Page 8-Saturday, August 11, 1979-The Michigan Daily Help for Chrysler in the works .... From UPIand AP The United Auto Workers (UAW) Union said yesterday it has not aban- doned its quest for a $1 billion tax in- vestment in Chrysler Corp., despite the administration's rejection of direct cash help for the struggling firm. But a UAW spokesperson said the union is encouraged that the gover- nment apparently will consider some formf of aid for Chrysler. "WE BASICALLY take the position that it's a positive step for the federal government to have acknowledged that the Chrysler situation is as serious as it is," the spokesperson said. 'The key for us is that the ad- ministration appears to have rejected the position that some people have taken that there should be no federal involvement,' UAW President Douglas Fraser plans to meet next week with Treasury Secretary G. William Miller to discuss ways to help the firm, union sources said. CHRYSLER REPORTED losses of $260 million in the first half of this year on top of $205 million in red ink last year. Fraser has asked the government to purchase $1 billion in Chrysler stock, giving the government about a 30 per cent equity ownership of the cor- poration and a strong voice in its at- State moves to tempt to regain profitability. He has said he is not wedded to the $1 billion stock purchase and could be per- suaded to support other forms of help. CHRYSLER, blaming the industry's big car sales slump and the cost of meeting federal automotive regulations for its losses, asked for a $1 billion payment against future tax credits. Miller rejected that plan Thursday but said the administration would con- sider some form of aid, possibly the same kind of loan guarantees used to rescue Lockheed Corp. in 1974 In related developments, Chrysler said the number of blue collar workers it has placed on indefinite layoff has risen to 23,800, nearly one-fifth of its work force. THERE WERE reports the company - plans soon to idle 5,000 salaried workers. A Chrysler spokesperson said he knew of no such plans but conceded the company is "in a cost reduction program and there's bound to be salaried layoffs coming up." The administration's offer of help for Chrysler received generally favorable reaction on Capitol Hill yesterday, but there were indications the loan guaran- tee proposal may run into opposition. aid ailing firm The chairman of the House Banking Committee, Rep. Henry Reuss (D- Wis.), said yesterday his panel will schedule prompt hearings on whatever plan the Carter administration develops to help the No.3 automaker. REUSS SAID Congress should look at alternatives to the recommendations set out Thursday by Miller. In addition, Gov. William Milliken said yesterday the state will expedite the purchase of 800 mid-sized cars from Chrysler in a move to pare down the firm's burgeoning inventory and ease its cash flow crisis. Milliken said the $3 million deal was in the works anyway, but the timetable is being moved up because of Chrysler's perilous financial state. IT WAS THE first step the state has taken to aid Chrysler since the federal government unveiled its loan guarantee plan. Milliken said Chrysler submitted the low bid on the cars which will be assigned to the state police, Depar- tment of Transportation, and the Management and Budget Department's motor pool. Cars will be purchased at an average price of $3,850. The governor admitted, however, that the state's $3 million purchase is an act of "symbolism" and won't have a major effect on the company's $70o million back inventory. MILLIKEN ALSO announced he and the governors of four other states with major Chrysler plants have sent a joint telegram to President Carter saying the federal government is obligated to help out the No. 3 automaker. Illinois Gov. James Thompson said yesterday the federal government should not take over the financially troubled auto company, or bail it out completely, but should give some aid to the firm. Thompson joined Milliken and gover- nors James Rhodes of Ohio, Pierre du Point of Delaware, and Joseph Teasdale of Missouri in the telegram. ALSO, A subsidiary of Chrysler said yesterday it planned to sell its right to collect payments from car buyers to Household Finance Corp. (HFC) for $550 million. The deal means buyers' payments to Chrysler financial Corp. will be turned over to HFC, the nation's third-largest finance company, in an effort to provide Chrysler with ready cash. GM says UAW demands may force strike DETROIT (UPI) - General Motors (GM) Corp. said yesterday union con- tract demands could double the com- pany's labor costs and force a strike. It was the toughest in a series of strongly worded announcements by the company, which analysts say is the most likely strike target in current negotiations to renew contracts for 750,000 workers at GM, Ford Motor Co. and Chrysler Corp. GEORGE MORRIS, GM's chief negotiator, was visibly angry after a main table bargaining session with United Auto Workers (UAW) Union negotiators at the end of the fourth week of contract talks.