The Michigan Daiy-Wednesday, October 12, 1977-Page 7 CAR TER ANNOUNCES REORGANIZA TION PLAN: USIA, cultural4 WASHINGTON (AP) - President Carter said yesterday he plans to com- bine the U.S. Information Agency (USIA) and the bureau that handles cultural exchanges into one Agency for International Communication, pledging it would not act covertly or spread propaganda. The President also promised to keep the USIA's broadcast Voice of America (VOA) independent and objective. "THE NEW AGENCY'S activitities must be straightforward, open, candid, balanced and representative," Carter declared in a message to Congress outlining the second of his plans for government reorganization. "They will not be given over to the advancement of the views of any one group, any one party or any one administration. "The agency must not operate in a covert, manipulative or propagandistic way." Carter added, "Under this ad- ministration, VOA will be solely responsible for the content of its news broadcasts, for there is no more valued coin than candor in the internatonal marketplace of ideas." ALTHOUGH THE reorganization plan would not give VOA the entirely independent status some of its officials atgency 4 had sought, Carter guaranteed to keep "the Voice of America's news- gathering and reporting functions in- dependent and objective." In an interview anticipating Carter's message, Peter Szanton, associate director of the Office of Management and Budget's reorganization studies, said last week that State Department policy pronouncements broadcast on VOA would have to be clearly labeled, like paid commercials. . Reorganization plans take effect automatically unless they are disap- proved within 60 days by either the Senate or the House. Carter's first such plan, to reorganize the Executive Office of the President, is expected to clear the two-month hurdle within two weeks. UNDER CARTER'S new plan: -The USIA's international com- munications program, including the Voice of America, would be combined with the international educational and ,cultural exchange activities now con- ducted by the State Department's bureau of educational and cultural af- fairs. o merge -The director of the new agency will be the President's main adviser on in- ternational information and exchange activities, as well as the principal ad- viser on those matters to the National Security Council and to the secretary of state. -The two commissions that now ad- vise the USIA and the cultural affairs bureau will be combined into a single seven-member, nonpartisan com- mission whose members will be chosen from fields related to the new agency's mission. "The purpose of this reorganization is to broaden out informational, educational and cultural intercourse with the world, since this is the major means by which our government can inform others about our country and in- form ourselves about the rest of the world," Carter told Congress. The main difference between a rabbit and a hare is that the young of hares are born covered with fur and with their eyes open, while young rabbits are born naked and with closed eyes. Auditdiscloses more city investment woes. (Continued from Page 1) City Administrator Sylvester Mur- ray said 'thereverse repurchase agreements "did not come as a surprise to me; We contacted the state in 1975 and asked them if, we should get into the reverse repur- chase agreements and they did not say anything like Icerman, Johnson, and Hoffman have said tonight." THE AUDIT report did contain some good news for city officials, however. Dunbar said he believed the city will not lose the tax exempt status of its bonds because of the questionable investments. "We believe that the reports are incorrect which indicate that the city could lose the tax-exempt status of its notes and bonds as a result of specu- lative trading in U.S. Treasury Notes," said Dunbar. "The trading in short and long positions of U.S. Treasury Notes does not involve the issuancesof tax-exempt obligations of" the city, and therefore is not subject to the Internal Revenue Code provi- sions dealing with the tax-exempt status of municipal obligations." The state Treasury Department may use the audit to launch an inves- JUNIOR and JEFF OLIVER and LLOYD at DASCOLA STYLISTS Liberty off State REDKEN-IMAGE tigation into the city's Mutual Invest- ment Account. In addition, the Securities and Exchange Commis- sion and the U.S. Postal Service are reportedly cooperating in their probes into possible illegalitites by either the city or Merrill, Lynch, Pierce, Fenner, and Smith, the investment firm that transacted the arbitrage accounts with the city. Moody's bond rating service has temporarily suspended the city's bond rating as a result of the speculative transactions. City offi- cials will travel to New York. on Wednesday, hoping to get the bond rating reinstated. The other national bond rating service, Standard and Poor's, has taken no disciplinary action against the city. Suheyla and troupe Ta' amullat4 "Reflections in the Pool of Time" IN CONCERT AN EVENING OF Dn Middle Eastern Music and DanceaD Friday & Saturday EveningsTickets Door October 14& 15, 1977-8:00 P.M. $3.50 Huron High School Theater Pre-purchase Tickets: M Fuller Rd. at Huron Pkwy, AnnArbor, Mich. 48104 Ann Arbor, Michigan Information Suheyloa663-655 Shoshana 994-1579 Star Webs Is it curds from-the Milky Way? Is it Princess Leia's shredded Kleenex? According to scientists, the funny filament actually is one of many white webs woven by mil- lions of busy baby spiders engaging in an eons-old ritual. The creeply crawlers draped the sticky stuff all over cars, homes, trees and Paul Gunison in the San Francisco Bay area yesterday. Caucus files Bakke brief (Continued from Page 1) ingful concepts for all the people of our country," the caucus said in a brief submitte as a friend of the court. "Any vacillation or hesitation by this court in reaffirming the-funda- mental principles at stake in this case may well sound the death knell of the progress made since this court's decision" outlawing school desegregation in 1954, the caucus continued. In its report, the Civil Rightsf Commission called affirmative ac- tion programs "promising instru- ments in obtaining equality of oppor- tunity." The commission statement did not deal directly with the Bakke case, but contained obvious references to the forthcoming court ruling. "A NEW DECISION implying that in 1977 this nation has reached a state of progress sufficient to justify the abandonment of any significant com- ponent of affirmative action pro- grams would have disastrous conse- quences," the commission said. "Such a decision could only be reached by ignoring the crushing burden of unemployment, poverty and discrimination facing black peo- ple and others whose skins are dark," the report continued. Abandoning the numerical goals which are part of such programs "would shut out many thousands of minority students and minority and women workers from opportunities that have only recently become available to them," the commission asserted. AT A NEWS conference, commis- sion chairman Arthur Flemming said the report will be delivered rou- tinely to all federal judges, including the nina iustices o the Sunreme HAPPY BIRTHDAY, to our LOYAL DAILY STAFFERS, Pete Rich Petersen Campbell ody is within next week. That's when you'll be .-a frfee magazine supplement to ewspaper., It's another better idea de" won't g ive you advice on your II give you help on what's almost as e subject is "Focus on Personal ie New Fitness." Watch for it!