Ninety-One
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SNOWFLAKES
Cloudy today with a few
snow flurries. A high in the
upper 20s and a low near 5.
Vol. XCl, No. 90 Copyright 1981, The Michigan Daily Ann Arbor, Michigan, Thursday, January 15., 1981 Ten Cents Ten Pages
Goldschmidt
insists on
auto import
restrictions
AP Photo
Frozen fish ingflee t
The New Bedford, Mass, fishing fleet is shown bottled up at their docks Tuesday because frigid temperatures continue to block many harbor
with ice in New England. Record low temperatures are also being recorded in Florida, severely damaging citrus crops there.
WARNS OF NUCLEAR THREA T:
*Crer bids nation farewell
By JULIE ENGEBRECHT
Auto industry management, labor,
and federal government must make
sacrifices to improve the country's in-
dustrial strength, outgoing Secretary of
Transportation Neil Goldschmidt told
an' Ann Arbor audience yesterday.
But, he added, Japanese manufac-
turers do not believe the United States
will move to regain its competitive
stature in the world market. Japanese
automakers apparently believe only
General Motors Corp. will survive in
the U.S. car market of the future, Gold-
schmidt said during a University-spon-
sored conference on the role of the
Japanese auto industry in this coun-
try's industrial future. More than 1,300.
auto and auto-related industry
executives attended the forum.
GOLDSCHMIDT OUTLINED plans
for revitalizing the country's auto in-
dustry and 'recommended that the
government negotiate temporary im-
port restraint agreements with the
Japanese so that U.S. manufacturers
can buy time to retool.
Japanese automakers accounted for
20 percent of the cars sold in the United
States last year.
Yasuhiko Suzuki, vice president of
Nissan Motor Corp., U.S.A., also ad-
dressed the conference. Suzuki stressed
the importance of maintaining free
trade in the world market.
THROUGH FREE TRADE, the
United States is able to import products
that can be produced relatively cheaply
abroad, and specialize in products that
can be produced relatively cheaply in
the United States. This specialization
and trade promotes greater economic
efficiency in a growing worldwide
market.
Trade restrictions-tariffs, import
quotas, or cooperative marketing
agreements-increase domestic
demand of the good or goods affected,
But protective measures also raise the
cost of, imported goods and reduce
domestic productivity.
It was fitting, Goldschmidt said, that
his final speech as transportation
secretary be in Michigan at a conferen-
ce on the auto industry's future. The
competitive strength of the U.S. auto.
industry and its supplier industries will,
occupy a central place on the nation's.
public policy agenda in the 1980s, he
said.
TUESDAY, THE OUTGOING tran-
sportation secretary released his report
on the future of the American auto in-
dustry. The United States stands to lose
permanently half a million manufac-
turing jobs in the next decade-the bulk
of those in Michigan-the study con-
cludes.
"There is a danger," Goldschmidt
said, "that this debate over a .great
question of our country's future may
get cut up into its smallest pieces.
"This is not a debate that can be
carried by setting the principles 'of
foreign trade versus protectionism; or
inflation versus anti-inflation policy; or
See CABINET, Page 10
WASHINGTON (AP)-President Carter bid
farewell to the nation last night with a solemn war-
ning that the danger of nuclear annihilation is
growing and the selfish desires of special interest are
assuming strong influence over American political
life.
In his last scheduled speech as president, Carter
said he "can't predict yet what will happen" to the
American hostages whose Iranian captivity
dominated the last 14 months of his administration.
In a quiet voice, he said that during his last days in of-
fice he would work and pray for their safe release.
Carter's speech was delivered from the Oval Of-
fice. Seated before the desk he is giving up next
Tuesday, he described democracy as "an unfinished
creation," and offered his updated interpretation of
the most oft-quoted passage from the Declaration of
Independence:
"FOR THIS generation," Carter said, "life is
nuclear survival; liberty is human rights; the pursuit
of happiness is a planet whose resources are devoted
to the physical and spiritual nourishment of its
inhabitants." I
Without rekindling the debate that marked his
campaign against Ronald Reagan, Carter said the
American people must never shrink from the
struggle for human rights, to protect the environ-
ment, and to control nuclear weapons-all areas
where he generally differs from Reagan.
After the speech, Carter attended a pr.ivate White
House reception for his top administration officials,
who had gathered in the East Room and State Dining
Room to watch the address on television.
Carter cleared his public schedule of appointments
yesterday to put finishing touches on the speech and
prepare for its delivery.
Loan for Chrysler
conditionally approved
From AP and UPI
WASHINGTON-The government
yesterday gave conditional approval
to $400 million in additional federal
loan guarantees for the ailing
Chrysler Corp.
The Chrysler Loan Guarantee
Board voted unanimously to give
Chrysler, the nation's no. 3
automaker, the terms and con-
ditions outlined. The loan approval
is in part dependent on the United
Auto Workers, which must agree to
massive new workers' concessions
according to the loan plan.
Members of the UAW must now
ratify new wage concessions
totalling $622 million if Chrysler's
loan application is to be approved.
