The Michigan Daily-Thursday, June 15, 1978-Page 7
Carter aide: inflation attack vital
WASHINGTON (AP) - A key mem-
ber of the Carter administration predic-
ted yesterday the United States is
headed for another recession if
progress isn't made against inflation in
the next six months. "I give the
economy no more than six months. If
we can't do something this year about
inflation, we are going back into
another recession," said Barry
Bosworth, director of the Council on
Wage and.Price Stability.
"We have just put this economy
through a roller-coaster and no one
knows where it's going. . . We are
rapidly emerging into a state of chaos,"
he said ina speech.
HE SAID later in elaborating on his
remarks that he didn't know when a
recession would occur. "I don't know
the timing.. . The point I was making
is that we have six months to demon-
strate progress, or pressures will
mount for a recession."
It was the first time a key member of
the administration has expressed con-.
cern publicly about the possibility of a
recession. Chairman William Miller of
the independent Federal Reserve
Board has previously warned of a
recession because of inflation.
Bosworth told a meeting of the
Airline Pilots Association here that the
threat of a recession can already be
seen in the "policy of the Federal
Reserve Board," which has been
raising interest rates, and "the public
screaming" for the government to do
something about inflation.
CONSUMER PRICES have been
rising at a rate of about 10 per cent the
past three months.
Meanwhile, Carter told a news con-
ference that Congress has a respon-
sibility to help control inflation by
holding down federal spending and that
he would veto a $1.4 billion public works
spending bill if it contains water projec-
ts previously abandoned by Congress.
Carter also said that California
communities can't routinely expect the
federal government to offset the loss of
revenue from the recent property tax
rollback in that state.
"I DON'T think there is any
possibility of our passing specific laws
just to deal with California ... We have
no inclination to seek out California for
special treatment just because they
have lowered property taxes," he said.
Earlier Wednesday, Budget Director
James McIntyre Jr., said a growing
taxpayer revolt in the nation probably
is directed as much at the federal
government as at state and local
A GOP plan to cut individual federal
income taxes by an average of 33 per
cent picked up its first Democratic sup-
porter yesterday in the Senate.
SEN. SAM NUNN (D-Ga.), endorsed
the plan and said: "Clearly, the
message with respect to levying taxes
is: like shearing sheep, you stop when
you reach the skin."
Bosworth, in stressing the need to
bring inflation more under control, said
the administration of former President
Richard Nixon purposely created the
recession of 1974-75 in an unsuccessful
effort to control inflation in that period,
and he said another recession would be
In an appeal to major labor unions to
cooperate in the anti-inflation fight by
restraining wages, Bosworth said
statements by George Meany,
president of the AFL-CIO, that unions
would wait until prices slowed before
slowing wage demands were "nonsen-
See CARTER, Page 11
Helms says public cirticism has
WASHINGTON (AP)-Former CIA Director
Richard Helms says criticism of the agency has
resulted in "a hobbled service, the illusion that you
have an effective service, but don't have one."
Helms, onteime CIA Director William Colby and
Thomas Karamessines, the agency's former direc-
tor of clandestine activities, gave their views in an
interview scheduled for broadcast last night by the
Public Broadcasting Service (PBS).
"In light of what's happened to our country in the
last few years and the manner in which we've
managed to tear our intelligence services apart, if I
were the head of the KGB sitting in Mowcow, I
would be absolutely delighted," Karamessines said.
PORTIONS OF THE trio's interview filmed at
CIA headquarters were subject to review for
security reasons. But the program's sponsors said
the CIA exercised no editorial control over the
broadcast, which was made available to about 200
educational television stations.
Colby agreed with Helms' assertion that the CIA
has been harmed by public criticism.
"We have foreign intelligence services where
they have crimped down on the kind of sensitive in-
formation they used to share with us," he said.
"And we are now barred from that material. I think
we've hurt ourselves in that respect."
Karamessines was asked about possible CIA in-
filtration of terrorist groups abroad.
"I'LL HAVE TO be a little gingerly in describing
it but we did have an agent overseas who was a
penetration of a terrorist organization," he said.
"And this agent did report that a certain attempt
would be made on the life of Golda Meir in New
"That was in the early 70s. And it did develop that
the report we had was accurate and the only thing
further to say is that Mrs. Meir is still alive and
kicking. Thank goodness."
Colby was asked about abortive CIA plots to
assassinate Cuban leader Fidel Castro.
