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Page 2-Thursday, September 18, 1980-The Michigan Daily

Saudis hike
oil rate $2

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Compiled fro
United Press

BRIEF
m Associated Press and
s international reports

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VIENNA, Austria (AP)-Kuwaiti
Oil Minister Ali Khalifa Al-Sabah said
yesterday OPEC members agreed
unanimously that Saudi Arabia will
raise its crude oil price immediately to
$30 a barrel and other members will
maintain their current levels, which
range up to $37.
Saudi Arabia has been charging $28 a
barrel, the lowest price in OPEC and $4
below the official minimum.
The Kuwait minister said the Saudis
had agreed to the price hike without
preconditions. Sources reported earlier
that Saudi Arabia had seconded a
Kuwaiti proposalto cut the official
price from $32 a barrel to $30.
THERE WAS NO indication Saudi
Arabia will cut production from the
current 9.5 million barrels a day-One
million above its normal output-that
has contributed to a worldwide oil glut.
"We will keep our level of production
as it is," for the entire fourth quarter,
Saudi Oil Minister Ahmed Zaki Yamani
told reporters earlier, before the final
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session of oil ministers from the 13-
nation Organization of Petroleum Ex-
porting Countries.
The price increase was seen as a
retreat by Saudi Arabia. Yamani had
said earlier yesterday his country
would not raise its price unless militan-
ts in the oil cartel lowered theirs.
THE SAUDI MOVE will add "less
than a cent a gallon" to the retail price
of heating oil or gasoline in the United
States if dealers choose to pass on the
increse to consumers, said Tom Peake,
manager of the economics department
of Standard Oil Co. of California.
John Lichtblau, economist at the
Petroleum Industry Research Foun-
dation in New York, said the Saudi ac-
tion amounted to "an insignificant in-
crease" in world oil prices.
Saudi Arabia has said its crude oil
price is closer to real market demand
than the $37 charged by Libya and
Algeria. OPEC price hawks had pushed
the Saudis to reduce their output to help
drain the glut and provide a basis for
higher prices.
The impasse over production
strategy contributed to the breakup
yesterday of an extended Vienna
gathering of oil, finance, and foreign
ministers without agreement on a long-
sought OPEC strategy for automatic
price hikes every three months, joint
production controls, and aid to the
Third World.
Saudi Arabia, the world's largest oil
exporter, has been producing 9.5
million barrels a day since raising its
production one million barrels a day in
July 1979 after the United States asked
it to do so.

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Guerrillas seize OAS building
SAN SALVADOR, El Salvador-At least 18 leftist guerrillas led by a
woman attacked the Organization of American States offices yesterday,
killing a guard and seizing the building to demand an end to government
repression, officials and witnesses said.
It was not immediately confirmed whether the leftists took any hostages
during the assault, although the building in the posh Escalon residential
district of western San Salvador is usually filled with office workers.
The attack on the offices of the 28-member organization which includes
the United States came one day after leftist guerrillas fired anti-tank rockets
at the U.S. Embassy to protest "Yankee Imperialism" in the country. There
were no injuries although the building was badly damaged.
U.S., China sign
new agreement
WASHINGTON-The United States and China climaxed months of
tough negotiations yesterday by formally agreeing to open new consulates
and expand commercial airline traffic, shipping, and textile trade between.
the two nations.
President Carter and Chinese Vice Premier Bo Yibo, in a Rose Garden
ceremony, signed four accords amid pledges of continued growth in trade
and diplomatic relations.
Bo said that China is of the "firm opinion that friendly relations should
continue to develop forward." He said his nation is committed to becoming a
"highly democratic, civilized, and modern nation" that needs stability and,
cooperation with the United States.
Study: Soviet weapons on top
LONDON-The Soviet Union and its satellites have seized a command-.
ing lead over the United States and its allies in both nuclear and conventional
weapons, the authoritative International Institute for Strategic Studies said
today.
The institute, which has been consulted by leading governmental figures
throughout the West, said it will take years to whittle away the lead of the
Warsaw Pact nations.
"Not until NATO begins to deploy new long-range missile systems in
about 1983-84 can any substantial increase in its capability be expected," the
institute said in its annual survey of world military strength-The Military
Balance 1980-1981.
Cigarette tax hike approved
LANSING-Gov. William Milliken and legislative leaders agreed
yesterday on a plan to raise $100 million in crucial new revenue. A key por-
tion of the plan-hiking the cigarette tax-won swift committee approval.
Another important segment in the plan for bailing out the fiscally strap-
ped state--eliminating a tax exemption for military pay-was dumped by
the House Taxation Committee, however.
Senate defeats
unemployment bill
LANSING-The Senate defeated yesterday a move to increase Mich-
igan's unemployment benefits by $150 million and boost the average
payment to idel workers by 70 percent.
The proposal, sponsored by Sen. David Plawecki (D-Dearborn), fell a
single vote short of becoming part of a bill which cracks down on persons
who claim unemployment benefits after voluntarily quitting their jobs.
EMU prof loses court case
LANSING-An Eastern Michigan University labor relations professor
who thinks he should not have to pay dues or equivalent charges required in
the school's union contractiost his case in the Michigan Court of Appeals
yesterday.
The appeals panel upheld a Washtenaw County Circuit Court order for-
cing Robert Morgan to pay up in a case similar to an earlier one involving a
Detroit veteran teacher fighting a so-called "agency shop" clause.
The court ordered further hearings, however, to be certain the com-
pulsory dues were not going for political purposes not allowed under the con-
tract.

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Volume XCI, No. 13
Thursday, September 18, 1989
The Michigan Daily is edited and manageu 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
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Editor-in-Chief ................... MARK PARREN--
Managing Editor.................MITCH CANTOR
City Editor ..................... PATRICIA HAGEN
University Editor .................. TOMAS MIRGA
Opinion Page Editors...............JOSHUA PECK
HOWARD WITT
Magazine Editors...............ELISA ISAACSON
R.J. SMITH
Arts Editors .......M.A..RK COLEMAN
DENNIS HARVEY

Business Manager.........ROSEMARY WICKOWSKI
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Finance Manager.................GREGG HADDAD
Nationals Manager ....j... .....LISA JORDAN
Circulation Manager........TERRY DEAN REDDING
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