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November 05, 1977 - Image 10

Resource type:
Michigan Daily, 1977-11-05

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0-Saturday, November 5, 1977-The Michigan Daily
5enate raises limit
3n senior citizens'

HIN'GTON (AP) - The Senate
down a proposal yesterday that
have let most elderly Social
.y recipients earn an unlimited
t of money without losing any of
ad, senators voted to raise the
on earnings allowed, without af-
pensions, from the current
a year to $6,000 for people 65
h 71. The Senate action would
ite a ceiling for 70- and 71-year-
rees in 1982.
PROVISION was approved 59-28




as senators continued debating how to
raise Social Security taxes on workers
and their employers to shore up the
financially troubled system.
In another vote, Vice President
Walter Mondale cast the tie-breaker on
an amendment by Sen. Carl Curtis (R'
Neb.) that would have continued the
tradition of employers and employes
paying equal shares of Social Security-
The vote was Mondale's first since
becoming vice president and president
of the Senate.
THE CURTIS amendment was a sub-
stitute for a tax-increase formula, writ-
ten by the Senate Finance Committee,
that for the first time would have
required employers to pay a greater
share than workers.
Approval of the higher earnings limit
blocked a vote on a proposal by. Sen.
Barry Goldwater (R-Ariz.) to eliminate
the ceiling completely. Goldwater said
a limit is 'morally' wrong; his opponen-
ts said removing it, as the House has
voted to do, would amount to welfare
for the rich.
The Carter administration had urged
Congress to keep the current earnings
ceiling for the time being.
THE ACTION by the Senate would
raise the $3,000 ceiling to $4,500 next
year and to $6,000 in 1979. Three years
later, the only remaining ceiling would
apply to people between the ages of 65
and 69.
The ceiling is designed to ensure that
those who retire from one job and go to
another are not eligible for a full Social
Security pension. The ceiling means
that a retiree loses $1 of his pension for
each $2 earned above $3,000 a year.
Opponents of Goldwater's unlinited
earnings proposal argued its'
elimination would benefit, only about
650,000 pension recipients who now earn
more than $6,000 a year from other
work. The extra cost to repeal would be
paid by the working population.
Sen. Daniel Patrick Moynihan (D-
N.Y.) described the impact of the move
this way: picture the five most-senior
partners in the five most-prosperous
law firms on Wall Street and give each
of them a tax-free check of $8,400 a
year, the maximum Social Security
benefit, on top of their six-figure

poun ce'
(Continued from Page 1)
nberg, who proudly announced
he'd been bouncing his-basketball
early an hour. "Nobody's getting
" he insisted. Whereupon he relin-
i4 his ball to a'nother dribbler.
mbers hope to keep at least one or
>alls in motion at all times. They
ilittle help yesterday afternoon
some enthusiastic passersby who
a makeshift game of four-square
e middle of the Diag and helped
t contributions.
mbers even pitched a blue nylon
)n the Diag in preparation for their
ght vigil.
hat's for if we get cold," one ex-
ed. "We can do a little partying."
A wise recruiter
RMAN, Okla. (AP) - Linebacker
Moore of Oklahoma rates his
liter for the Sooners as a 10 on a
of 10.
felt that he was not just interested
e as a football player, Moore said.
also was concerned about me as a
mt, an individual and a friend. I
say that I saw qualities like that in
iters from other schools."

Free Birds-AP
Though this flock of swallows flees in anguish the hunters are after bigger prey-geese.

