David Whiting
Editorial Page: Barb Cornell, P a u I
Haskins, Mara Letica, Steve Stojic
Arts Page: David Blomquist
Photo Technician: Steve Kagan
citizen input on DRS, however sug-
gestions not in alignment with GOP
policy hardly appear in the Republi-
can's proposal..
Republicans ignored the poor and
made a mockery of CDRS by recom-
mending only $133,650 for health and
drug abuse, a mere $123,750 aimed at
child care, and then a whopping
$250,000 for road repair.
Although city streets are decimated
by dangerous potholes, road resur-
facing does not directly benefit low
and moderate income residents and
should be funded by revenues other
than CDRS.
SOME $100,000 WILL go to purchas-
ing fire equipment if HUD accepts
the Republican's proposals. Fire pre-
vention is a normal city responsibility
and the desperately needed fire
equipment should not be bought with
monies intended for the poor.
Until the unresponsive and irre-
sponsible GOP realizes their one-
vote majority on council does not give
them a right to dictate city policy,
oppression of non-merchant minor-
ity groups will no doubt continue.
Editorial Sff4
GORDON ATCHESON CHERYL PILATE
Co-Editors-in-Chief
LAURA BERMAN Sunday Magazine Editor
DAVID BLOMQUIST.......................
. .....Arts and Entertainment Editor
DAN BORUS ...........Sunday Magazine Editor
BARBARA CORNELL ... Special Projects Editor
PAUL HASKINS .... ..........Editorial Director
JOSEPHINE MARCOTTY ...... Features Editor
SARA RIMER.................Executive Editor
STEPHEN SELBST.......... City Editor
JEFF SORENSEN ,.............Managing Editor
STAFF WRITERS: Glen Allerhand, Peter Blais-
dell, Dan Blugerman, Clifford Brown, David
Burhenn, Mary Harris, Stephen Hersh,
Debra Hurwitz, Ann Marie Lipinski, Andrea
Lilly, Mary Long, Rob Meachum, Jeff Ristine,
Steve Ross, Tim Schick, Kate Spelman, Jim
Tobin, David Whiting, Susan Wilhelm, Mar-
garet Yao.
well connected in Saudi Arabian gov-
ernmental and financial circles, have de-
scribed their proposed banking deals as
"test cases" for future Arab investments.
Khashoggi, 39, is one of a new breed
of Arab entrepreneurs. With two broth-
ers, he owns Triad Holding Company,
which controls investments estimated at
$400 million. Triad's interests range from
tankers in Indonesia to cattle raising in
Brazil - and arms dealing in the Middle
East.
Khashoggi's investment plans include
the acquisition of $1 billion worth of
banking in California. Two years ago
he quietly gained control of two banks
in a San Francisco suburb with com-
bined assets of about $150 million.
THE FIRST NATIONAL Bank of San
Jose would have added $300 million more
in assets, including 24 branches and an
Saudi Arabia. Khashoggi does a lucra-
tive business in the Middle East repre-
senting arms and aircraft manufacturers
such as Northrup, Litton, Raytheon and
Lockheed - which pays him a regular
retainer. But Stark claims Khashoggi
also makes undisclosed commissions on
arm sales carried out through the U.S.
State Department,
Direct foreign investment in the U.S.
rose nearly 25 per cent - from $14.4
to $17.7 billion - between 1972 and 1973.
While this is still only a fraction of the
$107 billion in investments made by
U.S. interests abroad, there has been
talk of an "invasion of foreign capital."
The U.S. has traditionally had an "Open
Door" policy towards outsiders' money,
but never before has there been so much
foreign capital available to invest.
MOST OF THE increase in U.S. in-
Letters: Hitting road to fight racism
To The Daily:
RETURN WITH us now to
those chilling days of yester-
year, about the year 1956. You
remember those days, do't
you?, when buses full of young,
black schoolchildren had to have
armed escorts because of the
fear that mobs of angry, white
racists might attack them.
