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-