Page 2-Thursday, March 26, 1981-The Michigan Daily
POLICY POWER REDELEGATED
Bush selection irks Haig
WASHINGTON (AP)-President
Reagan insisted yesterday that
Alexander Haig, Jr. remains his "chief
adviser on foreign affairs," but other
officials said the secretary of state
clearly has lost prestige and authority
because of Vice President George
Bush's appointment as crisis manager.
Reagan's affirmation followed a talk
with Haig on the third consecutive day
the secretary has visited the White
House. The president denied any
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suggestion that Haig had threatened to
quit over the new role for Bush, one
which he wanted for himself.
BUT ONE informed official said
privately that while Haig, who went
public with his unhappiness on
Tuesday, wouldn't resign this time, any
further "public rebukes" from the
White House might cause the strong-
willed secretary to leave.
Haig was "very upset and sulking"
and was "pounding the table" because
he wasn't given crisis command
authority by the White House and he
left his staff wondering yesterday night
if he would resign, an informed official
said.
Despite Reagan's affirmation that
Haig was his "principal adviser on
foreign affairs," Haig was said to feel
the endorsement fell short of what he
wanted because Reagan didn't ex-
plicitly say the secretary of state was in
charge of carrying out foreign policy.
THE SAME official said Haig left
behind a staff that was "very nervous"
and wondering if he would decide to
resign, although this official still
thought there was less than a 15 percent
chance that wouldoccur. .But he said
others thought there was a greater
chance that Haig would.
Haig is scheduled to testifyetoday
before a Senate subcommittee on
foreign aid matters, and could give
some clue as to his intentions at that
time, the official said.
Another official, who also did not
want to be identified, said under the
new division of responsibility Haig will
lack the authority of former secretaries
of state Henry Kissinger, Dean Acheson
and John. Foster Dulles, all of whom
had responsibility for managing crisis
in the foreign field.
But presidential press secretary
James Brady predicted even greater
cooperation between the .White House
and the State Department, saying he
now expects Haig to participate in
Reagan's daily national security
briefing. That role previously has fallen
to security adviser Richard Allen, but
apparently now will be shared.
"He probably will be here most
days," Brady said of Haig. "He's there
to enhance cooperation."
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Compiled from Associated Press and
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Progress made in Polish
strike negotiation~s
WARSAW, Poland-Solidarity leader Lech Walesa reported some
progress yesterday in talks aimed at averting nationwide strikes that have
raised fears of civil war and intervention by Soviet-led forces. He said
negotiations with the Polish government would resume today.
Walesa did not elaborate on his 90-minute meeting with Mieczyslaw
Rakowski, the deputy premier for union affairs, but the view of progress was
confirmed in a separate statement by another union leader, Andrzej Gwiaz-
da.
But three hours after the close of the talks, Rakowski accused elements
within Solidarity of wanting a "holy war's against those in power. He said
those elements were fighting the Communist Party and a government he
called "Poland's last chance."
M1 iners' strike plan holds
WASHINGTON-Some 160,000 soft coal miners plan to strike at midnight
today, implementing the United Mine Workers union's traditional "no con-
tract, no work" rule until the rank-and-file ratifies a tentative new
agreement.
The UMW scheduled a ratification vote for Tuesday, which would mean
only a five-day strike if the document is approved. The work stoppage was
not expected to have significant impact on the economy or energy supplies.
4
0
0
AP Photo
VICE PRESIDENT GEORGE BUSH responds to questions during a press
conference yesterday following his appointment as head of a new foreign
crisis management team. Haig, who Reagan insists is still his number one
foreign policy advisor, was reportedly angered by Bush's appointment.
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WASHINGTON (UPI)-The chair-
man of the House taxwriting committee
yesterday predicted President Reagan
will get a smaller tax cut than he wants,
and it will be targeted on the poor and
middle-income Americans.
The president's tax cut, known as
Kemp-Roth for its congressional spon-
sors, has been criticized as benefitting
the wealthy, since a 30 percent tax rate
reduction in a large tax bill is greater
than the same cut in a small tax bill.
CHAIRMAN DAN Rostenkowski (D-
Ill.) told reporters the atmosphere in
his House Ways and Means committee
favors "not so much a Kemp-Roth as a
consensus tax cut bill."
Meanwhile, a score of Senate
Republicans, led by Sen. Bill Roth of
Delaware-for whom, with Rep. Jack
Kemp (R-N.Y.), the bill was
named-wrote Reagan urging him to
veto any tax bill containing less than
the three-year, 30 percent across-the-
boardcut.
"We urge you to promise now to veto
any tax bill which does not reflect your
individual tax rate reduction plan,"
said the letter, signed by 20
Republicans.
