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July 25, 1978 - Image 1

Resource type:
Michigan Daily, 1978-07-25

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,michiga n D I
Ann Arbor, Michigan Ten Cents

Vol. LXXXVIII, No. 50-S
Tuesday, July 25, 1978
Sixteen Pages



Dollar drops to
new low; Japan,
U.S. worried

TOKYO (AP)-For the first time in
post-war history, the dollar closed
below 200 Japanese yen on foreign ex-
changes yesterday, a psychological
barrier whose crossing worried both
Japanese business people and hard-
pressed Americans here.
Japanese government economists
said the U.S. currency would probably
bounce back above 200 yen, but some
exchange dealers disagreed, predicting
it might continue to plummet to about
180 yen in the next few months.
AT THAT POINT, Americans would
be shelling out $27 for a restaurant meal
that cost them $17 just 19 months ago.
The dollar closed yesterday at 199.05
yen, down from 201.25 yen last Friday
and 229 yen as recently as late May.
The dollar also plunged against major
European currencies. The British
pound, for example, closed at $1.9424,
against $1.9121 Friday.
The fall below 200 yen came despite
stiff resistance from Japan's central
bank. Of the extremely large spot
trading total of $900 million, the Bank of
Japan bought an estimated $400

million, most of it just above 200 yen per
dollar. But even that couldn't keep it
from dipping below 200.
IN THE PAST YEAR, the value of the
dollar has fallen almost 30 per cent
against the yen and about 20 per cent
against the West German mark and
Swiss franc. The decline has pushed up
the price of imports into the United
Staes-the government estimates it has
added three-quarters of a percentage
point to the nation's inflation rate since
last September.
Although widely expected, the
breaking of the 200 barrier was the top
item in Japanese newspapers and news
broadcasts, in which business leaders
expressed concern over the effect on
Japan's economic recovery.
The basic factors behind the dollar's
drop here remain Japan's large trade
surplus, which produces a dollar sur-
plus on the Tokyo market, and inflation
in the United States.
BANK OF JAPAN and Japanese
Finance Ministry officials attributed
the drop to speculation and said the
See DOLLAR, Page 14

Rhodesian war leaves

three dead
AP Photo SALISBURY, Rhodesia (AP)-Black
nationalist guerrillas and Rhodesian
- A Rose by no other nam e security forces clashed in the capital of
Cincinnati Reds' third baseman Pete Rose looks to the heavens seeking divine Salisbury over the weekend for the first
inspiration as he follows the path of a flyball hit in the fifth inning yesterday. time in six years of war, leaving three
Rose's prayers were apparently answered as he crashed a seventh inning single insurgents dead and two wounded,
later, tying the National League record of hitting safely in 37 consecutive games. police reported yesterday.
Details on Page 16. At least one black civilian was woun-
Wheeler slams fund proposals

in capital
ded in three shootouts in segregated
black suburbs within eight miles of the
central district, according to a
statement that ended an official three-
day censorship,ban on the incidents.
night, according to the police
statement, when one guerrilla was
seriously wounded after attempting to
rob a beer hall in the black township lof
The guerrilla opened fire with an
automatic weapon when police arrived.
The Shangara beer hall was badly
damaged in the ensuing battle, police
Police said three guerrillas "traced"
to a house in the Highfield township in
follow-up operations were shot dead af-
ter they hurled grenades at police who
surrounded the house. Reporters
visiting the scene found windows and
the back door were shattered, about
2,000 bullets appeared to have peppered
the building and the concrete floor was
gouged by apparent grenade blasts.
another guerrilla and a black onlooker
were wounded in the third shootout at a
Highfields beer hall, police said.
"Police opened fire when the
terrorist attempted to throw a grenade

Former Mayor Albert Wheeler returned to City Council
last night to head public opposition to proposedCommunity
Development Block Grant (CDBG) amendments, which
would siphon funds from neighborhood facilities, minority
business assistance, legal services and other areas.
Wheeler targeted his protest at Mayor Louis Belcher,
charging that his mayoral behavior has been "amoral," and
that he has shifted federal appropriation priorities from
human services to street resurfacing. Wheeler added the
streets to be repaved have not been specified to the public
and the Department of Housing and Urban Development
(HUD) might first have togive its approval.
THE BULK OF Wheeler's attack,, echoed by several
citizens last night, was waged on the reappropriation of

Arrowood and Bryant. With the proposed changes, $153,000,
remains for the Model Cities Center to be divided among
child care, legal services, and health care from the CDBG
He said the central city area holds 6,500 CDBG-eligible
households, whereas the southeast and northeast areas hold
1,300 and 12,000, respectively. Therefore, Wheeler said,
"Sheer arithmetic explains the need for CDBG funds."
Wheeler opposed de-emphasizing child care programs,
the $15,000 reduction in minority business assistance funding,
and the same drop in public housing tenant services. The ap-
propriation shifts must be approved by HUD because they
refer to fundings from past applications which for various
reasons have not yet been spent. Also, by federal regulations,
the city must submit its changes if any of the alterations ex-
ceed 10per cent of the total CDBG budget.

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