The Michigan Daily Vol. LXXXVII, No. 23-S Ann Arbor, Michigan-Saturday, June 4, 1977 Ten Cents Twelve Pages Jobless rate dips beloii WASHINGTON IIP) - The na- since last August. These prices employment r o s e by nearly price r e p o r t, but cautioned tion's unemployment r a t e fell had risen 1.1 per cent in March 400,000 in May. against reading too much into below seven per cent for the and the same in April, an annual Inflation has become the ma- only one month's figures. first time in two and one half rate of more than 13 per .cent. jor economic concern of the years and a sharp drop in farm Carter administration in recent RETAIL FOOD prices are ex- prices cooled inflation at the THE MAY jobless rate edged months because rapidly rising pected to continue rising sharply wholesale level in May, the gov- down to 6.9 per cent from seven prices could undermine Presi over the next few months before ernment reported yesterday. per cent in April, continuing an dent Carter's economic pro- easing later this year. Price in- Wholesale prices rose four- almost uninterrupted trend since gram. creases announced recently by tenths of one per cent last November w h e n joblessness Administration economists said the big steelmakers were not in- month, the smallest increase stood at eight per cent. Total they were pleased by the May cluded is the May report, but ---------- r7%o are expected to show up later. Nevertheless, the four-tenths per cent rise in wholesale prices last month was encouraging and represented a sharp improve- ment over increases earlier this year. Both wholesale and consumer prices increased at a ten per cent annual rate during the first four months of the year. WHOLESALE p r i c e trends generally show up at the retail level, though there are time lags and the relationship isn't always precise. The Labor Department said a 2.3 per cent drop in farm prices last month - the first decline since November-helped to hold down the overal increase in wholesale prices. Prices fell sharply for grains, eggs, cocoa beans, tea and poul- try. Green coffee prices declined three-tenths of one per cent, the first drop since November. How- ever, the g ove rn me n t said wholesale coffee prices were still 218 per cent above a'year ago. PRICES OF processed foods and feeds rose 1.8 per cent last month following a gain of 2.5 per cent in April. Industrial com- modity p r i c e s increased four- tenths per cent, an improvement from the six-tenths per cent rise the previsus month. Surgical workers protest low wages By SUE WARNER University Hospital operating room technicians failed to re- port to work yesterday morn- ing, but after a meeting with hospital management, after- noon shift employes showed up for work as scheduled. According to Doug Geister, Medical Campus personnel manager, the meeting between management and some of the more than 20 technicians was arranged to discuss why the workers called in sick. He indi- cated that pa of the problem was lack of communication be- tween management and em- ployes. "WE TALKED to them about a number of concernss," said Geister, I think we've resolved those concerns and the techni- cians will report to work tomor- row", Reportedly, the employes were acting in an effort to se- cure a wage hike from the uni- versity. They are presently or- ganized in an informal bargain- ing group. Geister said the walk out did not affect surgery in the hospi- tal's 19 operating rooms, Nurse and other qualified staff mem- hers stood in for the techni- cians, Jazzy corner Flautist Paul Vornhagen and bassist Terry Silver set up a celebrative beat to the background of yesterday's blue skied after- noon on the corner of State and North University. Looking on is Ann Arbor's renowned keyboard, vocalist king of the flute, Martin Simmons. EXCHANGE ENDS 16 YEARS OF HOSTILITY: U SC to sw iomats WASHINGTON O)-The United States and Cuba moved yesterday to end 16 years of official hostility by swapping diplomatic teams that will take up problems standing in the way of full restoration of relations. At the same time, the Marxist government of President Fidel Castro said it would re- lease 10 of the 30 Americans known to be in Cuban prisons and would review the cases of those remaining in jail. The names of those released, all being held on drug charges, were withheld until their families were notified. -THE STATE Department called the, an- nouncement a goodwill gesture but said it "was not part of the deal" to establish dip- lomatic "interest sections." The decision to accept Cuban diplomats represents a major shift in policy toward Havana. The announcement was made at the same State Department podium where for years the Castro regime was regularly accused of stirring up subversion in the western hemisphere. The exchange of up to a dozen diplomats on each side will be carried out within three months. THE CUBANS will be based in their old embassy quarters here, which have been maintained by Czechoslovakia since rela- tions were broken in 1901 in the waning days of the Eisenhower administration. Technically the Cubans will operate under the Czech flag. Similarly, the Americans in Havana will move into the old U.S. embassy building there but under the sponsorship of Switzer- land, which looked after the interests of the U.S. citizens traveling and living in Cuba during the 16-year impasse. "This agreement will facilitate communi- cations between the two governments and will provide a greater range of consular services for the citizens of the two coun- tries than are currently available," the State Department said. HAVANA announced the move late Thurs- day although U.S. officials said there would be simultaneous announcements in both countries. U.S. officials said the American diplomats would discuss with Cuba the presence of Cuban "advisers" in Africa, some $1.8 bil- lion in claims against Cuba by U.S. citizens, the plight of the remaining American pris- oners and other subjects. Cuba is one of 14 countries with which the United States has no formal relations and Carter has-said he would like to estab- lish links with all of them. The President said earlier this week of Cuba that "we still have a lot of differences between us" but that "full friendship" was an ultimate goal.