BUT NOT OMB

The Michigan Daily-Sunday, September 18, 1977-Page 5

A

I

Lance Affair slows

White House.

ANN ARBOR'S
OLDEST & FINEST
NATURAL FOODS
~RESTAU RANT

WASHINGTON (AP) - The con-
troversy involving Budget Director
Bert Lance appears to have slowed
decision-making at the White House,
but apparently has had little impact
at Lance's own budget office.
Officials of the Office of Manage-
ment and Budget maintain they are
more concerned about what might
happen if Lance were to resign.
One career OMB official, who did
not want to be quoted by name,
assessed Lance's impact on budget
decisions at the White House and de-
clared: "It would be hard to find
anyone with as much influence as
Lance to speak up for us in the White
House."
A CHIEF concern of this official is
that Carter's commitment to a
balanced federal budget by 1981 will
waver if Lance is not around to push
for it, since Lance had become the
chief advocate of balancing the
federal budget, along with Carter..
There already are signs the admin-
istration is backing away from the
commitment. Charles S c h u l t z e,
chairman of the President's Coun-
cil of Economic Advisers, said in a
speech last week that the administra-
tion's economic policy "is not based
on putting balanced budgets ahead of
everything else."
Lance has been considered as more
conservative than the administra-
tion's other two top economic policy-
makers, Schultze and Treasury Sec-
retary W. MichaeY Blumenthal. But
he apparently has not been as
successfull in pushing his fisccal
arguments since his personal fi-
- nances became the center of con-
troversy.
LANCE WAS primarily respon-
sible for killing Carter's $50 rebate
proposal last spring, something that

Schultze favored and which might
well have gone into effect if Lance
had not blocked it.
Those who favor Lance's more con-
servative outlook toward economic
policy are worried that his departure
from the budget post would result in
a shift to more liberal economic poli-
cies. They say this would give more
emphasis to reducing unemployment
and less to controlling inflation than
the administration has heretofore
give
For the same reasons, those who
favor a more liberal policy would
welcome Lance's departure.
There is some evidence Lance's
problems h a v e slowed decision-
making at the White House, especial-
ly on the Carter tax reform program.
THE PROGRAM was supposed to
be sent to Congress by the middle of
September, but it has been delayed at
least until the first week in October.
Key decisions on changes in business
taxes, designed to increase incen-
tives for investment, had not yet been
made.
Lance, who has continued to give
speeches in recent weeks despite his
problems, said in one speech Carter
has been presented with conflicting .
recommendations on how best to
decide the business tax question.
But others in the administration
say decisions are slower coming
from the White House now than
befor, and the Lance controversy is
the chief reason. "It's taking up time
'that.should be spent on other things,
said one official.
OMB SPOKESPERSONS say the
Lance affair has had little impact on
OMB's budget - making operations
thus far because summer is tradi-
tionally a slow time of year for the
agency. Planning for the fiscal 1979

budget is underway at low levels, and
has not involved Lance in the past
two months.
However, they indicated if Lance
were preoccupied with his problems
for too much longer, it could cause
some difficulties since the direc-
tor's review of agency budget re-
quests for 1979 are scheduled to begin
in early October.
The day-to-day operations at OMB
are run by the deputy director,
James McIntyre, 36, who was budget
director for the State of Georgia
when Carter was governor.
MC INTYRE'S OFFICE is next to
Lance's in the Old Executive Office

Building, and OMB spokesmen insist
Lance is fully informed about what is
going on.
"This is not the busiest time over
here," said Robert Dietsch, Lance's
chief spokesman. "I can honestly say
Lance is minding the OMB store. Not
a single decision has been delayed
because of his personal stuff."
He said Lance has been in his office
by 7 a.m. every day, the same
schedule that he kept before his
problems became a public issue.
Dietsch said individual agencies
were ahead of schedule in submitting
their budget requests for fiscal 1979
to the OMB. His assessment was not
contradicted by other officials.

314 E. LIBERTY
ANN ARBOR,
MICHIGAN

-.... .

