Vol. LXXXIX, No. 34-S
Wednesday, June 27, 1979
Sixteen Pages
Ann Arbor, A ichigan Ten Cents plus Supplement
OPEC may
decide on
$20 for a
barrel of oil
GENEVA, Switzerland (AP) - The
Organization of Petroleum Exporting
Countries (OPEC) will probably decide
on an oil price of $20 a barrel in a com-
promise between moderate and ex-
treme members, conference sources
said yesterday.
OPEC is expected to announce its
decision today, ending two days of
meetings here. The price of OPEC
crude oil now stands at $14.55 a barrel,
although surcharges imposed by most
of the cartel's members bring the
average price to about $17.
AN INCREASE to $20 a barrel would
raise gasoline and heating oil prices in
the United States by about five cents a
gallon.
In Tokyo, meanwhile, President Car-
ter was reported ready to ask major in-
dustrial countries to set individual tar-
gets for limiting oil imports through
1980. The plan would aim at reducing
global imports by about two million
barrels a day, theeamount by which
demand now exceeds supply, U.S.
Treasury Secretary W. Michael
Blumenthal said.
Observers here said the one .con-
ceivable block to a $20 price is Saudi
Arabia, OPEC's largest and most
moderate member, which has said
repeatedly it would not accept a price
over $18.
In the meeting, the Saudis were
seeking a price between $17 and $18,
sources said.
THE ATTITUDE of the Saudis, some
analysts said, might force OPEC to set
a two-tiered price, with Saudi Arabia
charging a price for its oil below the
prices charged by the rest of OPEC.
But a source within one of the cartel's
key delegations said he expected the
Saudis to accept the $20 price.
The source said he felt Iran and
Libya, which have been asking for
prices of $23 and $27 a barrel respec-
tively, would also settle for the $20
See OPEC, Page 6.
Daily Photo by LISA KLAUSN'tK
Workers resurfacing South University Ave. stir up clouds of dust in pedestrians' faces. Many Ann Arbor streets are receiving
similar facelifts at a cost of approximately $4 million.
A2p
Pourim millionons in topotholes
By ADRIENNE LYONS
Ann Arbor pedestrians are wading
through dust clouds and drivers are
confounded with detours as several city
streets are receiving a $4 million
facelift, according to Streets, Traffic,
and Parking Supervisor Leigh Chizek.
Chizek said several projects, in-
cluding a $1.2 million overhaul of Maple
Road, are currently underway. The
Cunningham-Gooding Construction Co.
was contracted for the Maple Road
project, which will run through the
summer, Chizek explained.
CHIZEK ALSO SAID S. University
Ave., Maynard, and Ann Streets will be
repaired under the University project.
According to Chizek, under terms of
an agreement reached last spring by
the University and the city, the Univer-
sity will pay approximately half the
cost of repairs on campus streets.
"Over a period of years, we'll upgrade
the whole campus area," Chizek said.
Assistant University Planner Ken
Korman said the University would pay
close to $90,000 of the $200,000 worth of
repairs on campus roads. Korman said
in the agreement the University tried to
emphasize repairs for bus routes. Kor-
man added that bus rides would be
smoother and buses may require less
maintenance with better roads.
Maynard St. is the only campus area
road not on a bus route that is being
fixed, according to Korman.
"THE WORK ON Ann St. is more ex-
tensive than the other two," Korman
said. Ann St. will be concrete when the
repairs, running from Glen St. to
Washtenaw Place, are completed
around Labor Day.
Korman said the repairs on Maynard
St. will run from E. Jefferson Ave. to E.
William St., while S. University Ave.
between S. State St. and Washtenaw
Ave. will be fixed. These repairs consist
of rotomilling, which includes tearing
up the street, making base repairs, and
resurfacing.
Chizek said other repair projects in-
,clude:
A '79 Patching Project - This
$250,000 project will spread repairs
See CITY, Page 6
Senate raises U' budget
By JULIE ENGEBRECHT
The first legislative steps of the
state's appropriations procedure have
been completed, and the Senate last
week recommended the University
receive $4,350,000 over the governor's
proposed funding level.
The House and joint appropriations
committees still must review the state
budget, before any allocations are
finalized.
APPROPRIATIONS bills initiated in,
the Senate traditionally have been
reduced after going through the House.
A joint conference committee will work
out any differences between the two
chambers' bills.
The Senate's bill appropriates $148.9
million to the University's Ann Arbor
campus - an increase of 11.2 per cent
over last year's funding level. The
average increase in state higher
education funding is 10.9 per cent from
1978-79 to 1979-80. The University
requested an 18 per cent increase from
the state in October.
University officials were pleased
with the increase, but cautious because
the entire process has not been com-
pleted.
"WE'RE HOPEFUL that kind of fun-
ding level can be sustained," said
Richard Kennedy, vice-president for
state relations. "I'd be less than honest
if I told you the prospects for staying at
that level were really very good."
Kennedy said the - budget would
probably be completed in Lansing by
the middle of July, which would
probably be in time for the July Regen-
ts meetings to finalize tuition rates.
"Should we actually receive the
amount suggested by the Senate, it
would make an important change in the
budget,' said Vice-President for
Academic Affairs Harold Shapiro. "It
would be very important for the
See SENATE.Page 6
Milliken Califan-o asked to
intervene in hospital plans
By JOHN GOYER maintains that the University has
The regional heslth planning council agreed to substantial changes in the
has asked Governor William Milliken hospital plans in negotiations with the
and Heaslth, Education, and Welfare Michigan Department of Public Health
Secretary Joseph Califano to intervene (MDPH), which will make the final
in its behalf in the state review of plans decision on the project, according to
fo as nehwUnivesyHopitar l n state and federal planning laws.
for a new University Hospital. Regional planners of the Comprehen-
In letters sent last Friday, regional sive Health Planning Council for
health planning council President Della Southeastern Michigan (CHPC), which
Goodwin asked Milliken and Califano to reviews hospital plans and makes
force the University to resubmit the recommendations to the State Depar-
hospital project to regional planners for tment of Public Health, claim the
another review.
THE REGIONAL planning council See INTERVENTION.,Page2