Gas supply
NEW YORK (AP)-Optimism among
some government officials and industry
experts over June gasoline supplies is
being dampened by further cutbacks by
sevelal major oil companies in the
amount of gasoline they will ship to -
dealers during the month.
But in Washington, White House
press secretary Jody Powell repeated
yesterday the administration's opinion
that May was the worst month for oil
supplies and that the situation in June
and July would be "somewhat im-
proved."

cuts dampen
A couple of companies have raised
their gasoline allocations for June, and
a few others have left them unchanged
from May. But cuts announced by Gulf,
Conoco and Texaco and hinted by Shell
may mean little or no improvement in
gasoline supplies in June, analysts say.
STANDARD OIL of California
(Chevron), which does much of its
business in the West, has increased its
allocations to dealers from about 83 per
cent of year-ago levels in May to 90 per
cent of year-ago levels in June.
And Gulf, although planning to cut

The Michigan Daily-Thursday, May 31, 1979-Page 7
gov't, industry optimism
back in the East, is asking the Depar- refining to production of diesel fuel and
tment of Energy for permission to raise heating oil at the request of the federal
its allocation west of the Rockies, government.
where it has about three per cent of the
total gas market. . MEANWHILE IN Washington, an
Elsewhere, Gulf will be giving Energy Department attorney, Joseph
dealers 80 per cent of what they got last McNeff, charged yesterday that un-
June, after giving them a 90 per cent named agency officials have covered
allocation in May; Texaco is cutting its up illegal transactions by oil companies
June allocation to 70 per- cent from 80 that drive up the price of oil for con-
per cent in May; and Conoco will sumers.
reduce its June allocation to 75 per cent His charges, and those of other wit-
from 80 per cent. nesses prompted Rep. John Conyers
(D-Mich.) to assert that there apparen-
ALTHOUGH THE FIRM has not yet tly is "a cancer which goes beyond
made an official announcement, maladministration in the Department
executives at Shell say the June of Energy.
allocation will likely be 75 per cent, "We've got a very serious matter of
compared to 80 per cent in May. malfeasance that in many cases con-
4 stitutes a criminal matter in itself,"
The allocation figures are somewhat said Conyers.
deceptive, however. Texaco's 70 per A second House member, Rep. Albert
cent alloction, for example, does not Gore Jr. (D-Tenn.) said Congress may
mean that the company will have 30 per have stumbled on "the largest criminal
cent less-gasoline in June than it did in conspiracy case in our history, in-
June 1978. That just represents what volving billions of dollars, and it may be
the firm is shipping to dealers who do continuing to this day."
not qualify for special breaks. He endorsed a recommendation
The allocations also do not made by McNeff for appointment of a
necessarily mean that that is all the special prosecutor to look into alleged
gasoline that can be produced. Some oil industry conspiracies.
companies have been diverting some

Arabs, gov t troops clash
in oil-rich Iran province

KHORAMSHAHR, Iran (AP) -
Weeks of discontent among Iran's
autonomy-minded Arab minority ex-
ploded yesterday into a bloody
showdown between armed Arabs and
government troops in this city at the
heart of oil-rich Khuzestan province.
State radio reported 21 persons killed,
and Mossadegh Hospital said at least
102 lay injured after a day of arson and
shooting in this city of 100,000.
STATE RADIO reported other
clashes and at least three deaths in the
neighboring city of Abadan, site of the
world's largest oil refinery. But the
National Iranian Oil Co. reported no in-
terruption to oil operations.
The army repulsed an attempt by the
rebellious Arabs to take over Ihoram-
shahr, state radio said, but shooting
continued after sunset and gunmen
swarmed through the narrow streets.
Revolutionary guardsmen assisting the
army troops manned sandbag
barricades on almost every corner.
The guard, a militia-style group, cap-
tured many barricades the Arabs had
built from palm tree trunks and car
tires, and the barricades smoldered in
the night, along with many shops and
houses burned earlier in the day.
IRAN'S'Arabs are an ethnic minority
in a Moslem but non-Arab nation. In
Khuzestan, where they number about
two million, they claim to be a majority
and are pressing for a greater share of

the oil profits, appointment of more
Alab officials, greater use of Arabic
language and an end to what they say is
discrimination in employment.
The fighting erupted at 4 a.m. yester-
day after a tense week in which the
province's governor-general, Rear
Adm. Ahmad Madani, ordered Arabs to
turn in their weapons and evacuate
buildings they had occupied.