Those were the days when the
police openly defied the law,
and federal troops had to be
mobilized to see to it that the
Constitution was upheld. Those
were the days when black men
and women lived in fear for
their lives because of the hatred
of white men and women.
But that was 20 years ago,
you say, things like that don't
happen anymore. But we say
they do. All you have to do is
look beyond your ivory tower
and you will see that such
things do continue to happen.
Look to the east, to Boston, the
cradle of liberty, and you will
see that such things do continue
to happen.
ONLY THIS time the federal
government is not as willing to
uphold the Constitution and de-
fend the lives of the black pop-
ulation as they were in 1956.
President Ford says that the
federal government will not in-
tervene in Boston and has left
that city to its own devices,
which are woefully inadequnate
for the task at hand, i.e., guar-
anteeing both the security of the
black community and their
right to an equal education.
This can only be done f the
racist attacks carried aut by
certain segmentsrof the Boston
community are first smashed.
We say that if the federal gcv-
ernment will not protect black
schoolchildren, then the con-
cerned citizens, the anti-racist
citizens of this nation must.
Towards this end a conference
is being held in Boston from
February 14-16. This conference
will attempt to deal with many
of the issues raised by the bus-
ing of children in general, and
in Boston in particular. It will
also attempt to devise n e w
strategies for dealing with the
racist attacks in Boston and
anywhere else they may occur
in the future.
mittee Against Racism, room holier than the GEO. The U has
4001 in the Union, or call 763- clearly not bargained in ood
4799. faith and has exploited its Pow-
-Ann Arbor Student er to the hilt. The unilateral re-
Committee Against classification of GSAs m August
Racism 1973 was but a first of arbitrary
February 11 actions arrived at without ;ne
input of any of the involved
CEO parties. As any campus vworker
will tell you, the U (headed oy
To The Daily: second rate labor negotiaTors
AS TWO graduate employees Fleming and Rhodes) is a bitch
dismayed by the turn of events to bargain with.
in the dealings between the GEO
and the University, we object to A TRULY progressive alterna-
the GEO's strike on the grounds tive program is one that works
that it is little more than a against the systematic class and
power play by those who al- income bias of U admissions at
ready have large amounts of all levels. Demands for more
power in society today. black and female TF's does not
The GEO's contention is t~hat'guarantee admissions for the
its members are workers em- poor and undernrivilegel. The
ployed by the University at un- mmediatepossibilities are end-
fair wage levels. Much to the less; increased grants-in-ad and
contrary, we view its members scholarships, abandonment of
as students, most from families sscrter, random adis-
of the most privileged s o c i a 1 ionscriteia, rargos thatinK-
strata, who attend the Univer- crease tuition charges tha. in-
siyto secure the credentials ne- res with parental incomne,
cessary to attain the most priv- and a fight against reactionary
ileged positions in society. In ideology the U exists to dissem-
ar ut f ur urrnteconomic mrate. These would work to-
or out of our current ecnmc wards the real social chaiwe.
turmoil, these individuals a r e Thartenseao iltang .
bound for the top, heading for The pretense omi tancyes-
occupations with high incomes played by the GEO, complef.
and non-oppressive working con- Fuies "adical usic les-
ditions. What chance has t h e sos" amons todnolmose than
child of a working class family sons"arounts to no morethn
to achieve these positions? A an obstacreatingarev ltiontrye
oninimal one, compared to those society in which the last shall
who occupy them now. be first and the first will go out
and work for a living.
ONE OF OUR main objections
to the strike, then, is that its -Everett Ehrlich
success entails the reproduction Jerry Caprio
of the society around it. The February 11.