"Of course he is still alive-not for lack of CIA
trying," Colby said.
"ONE OF THE FINDINGS after eight months of
study by the Senate committee on assassinations
was that no foreign leader had ever been
assassinated by CIA," he added. "Now I think that's
a different impression than the sensational
reputation that CIA has around the world."
Colby was asked about assertions that the CIA
was involved in the Watergate scandal. Referring to
H. R. haldenan and John Ehrlichman, two former
top aides to President Richard Nixon, he said:
"Well, I think the Haldeman and Ehrlichman
books are absolutely outr.Igeious. Two people in
whose credibility I don't think anybody can give any
warrant whatsoever trying to put the red herring
across the trail, of saying theword CIA so that they
can somehow stand as either reformed or even in-
nocent in their original activities."
India refuses nuclear safeguards
WASHINGTON (AP) - Indian Prime additions to the arsenals, and that they until the 1980 deadline, President Car-
inister Morarji Desai said yesterday will be reduced and finished within a ter has decided to continue shipments
at even if the United States completes decade." of fuel to India. The House Inter-
comprehensive test ban treaty and a India and the United States are national Relations Committee on Wed-
ALT II agreement, India will not ac- headed for a confrontation in 1980 over nesday voted to go along with that
ept full scale nuclear safeguards. whether the United States will continue policy.
Desai's statement indicated that he to supply nuclear fuel for India's Desai said India was prepared to ac-
ad yielded no ground on the nuclear Tarapur power plant near Bombay. cept the consequences of its position.
afeguards issue during two days of The United States has a contract to
iscussins with President Carter. supply the fuel until 1983. INDIA HAS received nuclear sup-
AMERICAN officials, speaking But under a nuclear non-proliferation plies from several other countries, in-
rivately, say their best hope for law passed this year, the United States cluding Canada and the Soviet Union.
voiding a confrontation with India must, by 1980, cut off shipments to D .
ver the issue has been to include the countries which do not accept inter- Desai said the "real threat of a
wo treaties and then persuade India national safeguards which monitor nuclear holocaust comes from un-
hat it can accept the safeguards what happens to all their nuclear fuel checked vertical proliferation, which
'ithout losing face or a chance to ex- THE LAW is designed to help prevent every year icreases the probability of
boit peaceful nuclear technology. what happened in 1974, when Indian war by accident, if not ambition."
But Desai, speaking to the National scientists developed an atomic bomb, Vertical proliferation refers to the in-
ress Club, said the United States and using nuclear material that originated creasing number of missiles and
ther countries with nuclear weapons as reactor fuel. warheads deployed by the super-
ill have to go further to satisfy India's Desai has pledged that India will powers. Horizontal proliferation is the
equirements. conduct no more tests. But at the same increase in the number of countries
India would agree to safeguards time, he has refused to accept the which have nuclear weaponf n
onl if the militar reactors in the cafA dt Dimino the time remaining
Sat. Sun. Wed.,]3-57.a
Mon., Tues., Turs. Fri., 7-9
Sot Sun Wed 1-3-5-7-9
Vly 1 u 11 tiY Gtw S11t1
countries with nuclear weapons are
also changed to civilian, and they are
also open to inspection," he said.
DESAI SAID India feels the only sure
safeguard in the nuclear field would be
an agreement by the countries with
nuclear weapons "that there will be no
MARC HAS MOVED
(Medieval and Renaissance Collegium)
tab Tyler East Quad
'saeguarub . g g61 .IiCi~idtlt
The Ann Arbor Film Cooperative
presents at AUD A
Thursday, June 15
LAST TANGO IN PARIS
(Bernardo Bertolucci, 1973) 7 & 9:15-AUD A
MARLON BRANDO oppears os a sexually aggressive expatriate who embarks on a three-day
affair with Jeanne (MARIA SCHNEIDER). a young, modish Parisienne. The affair is a purely physical.
*solatd exper'en"e. and the apartment on island in which are examined certain aspec.ts of human
relationships. With JEAN-PIERRE LEAUD. "A film that has mode the strongest impression on me in
almost twenty years of reviewing -Pouline Koel.,R RtedX.Music by Oliver Nelson and Goto
Barbieri. In English and French ,with suhaitIes.
Tomorrow; Lubitsch's "TROUBLE IN PARADISE" & "THE MERRY WIDOW"
on Tues Thurs., Fri., 7-9
Sat. Sun Wed 1-3-5-7-9