SENATE RACE See editorial page ~I E 5k4 103 aug DANK High - 54 Low -- 32'0 See Today for details Vol. LXXXVIII, No. 60 Ann Arbor, Michigan-Wednesday, November 16, 1977 Ten Cents 12 Pages EGYPTIAN CALLS VISIT 'SACRED DUTY' Begin invites Sadat to _- <-_. Jerusalem Address to Israeli Knesset seen likely Shah's avisit hit'b y protests WASHINGTON (AP) - The Shah of Iran was greeted at the White House by a 21-gun salute and the sting of tear gas yesterday as rival groups of demon- strators clashed near the presidential gates in the capital's largest and blood- iest street protest since the end of the Vietnam war. President and Rosalynn Carter, the shah and Empress Farah forged coolly through formal welcoming ceremonies on the south lawn of the White House despite the raucous disturbance within earshot and a cloud of tear gas that per- meated the offices of the mansion and surrounding buildings. A WHITE HOUSE statement issued later said Carter told the shah he at- taches importance to a "strong, stable and progressive Iran" under the shah's leadership and pledged continued U.S. arms sales to that country. The statement made no specific reference to the many items of sophis- ticated weaponry, including 140 F-16 fighter planes, which the shah wants to purchase from the United States. Carter reaffirmed to the shah that he See ANTI-SHAH, Page 9 Daily Photo by ALAN BILINSKY Harlequin great dane Toole E. Gaites III, recovering from recent ear surgery, can't figure out why his rude friend insists on gawking. MILLIKEN D UCKS OUT: Sen ate candidates dive in the ring JERUSALEM (AP) - Israeli Prime Minister Menahem Begin yes- terday formally invited Anwar Sadat to Israel in response to the Egyptian president's offer to make such a trip to try to end the "vicious circle" that has kept the Middle East at war for three decades. In Cairo, Sadat called the proposed visit, which would break the Arab taboo against any leader visiting Israel, a "sacred duty." BEGIN told the Knesset, the Israeli parliament, that he had sent the written invitation to Sadat through the U.S. Embassy in Jerusa- lem. A diplomatic source said the message had reached Cairo within three hours of Begin's speech. The source said the invitation men- tioned no specific date but was phrased along the idea of "come as soon as you can." He said it was "welcoming, forthcoming and open." The invitation was contained in a large white envelope carrying the return address "The Prime Minister,, Jerusalem," without mention of Is- rael. Begin told U.S. Ambassador Samuel Lewis he would need a reply by Friday so he could, if necessary, rearrange a scheduled visit to Brit- ain next week. Begin also invited the leaders of Syria, Jordan and Lebanon to follow Sadat's visit, reiterating standing invitations for them to meet him for peace talks. THE ARAB world's reaction to the proposed Sadat visit was generally subdued except for criticism from hard-line Iraq and Palestinian ex- tremists. The Bagdad daily, Athi Thawra said Sadat's proposal 'has weakened the Arabs and placed them in a position of degradation and humiliation before the international community." Sadat told reporters yesterday at his Barrages retreat outside Cairo, where he had received a U.S. con- gressional delegation: "I consider this trip as a sacred duty and this vi- cious circle we are turning around in .. . has to be broken. "If I can break it and do not break it, I shall be questioned about it ... Questioned by whom? By God, and that is why it is sacred." SADAT first proposed going to Is- rael last Wednesday and Begin said he would be welcome. In announcing the official invitation Begin added Sadat would be received in Israel "with all the honor and majesty", due a head of state. Egypt's acute problems of over- population, poverty and underdevel- opment form the backdrop to Sadat's dramatic offer. His willingness to break the 30-year taboo against Arab leaders visiting Israel or speaking directly with its leaders was meant to underline his See BEGIN, Page 9 Sadat By MITCH CANTOR The state-wide race for Robert Griffin's U.S. Senate seat already looks like a free-for-all. Now that Governor William Milliken has tip- toed away from center stage, any of several candidates may throw their hats into the campaign ring. Griffin, who plans to retire from the Senate next year, has held his seat since 1966. WITH MILLIKEN out of the way, "all those that are interested can now run with a clear conscience," said Jerry Roe, executive director of the state Republican Party, yesterday. Though Milliken probably would have been a tough man to beat, the Republicans are not discouraged. "I think we have a number of potential- ly strong candidates. They have a good chance," said Dennis Caw- thorne, Republican caucus leader for the Michigan legislature. "No strong candidate has yet emerged for the Democrats," he added. Though some speculate the Demo- crats were better prepared for Milliken's decision, Cawthorne dis- agreed: "I don't think either side has a big advantage at this time." FOUR REPUBLICANS who may play prominent parts in the election are:. Lieutenant Governor James Dammon, James Brickley, former lieutenant governor; George Roach, president of Hillsdale College; and Brooks Patterson, Oakland County prosecutor. Damman, not a declared candi- date, said that by making his decision early Milliken was giving others, "a chance to wage a fair and effective campaign." Richard Thompson, chief