Page 2-Wednesday, August 8, 1979-The Michigan Daily
Extension proposed for inflation guidelines

(Continued from Page )
prices of more than ten per cent, "I am
convinced that it would have been wor-
se without the pay and price standar-
ds."
An oncoming recession, Kahn said,
will help cool the economy and make
the guidelines work better. "The stan-
dards were never really set up that they
would apply very effectively in an
overheated economy," he said.
CONSUMER PRICES have been
going up at an annual rate in excess of
13 per cent so far this year. Kahn said
the rate would moderate toward the end
of the year and predicted that inflation
next year will be in an eight per cent to
nine per cent range.
The council's proposals are aimed at
erasing inequities that have resulted
from the first year of the program and

avoiding "penalizing companies and
workers who have complied or done
better than comply in the first year,"
Kahn said.
Kahn said that in deference to
organized labor, the council had put off
announcing formal proposals at this
time. The AFL-CIO has opposed the
guidelines from the start, charging that
they discriminate against workers.
"WE ARE NOT there yet," Kahn said
of recent efforts to get the huge labor
federation behind the second year of the
program.
Problems to be addressed in the
council's revisions are wage guideline
exceptions that have allowed union em-
ployees to get cost-of-living adjustment
increases that boost their pay more
than that of non-union employees.

The "issues paper," in fact, suggests
that the council may start counting the
cost of living adjustments more heavily
against the wage standard.
IN ADDITION, the council is concer-
ned that rapidly rising raw material
prices have forced many companies to .
get exceptions from the price standard.
The council may, as a result, limit cor-
porate use of the so-called profit
margin exception.
Still undecided is when the second
year of the program officially will
begin.
Carter announced the guidelines last
Oct. 24, and the rules were put into ef-
fect retroactively to Oct. 1.
The council document says the
current standards may be extended
through Dec. 31 or that the second-year

program may be 15 months long,
beginning Oct. 1 and continuing through
1980.
Delaying adoption of the new stan-
dards until January will give the ad-
ministration time to regroup in the
wake of the president's Cabinet
reorganization, council sources admit-
ted.
Guerrillas
criticize
Rhodesian


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peace plan
LUSAKA, Zambia (AP) - Black
nationalist guerrillas threatened
yesterday to boycott new negotiations
with Britain over the future of Zimbab-
we Rhodesia unless their conditions are
met.
The new peace plan, designed to end
the seven-year-old guerrilla war again-
st Zimbabwe Rhodesia's government,
has the official support of the black
African countries that have been
havens for the guerrillas.
THE RAPID conclusion of secret
talks between Britain and her Com-
monwealth partners, and the end of the
Commonwealth summit here a day
earlier than planned, caught the
guerrillas by surprise. They held a
news conference to announce con-
ditions that must be met before they sit
down to new negotiations.
The primary condition was the
dismantling of the Zimbabwe
Rhodesian army and the substitution of
"the army of the liberation forces,"
said Edgar Tekere, secretary general
of Robert Mugabe's Zimbabwe African
National Union, one of the units in the
Patriotic Front guerrilla alliance.
Ironically, the black guerrillas were
joined by the white-minority gover-
nment of South Africa in criticism of
the peace plan. South African Foreign
Minister Roelof Botha said in commen-
ts published yesterday that his gover-
nment was "deeply disturbed" by the
plan for Zimbabwe Rhodesia. South
Africa is the southern neighbor and
economic lifeline for Zimbabwe
Rhodesia.
THE NEW peace plan provides that
Britain draft a new constitution,
drastically curtailing white-minority
influence in Zimbabwe Rhodesia, call a
constitutional conference and hold new
elections.
The guerrillas and their supporters
See GUERRILLAS, Page 6
THE MICHIGAN DAILY
(UISPS 344-900)
Volume LXXXIX, No. 61-S
Wednesday, August 8, 1979
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