GEO, on the other hand, sub-
scribes to the "fat" theory ofcaer
budget allocation, which tellsCarerS
us that the higher salaries will To The Daily:
be financed by the fat (or slush)
in the U's budget. Such reason- MY EXPERIENCE at the
ing ignores the fact that there ISMRRD Career Day on Feb-
are people living off the Fat of ruary 4 was enlightening. I
the University who will rot thought the program, offered an
meekly tolerate any cuts in their excellent scan of various occu-
projects, and we have no guar- pations. The three presenta-
antee from the GEO that they tions and discussions I attend-
will attempt to wrest it from ed were all informa+ve. T h e
them. Money is power, a n d discussion sections offe:ed am-
neither is surrendered with- ple time to ask questions of the
out a fight. As a result, higher speakers. I wish I had had time
GSA salaries will be financed to attend more of the sessions. A
in one of four ways: be real- feature of the programs I found
locating money from worthwhile particularly useful was the fact
academic programs (like t h e sheets prepared for earn of the
Pilot Program, which is in jeo- occupations. The sheets inclad-
qiiotables
To The Daily:
I DIDN'T get any bad vibes
from Gary Thomas' essay
"Making a Mega-government"
(Daily 1-30-75). The tone of the
times is black, while his words
were enlightening.
As a member of the Ann Ar-
bor People's Bicentennial Com-
mission I acknowledge Thomas'
"cry of hope." The PBC is also
concerned with the erosion of
civil liberties that has taken
place over the past 200 years,
and in a consideration of solu-
tions would point to the words
of Thomas Paine: "It is at all
times necessary . . . that we
frequently refresh our patrio-
tism by reference to first princi-
ples. It is by tracing things to
their origin that we learn to
umderstand them, and it is by
keeping that line and tat ori-
gin always in view that we rev-
er forget them. An inquiry into
the origin of rights will demon-
strate to us that rights are not
gifts from one man to another,
nor from one class of men to
another."
I'm writing primarily in re-
snonse to these lines from Gary
Thomas' essay, which were
highlighted in boldface: "The
Founding Fathers were an un-
witting collective Frankenstein,
not knowing how their creation
would turn into a monster, prey-
ing upon the very populace it
was supposed to protect. It is
now an empire, both domestic
and foreign."
I THINK WE have to under-
stand that our Founding Fath-
ers Mothers, particularly the Jef-
fersonians and those rad:cal
Whigs who wrote the Dealara-
tion of Independence were, in
fact, well aware of the d-ngers
to the development of the coun-
try they had set out to liberate.
Thomas Jefferson proclaimed:
"I hope we shall crush in its
birth the aristocracy of our
moneyed corporations, which
dare already to challenge our
government to a trial of strongth
and bid defiance to the laws
of our country."
In studying our revolutionary
heritage with the PBC I've come
to understand that the revolu-
tionaries who wrote the Declara-
tion of Independence in 1776
weren't able to dominate t h e
later Constitutional Convention.
And following that was the crea-
tion of corporations which, by a
decision of Justice John Mar-
shall, became the only institu-
tions with the same stature as
the monarchy we had fougnt to
overthrow - they can not be
abolished, even if they serve in-
terests which are adverse to
the people's interest. Aad cor-
porations never die, -at least
not while they're making pro-
fits. So today the royal Rocke-
feller family alone controls 70
percent of the banking an iin-
d-stry of the country.
. AS FOR those "first piinci-
pies" Thomas Paine men ioned,
I think the following from Noah
Webster in "An Examination in-
to the Leading Principles of the
Federal Constitution Proposed
by the Late Convention held at
Philadelphia, 1787," sums up
the thought of many (though
granted, not all) of our Faund-
ers: "In what does real power
consist? The answer is short and
plain - in property. A general
and tolerably equal distribuilon
of landed property is the whole
basis of national freedom . .
As equality of property, wath a
necessity of alienation constant-
ly operating to destroy combin-
ations of powerful families, is
the very soul of a republic."
I will just end here wvitn one
last quote from Thomas Jeffer-
son: "Laws and institutions
must go hand in hand with the
progress of the human mind. As
that becomes more developed,
more enlightened, as new dis-
coveries are made, new truths
disclosed, and manners and
oninion change with the circum-
stances, instititions mast ad-
vance also, and keep pace with
the times."
-Steven McClure
February 4
Contact your reps-
Sen. Phillin Hart (Dem'. Rm 253, Old Senate Bldg.. CaDitol
"-i7 WSMAfMlMlMMMIkJEE i\,