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August 01, 1978 - Image 14

Resource type:
Michigan Daily, 1978-08-01

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Page 14-Tuesday, August 1, 1978-The Michigan Daily
Dollar hits new lows on orein

NEW YORK (AP) - The dollar con-
tinued to tumble on foreign exchange
markets yesterday, hitting new lows
against the Swiss franc and Japanese
yen, but dealers generally were at a
loss to explain the continuation of the
American currency's fall.
In Tokyo, the dollar opened at
another record low of 188.50 yen on the
Tokyo foreign exchange market this
morning and fell sharply in early
The U.S. currency hit 187.50 half an
hour after trading began, then rallied to
187.70-80. Yesterday's close was 190.80.
Traders saw no particular reason for
the sudden drop, except perhaps reac-
tion to overnight lows in Europe and
New York.
It was the seventh consecutive
trading day of new lows for the dollar,
making the total decline 13.75 yen since
a week ago last Friday.
But gold prices slacked off from
Friday's record highs in London and

A dealer at a major British bank said
there was dollar selling "from
everywhere" but without any new
development to account for it.
In Zurich, the U.S. currency closed at
1.7370 Swiss francs, down from 1.7525
In Tokyo, the dollar wound up at
190.80 yen, compared with 192.125 yen
at closing on Friday.
It was the dollar's sixth postwar
record low against the yen in as many
days, with its total drop for the period
reaching 10.45 yen.
The dollar closed at 201.25 yen the
previous Friday, just before it started
its plunge through what had been seen
as a psychological barrier at 200 yen.
Finance Minister officials blamed the
yen's continued rise on speculative
buying by foreigners.
One banker said U.S. Federal Reser-
ve Board Chairman G. William Miller's
statement that inflation in the United
States is "very disturbing" prompted
traders to move from dollars to yen.
The Carter administration is predic-

ting inflation will reach 7.2 per cent in
the United States this year, and
foreigners take thesanticipated rate of
inflation - which cuts into the dollar's
buying power - into consideration
when they purchase dollars for trade or
speculation. Many economists fear that
the inflation rate could rise as high as 10
per cent this year.
The West German mark, considered
one of Europe's strongest currencies;
joined the dollar decline yesterday. The
dollar's closing price in Frankfurt was
2.0430 marks, compared to Friday's
The dollar fell against all currencies
in New York, especially the yen.
Near the close of New York trading,
the dollar was quoted at 189.05 yen,
compared with 192.75 on Friday. Other
prices in New York included:
2.0320 marks, compared to 2.0458
yesterday; 4.3635 French francs, com-
pared to 4.3865; 1.7235 Swiss francs,
compared to 1.7635. The pound sold at
$1.9305, up from $1.9245 Friday.

S. Africa OKs Western plan
for S-W african independence

PRETORIA, South Africa (AP) -
South Africa approved a U.N. Security
Council resolution yesterday
authorizing Secretary-General Kurt
Waldheim to send a special represen-
tative to South-West Africa to begin im-
plementing a Western plan for the
territory's independence.
It reserved the right to turn down the
U.N. envoy's recommendations and
rejected a Security Council resolution
calling for the "early re-integration" of
the disputed port of Walvis Bay into
South-West Africa, also known as
Namibia. Foreign Minister R. F. Botha
made the announcements at a news
South-West Africa has administered
by South Africa, a former German
colony, under a League of Nations
mandate since voided by the United
Walvis Bay is the only deepwater port
from the Angolan border to near
Capetown. South Africans consider it
important because the Navy uses it to
monitor merchant shipping, foreign
and local fishing quotas and Soviet
naval activity along the African
The United States, Britain, Canada,
France and West Germany have been
negotiating for 18 months with South
Africa and the guerrilla-backed South-
West Africa People's Organization over
a settlement plan for Namibia's
peaceful transition to majority rule and
The Western plan calls for U.N.
supervised elections, a U.N.
peacekeeping force of several thousand
troops, a U.N. administrator to work
with the current South African-
and for South Africa to reduce its
military presence in the territory from
about 18,000 troops to 1,500 soldiers,
located in two bases in the north along
the Angolan border.
SWAPO, which sends guerrillas into
Namibia from bases in Angola, is
strongest in the north. It wanted South
African troops located in the southern