U.S., Soviets close to amn

WASHINGTON (AP) - American
and Soviet negotiators are "less than
100 apart" in agreeing to a new
ceiling on nuclear weapons carrying
missiles, a high administration offi-
cial said yesterday.
The two sides were known to be
talking about a possible 10 per cent
reduction in the tentative ceiling of
2,400 such weapons, negotiated in
1974 at Vladivostok by former Presi-
dent Gerald Ford and Soviet Presi-
dent Leonid Brezhnev.
IN THE CONTEXT of a weapons
reduction of that size, a disagree-

ment of close to 100 might be
considered significant. However, the
official, who declined to be quoted by
name, talked optimistically about
prospects for a new strategic arms
limitation agreement.
The official also spoke hopefully
about efforts to reconvene Middle
East peace talks in Geneva. He
reported encouraging responses
from Egypt and Jordan to a working
paper already accepted by Israel as
a procedural formula for beginning a
Geneva conference.
Syria.- has- raised a number of
skeptical questions, he reported,. But

he said there has been no formal
response from that country. H
expressed confidence that officials in
Damascus are giving serious consid-
eration to the document.
THE'OFFICIAL said he hoped it
would not be necessary to amend the
working paper, arguing that would
open up "an almost endless negotiat-
ing process."
President Carter, he said, does not
believe it is necessary tb resolve all,
procedural questions prior to a
conference. He said Carter feels,
some could be taken up at the confer-

ence itself.
Asked about a pending presidential
decision on deployment of the neu
tron high-radiation bomb, the official
said European allies increasingly.
favor production of the weapon but
would like to delay its deployment in
The United States has made it
clear, he said,' that production arId
deployment must be linked because,
in Carter's view, the weapon would
only be built if it were to be
stockpiled in Central Europ since its
potential use elsewhere i not en-



U.N. enacts S. Africa arms ban



office of
EVENTS presents,
"f Sat. Nov. 5
Criser Arena 8 pm
SReservedSeats $8.50 $7.00


Deniece Williams

Tickets available at the door
tonight, beginning at 6 pm

Sun. Nov. 6
Hill Auditorium 8 pm
Reserved Seats $7.50$6.50 $5.50

"We now enter a new and signifi-
cantly different phase of the long-
standing efforts of the international
community to obtain redress of these
grievous wrongs," he said.
promise between black African de-
mands for sweeping economic and
arms sanctions and Western calls for
a limited ban on arms sales. The res-
" Orders all countries to "cease
forthwith" sending South Africa any
arms, ammunition, military vehicles
and equipment and spare parts.
" Calls on all states to review
"with a view to terminating them"
existing contracts and licenses with
South Africa for manufacture of
arms there, and to refrain from any
further licensing arrangements.
" Forbids any cooperation with
South Africa to help it develop
nuclear weapons.
" Charges Waldheim with enforc-
ing the embargo and asks all govern-
ments to provide him with "the most
complete information as quickly as
possible" on the measures they take
to comply with the embargo. Wald
heim's first report is due in May 1978.
IN THE VIEW of U.N. experts, the
embargo is expected to hit hard at
France and to some degree at Israel,
said to be South Africa's major
suppliers of sophisticated weaponry
including jet planes, submarines and
missile-equipped patrol boats.
French officials say they imposed
a ban on arms sales to South Africa in
November 1976, except for two exist-
Exiles tell
tales of
exile in foreign countries."
"It almost makes you laugh," said

Young defaulted on $13,000
loa, ree Press reports

ing contracts for naval vessels. But
U.N. experts say the flow of other
conventional French has continued.
There have been reports that Israel
has sold small arms and patrol boats
to Pretoria and has given South
Africa licenses to manufacture Uzi
submachine guns and patrol boats.
THE ISRAELIS have refused to
comment on the reports. A Foreign
Ministry official in Tel Aviv said,
"Israel will study the resolution and
draw its own conclusion."
South Africa claims to produce
a out 90 per cent of its own arms
from guns and ammunition to arm-
ored cars, jeeps, trucks, heavy
artillery and surface-to-surface mis-
siles. It is also widely believed to be
capable of manufacturing nuclear
South African Defense Minister P.

