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Ninety Years of Editorial Freedom
Vol. XC, No. 135 Ann Arbor, Michigan-Saturday, March 22, 1980 Ten Cents Eight Pages

Land deal
foes fail to
sway Regents

Daily Photo by JOHN HAC
REGENT DEANE Baker (R-Ann Arbor) shows the Regents a photograph of discussion yesterday on the land option they previously granted to developer
6* the site and surrounding area of a proposed high-rise. The Regents reopened John Stegeman, but made a few changes in the agreement.
UKhomeitspeaks
U.S., Soiets targets oves of strong verbal abuse

By SARA ANSPACH
Despite heated protests from various
members of the community, the
University Regents yesterday made
only minor changes in their agreement
to grant developer John Stegeman-an
option to buy some University land he
needs for a proposed high-rise project.
The Regents-with two members ab-
sent-had voted last month to grant the
option, but they agreed to reopen
discussion yesterday so the entire
board could consider the matter.
AT ISSUE IS a 16,659 -sq. ft. strip of
University land behind the Church
Street parking structure. Stegeman
needs the land to build his own parking
structure next to his proposed 32-story
complex. Without the new' parking
structure, the project would be very
unlikely to gainrthe necessary approval
from City Council.
At the Board's last meeting,
Stegeman told the Regents that present
plans for his building include 16 stories
of hotel space and eight stories each of
condominium and apartment space.
The housing is expected to be priced
well out of reach for most students.
The Regents did not actually sell the
land to Stegeman-they gave him the
right to purchsae it at' a calculated
market value anytime during the next
year, or two years if the agreement is
extended. In return for the purchasing
rights, Stegeman has agreed to pay the
University $5,000 for each year of the
pact regardless of whether he buys the
land.
If Stegeman does purchase the land,
he has agreed to provide the University
with an alternative driveway and entry
to the Church Street structure.
PERSONS OBJECTING to the
project say it would result in more
harm-including increased congestion
and undesireableyaesthetics-than good
for the University community.

Under the agreement revisions
reached yesterday:
" The use of the conveyed premises
are to be limited to parking in connec-
tion with a development with residen
tial purposes;
" The University shall have the right
to approve the engineering and design
of the new entry of the east side of the
Church Street parking structure which

Roach
defends position on land deal

From AP and UPI
.S. Embassy militants in Tehran
promised Persian New Year "goodies
and cookies" for their 50 American
hostages yesterday-and continued
imprisonment "until the criminal shah
is returned."
In a New Year's Day speech, Iranian
leader Ayatollah Ruhollah Khomeini
assailed Marxists, strikers, army
troublemakers, the Soviet Union, and
the United States. He also gave, a boost
President Abolhassan Bani-Sadr,
o is trying to assert central authority
over a nation still recovering from the
disruptions of revolution.
KHOMEINI MADE no mention,
however, of the hostages and their cap-
tors, young Moslem radicals who have
been among the most prominent in
defying Bani-Sadr's authority.
The hostages end their 20th week in

captivity today.
Khomeini has said the decision on
whether to free them must be made by
the new Iranian Parliament, .but the
election of its 270 members is not expec-
ted to he completed,, until mid-April,
and action on the hostage question is
not expected before mid-May or later.
KHOMEINI EXHORTED his people
yesterday to spread their"revolution
abroad, fight both the U.S.S.R. and the
United States with equal zeal, and
purge Iranian society of "intellectuals"
contaminated by Western thought;
"We are fighting against inter-
national Communism just as we are
fighting the Western world-devourers
led by America and Israel and Zionism.
My dear friends, you should know that
the danger of the Communist powers is
not less than that of America, and the
danger of America is such that if we

show the slightest negligence, we shall
be destroyed," Khomeini said.
Kohmeini was joined by President
Bani-Sadr who told the Soviet Union "to
get out" of Afghanistan.
IN WASHINGTON, State Depar-
tment spokesman David Passages said
yesterday that despite the stalemate
over the hostages,f the United States
had no intention of breaking relations
with Iran "because we continue to see
some purpose in thestatus quo."
It was learned that White House staff

chief Hamilton Jordan was in Panama
yesterday tryingt to break a deadlock
that has delayed surgery on the
deposed shah. The exiled ruler is un-
derstood to be facing surgery for an
enlarged and cancerous spleen.
White House spokesman ..Rex
Granum refused to comment on the
Jordan mission, which was not
acknowleldged officially. It was lear-
ned, however, that Carter directed
press secretary Jody Powell to fill a
speaking date for Jordan at Elberton,
Ga., last night.

is to be provided by the developer; and,
* The University shall have the right
to approve the engineering and design
of the alternative easement (driveway)
to the east which is to be provided by
the developer.
REGENT THOMAS Roach. (D-
Saline) moved to suspend the rules
yesterday so the Board could discuss
the issue. According to Robert's Rules
of Order, once a niatter has been ap-
See REGENTS. Page 2