a statement it "is willing to receive the
U.N. special representative for
Namibia," and based on his recom-
mendations would accept or reject the
Western plan for the territory's in-
It criticized the Western powers for
supporting the Walvis Bay resolution,
saying all five had agreed "all aspects
of the question of Walvis Bay must be
subject to discussions between South
Africa and a future government of an
independent Namibia."
"Bearing in mind the manner in
which this issue has been dragged into
the ambit of the proposal, the South
African government is deeply concer-
ned that the letter and spirit of the
proposal would not be observed and
implemented by some of the parties,"
the statement said.
It said South Africa would want to
"satisfy itself that the letter and spirit
of the proposal will indeed be honored"
on issues such as the size of the South
African security force allowed to stay
in Namibia during the transition, size
and composition of the proposed U.N.
peacekeeping force, and elections
before the end of the year.
Prime Minister John Vorster told
reporters "the cabinet fully con-
sidered" the Namibian question and
"the government reply will be tran-
smitted to Dr. Waldheim."
The Security Council approved the
U.N. resolutions last Thursday, and
Vorster said then his government "un-
conditionally rejected" the one on
Walvis Bay.
Although Walvis Bay is in South-West
Africa, South Africa wants to hold onto
the port after South-West Africa
becomes independent.
On April 25, South Africa approved
the Western plan, which did not men-
tion Walvis Bay.
At the time South Africa said it would
be willing to negotiate with an indepen-
dent Namibia on the future of Walvis
Bay. SWAPO said it would not accept
the Western plan unless it called for the
inclusion into Namihia nf Walvis Bav.

Africa since 1878 and was never part of
the former German colony of South-
West Africa.
South-West Africa is scheduled for
independence Dec. 31. The ad-
ministration in Namibia has been
registering voters in anticipation of an
election, with or without international
supervision. The administration an-
nounced yesterday that 312,000 of an
estimated 444,000 eligible voters, or 70
per cent of the total, had signed up to
vote. The registration campaign ends
Corps is
well and
for you.
All your life you've
wanted to do something im-
portant for the world. Now a
lot of the world needs you to
do it. We need volunteers with
skills and all kinds of practical
knowledge. Call toll free:-
800-424-8580. Peace
This Newspaper s

Late dollar rates in other financial
centers, with Friday's late quotes:
Paris - 4.3693 French francs, down
from 4.3775.
Amsterdam - 2.2030 Dutch guilders,
down from 2.2085.
Milan -842.00 Italian lire, down from
The pound rose in London to end the
day at $1.9287, against $1.9270 Friday.
Gold ended the day in London at
$200.35 an ounce, compared to Friday's
rate of $201375. In Zurich, Europe's
other major bullion market, the price
was $200.125, down from $201.125 at
Friday's close.
As the dollar declines, American ex-
ports may become more competitive
and American investments may
become more attractive. A sizeable
portion of U.S. payments to oil-export-
ing countries, for instance, has retur-
ned to America as purchases of
Treasury and other securities. But al
the same time, a weaker dollar can for
ce the prices of imports higher and thu
fuel inflation.
urged to
reject pact
(continuedfrom Page 3)
ticipated inflationary rises.
Local NALC members have also filed
an unfair labor charge (ULP) with the
National Labor Relations Board
(NLRB), accusing Postmaster General
William Bolger of intentionally in-
timidating postal employees by sending
them letters in which he warned
workers they would face felony charges
and unemployment if they strike.
BOLGER SENT the letter to all of the
nation's 600,000 postal employees just
prior to the last contract's expiration
date, July 20.
"For him to do so at that time," said
local NALC President Louis Brough,
"was not just informing the employees
of what the law is, but, because of the
manner in which the letter is worded,
made employees afraid for their very
jobs, as well as the possibility of arrest,
the loss of all their benefits, and of ever
again holding any kind of federal job.
Schaefer said a NLRB representative
from Detroit came to Ann Arbor last
week to interview postal employees.
The agent, Jerome Schmidt, refused to
accept testimony from 12 witnesses
who complained to Brough and
Schaefer about the letters. Schaefer
said Schmidt decided he would prefer to
speak to workers randomly.
BUT IT IS NOT certain whether the
NLRB will investigate the case.
Schaefer said NLRB Regional Director
Bernard Gottfried and other labor of-
ficials will make a firm decision on
whether to investigate within a few
City Postmaster Richard Schneeber-
ger said Bolger simply informed postal
employees what the consequences
would be if they decided to strike.
"The postmaster was just reminding
people- -what the law, is," said
Schneeberger. ' - '

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