Page 16-Saturday, May 12, 1979-The Michigan Daily
SALT H pact to be signed in Vienna

FromAPandUPI
WASHINGTON - President Carter
and Soviet President Leonid Brezhnev
will meet June 15-18 in Vienna, site of
the stormy Kennedy-Khrushchev
summit of 1961, to sign SALT II and
launch the next round of nuclear arms
talks, it was announced yesterday.
National security adviser Zbigniew
Brzezinski formally announced the
Carter-Brezhnev summit, saying the
two leaders will "approve and sign the
treaty . .. and discuss other questions
of mutual interest."
A SIMILAR announcement was made
simultaneously in Moscow - with the
twist that the Russians described the
summit arrangements as "tentative."
State Department officials said they
could not explain why the official TASS
news agency hedged its announcement
with that word.
White House officials said Vienna
was chosen for a variety of reasons, in-
cluding the fact that Brezhnev, believed
to be seriously weakened by chronic
heart and respiratory ailments, can
reach it comfortably by train.
SHORTLY AFTER the announ-
cement was made, Carter continued his
battle to win Senate ratification of the
pact by arguing that its rejection would
be devastating to the U.S.-Soviet
relationship and to efforts. to control
nuclear arms.
While the treaty will be the central
theme of the meeting, the talks are also
expected to deal with subsequent arms
negotiations, the possibility of regular

summit conferences, and the overall
scope of U.S.-Soviet relations, a U.S. of-
ficial said.
The administration official, who ad-
dressed reporters in the White House
press room on the grounds that he not
be identified by name, refused to com-
ment on the state of Brezhnev's health
or what impact it would have on the
Vienna meetings.
BUT HE SAID the conference, which
would last 2 to three days, would in-
clude joint meetings of the U.S. and
Soviet delegations, "some private time
for the two leaders to get together, and

have private discussions on a one-to-
one basis," and more social occasions.
While briefing reporters, the ad-
ministration official was asked whether
the United States had complained to the
Soviet Union about Soviet missile tests
in which data was coded in such a way
that the test could not be monitored by
this nation.
Declining to characterize U.S.-Soviet
discussions on this point asa complaint,
the official told the reporter that "mat-
ters of the sort that you raise were
discussed" in a number of recent
meetings.

He said American officials are
satisfied that under the new agreement
such coding would be prohibited.
The coding of missile test data was
reportedly a key question in the final
talks in Geneva and Washington
leading up to the treaty agreement. It
bears on the ability to verify complian-
ce with the treaty, which is expected to
play a central role in the Senate debate
on the pact.
The Senate must ratify the treaty by
a two-thirds vote before it can go into
effect. The final outcome of the Senate
voting, which may not take place until
next year, is far from certain.

Gas shortages may cause recession

HOT SPRINGS, Va. (AP) - A
gasoline shortage which is likely to
spread across the nation this summer
"increases the risk of recession,"
Federal Reserve Board Chairman G.
William Miller said yesterday.
Miller discussed his views of the
economy with the Business Council, a
prestigious group of 100 top corporate
leaders whose own analysts are predic-
ting a mild recession starting at mid-
year.
THE COUNCIL meets four times a
year to exchange views with gover-
nment officials.
Miller forecast a slowdown, not a
recession. He added, however, that the
tight world oil market and the gas shor-

tage already in evidence on the West
Coast are putting pressure on the
economy.
"I think we have more risk now of a
recession than we had two months
ago," Miller conceded.
EITHER A slowdown or recession
should help dampen the rapid price in-
creases that have pushed the annual
rate of inflation to more than 13 per cent
so far this year. At the same time, a
business downturn could throw
thousands out of work.
MIller and Treasury Secretary W.
Michael Blumenthal - who also predic-
ted "a slowdown" - made their com-
ments after the Business Council
released a dreary quarterly report on

the economy.
The report, prepared by corporate
economists, foresees a "pronounced,
although mild, recession."
A ONE per cent drop in the nation's
output over two or three quarters, it
says, would make the recession among
"the mildest of the post-war period."
Although the corporate consultants
expect inflation to taper to a 7.5 per cent
annual rate by the end of the year, they
predict that "little further progress is
expected in 1980." And they expect
unemployment to rise and corporate
profits to be "squeezed" as President
Carter's voluntary anti-inflation
guidelines prohibit businesses from
raising prices to cover rising raw
material costs.
The Business Council's economic
forecasts are more negative than those
provided thus far by the Carter ad-
ministration, which has argued that
monetary and budget restraints and the
guidelines can help check inflation yet
not push the economy into recession.
However, the administration's
forecasts were made before Iran
suspended, then cut back, its oil
production and before the Organization
of Petroleum Exporting Countries
(OPEC) raised prices more than nine
per cent in April.

Thatcher, Schmidt call for SALT OK

LONDON (UPI) - Prime Minister
Margaret Thatcher, in her first foray
into international diplomacy, joined
forces with West German Chancellor
Helmut Schmidt yesterday in a call for
quick U.S. Senate ratification of the
SALT II treaty with the Soviets.
Thatcher said she has no plans right
now to go to Washington or to invite
President Carter to London for talks.
Secretary of State Cyrus Vance will be
in London in 10 days to meet her new
Foreign Secretary, Lord Carrington,

and the prime minister and the
president will meet in Tokyo June 28-29
for the Western powers' economic
summit.
THATCHER, WHO was elected one
week ago, and Schmidt met the press
together at a crowded news conference
to report on their two days of talks on
SALT, NATO, the Common Market,
East-West relations and the Tokyo
summit,
"We favor quick ratification both in
Moscow and Washington," Schmidt

said. "I think there might be changes -
and changes not for the better - if
there are new difficulties about SALT II
going into effect. This process has
already gone on far too long."
"Herr Schmidt's view is much the
same as the view we take," Thatcher
said. "This treaty has taken a very long
time to be negotiated, and we very
much hope it will be ratified."

Official says disputed firm
follows 'U' S. Africa policy

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(Continued from Page 3)
requested in the Regents' March 1978
resolution.
"Basically, I now feel Searle has an
equivalent policy to the Sullivan prin-
ciples," said Brinkerhoff.
Brinkerhoff also said the Faculty
Senate Advisory Committee on Finan-
cial Affairs (SACFA) will meet next
week to discuss a report on University
divestment policy which was requested
by the Regents in March. Brinkerhoff
said that University divestment from
every corporation in South Africa
would "reduce the stability of the
financial picture" of the University. In-
stead, he said, the University should
adhere to the concept of divesting from
only those companies which refuse to
affirm the Sullivan Principles.
"They (SACFA) have to address cor-
porate compliance with the Sullivan
Principles, or their equivalent, in
deciding the financial picture in regard
to divestment," Brinkerhoff said
yesterday.

"I am reviewing taking actions such
as attending corporate stockholders'
meetings and assessing the possibility
of solicitation by proxy," said Daane.
"I will have ready a brief status report
on the cost of taking actions other than
divestment for next week's Regents
meeting."
In addition, Vice-President for State
Relations Richard Kennedy said the
organization, of a committee on
"socially responsible practices" for the
University has been "deferred" until
after the SACFA report on divestment
has been completed.
"I will recommend to the Regents
that consideration of this committee
ought to be weighed again," said Ken-
nedy. "It is inappropriate for this
committee to have discussions (until
after SACFA releases its report)."
Kennedy emphasized that his request
would be a recommendation for
deferral and that the committee idea
would not be discarded.

ENERGY.
Wie can't afford .to waste it.

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