'

experts discuss inflation war

Oibapiro: U' must be,
more imaginative in
minority conuitment

By JULIE BROWN;
The University must use more
l aginative means to reaffirm its
commitment to recruit and retain
minority students, University
President Harold Shapiro said yester-
day.
Shapiro, speaking before some 75
persons at the School of Education's
Schorling Auditorium, noted that,
changing demographic patterns and in-
creased budgetary restraints will affect
'prospects for recruiting and retaining
inority students at the University in
the coming decade.
Shapiro's address was part of a three-
day conference titled "The University
of Michigan: A Decade After the Black
Action Movement," sponsored by the
Center for Afroamerican and African
Studies.
"ONE THING I learned in many
years of forecasting is that you must-
know where you are," Shapiro said,

referring to his experiences as a mem-
ber of the University's Department of
Economics. "In most cases, that's
harder than you think. We have to un-
derstand that any decisions we may
make are at best uncertain, and it's
best to proceed with some sense of
humility.
"There's no question we've fallen
short of the BAM goals," Shapiro said.
BAM members sought, among other
goals, a minimum ten per cent black
enrollment by 1980. Shapiro agreed that
this goal has clearly not been met, and
stressed his commitment to increasing
minority enrollment.
University officials have tried
various programs over the years to in-
crease solid minority enrollment, but
they have expressed frustration at the
inability of any plan to significantly
help resolve the problem.
Shapiro noted that the number of
See MINORITIES, Page 2

By STEVE HOOK
A survey of University economic
experts reveasls a "wait and see"
sentiment about the Carter ad-
ministration's strategies to handle
inflation.
There is neither widespread sup-
port nor condemnation of the recen-
tly announced measures, which call
for a gradual slowing down of the
economy through tightened credit
controls and reduced government
spending.
According to most experts, the
success of President Carter's
proposals will depend on their ac-
ceptance by Congress, in addition to
uncontrollable economic develop-
ments-such as the price of oil.
Time, most experts agree, will tell.
"It could go either way," said
Joan Crary, an assistant research
scientist in the Economics Depar-
tment. "You can never predict
OPEC price increases, gas shor-
tages, or crop failures."
CRARY, LIKE other experts in-
terviewed, expressed concern that
the federal government might not be
able to slow down the economy
"without throwing it into a
recession."
"The best chance this program
has of working," she said, "is if they
(government economists) continue

to walk the fine line between slowing
down the economy, with positive
growth, and causing a recession."
She said that she wonders if the
current tactics "are enough to slow
thing down. Recent attempts have
failed to have any impact," she said.
Crary said there are two options
open to the administration: "It can
get us in a recession in a hurry, and
have us pulling out by November, or
avoid a recession-the plan right
now seems to be to avoid a
recession." Citing the current elec-
tion year, Crary noted that
President Carter "will look better
off with a lower unemployment
rate," which would exist if a
recession is avoided. In this respect,
she said, much of the ad-
ministration's efforts are "for
show."
PROF. SAUL HYMANS, chair-
man of the keonomihs Department,
agrees with Crary that the gover-
nment is trying a "delicate balan-
cing act" in its attempt for a more
healthy economy. "If they persist,"
he said, "we'll be in better shape in a
year or two. It's a delicate strategy,
but with some economic logic behind
it."
According to Hymans, the gover-
nment is attempting to limit
economic activity . in less "essen-
tial" areas, while continuing to en-

courage investment for the nation's
businesses.
"These credit controls can slow
the economy down, while saving
room for new investments. They're
(government experts) asking,
'What's the zippiest part of the
economy?' The answer: consumer
spending, through credit. By
limiting this, they can take some
steam out of the economy," Hymans
said.
He explained that he "has qualms

about strategies to slow down the
economy, because somebody is
going to wind up unemployed when
the economy is slowing down. But
the alternatives are worse."
GEORGE JOHNSON, a professor
of economics, was on. President Car-
ter's Council of Economic Advisors
in 1977-78. It was back then, he said,
that he suggested a balanced federal
budget to Chairman Chairman
Schultz. "But they rejected my
proposals," Johnson said.

...and see troubles
for Michigan s economy

By STEVE HOOK
Three University researchers
released a gloomy forecast for the
state's economy yesterday, saying
the outlook for 1980 is even worse
than projected by pessimistic
budget specialists in Lansing.
University President Harold
Shapiro and Profs. Saul Hymans and,
Joan Crary, three members of the
Research Seminar -and Quantitative
Economics (RSQE) "forecasting
.service," predicted a 7.1 per cent
decline in real income, adjusted for
inflation, for the state's residents in
1980-which would mark the worst

such decline in at least 30 years.
IN ADDITION, the economists
predicted a 10 .per cent 1980 unem-
ployment rate which "will exceed
10.5 per cent by mid-1981." Those
figures are comparable to the state's
forecast, but the University resear-
chers said that the rate of inflation
will average 13.7 per cent,
significantly higher than the 11.3 per
cent rate predicted by State Budget
Director Gerald Miller.
The outlook for Michigan, the
report notes, is largely a result of
economic problems nationwide as
See 'U', Page 2



said, "but a cat? I don't know. You squish a cat and go on. I
think we're overcomplicating life." But indignant cat
owners may yet have 'the last word. Some of their
comments:
* "We have a darling cat. She is more to us than some
people's kids are to them."
* "You're statement about stopping for a dog and not a
cat-just squish-is total, stupid irresponsibility."
* "Why don't you introduce a bill to uncomplicate life
even more? This bill would allow the squishing of wasteful
state senators without any liability." O

and sitting across a table from her in the library. He
carried a large portfolio and gave the impression that he wa
working on a project. After a short interval, he would cause
minor disturbances such as dropping pens and pencils,
reach under the table as if to retrieve them, and quickly
paint the woman's toe. Campus police say the victims don't
want to prosecute and that the "pedicurist" was neither a
student nor a lirary employee. Wonder if he charges extra
for manicures? E

increasing in the computer age. The traditional abacus is
still used in shops and accounting operations in China and
other countries including the Soviet Union. O
On the inside
A review of the production "St. Mark's Chapel" on the ar-
ts page. . . a preview of today's NCAA semi-final basket-
ball games in the sports section. . . and an anti-apartheid
group discusses several bills before the state legislature on

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