W. Botha said in a statement that the
country was fully self-sufficient in
weapons needed to fight "terrorism"
and well-equipped to block a "con-
ventional onslaught."
THE UNITED States banned arms
to South Africa 14 years ago, but
continued to supply some spare parts'
and civilian equipment with potential
military uses. However, President
Carter has announced the United
States will cease the sale of C130
cargo planes and spare parts.
In past years, the United States,
Britain and France had joined sever-
al times to block sanctions against
South Africa:
But on Oct. 19, in the wake of wide-
spread anger oher the prison death of
black activist Steve Biko, the South
African government launched a nas-
sive crackdown, banning virtually all

moderate black organizations, clos-
ing South Africa's major black
newspaper and jailing scores of
black and white opponents of apar-
PRESIDENT Carter subsequently
announced that the United States
would support an arms embargo.
The adoption of the sanctions came
only four days after the United
States, France and Britain joined in a
resolution condemning South Africa
for "repression against black
But at that time they vetoed
African resolutions calling for arms
sanctions because those called for a
halt to all nuclear cooperation with
South Africa and declared that its
internal policies - rather than just.
its importation of arms - was a
threat to international peace.

Tickets available at the door
Sunday, beginning at 6 pm
Fri. Nov. 11
Crisler Arena 8 pm
L1AJLi LLAI L Reserved Seats $8.50
Tickets are available at the Michigan Union Box
Office in Ann Arbor, Huckleberry Party Store in
Ypsilanti and all Hudsons.
Fri. Nov. 18
Hill Aud. 8 pm
Reserved Seats $6 $5 $4
Tickets available at the Michigan Union Box
Office in Ann Arbor, Huckleberry Party Store in
Ypsilanti and all Hudsons.
* Sat. Nov. 19
A Crisler Arena 8 pm

DETROIT (UPI) - Detroit mayor Coleman Young,
seeking reelection to his second four-year term Tuesday,
and members of his family reportedly defaulted on a
$149,000 loan and owe the city $13,000 in unpaid property
taxes on a bar and restaurant.
The Detroit Free Press, in yesterday's editions, said
that the U.S. Small Business Administration (SBA) was
forced in 1975 to pay $144,415.45 to a Detroit bank to cover
the default of a-$149,000 federal loan made to the bar and
restaurant corporation owned by Young and his brother,
THE LOAN, along with $20,000 interest, was still out-
standing,, the newspaper said. SBA officials, the Free
Press said, "believe Young is responsible for the money
but they see collection of the debt as politically sensitive
because of Young's close relationship with President Car-
ter. "
Young, Detroit's first black mayor who faces black
Councilman Ernest Browne Jr. in next week's election,
was an early backer of Carter. The election is the first
mayoral election in a major city in the nation's history in
which both candidates are black.
Young and his brother, who died this year, signed the
loan note, the newspaper said. Young's sisters, Bernice
and Juanita, were officers of the corporation, Young's
Barbecue Inc., but did not sign the note, the Free Press

dealings, citing the mayor's connection with the bar and
restaurant and challenging him to make public his income
tax returns.
YOUNG HAS ISSUED a financial statement but
refused to make public his tax returns.
Raymond Harshman, the SBA's district director in
Detroit, said federal regulations forbid him to say what
action might be taken in connection with the outstanding
loan to Young's Barbecue Inc., which operated the bar
and restaurant on the west side.
The loan was made to Young's Barbecue in 1973 by
Michigan National Bank of Detroit, the newspaper said.
Harshman said that the SBA had guaranteed 90 per cent of
the loans but regulations forbided him from telling
whether Young's barbecue was in default.
But, the Free Press said, records in the Wayne County
Register of Deeds Office, showed that on June 25, 1975, the
SBA paid Michigan National Bank- $144,415.45 in federal
funds to cover the loan default.
AFTER TAKING office in 1974, Young said he
divested himself of ownership of the bar to eliminate a
possible conflict of interest. A state law prohibits Detroit's
mayor from having a financial interest in a business that
has a liquor license.
The bar andrestaurant closed about a year after it
was opened, the loan went into default and the liquor
license lapsed, the newspaper said.




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