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June 02, 1979 - Image 1

Resource type:
Michigan Daily, 1979-06-02

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e Migan Daiy JTwelve Pages
Ann Arbor, Michigan Ten Cents
Lockheed to pay bribery fine

Carter to lift
controls from
oil despite
critics 'leas
WASHINGTON (AP) - President
Carter told consumer advocates and
environmentalists yesterday he will not
back off his controversial plan to
remove federal price controls from oil.
One participant at the session quoted
Carter as pledging to fight "to the last
vote" for congressional passage of a
tax to keep oil companies from reaping
excess profits as a result of decontrol.
Carter also was quoted as describing
Mobil Oil as "the most irresponsible
corporation in America." A spokesper-
son for Mobil declined immediate
comment on the accusation.
THE PRESIDENT invited represen-
tatives of consumer and environmental
groups, as well as trade associations, to
the White House to discuss the nation's
energy problems and the need for con-
The group included both critics and
supporters of Carter's plan to remove
oil price controls. The first phase of the
president's plan went into effect-
Carter called the session the day af-
ter he met with oil industry officials.
Emerging from their White House
meeting on Thursday, oil executives
said they told Carter the nation's oil
shortage would continue for several
IN CONTRAST to consumer groups,
most oil officials favor lifting price con-
trols from oil.
Backers of decontrol say it will give
oil companies a greater incentive for
increased productiorf. In addition, they
say, the higher prices that result in a
lifting of controls are expected to spur
See CARTER, page 2
U' refuses to
The University does not plan to
release name-linked salary information
as requested by the state Senate Ap-
propriations Committee, but will be
sending salary data by positions to
Lansing Monday, University Interim,
President Allan Smith said yesterday.
"We think it'll meet his (Ap-
propriations Committee Chairman Sen.
Jerome Hart, D-Saginaw) needs," said
Smith. The data to be given to the
committee next week lists salaries by
position and is more specific than

From UPI and AP
Lockheed Corp. pleaded guilty
yesterday to eight felony counts of
covering up payoffs to Japanese of-
ficials, including $1.8 million ear-
marked for former Prime Minister
Kakuei Tanaka.
Lockheed agreed to pay $647,000 in
civil and criminal fines.
The settlement concluded a 2'12-year
investigation stemming from charges
that Lockheed paid more than $30
million secretly to government of-
ficials, military officers, businessper-
sons, and consultants in 19 countries.
. THE UNDERLYING payoff scheme
was designed to promote foreign sales
of Lockheed products.
The Justice Department said
Lockheed delivered the payoffs to help
sell 21 of its wide-bodied jets, which sell
for $30 million to $35 million apiece.
While it was not illegal before
December 1977 to bribe overseas of-
ficials, Lockheed was accused of four
counts of wire fraud, four counts of
lying to a federal agency to conceal the
payoffs and two misdemeanor counts
charging currency violations.
THE JUSTICE Department probe
focused on the Japanese payoffs.
Although there was evidence both for-
mer Lockheed chairman Daniel
Haughton and former president Carl

r t
Alon aginsttheAtlatic AP Photo
Gerry Spiess, of White Bear Lake, Minn., begins his 68-day voyage from Chesa-
peake Bay early yesterday morning. Spiess, 39, is hound for England alone in
his 10-foot host.

Residents oppose south side development
By JOHN GOYER perceive the office buildings as a Sheraton Hotel and the expansion of the
Developers are asking Ann Arbor threat. They claim the traffic city's airport as additional proposed
City Council to approve four rezoning generated by increased development developments to the city's south side.
resolutions Monday night which would will force the city to widen roads and PERKINS SAID the housing curren-

open the way for the construction of
four large office building developments
on the city's south side.
Residents from the area say they
salary data
previously released information, he
Clerk Amy Schnetzler said she believed
the University was planning to comply
with the request, which was sent to 13
state colleges over a week ago. "I
imagine they have complied," she said.
"As far as I know, they are sending the
information Monday."
Although the deadline for delivering
the salary information was yesterday,
Smith said he called the committee's

separate neighborhoods, and they say
they do not want to pay for the expan-
sion of city services to accommodatv
that growth.
ABOUT 35 south side residents have
formed the South Ann Arbor Council to
oppose development in the area and
many members are worried about the
impact the additional construction will
have on their neighborhood.
"It's not easy for me to accept the
notion that the part of the city I live in
will become another Southfield," said
Barbara Perkins, a member of the
South Ann Arbor Council.
In addition to the four office projects
up for City Council approval Monday
night, Perkins cited a long list of
proposed developments which -would
transform the south side of the city. Her
list includes four neighborhood
developments, including ap-
proximately 200 houses and about 1,300
multiple-dwelling units, such as con-
dominiums, townhouses and apartmen-
ts. Perkins also pointed to a six-story

I think citizens really ulant
fo put an endt foif (develop.
ment). They see open land,
and they want it to sfay that
-John Herrmann,
Chairman of the Ann
Arbor Planning
tly being planned would cater to upper-
class families. "We have a lot of people
who work in the city but can't afford to
'live in the city," she said.

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