Page 2-Wednesday, July 11, 1979-The Michigan Daily Camp David discussions continue (Continued from Page i2 Currently gasoline costs coming from the refinery and at the service station pump are' controlled by complicated federal regulations which limit the in- creases which can be passed on to con- sumers. One increased cost that can be passed on is higher payments by oil companies for foreign crude oil. The issue of deregulating gasoline prices is a separate question from decontrolling the price of domestic crude oil. Carter has already begun doing that. POWELL ALSO said there has been general agreement among those meeting with Carter at Camp David that it is too soon to consider federal ac- tions to counter the expected downturn in the economy. He said the administration would "need a better idea of the nature of the slowdown" before considering action to counter recession by such means as tax cuts. He said it could take several mon- ths before the nature of the economic downturn becomes clear. Alfred Kahn, Carter's inflation ad- viser, told reporters yesterday's three- hour session on the economy also touched on energy woes. AND HE SAID the conferees discussed Carter's plight at a time of "people not believing their leaders, people thinking everything is the result of a conspiracy." The presence of representatives of the financial community at the presidential retreat also suggested that finding money for a major alternative fuels program may have figured in the discussions. With inflation exceeding 13 per cent on an annual basis so far this year, and with a recession widely forecast, whatever decisions Carter makes following his dramatic domestic sum- mit promise to have a major impact on presidential politics in the coming elec- tion year. DOUGLAS FRASER, president of the United Auto Workers and another summit participant, . said that politically, the administration is "probably at the point of no return. "The administration has to convey to the American people the problems con- fronting' our society, and it has to be believable and it has to be acceptable," he said. The initial announcement of the president's marathon consultations, which will continue today, hinted at a followup period of deliberation that could delay the unveiling of any new programs at least until the weekend. POWELL SAID Carter would remain at Camp David at least through tonight, holding a morning conference on em- ployment and an afternoon meeting with a group of state and local officials. Joining the president at yesterday's meetings were Heller and economists John Kenneth Galbraith, Arthur Okun, Marina Whitman and Lawrence Klein. From the financial community came Robert Abboud, John Gutfreund, Jesse Hill and Al Somers, along with board chairman Reginald Jones of General Electric. AP Photo PRESIDENT CARTER, pictured here in an undated photo, decided against lifting federal price controls on gasoline, White House press secretary Jody Powell announced yesterday. VANCE TESTIFIES TO SENA TE: SALT veto would encourage arms race (Continued from Page 1) derstandings would not, he said. conventional arms transfers. mittee, did not depart from the pro- The committee chairman, Sen. Frank HE SAID HE had modest hopes that SALT case the administration has been Church (D-Idaho), questioned Vance THOSE DIFFERENCES may prove ratification of the treaty would en- about the difference between amen- critical if, as expected, changes in the courage the Soviets to adopt policies of building for more than a year. dments, reservations, and understan- treaty package must be made to secure restraint in other areas. But he said he dings the necessary two-thirds majority for could not be certain they would not ALTHOUGH VANCE continued to in- - the pact. If changes in the form of un- devote more resources to conventional sist that no changes in the treaty were Vance said amendments and reser- derstandings are acceptable to enough arms if strategic spending was effec- advisable, several senators indicated vations would require renegotiation senators, the treaty might be preser- tiua ,s limita by ha treaty they still intended to introduce them. with the Soviets. Unilateral Senate un- ved. Lvelym iea oy e reaty. Vance said he felt the Soviets had four basic interests in SALT: a general desire to avert nuclear war; a more stable relationship with the United States; a symbolicequality with the United States; a need to divert economic resources from military spending to domestic needs. Vance's testimony, and his answers to questions from senators on the com- THE MICHIGAN DAILY (USPS 344-900) Volume LXXXIX, No. 41-S Wednesday, July I1, 1979 is edited and managed by students at the University of Michigan. Published daily Tuesdaythrough Sunday morn- gs duringteUniversity year at 420 Maynard Street: Ann Arbor, Michigan 48109. Subscription rates: $12 Septem- ber through April (2 semesters) $13 by mail outside Ann Arbor. Summer ses- sion publishedsTuesday through Satur- daynmornings.Subscription rts $6.50 in Ann Arbor; $7.00 by mail out- side Ann Arbor. Second class postage paid at Ann Arbor, Michigan. POST- MASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Arbor, MI 48109. TEACHERS WANTED All K-8 grades. Low income Catholic schools in Texas. Small monthly stip- end, turnished housing and basic needs provided. Begin Aug.12. Write Volunteers for Educational and Social Services, Box N, 3001 South Congress. Austin Texas 78704. . .. ad for of ce jot sa, Forecasters predict higher jobless rate LAST MONTH, the unemployment WASHINGTON (AP) - The Carter Administration officials have revised rate dipped to 5.6 per cent, the lowest ministration is raising its official downward their outlook for economic level in nearly five years. recast for unemployment by the end growth this year, predicting zero The administration's latest official next year from 6.2 per cent to 6.9 per growth instead of the 2.2 per cent unemployment forecast, issued last nt, an icrease of more than 700,000 growth forecast earlier. If this happens, January, predicted the jobless rate bess people, admiistration sources it means the economy will dip into a would climb to 6.2 per cent by the end of id yesterday. mild recession at least. this year and stay there through 1980. Thne new unempioyment tigures, which some economists are expected to brand as still optimistically low, is con- tamed in a mid-year revised economic forecast scheduled to be released later in the week. The forecast is expected to be a gloomy one, showing higher inflation and possibly a recession as well as higher unemployment. OFFICIALS AT the White House, the Council of Economic Advisers, and the Office of Management and Budget refused to confirm or deny the new figures, provided by several ad- ministration sources. The revised jobless forecast is in line with President Carter's prediction on July 1 that the sharp price increases approved last month by oil exporting nations would force 800,000 Americans onto jobless rolls by the end of 1980, add two to 2.5 percentage points to the in- flation rate, and make a recession more likely. Four armed men hold 100 tourists at by in nat'l park CARLSBAD, N.M. (AP) - Four ar- med men took a National Park worker hostage deep underground at Carlsbad Caverns yesterday, releasing her unharmed after talking with a newspaper publisher. But the standoff continued with about 100 tourists trap- ped in the caverns, authorities said. National Park officials said there was no immediate danger to the trapped visitors, but that they were unable to leave without passing the area where the armed men were holed up. Park employees were with the tourists. CARLSBAD CAVERNS Superinten- dent Don Dayton said Linda Phillips, about 24, the park employee, and Ned Cantwell, publisher editor of the Carlsbad daily newspaper, left the cave late yesterday. They were not injured, he said. Dayton said the four men, who were not identified, remained in the lun- chroom section of the caverns, 750 feet underground. Cantwell, editdr-publisher of the Current Argus, entered the cavern at the request of the armed men several hours after they took Phillips hostage at about 3:20 p.m., Dayton said. Cavern officials said the trapped tourists were in an area of the Caverns known as the "Big Room," about three- quarters of a mile from the lunchroom.