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January 31, 1980 - Image 5

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Publication:
The Michigan Daily, 1980-01-31

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The Michigan Daily-Thursday, January 31, 1980-Page 5
RECESSION MIGHT WORSEN, GOVT. SAYS
Oil, prices could hurt economy

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WASHINGTON (AP) - Another
sharp increase in world oil prices could
seriously worsen the already gloomy
outlook for the nation's economy this
year, President Carter and his advisers
said yesterday.
In addition, the president said iR-
flation almost certainly will be wors6 if
workers try to recover all of thy in-
crease in last year's energy ,costs
through higher wages this year.,,
"THE MOST immediate prtblem in
1980 is to ensure that last y r's sharp

increase in energy prices does not
result in a new spiral of price and wage
increases that would worsen the un-
derlying inflation rate for many years
th come," Carter said in his annual
r'economic report to Congress.
The report repeated the ad-
ministration's forecasts of a mild
recession in the first half of 1980 with
unemployment rising to 7.5 per cent
and consumer prices increasing 10.4
per cent this year and 8.6 per cent in
1981. Prices increased 13.3 per cent last

year:
But as bad as they are, those
forecasts assume world oil prices will
increase only slightly more than the
rate of inflation, or not much more than
10 per cent. This seems especially op-
timistic since the Organization of
Petroleum Exporting Countries
(OPEC) doubled their prices in the past
12 months.
IN ADDITION, Saudi Arabia and
several other oil producers announced
new increases in their oil prices of

about eight per cent just this week.
Charles Schultze, the chairman of
Carter's Council of Economic Advisers,
acknowledged to reporters that
should oil prices rise significantly
more" than the forecast, "it would
cause us some trouble."
Schultze also said the administration
projects the increase in domestic oil
prices at about 20 per cent. Domestic oil
prices would rise more than the world
price as the result of Carter's program
to lift existing controls from domestic
prices.
The annual economic report, which
was prepared by the Council of
Economic Advisers, was even more ex-
plicit about how another major in-
crease in oil prices could affect the
economy in 1980.
"As in 1979, a major threat to the
outlook is that OPEC decisions about
prices and production may lead to in-
creases in world oil prices that go well
beyond those announced recently," it
said.

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Deng innts on freedom of speech
wll. strengthen party discipline

HAPPY HOUR
MON.-JHURS. 8 PM'til Close

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PEKING (AP) - Senior Deputy Premier Deng
Xiaoping has called for a crackdown on freedom of ex-
pression and urged a tightening of party discipline in
China, Chinese and diplomatic sources said yesterday.
One diplomat called it "turning the screws" on in-
tellectuals who do not toe the line.
The sources, who requested they not be identified by
name, said Deng delivered the major policy speech two
weeks ago in Peking before 10,000 Communist Party of-
ficials.
IN THE SPEECH, Deng urged that China's "big
four" freedoms - to speak out freely, air views fully,
hold debates and write wall posters - be abolished, the
sources said.
He also said China's 36 million-member Communist
Party had become cumbersome, inefficient and un-
disciplined. Its members should obey party pules, be
well-trained and retire when they get too old, the sour-
ces quoted Deng as saying. Deng is 75.
The speech was not reported in the official press but

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its contents have gradually become known. Several
Chinese sources said they heard a tape recording of it
and that Deng was applauded several times.
SINCE DENG reportedly delivered the speech, the
official press has run a series of commentaries
stressing the importance of unity and stability as China
works toward becoming a modern industrial nation by
the turn of the century. "Socialist democracy" was
upheld, while "bourgeois democracy" - unrestricted
freedom and individualism - was denounced.
Diplomatic sources said the speech was intended to
increase party discipline, intimidate outspoken in-
tellectuals without purging them and set the tone for an
upcoming meeting of the party's Central Committee,
which last met in September. Some sources said the
meeting could come within two weeks.
In a recent speech that was made public, Deng
denounced the type of people, he said, had used posters
for improper ends and declared "China cannot stand
turmoil."

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Soviets tighten military control

By United Press International
* Soviet troops yesterday tightened
"their control over occupied
Afghanistan, sending their tanks rum-
bling through Kabul in a more visible
military profile.
Meanwhile, U.S.- Ambassador
Thomas Watson Jr. met Wednesday
with Soviet Foreign Minister Andrei
Gromyko, the Soviet news agency Tass
reported.
Tass said the meeting "touched upon
matters of Soviet-American relations
*and also on some international
problems." No other details were
given.