OPEN 7 Days a Week

662-2019


It Pays to Advertise


Star Warring profits

0

(Continued from Page 1)
I i k e d the pictures," said Tom
O'Brien, salesman. His partner said
the store uses it as a demonstration,
recording to sell stereos.
CULTURAL HISTORY
NEW YORK (AP) - The National
Portrait Gallery of the Smithsonian
Institution is currently presenting an
'Axhibition of documents and photo-
graphs covering more than a century
of American cultural history.
"Artists and Writers" illustrates
the close personal relationships that
existed between such painters, sculp-
tors and authors as artist Jerome
Blum, and author Sherwood Ander-
son, of 19th-century% sculptor Hiram
Powers and his friend, the poet Wil-
liam Cullen Bryant. The exhibit will
remain on view through December.


Lance elaji
t third Sen
(Continued from Page 1)
--use of an airplane owned by the
: National Bank of Georgia, which
might fead "at worst" to "a civil tax
assessment."
Javits, however, already had ques-
tioned Lance at length about the
overdrafts he, his family and his
gubernatorial campaign committee
ran up at the Georgia banks he
headed; his multi-million dollar per-
sonal loans;' and , whether he had
made a clean breast of his affairs to
the committee before it confirmed
him as director of the Office of
Management and Budget in January.
Javits disagreed w i t h Lance's
claim that before his confirmation he
had briefed committee investigators
on the major allegations now under
review.
NUNN SAID it was "sinister to be-
lieve" Lance had deliberately with-
held significant information from the
committee.
Ribicoff and Sen. Charles Percy,
- (R-Ill.), who have both strongly criti-
cized Lance and said he should
resign, disagreed on whether the
committee should rule out taking
testimony at some point from con-
victed embezzler Billy Lee Camp-
bell, who had once worked for Lance
at the Calhoun First National Bank.
The Justice Department is examin-
ing information about Lance's use of
the planes to determine if any fed-
eral laws were violated.
SEN. JOHN Heinz, (R-Pa.), al-
leged during the afternoon session
r ;that the U.S. attorney's office in
Atlanta had "bungled" an investiga-
tion into Lance's campaign over-
drafts when it determined nothing il-
RUDRANANDA ASHRAM
is offering techniques in begin-
ning meditation and kundaline
yoga.
Monday-Wednesday 5 P.M.
40O" r483

ms good repute, ethics
late hearing yesterday

legal was done.
"It's clear to me the case was
bungled. It was closed, in my
judgment because of who you were
and because the U.S. attorney was
afraid to rock the boat," he said. He
asked Lance whether a reopening of
the case might "clear the air."

Lance replied, "I don't see any-
thing to be regained from the re-
opening of this case at all." He has
repeatedly referred to the closing of
the Justice Department probe as evi-
dence that nothing illegal occurred
with respect to the campaign over-
drafts.

Also on the market are such
fantasy-sustaining necessities as the
Star Wars book (both the story itself,
and the story of making the film), a
calendar, a book of T-shirt transfers,
T-shirts (at least two designs are
prevalent), a set of blueprints of the
movie sets, equipment, robots, Hal-
lowe'en masks, vehicles...
Clearly, The Force is with it all.
At the Center
of the
University.
The Michigan Union
offers campus visitors
a hotel with conference
facilities,the University
Club,Union Gallery,
Pendleton Arts Info.
Cente r,bi l liard~bowl ing
and a sense of
tradition.
for information
530 S. State St.
Ann Arbor,Mich48109
313-662-4431
--
MICHIGAN
UNION
State St. at S University

/ 15TT'198
FIRST PROGRAM

fall art fair
the artisits and craftsmen guild of the university of michigan
invites you to an exhibition of ceramics, fibers, graphics,
jewelry, paintings, and sculpture by 75 guild members.
grounds of community

BROWNE 2 Introductions, 3 Cadenzas, and 6 Maps
Amogriot4 Wo efl(4 rtwrrpior
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r a
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sunday, oct. 2
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Home-made Chicken Noodle Soup
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Spaghetti and Meatballs (no potato or veg.)
DINNERS INCLUDE: A
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Crisp Salad and Dressing Dessert: Rice Pudding or Ice Cream
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SUNDAY SEPTEMBER 25

4 PM

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THE COLLABORATIVE

JEWELRY
BOBBIN LACE
NATURAL DYES
PHOTOGRAPHY
CONTEMPORARY QUILTING'
FIBER JEWELRY

QUILTING

SCULPTURE
PHOTO IMAGES
PORTFOLIO WORKSHOP
CHINESE BRUSH PAINTING
LEADED GLASS

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