Ninety- Two. Years of Editorial Freedom Lit iau IiQ UNEXORABLE Mostly sunny pleasant with a high upper 40s. and in the VoI. XCI. No. 152 Copyright 1982, The Michigan Daily Ann Arbor, Michigan-Sunday, April 11, 1982 Ten Cents Ten Pages if Milliken's exit heats up governor's race By BILL SPINDLE Last December, Gov. William Milliken an- ounced that he would not seek re-election this vember and that he would be trading politics and the executive mansion for retirement as soon as his term ends later in the year. But, whether or not he hopes to leave politics behind him next winter, his name and his record will stay behind, playing a central role in the tangled contest to choose his successor. ALREADY MORE than 20 candidates have entered the race, some with more realism than others. Most of these contenders have split into two camps, one which looks back at the iliken administration in a more or less avorable light and one:(a much larger group) that has seized the opportunity to rally against the Milliken government as the Lansing.crowd responsible for not solving the state's economic ills. But when it comes to the most important issue of the campaign-some would say the only issue-no two of the candidates can agree. Clearly, the issue at the heart of every single one of the twenty-odd campaigns in the failure of Michigan's economy and what to do about it. And when it comes to this issue, everybody's got a plan. WHEN MILLIKEN announced that he would not run again, the state's economy was in miserable condition. Now, less than four mon- ths later, the economy is worse and apparently sinking fast. Auto sales, the foundation of the -state's economy for the past 50 years, have come close to scraping bottom and are now the lowest ey've been for 32 years. Unemployment has steaC'v crept upward, reaching as high as 23 percent in some Michigan cities, and interest rates have remained high enough to discourage many new investments. And, to top everything off, the Reagan Administration last week hin- ted that the days of Washington helping out the ailing auto industry may be over. Left with the proposition of pulling Michigan up by its own bootstraps, it might seem many politicians would shy away from inheriting the rubble of Michigan's economy. But, for many aspiring politicians, the state's economic disaster presents a rare opportunity: The per- fect political issue for riding into the executive mansion. AND, FOR this reason, many observers are giving the Democrats a built-in edge in this year's race. The Democrats will also benefit from the state's general resentment of the Republican, administration in Washington, which promised the unemployed jobs two years ago and thus far, by and large, has failed to produce them. If nothing else, the Democrats certainly seem confident that this year they can finally win the governor's office back from the Republicans, who have held it for 20 years. Six- teen Democrats have joined in the crowded race, while only four Republicans have exhibited much serious interest in giving the contest a try. Below is a summary of the plans of the 13 gubernatorial candidates who have the greatest hope of placing in the Aug. 3 primary. James Brickley (R) Brickly is currently the state's lieutenant governor and, as such, is.closely tied in voters' minds, for better or worse, with the Milliken administration's record. This helps him in the sense that Milliken has built strong bipartisan support in the state and is seen as something of a grandfather figure in state politics. And, Milliken's endorsement of Brickley will therefore give him a boost in the pro-Milliken circles. At the same time, however, he is associated with Milliken's recet push for a hike in the See GOVERNOR'S, Page 7 I I- Lebanon warns of Israeli i~ i invasion BEIRUT, Lebanon (AP)- Lebanon said yesterday that 40,000 Israeli troops. are massed near Lebanon's southern border and asked the United States to iitervene urgently to head off a Ppogsible invasion against the j Palestinian guerrillas. Lebanese President Elias Sarkis met twice with U.S. Ambassador Robert Dillon, telling him Israel has massed two armored divisions with 40,000 troops on southern Lebanon's border, poised for an imminent attack. "THE PRESIDENT has conveyed to the U.S. government Lebanon's con- cern over the Israeli buildup and sought *ssurances that the United States government will urgently intervene to curb Israel," a Lebanese government spokesman said. Dillon, when asked whether the situation was dangerous, told a repor- ter in Beirut: "Yes it's dangerous, but as I said we are doing our best to see that the cease-fire is maintained." He said the Reagan administration was in constant touch with Israel and other countries in the area to keep the peace. 