A U.S. Embassy spokesman confir-
med the meeting, but said he could
disclose no information about it.
With the Soviet occupation in its
second month and continued hostility
from the population, the Russian troops
were making little effort to maintain
the official position that the Moscow-
installed government Afghan is in
charge.
A UPI correspondent' reported from
Kabul that a pistol-packing Soviet
colonel summarily turned back an
Afghan official who was taking Western
correspondents on a guided tour to
show atrocities by the previous regime.
PRESS PASSES issued correspon-

dents by the Afghan Information
Ministry to visit the countryside were
disregarded by Soviet troops, who tur-
ned reporters and camerapersons
back.
The Times of London reported
Afghan political prisoners thought to
have been executed in the past two
years since Afghanistan's first Marxist
coup actually are being held inside the
Soviet Union.
The newspaper said it learned of the
political prisoners from a letter
smuggled out of the Soviet Union with
the help of a Russian worker and an
Afghan student.
THE REPORTER said armored per-
sonnel carriers and tanks from the
18,000-strong Soviet force camped out-
side the capital clanked on patrol amid
signs of a beefed-up Soviet security
ring.
This followed the shooting of at least
two Soviet soldiers last week - the first
confirmed attack on the invaders inside
snow-bound Kabul.
Scores of new roadblocks have gone
up on all roads leading out of the
capital, manned either by Soviet troops
or Afghan soldiers - usually with a
Russian detachment nearby.

NEED A SECOND CHANCE'

Winter storms hit,
14 killed in West

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From Associated Press
A winter storm that left 14 people
dead, and Southern California mired in
mud and some Western states buried
under knee-deep snow pushed into the
nation's midsection yesterday,
spreading treacherous ice into Dixie.
At least 8,000 people were evacuated
from the border city of Tijuana,
Mexico, Baja, California Gov. Roberto
de la Madrid said. He estimated as
many as 12,000 may have to leave their
* homes as a result of the flooding.
HE SAID the flood began when a
small dam broke, overflowing a second
dam downstream and forcing it to open
its spillways.
A Mexican highway patrolman died
when a bridge between Tijuana and
Ensenada collapsed in the flood, of-
ficers said.
In the United States, hundreds of
schools closed, lights went out and cars
slammed together as the storm that
@produced Utah's heaviest snowfall in
six years pushed into Kansas,
Nebraska, Oklahoma, Arkansas,
Missouri, Illinois, Tennessee and nor-
thern Alabama.
A HITCHHIKER who caught a ride
on a truck in northwestern Missouri'
became the 14th person to die in
weather-related accidents in two days,
when the truck crashed into another
truck. The driver told police he was
*blinded by the snow.
In Southern California, where five
people died in earlier rainstorms, mud
was 10 feet deep on one street in San
Bernardino and overflow from the dam
in Tijuana covered parts of San Diego,
drowning 15 horses. A mudslide in the

Los Angeles suburb of Malibu blocked
the northbound lanes of the Pacific
Coast Highway.
The storm, in its march to the east,
dumped 18 inches of snow in Salt Lake
City, gave Colorado up to 20 inches of
new snow and smothered Flagstaff,
Ariz., under 25 inches. Four inches of
rain in the mountains threatened to
produce serious flooding in the nor-
mally dry Salt River bed in Phoenix,
Ariz.
SCHOOLS AND many businesses in-
Flagstaff and Williams were closed.
Arizona Public Service Co. said 200
families were left without electricity
when a power line fell across Interstate
17. About 50 other families had their
power knocked out in the Parks area
when trees toppled onto power lines.
A glaze of ice covered most of
Oklahoma, causing an accident that
killed two people near Wagoner on
Tuesday night and forcing schools to
close in Oklahoma City, Tulsa and hun-
dreds of other districts.
ABOUT 1,540 residents of Eufaula,
Okla., had to brave a night without heat
in sub-freezing weather when a gas line
was ruptured by a dynamite blast just
north of town. Fifteen large aircraft
heaters were trucked in from Tinker
Air Force Base to provide heat for four
nursing homes and the Eufaula
Hospital.
The Oklahoma Highway Patrol
reported hundreds of cars off in ditches
along the interstate highways and there
were about 90 traffic accidents in
Oklahoma City alone after the icy driz-
zle started at rush hour.

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