Page 2-Wednesday, December 7, 1977-The Michigan Daily
SAUDI ARABIA-EGYPT RELATIONS:

Economic aid likely to continue



JIDDA, Saudi Arabia (AP)-Saudi
Arabia was reported likely yesterday
to continue its massive economic aid to
Egypt despite misgivings over
President Anwar Sadat's peace
initiative with Israel.
Diplomatic sources said they expect
the oil-rich kingdom to attempt to mend
the present split in Arab ranks before
considering a reassessment of its
foreign policy.
THE OIL-RICH Saudis are providing
the bulk of the $3 billion in aid promised
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Sadat by Arab Gulf states. The Saudis
have also promised to underwrite
Egypt's military purchases over the
next five years.
In keeping with its reticence over
Sadat's peace moves, the Saudi gover-
nment withheld public comment on
Egypt's decision to sever diplomatic
relations with Syria and four hardline
Arab states that participated in an anti-
Sadat summit at Tripoli, Libya.
Saudi officials consider Sadat's
unilateral mission to Israel to have
been a tactical blunder, one source
said. But, he added, "what is done is
done. The kingdom will have to try to
make the best of it."
DIPLOMATS SAID Saudi Arabia
would hardly support any move to
destabilize Sadat since it regards his
moderate, anti-communist government
to be a major security factor in the Red
Sea area.
Informed sources discounted Beirut
newspaper dispatches from Libya
saying Saudi Arabia and other oil-rich
Persian Gulf states had decided to cut
off financial aid to Egypt.
The Beirut reports also were
dismissed as baseless by an official


source in Kuwait, another Arab oil
producer that has provided large scale
financial support for Cairo.
SADAT HIMSELF earlier challenged
reports of an impending cut in Saudi
aid. "It is a fact there is a difference
among us and the Saudis," he said in an
interview with The Associated Press.
last Sunday. ". . . but I never heard
anything like this."
The Egyptian president dispatched a
personal envoy, Ashraf Marwan, to
Saudi Arabia on Sunday with a hand-
written letter to King Khaled and
Crown Prince Fahd. The letter is
believed to have contained an appeal
for open Saudi support.
Several days earlier, Sudanese
President Jaafar el-Numairi paid a
surprise visit to Jidda in an apparent
bid to solicit Saudi backing for Sadat,
Sudan, neighbor and ally of Egypt, is
the strongest supporter in the Arab
world of Sadat's peace moves.
WHILE EGYPTIAN sources have
maintained that Sadat went to Israel
with at least tacit approval from Saudi
Arabia, informants say Sadat evidently
decided against telling King Khaled to
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spare the monarch an embarrassing
dilemma.
The sole Saudi statement on the trip
to date implied mild criticism of
Sadat's go-it-alone approach. It ex-
pressed "surprise" over Sadat's action
and cautioned that any moves toward
peace should be conducted within the
framework of Arab unanimity.
The Saudi royal house, vehemently
anti-communist and highly suspicious
of Arab socialism,- has welcomed
Sadat's growing estrangement with the
Soviet Union and his attempts to in-
troduce more free enterprise into the
nationalized economy left by the late
Gamal Abdel Nasser, Sadat's
predecessor.

Yearbook photo
winners announced
The Michiganensian has announced the winners of its third annual
photo contest.
-The grand prize goes to Gary Mills, who wins a $50 gift certificate
from Big George's.
-First place for a black and white entry goes to Jeffery Clarke,
who wins a $25 gift certificate from Ulrich's.
-Second place for a black and white entry goes to Evan Watkins
John. He wins a $20 gift certificate from Tice's Men's Shop.
-The prize for a color entry goes to J. Asquini, who wins a $20
gift certificate from Quarry Photo.
The contest was judged by the editor-in-chief, photo editors, and
photo staff of the Ensian, and the photo staff of The Daily. Congratula-
tions, winners! The winning entries will be published in the 1978 Mich-
iganensian.

Carter proposes boost to U.S.
steel production and employment


(Continued from Page 1)
The process will take between 60 days
to 90 days, instead of the approximately
13 months it now takes to process dum-
ping complaints.
Foreign producers would still have an
opportunity to justify their prices, but
they would have the duties assessed
when the case is started, rather than af-
ter it is decided.
JAPANESE officials are scheduled to
arrive in Washington today to provide
information on their production costs.
Solomon said he expects trigger prices
to be established by the end of Decem-
ber and that the entire plan will be in
operation within 60 days.
The plan will not bar all dumping,
however, since European producers,
who have higher production costs than
the Japanese, can sell at the Japanese
price.
The plan does not require
congressional approval.
But it encountered some sharp
criticism, especially from Republicans,
who were briefed in advance along with
other members of Congress.
"NEVER BEFORE has the ad-
ministration labored so long about so

much and produced so little," Sen.
Richard Schweiker (R-Pa.), told repor-
ters. Sen. John Heinz (R-Pa.) said he
didn't think it would help much and
branded it "a disaster for the Nor-
theast."
In establishing the trigger prices, the
administration will take into account
profits and the cost of transportation,
as well as other costs. It would allow 5
percent flexibility from the actual cost.
In addition to the trigger prices, the
administration plans to assist the in-
dustry by:
-Studying the feasibility of reducing
the period for tax write-offs of invest-
ments in new steel t producing
machinery from the current 18 years to
15 years. That would save the steel in-
dustry $60 million in taxes over the next
four years, the report said.
-Making available about $215
million in loan guarantees from the
Commerce Department's Economic
Development Administration to help
finance plant modernization by com-
panies having difficulty obtaining
financing through normal channels.
-DETERMINING whether an-
tipollution requirements for the in-
dustry can be met more efficiently and

cheaply, but without relaxing "basi
environmental goals." It recommende
against more lenient treatment. i
regulation and enforcement of a
tipollution measures for the industry.
-Granting more help for co
munities and workers who are hurt b
production cutbacks, including $
million for commuinity economi
recovery projects.
-Looking more closely at th
possible benefits from mergers an
joint ventures in the industry, includin
a directive to the Department of Justic
to expedite its evaluation of suc
proposed actions by steel companies.
-ESTABLISHING a tripartite corn
mittee of industry, labor and gove
nment representatives to "ensure
continuing cooperative approach to th
problems and progress of the steel i
dustry."
The report said steel producers ha
agreed to invest their increased cas
receipts from the program into pla
modernization and improvement
Solomon said the industry could recei
an additional $450 million in cas
receipts, mostly as a result of t
president's upcoming tax reduction an
revision program.



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Panel compromises
on space quandary
(Continued from Page 1) ing who would coordinate the evenir
TUDENTS WOULD gain roughly classroom use, said, "We can readil
000 square feet of space between see that there just isn't enough spaci
Plant Building and SAB, accord- and if we can work it out, we shoul
to Carnevale. The average Angell do it.

S
14,
the
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Hall classroom is about 500 feet
square.
Brinkerhoff said the University
Press warehouse would be moved to
the newly-purchased Buhr Building
to accommodate the activities. "It
looks fine," said Brinkerhoff. The
administrator predicted the Regents
would take action in February to give
his office time to prepare financial
details.
Alfred Stuart, the head of schedul-

"STUDENT GROUPS have
somewhat different attitude tha
they did at one time - they would b
more aware that there would be
class the next day," Stuart said. H
added that the prop'osal ought to b
extended from LSA buildings to othe
areas of the campus.
The groups would be required ti
place deposits on the 10-20 room:
used each evening, Stuart said.

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