assistant so far is state Senator John Otter- bacher. "I THINK IT (Milliken's decision) surely doesn't hurt them," Otter- bacher said. "It's going to heighten 'It's going to heighten the competition in the Democratic primary. We've got two or three real candidates out there.' - State Sen. John Otterbacher been cautious of funding the Demo- crats, apparently for fear of an easy Milliken victory, may now support them more readily. Another possible Democratic can- didate may be Carl Levin, former president of Detroit City Council. According to wire service reports, Deane Baker, a University Regent and Ann Arbor businessman, said he has been encouraged to enter the Senate race by, "a substantial num-, ber of Michigan's leaders." BAKER, an unsuccessful candi- date for the same office last year, says he has "made no decision concerning a candidacy, but will make that judgement within the next 60 to 90 days." Senator Griffin himself comment- ed on Milliken's decision: "He is a great governor; he could have been a great senator. I respect his decision. I know how tough it is to make such decisions, and I'll support him in whatever he finally decides to do." Universitty. won't, lose aid for, loans By DAN OBERDORFER Many colleges around the nation face suspension of federal aid for student loan programs if their former students don't pay up, but the University isn't on that list. The crackdown includes cutting fed- eral funds to state schools with exces- sive default rates and steps to make direct contact with offending borrow- ers. MOST OF THE offending schools are "fly-by-night proprietory and trade schools," said Joyce Dunagan, director of financial aid at George Washington University. She also said certain areas, the District of Colombia in particular, have already been slapped with suspensions of federal support of their loan programs. Three of five borrowers in the District of Colombia default on their loans, she said. The default rate at the University hovers near five or six per cent, safely below the 15 per cent cut-off level for the crackdown, said Tom Butts, direc- tor of financial aid at the University. Universities in many other states - characteristically those with high de- fault rates - assume no responsibility for loan collection, leaving the task solely to the federal government. But here, the loan collection process begins with the University and moves to the state before the federal government is called in. See UNIVERSITY, Page 9 T to Patterson, said the prosecutor's plans may still depend on whether Milliken runs for governor again. MICHIGAN Democrats are quick to say that Milliken's decision not to run for the Senate is a big blow to the GOP. Morley Winograd, state Democrat- ic leader, acknowledged a sense of relief: "When you don't have an incumbent to beat, the race becomes easier. Our candidates have had a longer time to get out and get organ- ized," he added. Of the Democratic candidates for the Senate seat, the most prominent the competition in the Democratic primary. We have three or four real candidates out there." OTTERBACHER also explained that potential contributors who had . zzzzzzzzzzzzzZZZZZZzzzzzzzzzzzz z British Ambassador Jay says North Sea oil boosts economy WASHINGTON (AP) - Presi- dent Carter's much-ballyhooed en- ergy program is being hammered out with foam rubber mallets by House-Senate conference commit- tees at a pace slightly slower than evolution. Most members of the House and Senate are resting in their home states or off junketing somewhere, but the senators and representa- tives on the conference commit- tees are soldiering on in a war that is, at best, only a moral equiva- lent. "I, FOR ONE, don't enjoy staying around Washington," said Rep. Harley Staggers, (D-W. Va.), trying to spur his conference committee on. "There are some here who like to live in Washing- ton. I don't." That morning, the senators on his committee had flatly rejected items one through 29 of proposed public utility regulatory policies contained in the House bill, but not MORAL ' Qv1 VA . N ' . of W4 P.. Z z 2 Then, carried away by the blizzard of activity, the conferees agreed that the employe who is transported by that employer's van won't have to pay tax on the value of that fringe benefit. ON A SCALE of one-10, the van-transport incentive doesn't even budge the needle. The Sen- ate-passed bill would spend $42 billion over the next eight years on energy conservation and produc- tion incentives. According to experts, the van pool credit would cost the govern- ment $3 million to $4 million a year, or in the neighborhood of'$30 million in the eight-year span. Its ; energy savings, according to the K conference committee's own docu- ment, is "negligible." Last week, the tax committee accepted one provision equally ho- hum. That item would give a tax credit for electric or hydrogen motor vehicles. Uncle Sam would By MARTHA RETALLICK Britain's long-sagging economy has been propped up by rising pro- duction from the North Sea oil fields, Great Britain's new ambassador to the United States told University stu- dents yesterday. Ambassador Peter Jay, the second ambassador to visit Ann Arbor in a July. Although foreign oil companies, including American companies, have oil rigs in the North Sea, the govern- ment-held British National Oil Cor- poration has a 51 per cent stake in all of the oil coming from those fields, Jay said. He pointed out this stake in the 0 j4oz z