0 In Barbados, where President Reagan is vacationing, Deputy White House Press Secretary Larry Speakes said, "We renew our appeal for all those involved in the region to show the utmost irestraint. "THIS IS THE time for maximum caution.' We are working with all iour contacts in the region energetically to encourage an end to all actions that contribute to tensions and violence." In Tel Aviv, Prime Minister enachem Begin's spokesman, Uri Porat, said Palestinian guerrillas "have good reason for their panic and -hysteria," but declined to comment directly on claims by the PLO and the Lebanese government that Israel was about to invade. President disavows studeont, aid reductions Daily Photo by JON SNOW Run with it A member of the Detroit Tradesmen rugby club attempts to avoid the onrush of his Michigan opponents during their match yesterday at Elbel Field. j Argent nesrallyor wr as Haighods peace t alks From AP and UPI BUENOS AIRES, Argentina - Argentina's military president told some 300,000 cheering supporters yesterday that the armed forces will go into battle if a British Armada tries to retake the Falkland Islands. The throng whistled and booed when he mentioned the United States. A 200-mile British war zone around' the islands goes into effect at midnight tonight, and President Reagan said in a radio address from his vacation in Bar- bados, "We'll. do all we can to help bring a peaceful resolutin to this mat- ter." THE MULTITUDE, reminiscent of crowds drawn to the Plaza de Mayo by President Juan Peron and his wife Eva, waved blue and white national flags and exploded in cheers when President Gen. Leopoldo Galtieri defied Britain to attack Argentine soil. He appeared on the balcony of Gover- nment House after meeting for 90 minutes with Secretary of State Alexander Haig, who arrived from London to try to avert war over the Falklands, the tiny British colony 25 miles off the southern coast that Argen- tina seized April 2.. Haig refused to comment, but U.S. sources said he was to meet Galtieri again in the evening and fly back to Washington today. THE GOVERNMENT arranged the demonstration to impress upon " Haig that Argentina was determined not to give in to British Prime Minister Margaret thatcher's demand that it withdraw its troops from the Falklands, See HAIG, Page 2 From AP and UPI President Reagan interrupted his vac- ation for five minutes yesterday to tell a radio audience in the Caribbean and in the United States that "a lot of people have simply been misled" about his proposed cutbacks in federal aid for college students. "We haven't cut loans," Reagan said. "We've cut the cost to taxpayers of making these loans available." But Democrats responded to Reagan's speech quickly, accusing the president -of being "amazingly con- fused" -and of attempting to deceive Americans about the nature of his proposed cuts to education. ON MANY campuses Reagan said, "the students are being told they might not be able to return to school next year. In some instances, they've even been incited to stage protest demon- strations against what have been called Draconian cuts in student aid." "Well, a lot of people have simply been misled," Reagan said, acknowledging that guaranteed student loans would drop from $2.7 billion this year to $2.4 billion in the fiscal year beginning Oct.1. "But not one dime of the money being cut has ever gone directly for loans to students," Reagan said, adding theac- tual loans are made by private banks. HOWEVER, one administration of- ficial, Wvho asked not to be identified, said 'the prospects of getting any of these changes sought by Reagan are almost negligible." Sen. Carl Levin (D-Mich.) putting forth the official Democratic response from Detroit in an equal-time broad- cast, said Reagan's student aid proposals, including cuts in federal grants, would "aid 1.9 million students less in academic year 1983-84 than are being helped now." Levin, in his broadcast, said that Reagan "ignored" the administration's program to eliminate over the next four years Social Security student benefits now going to some 640,000 children of deceased or disabled workers. IN ADDITION,, he said, Reagan's proposed budget would cut off grants to about 700,000 students, reduce campus- based aid to another 230,000 students and eliminte funds for supplemental grants now going to about 440,000 students. 