Vol. LXXXIX, No. 63-S
I e1ia Daiy Friday, August 10, 1979
Sixteen Pages
Ann Arbor, Michigan Ten Cents
Two named as 'U' presidential contenders
By JULIE ENGEBRECHT
Secretary of Health, Education, and Welfare (HEW)
Patricia Harris and Indiana University (IU) Vice-
President Robert O'Neil both were considered for the
University presidency, several sources said this week.
O'Neil was among the candidates interviewed for the
post, according to the president of IU's Board of
Trustees.
Few details about the University's presidential
selection process have been revealed. The University
Board of Regents has maintained that public
discussion of the process would have impaired the
search. However, the Board and search committee
members still are reluctant to discuss the names of
those considered during the search, and the number of
presidential contenders who were interviewed'has not
been made public.
THE REGENTS named University Vice-President
for Academic Affairs Harold Shapiro to the presidency
July 27, and Shapiro will take office Jan. 1, 1980.
Harris knew her name had been on a list of can-
didates for the University presidency, Harris's
secretary said Wednesday. The secretary added that
while someone had recommended Harris for the post,
the recently-named HEW chief was not interested in
the job.
Harris was nominated by President Carter on July 19
to succeed Joseph Califano to the top HEW post after a
major Cabinet shake-up. Harris previously served as
the secretary of the Department of Housing and Urban
Development in the Carter administration.
STUDENT SEARCH committee member Carolyn
Rosenberg confirmed that Harris had been placed on
search committee lists, but added that committee
members expected that the Cabinet official would not
be interested in the University presidency.
IU's O'Neil, 44, has been vice-president of the
Bloomington, Ind. university since 1976.
"I knew he was being considered, and I knew he was
interviewed for the job," IU Board of Trustees
President Donald Danielson said yesterday.
See 2, Page 6
AP Photo
mg, Douglas
's Chrysler
See story,
UNITED AUTO WORKERS (UAW) officials from left to right, Ken Bannon, Irving Bluestone, Howard Youn
Fraser and Marl Stepp, talk among themselves before meeting with about 204 delegates to the union'
Council in Chicago yesterday. Later, the union decided to reject the wage-freeze proposed by Chrysler.
Page 8.
University
econonsts
predict
'mild'
reeession
By MARK PARRENT
The current economic slowdown will
develop into a mild recession with a
modest recovery beginning at the end
of the year, three University
economists predicted yesterday.
Research economist Joan Porter and
economics professors Saul Hymans and
Harold Shapiro made the predictions in
a nationally-respected forecast
released yesterday.
"WE'LL FEEL IT more strongly in
Michigan," Hymans said of the expec-
ted recession in an interview yesterday
afternoon. "But the whole recession
won't be as bad (as the 1974-75
economic crisis)," he added.
Perhaps the most important reason
for the predicted harsh effect on
Michigan is the estimated decline in
new car sales - from 11.3 million in
1978 to 10.4 million ins 1980. Hymans said
beth increased consumer consciousness
of gasoline costs and fear of gas lines
are expected to contribute to declining
automobile sales.
The economists estimate the unem-
ployment rate will rise from the 5.8 per
cent recorded at the end of 1978 to 6.3
See U', Page 2
rale prices up;
s energy costs
dex in July was more than double the
0.5 per cent increase of the previous
month, according to a report issued by
the Labor Department.
It marked a reversal of three months
of price moderation at the wholesale
level. And it put the rate back at the
level to which it had soared between
December and March - a rate the Car-
ter administration had hoped to halve
Vietnamese executing wou-ldbe
escapees to halt refugee flight
HANOI, Vietnam (AP) - Viet- refugee issue in a humanitarian way. Hong Kong is their last stop on a five-
namese officials told a U.S. Although Vietnamese officials told nation Southeast Asian swing.
congressional delegation yesterday the members of Congress some would- THE REPRESENTATIVES received
they are executing some would-be be escapees were executed, Son said: a formal, low-key welcome, and Viet-
escapees as part of tough new "There is no such government that is namese officials asked reporters to
,measures to halt the flight of boat more humane than the Vietnamese See VIETNAMESE, Page 2
people from Vietnam. government."
Deputy Foreign Minister Hoang Bich THE DELEGATION also met
Son also told the lawmakers that 4,000 yesterday with representatives of the
persons were arrested recently while U.N. High Commissioner for Refugees
trying to escape by sea, but he said here.
Hanoi lacks the resources to stop those Rep. George Miller I(D-Calif.), told
who try to flee. ATN reporters the U.N. officials think the g V ' b la n
EARLIER, ACTING Foreign U.S. embargo on trade with Vietnam
Minister Nguyen Co Thach told repor- contributes indirectly to the refugee WASHINGTON (AP) - Another.
ters U.S.-Vietnamese talks are under flow since industry in southern Vietnam surge in the cost of energy products
way. He said the two nations were on - dependent in the past on American pushed wholesale prices up 1.1 per cent
the brink of diplomatic recognition last goods and spare parts - has come to a in July, dimming the nation's hopes for
fall, but Washington erected obstacles halt, throwing people out of work and relief from inflation in the coming mon-
by demanding that Vietnam end the increasing the desire to leave. ths, the government said yesterday.
flow of refugees and remove its forces The congressional group, led by Rep. "The net result, especially with
from Cambodia. Benjamin Rosenthal (D-N.Y.), flew to energy prices going up with no respite,
Son and Thach said Vietnam wants Hanoi Wednesday for a 24-hour visit to is bad news," Commerce Department
normal relations with the United States assess the problem of refugees and economist William Cox said.
and is doing its best to deal with the discuss U.S.-Vietnamese relations. THE RISE IN the Producer Price In-