The board also asked that Chrysler
present agreements to convert about
$50 million in outstanding loans at 30
cents on the dollar in installment-
effectively canceling about $35
million in debts.
OTHER CONDITIONS call for
Chrysler to commit itself to "all
possible steps" to a merger or other
means of raising new capital; to
present approval from its suppliers
of $36 million additional concessions
and to promise to try to get an equal
amount in 1981; and for the UAW to
agree to take the company's shaky
finances into consideration in future
contracts.
Chrysler is perilously close to run-
ning out of cash drained away by
losses of about $1.7 billion in 1980 and
$1.1 billion in 1979.
The United Auto Workers union has
tentatively agreed to the con-
cessions specified by the board.
Chrysler must now obtain assuran-
ces from its lenders and suppliers by
Friday that they will also agree to
the plan.
UNDER THE PLAN, the Chrysler
employees represented by the UAW
will accept a 20-month wage and
benefit freeze amounting to about
$622 million and other Chrysler em-
ployees will give up compensation
amounting to about $161 million.
In return, the company and union
would agree to negotiate during the
next few months a proposal for a
profit-sharing plan, contingent on
adequate levels of future company
performance.
Chrysler Chairman Lee Iacocca
called it "a super deal. We got a
historic settlement. We think we're
going to be in good shape."
But UAW President Douglas
Fraser said, "This is the worst
economic settlement we have ever
made. The only thing that would be
worse would be losing all the jobs of
the membership."
Also under the plan, Chrysler's len-
ders would agree to convert half of
the company's outstanding debt of
about $1 billion to preferred stock.
sescapetoAnn Arbor
Indochinese
begin, new
lives here.
By LINDA RUECKERT
At first glance the Phommavanh
-family seems just like the folks down
the block. The children romp around y
the living room in their Ann Arbor
home and watch The Flintstones on
television while their parents discuss -. .
their day over cups of coffee. E:,.
But a scant three years ago they were x
crossing a corpse-filled river on the
Laos-Thailand border, clinging to a
homemade raft while trying to elude .
soldiers who were shooting at them.
THE PHOMMAVANH'S are one of
nearly 200 Indochineselrefugee families
that has settled in the Ann Arbor area.
Most of the refugees living in the area
are "boat people," who escaped from
Vietnam, Laos, or Cambodia at a cost
of about $5,000 per,'person in over-
crowded, unsanitary, and unseaworthy
vessels.
The families faced innumerable
problems-piracy, starvation, and
drowning, to name a few-while at sea,,f
and many persons did not survive the: q4
journey,
But the refugees who lived through y-k'
the horrors of escape are now learning Daily Photo by JIM KRUZ
to adjust to Western culture while THE PHOMMAVANH FAMILY (left to right)-Som Vang (10), Vong Kham (6), Kene (12), Noi (17), Suban (2,), Noi's
See REFUGEES, Page 2 son), Tong-chang and Say Chai-are starting a new life in Ann Arbor after nearly two years in a Thai refugee camp.
ODAY
Early draft
STHE BIG DAY approaches, President-elect
Ronald Reagan is busily making last minute
additions to his administration. Kevin Rothe, the
10-year-old son of a steelworker from Payson,
eived a letter from the Reagan staff Tuesday,
saying he had "been suggested for consideration for a
position in the Reagan administration." Signed by E. Pen-
dleton James, director of presidential personnel, the letter
Sweet-tooth Ronny
For those of you who keep track of trends, the word is:
Peanuts are out, jelly beans are in. President-elect Ronald
Reagan recently revealed that jelly beans are among his
favorite foods. Not only that, but jelly beans can tell you a
lot about a person's character, Reagan says. "One fellow
will pick out all one color," he said, while "others will just
grab a handful." Reagan said he started chomping on the
flavorful morsels when he was trying to quit smoking many
years ago. The president-elect has not revealed the
significance of the "one-color" or "blind fistful" eating
methods, nor has he said how he eats jelly beans. 0
nsylvania Avenue. An entire wall in an office there is
covered with shelves holding black looseleaf binders con-
taining the snapshots of the 39th president. But there's one
catch to copping one of the presidential photos-everyone
wants a bunch of pictures and there isn't the time or
darkroom staff to turn them out. "We can't turn these out
for everybody's album," said the White House chief
photographer. "We're not going to turn this thing into a cir-
cus." Q
Automatic tithing
Holy Ghost Catholic Church in Dubuque, Iowa has its an-
swer to the Modern Way of Life. Parishoners will soon be
church will issue plastic cards signifying that they gave at
the bank. The cards can be dropped in the basket. Today a
pay-while-you-pray program, tomorrow.. . who knows. '
Foliage hotline
Had a long day? Need a bright pick-me-up? Just pick up
the phone and dial 971-1122. You won't get an hour-long back
massage, but you will get the next best thing-free advice
about gardening. Dial-a-Garden, sponsored by the
Washtenaw County Cooperative Extension Service, offers
titillating advice daily, on such topics as "Ferns for Low
Light Environments" and "Watering Foliage Plants." And
just in case you need that botanical tip with your midnight
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