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August 03, 1978 - Image 4

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Publication:
Michigan Daily, 1978-08-03

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Page 4-Thursday, August 3, 1978-The Michigan Daily
omichigan DAILY
Eighty-eight Years of Editorial Freedom
420 Maynard St., Ann Arbor, MI. 48109
Vol. LXXXVIII, No. 57-S News Phone: 764-0552
Thursday, August 3, 1978
Edited and managed by students
at the University of Michigan
EDC not needed
C ITY COUNCIL recently hopped onto the
business bandwagon by approving an
Economic Development Corporation (EDC) for
the city to attract businesses and selectively
provide them with tax-free bonds.
Among the goals for EDC are the prevention of
corporate exits from the state and a mechanism
for local units of government to grant those
businesses a break. EDC now has the power to
issue bonds-as does City Council-and further
to relieve firms'of the burden of paying taxes on
the interest rates.
The need for a methof to keep business in the
area is apparent in many deteriorating cities
throughout the state. We find it embarassing that
Ohio's Governor Rhodes campaigned avidly and
persuaded Ford Motor to build a plant in Cincin-
nati which had been scheduled to be raised in
Michigan. This is only one example of cor-
porations emigrating to more generous business
climates.
However, it is not essential the city issues an
open invitation to corporations to build in Ann
Arbor. We don't need that much new industry.
Since the EDC plan would give these cor-
porations tax breaks,the only good they could do
for the city would be to establish new jobs. But
employment is only five per cent in Ann Arbor, to
per cent less than the national average, and
whatever would be gained in reduced unem-
ployment would be more than offset by the
strains of these under-taxed corporations would
put on residents.
Ann Arbor does not need any more cor-
porations that will not pay taxes, siphoning away
our city services in the form of attractions to
businesses such as improved roads, fire and
police protection, sewage treatment and so on.
The University already receives those breaks
and services.
Worse, bargaining will go on behind closed
doors. Citizens will only be able to speak at the
mandated public hearing if there is a substantial
number of residents in the firm's site area.
Council will then have to say yes or no to the
package without any chance of amendments or
alterations. Any opposition will likely be
squelched along party lines as it is now.
Further the EDC offers will probably become
more and more costly to the city as firms play
one town off against another.
The idea of retaining and eventually im-
proving the city's tax base is appealing. But the
city will not see financial advantages until after
the bond is paid off and the tax breaks expire. In
the meantime, citizens are supporting the firms
not only as customers, but as taxpayers as well.
Detroit may need EDCs, but Ann Arbor's em-
ployment is almost as good as it can be-we're
already headed for diminishing federal aid. The
Republicans say.we can't afford not to compete
since everyone else-ds,b t;we're happy ®°say,

Sadat is the only
obstacle to peace

By Michael Arkush
The current impasse in talks
between Egypt and Israel has
convinced even the most op-
timistic Middle East experts that
peace in the region is many years
in the future.
The once hopeful climate has
gradually eroded into a flood of
despair and bitter rhetoric, with
both sides blaming the other for
the deadlock.
ARAB LEADERS never miss
an opportunity to chide Israeli
Prime Minister Menachem Begin
for placing his religious ex-
tremism above territorial con-
cessions. Begin, on the other
hand, calls Egyptian peace
proposals, "shallow and uncon-
structive."
Both sides can be faulted for
failing to propose meaningful
concessions at a time when sub-
stantial progress is absolutely
essential.
But most of the blame for the
stalemate must be attributed to
the man who courageously
initiated the now-stalled peace
process, Egyptian President An-
war Sadat. Sadat's unpreceden-
ted visit to Israel last November
set off a chain of events leading to
the first direct Arab-Israeli peace
negotiations in 30 years.
SOON AFTER his visit,
American and other Western
leaders enthusiastically hailed
the Mideast peace process as a
significant achievement. They
lauded Sadat for overcoming
enormous barriers to a peaceful
solution through direct com-
munication with the opposing
side. Wherever Sadat travelled,
he was greeted by rousing ap-
plause. Time Magazine selected
him as its "Man of the year."
That was in December when ten-
sion in the traditionally troubled

area had cooled down con-
siderably, but not for long.
IN January, the Egyptian
leader abruptly withdrew a team
of negotiators from Jerusalem.
He complained that the Israelis
were unwilling to retreat from
lands captured in the 1967 War.
.7
,Y
Sadat
In the ensuing months, Sadat
repeatedly threatened that the
peace process would be severely
harmed unless the Israelis began
to offer constructive proposals.
He called for the Begin gover-
nment to sign a declaration of
principles granting autonomy to
the Palestinians and agreeing to
return all occupied land,
specifically the West Bank, the
Gaza Strip and parts of the Sinai
desert. But he offered nothing in
return.
HE DID propose to officially
recognize Israel as an entity in
the Middle East, but the Israelis
have acknowledged the existence
of Arab state for the last 30
years.

By mid-spring Sadat's grand
plan was working brilliantly. By
appearing eager and willing to
negotiate, he received over-
whelming support from the Car-
ter administration. Sadat per-
suaded the American gover-
nment to tell the Israelis to soften
their hard-line stance or face
losing an excellent peace oppor-
tunity.
Just last week, the Egyptian
president delivered his most bit-
ter warning to date. In effect, he
told the Israelis that all dialogue
between the two sides will stop
until the Begin administration
agrees to withdraw from the oc-
cupied teritories, even before
opening official peace talks.
Sadat also ordered an Israeli
negotiating team to leave Cairo.
THESE latest developments
have created uneasiness in the
Carter camp. Secretary of State
vance said he was "very disap-
pointed" and planned to make a
desperate trip to the Middle East
to salvage any remote hopes of
further direct peace talks.
Sadat has also tried to pressure
the Begin government by holding
talks with the leader of the op-
position party in Israel, Shimon
Peres. Sadat has deliberately
avoided meeting with the Israeli
leaderin hopes of arousing sup-
port in the country to oust Begin.
Sadat said recently that "Begin
is the only obstacle to peace" but
just the opposite appears to be
true. If Sadat continues to con-
tribute no more than useless
rhetoric, he will be proving that
achieving peace in the Mideast
must wait for future leaders.
"
Michael Arkush is a Daily
staff writer.

LETTERS TO THE DAILY:

Political prisoners abound

To The Daily:
Andy Young did not exaggerate about the human
rights violations in our own country. Mayor
Coleman Young, Douglas Fraser and many others
will testify that Andy understated the fact. The
crimes being perpetrated by capitalism against the
working class, the disadvantaged, the dissidents
and the activists, though not publicized, are there
for all to see. The jails of American allies Iran,
South Korea, Philippines, Argentina and others are
packed with political prisoners. And the Supreme
Court - watch dog of capitalism.- keeps chipping
away at our civil liberties. The recent ruling on

Zucher vs. Stanford Daily all but abrogates the
Fourth Amendment.
So the main purpose of President Carter and the
media is to distract the attention of human rights
violations here at home by pointing an accusing
finger at Russian despotism.
We of the Socialist Labor Party say a plague on
both your houses, it's a case of a pot calling the ket-
tle black.
Only under Socialist Industrial Republic of Labor,
will human rights and civil liberties be inviolable.
-Frank Troha

Editorials which appear without a by-line represent a con-
sensus opinion of the Daily's editorial board. All other editorials,
as well as cartoons, are the opinions of the individuals who sub-
bmit them.

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