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 LEGEND International loan of 85 17th century Dutch masterworks. Epic canvases by Rembrandt, Vermeer and others reveal the heroic, savage and lustful themes of legend and classics. Incredible paintings from royalty, Holland's historic town halls and world museums. GOQDS SATN h 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." EUROPE/Israel LOW COST FUGHS C enter for Student Travel 1140 Broadway New York, N.Y. 10001 (212) 689-8980 800-223-7676 "OUR 8th YEAR IN BRIEF Compiled from Associated Press and United Press international reports 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. Tax cutplan runs int otrouble in Huse Dutch Painting in the Age of Rembrandt NOW THROUGH EASTER THE DETROIT INSTITUTE OF ARTS Hours: Tues.-Sun., 9:30 a.m.-5:30 p.m.. Adm.: Gen. x.50. Students/Seniors $1.50. Children under 12 with adults, Free. 1 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. POETRY READING NOON LUNCHEON wIth Homemade soup and sandwich 73C CYBIL. KEIN and ripMrh2 JUDITH McCOMBS Friday, March 27 READING FROM THEIR WORKS BRET EY NON, Th ~da M h 26bMovement Historian: Ursdy, rch "THE ORIGINS OF THE ANN ARBOR at 7:30 pm AOMISSION: FREE ANTI-WAR MOVEMENT" GUILD HOUSE 802 Monroe (662-5189) Columbia ... blast off nears 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 The Michigan Daily is edited and managed by students at The University of Michigan. Published daily Tuesday through Sunday mornings during the University year at 420 Maynard Street, Ann Arbor, Michigan, 48109. Subscription rates: $12 September through April (2 semesters); $13 by mail outside Ann Arbor. Summer session published Tuesday through Saturday mornings. Subscription rates: $6.50 in Ann Arbor: $7 by mail outside Ann Arbor. Second class postage paid at Ann Arbor, Michigan. POSTMASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Arbor, MI 48109. The Michigan Daily is o membr of the Associated Pess and subscribes to United Press International. Pacific News Service. los Angelea Times Syndicate and Field Newspapers Syndicate. News room: (313) 764-0552, 76-DAILY: Sports desk. 764-0562: Circulation. 764-0558. Classified advertising .764-0557: Display advertising. 764-0554: Billing-764-0550: Composing room. 764-0556. 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 ALASKA CAWP NG Fun way to see Alaska Rafeng, tenting, bking and Canada for the horseback riding. aon atnhearttW hcni andafihing rdudes meas,- Hotsprngs, camp bus and a L E/SIURE k itchen ,8 hrnm Seattle L I IIL adventure tours. WRITE FOR FREE FULL COLOR BROCHURE 3436 TONGASS, KETCHIKAN, ALASKA 99901 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- burning phenomenon." FREE Showing of the MOVIE ..z. : and Editor-in-chief...... . Monoging Editor ..... . University Editor ..... . Student Affairs Editor.. City Editor........... . Opinion Page Editors... Arts Editor... ....... Sports Editor........ . 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