%k ,michiga n D I Ann Arbor, Michigan Ten Cents Vol. LXXXVIII, No. 50-S Tuesday, July 25, 1978 Sixteen Pages I .AV 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- CALLS BELCHER 'AMORAL': 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. THE FIRST CLASH was Friday night, according to the police statement, when one guerrilla was seriously wounded after attempting to rob a beer hall in the black township lof Mufakose. The guerrilla opened fire with an automatic weapon when police arrived. The Shangara beer hall was badly damaged in the ensuing battle, police said. 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. EARLY SATURDAY afternon, 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 By JUDY RAKOWSKY 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 funding. 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.