'Overall, the president proposes we cut federal aid to education by about 35 percent," Levin said. "'And you can't build a strong country without an educated citizenry." Rep. Peter Peyser (D-N.Y.) said he was "furius" at Reagan's remarks. "THE PRESIDENT, by design or ignorance, has totally deceived the See STUDENT, Page 2 Democrats t Detroit challengry" Reagan program--s. DETROIT (UPI) - Sen. Carl Levin, delivering from chilly Detroit :the Democratic response to Pi esident Reagan's radio address, yesterday in- vited Reagan to view Michigan's spiraling unemployment first-hand when he returns from his tropical vacation. The Democrats chose the city hit hard by the depressed auto industry to stand in stark contrast to the posh Caribbean resort from which Reagan delivered his second live radio address' to the nation. In his 'remarks' prepared before Reagan's speech, Levin noted Michigan. is "bleeding economically" with 17 per- cent unemployment. "The American people don't mind the president traveling to the Caribbean for, See LEVIN, Page 2 State's bleak economy may clear From staff and wire reports While the state that put the nation on wheels is fin- ding itself inescapably, mired in the potholes of, unemployment and economic disaster, University economists, however, are predicting a turn for the better. MICHIGAN'S jobless rate stands at a breathtaking 16.1 percent, with auto dependent cities such as Flint ting levels near 23 percent. The budget - which law must be balanced at the end of the fiscal year - teeters $611 million in the red. The federal government appears set to let Michigan dig itself out. But University economists are predicting that the current recession will end sometime this summer and the recession itself produces an easing of credit conditions. THE FORECAST, based on Michigan Quarter Econometric Model of the U.S. Economy, was prepared by the University's Reserach Seminar in Quantitative Economics last month. "Natural recovery forces - including strong un- derlying demand for housing construction and autos - will lead the recovery in the spring, and the mid- year personal tax cut will accelerate the recovery still further," the economists projected. Business Administration professor Paul Mc- Cracken points out that "the current recession would be sharply out of context with our history if business conditions did not begin to improve by mid-year, and the low point during the second quarter would be a reasonable expectation based, on our experience in other comparable episodes." BUT THAT OPTIMISM was not shared by labor and auto industry officials who were miffed to learn this week a Reagan administration member told congressional staffers nothing more will be done to help the ailing industry. U.S. House Energy and Commerce Committee Chairman John Dingell in a speech' to about 100 autoworkers at Local 122 said the disclosure of no help for autornakers came last week from a "leading official" in the automotive section of the Department of Commerce. The official told staff members "the administration will do nothing further to help industries in the auto- motive manufacturing sector," after it follows through See MICHIGAN, Page 3 -ToDAY- Un onfun with Tom and Jane HOME BEING renovated by political activist and University alumnus Tom Hayden and his wife, actress Jane Fonda, was picketed last week by eight construction workers who claimed non-union workers were being used on the job. Hayden, reached by phone in Sundance, Utah, where he is vacationing at the home of actor Robert Redford, called the demonstrations a "clearly political maneuver." Hayden, struction Trades Council, called Hayden "a non-union struction Trades Council, called Hayden "a non-union Democrat." Jane had no comment.Q Prayers on the run Sister Madonna Buder may be the only runner reciting the rosary in this year's Boston Marathon. Buder says prayers are "free-flowing" when she runs, and the rhythm of the rosary provides a mental block against the physical exertion of a 26-mile race. "If other people can get out there and run for God knows what reason, I can get out there and run for God knows the reason," she said. Huder, 47, is the director of the Spokane, Washington, Media Ministry,1 reluctant to present it. When it was revealed in the small courtroom, the reaction was instantaneous and unanimous: Everyone present pinched their noses. The evidence was a year-old stick of deer bologna that had not been properly refrigerated and which was, to put it mildly, rather ripe. "I didn't keep it in the 'freezer compartment of my refrigerator . . . unfortunately," state district game protector John Martin confessed in a smelly courtroom in York, Pa. At issue was whether defendant James harget, who operated a grocery store in nearby Hanover, knowingly sold deer meat illegally. Defense attorneys said the prosecutor failed to prove the evidence was deer hnln nd aruend that aix month aiv in nronsentin "desperately trying to stave off attempts" by state legislators to cut the University's general funding. Also on this date in history: " 1956 - LSA Assistant Dean James Robertson disagreed with charges in McCall's magazine that the majority of college students were cheaters, saying that only a "small percentage" of University students cheated., * 1964 - The NAACP announced a one-day demonstration at General Motors headquarters to protest that firm's "discriminatory practices in employment." * 1975 - 150 members of the Advocates of Medical Infor- mation burned books on the diag which they called "daneeronisv yist " F- ..1 , I :I I