- "There's got to be movement," Morris said. "They've got to be realistic. We can't bargain in this at- mosphere. "I'm disturbed," he said. "WE MADE three attempts in what we thought were moderate terms to carry this message to the UAW. And apparently they weren't listening." Morris said the union's major money demands would cost an estimated $15 an hour over three years, 100 per cent greater than current labor costs and "at least 10 times higher than the most expensive contract we ever negotiated." His anger appeared to focus on the UAW's top priority and only detailed money proposal on the table - a plan for automatic increases in pensions for retired workers. THE PENSION scheme, Morris said, "is totally unacceptable at General Motors." Irving Bluestone, the UAW's chief negotiator at GM, challenged the com- pany to come up with a counter proposal on pensions to get bargaining going. "Right now, there's no bargaining taking place," Bluestone said. "You can't bargain with somebody who is not responding with any proposals of his own. "IT'S ONE THING to complain about the union's proposal. It's quite another to respond to a serious problem." B luestone said Morris told the union bargaining committee its demands "as they stand today could bring on a strike." Union contracts at the Big Three auto companies expire Sept. 14. The union said earlier it is seeking a substantial wage hike, pension increases tied to the cost of living, more paid time off and improved fringe benefits. The Ann Arbor Film Coo efftive Presents at MLB $1.50 Saturday, August 11 THE MARK OF ZORRO (Rouben Mamoulian, 1940) 8:40 only-MLB 3 Classic swashbuckler, full of costume, horsemanship, true star-crossed love, and venomous villainly. TYRONE POWER stars as Don Diego de Ia Vega, fop by day and fox (Zorro) by night, who rights wrongs in old California with his flashing blade. LINDA DARNELL is his Lois Lane, adoring the bandito in black and despising the craven Diego. But the man who steals the picture is BASIL RATHBONE, the best swordsman in Hollywood, playing his brilliant Mephis- topheleon role-the cynically witty evil that Zorro must wipe out so California can breathe easy again. The Adventures of Robin Hood (Michael-Curtiz, William Keighty, 1938) 7 & 10:20-MLB 3 "Welcome to Sherwood!" Arguably the most enjoyable film ever made, this is that rare movie in which everything comes together: the brisk direction, delightful character actina. lush technIcolor. Kornaold's sumptuous score, de Haviland's loveliness, Rathbone's villany, there aren't enough adjectives to describe this picture. Above all, it is ERROL FLYNN who makes ROBIN HOOD the exhilirating esperience that it is; in his finest performance he created a screen character that will never die. CLAUDE RAINS. Tuesday: FREE SHOWING of ODD MAN OUT and SATURDAY NIGHT AND SUNDAY MORNING THERE WILL BE SHOWINGS NEXT WEEK. PICK UP A SCHEDULE AT ANY OF OUR SHOWINGS FOR A COMPLETE LIST. We support Projectarst's Local 395 CIA recruiting campaign results 'tremendous' WASHINGTON (UPI) - The CIA has started a "pepped up" advertising campaign to recruit new agents and the results have been "tremendous," an agency spokesperson saidyesterday. Suffering from a battered public image after several years of congressional investigations and Freedom of Information suits, the once supersecret agency has faced a drop-off in recruiting. BUT WITH HELP from Madison Avenue, the Central Intelligence Agen- cy has found 4,000 tp 5,000 would-be agents in less than a month, a spokesperson said yesterday. A New York advertising agency has been directing a sleek new recruiting campaign for the agency in big-city newspapers across the nation since July 22. "Every time we go to the post office, there's another bag" of responses, the spokesperson said. THE AGENCY previously depended on small, discreet advertisements, mostly in professional journals for engineers and scientists or college newspapers, but the number of recruits dropped steadily. The CIA decided to try a new ap- proach. "We began looking at it, got together with them (the ad agency), and decided that the old ads were too sterile," the spokesperson said. "They needed to be pepped up." They were also targeted at a wider audience with an advertising campaign in 12 majornewspapers.