Vol. LXXXIX, No. 41-S
Ann Arbor, Michigan Ten Cents
AND DECIDES AGAINST TAX CUTS
Carter fixes lifting gas controls
WASHINGTON (AP) - President
Carter has decided against lifting
federal price controls on gasoline and
feels it is too soon to consider using tax
cuts to counter the anticipated
recession, spokesman Jody Powell said
Carter and three Cabinet members
met yesterday at Camp David with
businessmen, union leaders,
economists and investment bankers
See unemployment predictions,
and discussed burgeoning inflation and
the looming recession.
Afterwards, Powell, White House
press secretary, told reporters, "The
president has no intention to deregulate
gasoline at this time."
POWELL SAID lifting federal con-
trols on gasoline prices would do more
to spur inflation, boost unemployment
and damage the economy than almost
anything Carter might do to deal with
Lifting federal regulations on
gasoline prices would "drain several
tens of billions of dollars from the
economy" and boost retail gasoline
prices to between $1.10 and $1.50 per
gallon, Powell said. He said every 20
cents per gallon increase in gasoline
prices adds a half a percentage point to
the inflation rate.
Earlier, an administration source
had said the presidential staff was con-
sidering proposing that Carter remove
controls on gasoline. The source said
the plan would call for a tax on gasoline
at the refineries, which would raise
some $25 billion a year. He said the tax
money would go to the Social Security
BUT POWELL said the president
reached a decision against gasoline
deregulation "several days ago."
R4P CAMP "ap
SECRETARY OF STATE Cyrus Vance met yesterday with members of the Senate Foreign Relations Committee, as
hearings continued on the SALT It treaty.
VANCE TESTIFIES TO SENATE:
SA LT needed to halt arms race
WASHINGTON (AP)-Senate rejection of the SALT II be induced to moderate its defense spending or become more
treaty would lead to "unlimited nuclear competition and a cooperative in the Third World ... In such an atmosphere,
serious increase in U.S.-Soviet tensions," Secretary of State each crisis and confrontation could become more
Cyrus Vance said yesterday. dangerous."
He testified for the second consecutive day before the On the other hand, Vance said, "We do not suggest that
Senate Foreign Relations Committee on the treaty, which SALT II by itself will carry us to a new world of prosperity
would limit long-range nuclear missiles and bombers and peace ... Nor do we suggest that if SALT is not approved,
through 1985. we could not survive. We could."
Vance said it was impossible to predict with certainty Vance said the ratification of the treaty was essential to
what the Soviets might do - in the event the treaty is rejected. further progress on a number of arms control issues, in-
BUT, HE ADDED, "I see no reasonable basis for cluding a comprehensive nuclear test ban, force reductions
believing that if SALT II is not ratified the Soviet Union will in Europe, banning anti-satellite weapons, and restraints on
See SALT, Page 2
Skylab to hit earth today;
Pacific Ocean likely target
WASHINGTON (AP) - Skylab's six-
year career as an orbiting laboratory
and then as a space derelict comes to a
shattering end today, its remains
destined to plunge nearly unobserved
into the briny deep of the south Atlantic.
"We'd like to see those predictions
stay," said Richard Smith, head of the
Skylab Task Force as he talked about a
final orbit that would take Skylab and
its debris only over water.
THE NORTH American Air Defense
Command, (NORAD), which tracks the
77% ton hulk on its 16 daily trips around
Earth, said Tuesday evening that
Skylab will fall between 7:50 a.m. and
4:14 p.m. EDT.
Despite American preparations to
cope with an embarrassing catastrophe
anywhere in the world, the demise of
Skylab promised to be a harmless
event, a celestial shower over wide
stretches of open sea.
Nothing could please the U.S. gover-
SKYLAB, host to three crews of
astronauts, was launched May 14, 1973.
It's been a piece of junk on the sea of
space since the last crew left Feb. 8,
1974. When it breaks up, it will have
made 34,981 orbits during its 2,249 days
as a man-made moon, travelling
around one billion miles.
The latest forecast served to narrow
the time frame for Skylab's final
plunge, but left the midpoint -
statistically, the most probable time -
unchanged from 12:02 p.m. EDT.
If Skylab crashes at that time, it will
splash into the Atlantic near the
Equator off Africa's Ivory Coast. Its
debris would scatter from that point
See SKYLAB, Page 10 -
Arthur Fiedler, conductor of the Boston Pops Orchestra, died yesterday in
his home in Massachusetts at age 84. He is shown here behind the podium,
leading the orchestra during its debut at Carnegie Hall in New York in 1972.
See story, Page 6.