ROSTENKOWSKI said his personal
preference is to get a vote on Kemp-
Roth in committee to "get it out of the
way" and then get down to work on a
tax cut both sides could support.
The committee, dominated by
Democrats 23-12, could easily defeat
the proposal in a straight party vote, he
predicted.
He said the bill that emerges from the
Ways and Means Committee will be
smaller than the $54 billion that Reagan
wants for 1982, in part to help hold down
the deficit.
EXPRESSING HOPE for a "consen-
sus bill" backed by Republicans and
Democrats on the committee, he
suggested several possible items:
" Elimination of the so-called
"marriage penalty," which often
requires working wives and husbands
to pay more in taxes than they would by
filing separate returns.
" Cuts in personal income tax rates,
but weighted to provide extra relief for
the low- and middle-income taxpayer.
Reagan's plan calls for equal reduc-
tions across the board.
* Reduction in the capital gains tax
from a maximum of 28 percent to 20
percent, and a cut in the maximum tax
on unearned income from 70 percent to
50 percent.
Tostenkowski said Congress must of-
fset the cost of the tax cut with ap-
proximately the same amount of
budget cuts, and indicated he will push
for a smaller tax bill if Congress does
not reduce federal spending enough.
"I'm not going to accept the
Republicans getting credit for a tax cut
while the Democrats get credit for a
large deficit," Rosentenkowski said.
"We're going to keep the tax cut in
balance with whatever the president
wants for a deficit."
HE SAID HE expects his panel to
start drafting the bill in late April.
Meanwhile, Congress' top budget ex-
pert said yesterday that President
Reagan is relying more heavily on the
"drama and radicalism" of his anti-in-
flation program than history justifies,
on the eve of Senate debate on the
proposals.
Director Alice Rivlin of the
Congressional Budget Office was
greeted with support from Democrats
and derision from Republicans as she
presented a highly publicized, gloomy
analysis of the Reagan budget cuts to
the House Budget Committee.
In the Senate, where full debate
begins today, Republican senators
trooped to the floor to endorse the
president's economic program, already
victorious in the committee stage. A
few expressed misgivings about
specific programs but lauded the
overall thrust.
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Shuttle tests continue
KENNEDY SPACE CENTER-Engineers overcame a power supply
problem yesterday and technicians injected millions of pounds of highly
volatile fuel into the space shuttle Columbia's huge tanks to determine
whether the space ship is ready for its maiden flight early next month.
The day-long test began some four hours behind schedule when a electrical
malfunction delayed the loading of 1.65 million pounds of the supercold
liquids into the 154-foot-tall bullet-shaped tank.
On two previous occasions the fuel tank's cork insulation has-popped loose
during fueling. Technicians yesterday watched for any signs that would in-
dicate this was happening again.
GM, Chrylser up production
DETROIT-General Motors Corp. and Chrysler Corp. yesterday ordered
car production increases at three plants to replenish inventories, but the
continuing truck sales drought forced cutbacks at another facility.
The actions will restore the jobs of more than 2,400 workers, some of whom
have been off the job since September, 1979. The industry currently has ap-
proximately 185,000 blut collar workers on indefinite layoff.
U.S. auto unemployment has been increasing slowly for two months and
cash rebates have helped reduce dealer inventories.
Dairy bill clears Senate
WASHINGTON-Senate Republicans disposed of potentially crippling
amendments to clear the way for Senate passageof a milk price sudpport bill
yesterday, more than a week after the Senate first took it up.
The House must also act before next Wednesday to prevent the April 1 in-
crease in the milk support level from going into effect. House consideration
of the bill is expected today.
The bill, which is expected to save $147 million in the cost of the dairy
program approaching $2 billion this year, was the first legislative test of
President Reagan's budget proposals.
Vol. XCI, No. 141
Wednesday, March 25,1981
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I
Patients let go too
ast roup
LANSING (UPI) - Michigan's men-
tal health system is releasing patients
too fast and is guilty of "bridge bur-
ning" by closing the hospitals they are
leaving, a group charged yesterday.
The Mental Health Association in
Michigan, which met with Gov. William
Milliken, also warned budget cutbacks
threaten important training programs
and have diminished vital mental ser-
vices at a time when economic
tensions have made them even more
crucial.
THE ASSOCIATION said Milliken
was sympathetic and plans to restore
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says
cuts in the next fiscal year, but offered
no hope for more money in the current
budget.
John Cannon, the association's past
president, said the group expressed
concern in its meeting with the gover-
nor over "the pace with which the Men-
tal Health Department is pursuing the
concept of deinstitutionalization"
although it supports the basic idea.
"The pace of movement . . . is such
that the communities are not
prepared to receive the patients and the
facilities are not there" to help them, he
said, adding many are "ending up back
in state institutions."
Noting many hospitals are being
phased out, Cannon said, "It's abridge-
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