BANK REGULATORS DECIDE PASSBOOK ACCOUNTS TO EARN MORE:

Savings interest rate to
WASHINGTON (AP) - Americans They do not, however, go as far as the
will earn a quarter of a percentage changes recommended last week by
point more on passbook savings ac- President Carter. The president asked
counts and get even higher interest on Congress to consider phasing out alll in-
new, four-year accounts starting July 1, terest ceilings on savings that he said
the nation's banking regulators decided "are costing the American people
yesterday. billions of dollars in lost interest an-
The three major bank boards, in nually."
separate meetings, also voted to The actions by the Federal Reserve
eliminate minimum deposit Board, Federal Home Loan Bank
requirements on certificate accounts, Board, and Federal Deposit Insurance
except for the $10,000 money market Corp. will affect interest rates
certificates. And they voted to reduce available from commercial banks,
penalties if savings are withdrawn federally insured savings and loan
before the certificates mature. associations, and savings banks.
THE ACTIONS WERE taken in an ef- RETAINED IN THE decisions is the
fort to give Americans a better return traditional quarter of a percentage
on their savings at a time when in- point interest rate differential that
flation is running well above ten per thrift institutions have been granted to
cent and eroding what people set aside help them attract money for home mor-
in savings and certificate accounts. tgages.

rise in July
from the current 5 per cent.
* Permit financial institutions to of-
fer savings accounts with minimum
four-year maturities with interest tied
to, but below, the average four-year
yield on U.S. Treasury securities.
" Eliminate minimum deposit
amounts now required for savings cer-
tificates, except for the popular $10,000
money market certificates.
" Reduce penalties for early withdr-
awal of savings certificate monies and
eliminate the penalties entirely if the
saver dies.
The savings changes made by the
bank boards were not as extensive as
proposals they announced jointly on
April 3. Other options had included in-
terest "bonuses" on long-term deposits,
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at the UNION
OPEN 7 DAYS

Congress unveils plan to
move up draft registration,
will also include women

Still, the U.S. League of Savings
Associations, a trade group, criticized
the decision. The new interest rates, it
said in a statement, "will mean an in-
crease in the already-high home mor-
tgage interest rates,-too....Borrowers
will have to pay the bill."
Mortgage rates now exceed 11 per
cent in someareas.
The bank boards actions will:
" Allow the interest rate on passbook
savings to rise at thrift institutions
from 5.25 per cent to 5.5 per cent. Banks
will be allowed to pay 5.25 per cent, up

WASHINGTON (AP)- A proposal to
move up the timetable for a draft
registration system to the start of next
year and to include women in any sign-
up was unveiled in Congress yesterday.
Rep. Paul McCloskey, (R-Calif.),
said he will offer the proposals as
amendments during the House's up-
coming debate on legislation that would
start registration of young males in
January 1981, after the next
congressional elections.
MCCLOSKEY'S proposals would
require registration of women as well
as men, and would move up the starting
date to next January 1.
In addition, the amendments call for
a study of the feasibility of a mandatory
youth service-'program, a cause Mc-
Closkey has championed this year.
He held out no chance for passage of a
national service program this year.
Only after a draft is enacted, he said,
"would people. give serious con-
sideraion to our national youth service
program."

MCCLOSKEY SAID Sen. Sam Nunn
(D-Ga.), chairman of the Senate Armed
Services manpower subcommittee and
a critic of the all-volunteer service, has
laid out a proposed schedule of
congressional action.
McCloskey said it forecasts, "this
year registration; after the 1980 elec-
tion, the draft, after that national youth
service."
McCloskey's proposals, announced at
a news conference, came as other sup-
porters of national youth service
programs met at a conference called by
the Committee for the Study of National
Service.
Pollster George Gallup told the group
his latest survey shows that 82 per cent
of full-time students between the ages
of 18 and 24 favor the idea of a voluntary
national service program in which
young people could work in either
military or non-military jobs, Twelve
per cent of the persons surveyed op-
posed the idea and six per cent had no
opinion.

The Ann Arbor Film Cooperative presents Aud A
$1.50 THURSDAY, MAY 31
Lauren Bacall Night
TO HAVE AND HAVE NOT
(Howard Hawks, 1944) 7 a 19:20-AUD A
BOGART, as the detached American expatriate Harry Morgan, is persuaded to
join the fight against fascism in Vichy-controlled Martinique. Paired with Lauren
Bacall in her film debut, their scenes together achieve a rare liberation from
the conventional confines of acting. Superb supporting performances by DAN
SYMOUR as the grossly evil Captain Benard, and by WALTER BRENNAN as
Bogart's rummy sidekick, Eddie. Based on Hemingway's novel. "if you want
me, just whistle."
HOW TO MARRY A MILLIONAIRE
(Jean Negulesco, 1953) 8:40 only-AUD A
LAUREN BACALL is an actress for our age: ironic, erotic, cool. Fine comedy of
three man-hunting females pooling their resources to trap eligible bachelors.
Lauren Bocoll is the brains of the trio: MARILYN MONROE the sexy mantrap;
and BETTY GRABLE the fun:loving adventuress.
Tomorrow: Hawks' I WAS A'MALE WAR BRIDE and
BRINGING UP BABY