Page 2-Wednesday, October 13, 1982-The Michigan Daily
tax break ease
From AP and UPI
WASHINGTON - Granting tax ex-
emptions to religious schools that prac-
tice blatant racial discrimination is the
same as giving them direct federal aid,
a leading civil rights lawyer told the
Supreme Court yesterday.
Assistant Attorney General William
Bradford Reynolds, arguing before a
crowded courtroom, said the ad-
ministration believes a 12-year-old ban
on tax breaks for Bob Jones University
and similar racially biased schools
lacks congressional approval at this
BUT WILLIAM T. Coleman Jr., a
prominent black lawyer, told the
justices during oral arguments that
wiping out discrimination against
blacks is such a "fundamental'"
national policy that iax breaks for
racially biased schools should not be
"Tax credits and tax exemptions
stand on the same footing as direct
grants to an institution," asserted
Coleman, chairman of the NAACP
Legal Defense and Education Fund.
"Every form of government assistance
to a religious school ... has been disap-
proved when applied to a racially
But lawyers for Bob Jones University
of Greenville, S.C., and the Goldsboro
N.C. Christian Schools argued the In-
ternal Revenue Service has no
authority to make political decisions
denying tax-exempt status to in-
stitutions practicing racial
"THESE ARE political questions
that have been allocated to the
Congress. Any change in qualifications
for exemptions must come from
Congress," maintained William Mc-
Nairy, attorney for the Goldsboro
Blacks, civil rights groups and others
were outraged by the administration's
announcement last January it intended
to grant tax exemptions to racially
biased private schools.
The administration - in the midst of a
major political embarrassment over
the issue - later said the Supreme Court
would have to decide whether the ban
imposed by the Internal Revenue Ser-
vice in 1970 was justified. The ad-
ministration also called on Congress to
enact a specific prohibition, but no ac-
tion has been taken.
Compiled from Associated Press and
United Press international reports
Mine explodes in Swedish bay
BERGA NAVAL BASE, Sweden- The Swedish navy's flagging 12-day-old
sub hunt in the Stockholm archipelago picked up new life yesterday
following a mine explosion in an area where the navy said it may have detec-
ted a submarine.
An overnight search by divers of the minefield area in Mysingen Bay
yielded "no concrete results," said Capt. Sven Carlsson, the navy's chief
He said, however, the search command was still getting "observations"
that were being analyzed. He indicated a large-scale investigation, including
diving operations, would continue in the area off Malsten island, southeast of
Nynashamn and 35 miles south of Stockholm.
Carlsson said it was increasingly likely that one or two submarine in-
truders were in Mysingen Bay and Hors Bay to the north, where the navy has
been hunting a foreign submarine believed from the Soviet bloc since a
periscope was sighted there Oct. 1.
Chrysler, UAW renegotiate
DETROIT- Chrysler Corp. and United Auto Workers union officials an-
nounced yesterday they will return to the bargaining table to devise a new
contract because the first pact was overwhelmingly rejected by the union
Voting was slated to last until tomorrow, but UAW President Douglas
Fraser said it was already apparent that the pact would go down to "resoun-
It will be the first contract with any of the Big Three automakers ever
rejected by a rank-and-file vote, according to Fraser.
An unofficial tally showed the tentative agreement was being rejected by
68.7 percent of the workers.
"The Chrysler Corporation, like we, have to face reality that people who
work in their plants are extremely unhappy and dissatisfied with their con-
ditions, and the Chrysler officials have got to search for ways to ameliorate
that feeling," Fraser said.
Fraser blamed rejection of the proposed pact on the lack of an immediate
wage increase. The accord offered workers wage boosts starting in Decem-
ber if the company made a quarterly profit of $20 million or more. It also
reinstated cost-of-living protection which workers had given up in March
Bolivia nabs Italian terrorist
A worker clears away the wreckage as demolition of the old Fischer's Har-
dware store on Washington St. begins.
Po ice fight Polish workers
(Continued from Page 1)
nearly all workers had joined the
As-tension mounted in the Baltic port
where Solidarity was born, Poland's
martial law authorities "militarized"
the Lenin shipyard, making striking
equivalent to disobeying army orders-
an offense which carries the death'
"In -connection with the continued
disorganization of work in the shipyard
by a part of the crew and the paralyzing
of work by the rest of the crew," Polish
television said, "the decision to
militarize the shipyard was under-
"THUS ALL labor relations in the
shipyard will be regulated by martial
law regulations," it said.
In Washington, a White House
spokesman said, "We're monitoring the
rioting in Gdansk. To us, it is an in-
dication that Poles feel very strongly
about Polish Solidarity."
Soviet Defense Minister Dmitri
Ustinov assured Polish leader Gen.
Wojciech Jaruzelski in a telegram of
Soviet help in its struggle to maintain
communist rule in Poland.
Students plan protest
to oppose cutbacks
Suzuki declines re-election
(Continued from Page 1)
Miki objected to Suzuki's ties with
former Prime Minister Kakuei Tanaka,
who still heads the party's largest fac-
tion although he is on trial for bribery in
the Lockheed payoffs scandal. Fukuda
condemned the government's economic
"We must construct a strong struc-
ture under a new leader for the har-
mony and unity of the party," Suzuki
told a meeting of party leaders yester-
day at which he announced his impen-
ding resignation. Party officials said it
came as a "complete surprise."
SUZUKI scheduled a news conferen-
ce for today to explain his decision. But
he told Japanese reporters who asked
him about it: "I've been sleeping much
Suzuki was plucked from obscurity to
become prime minister in 1980 after the
death of Prime Minister Masayoshi
Ohira. Although he had held few major
government posts, he was known as a
skilled mediator and got the crucial
backing of Tanaka, who controls 108 of
the party's 437 members in the Diet.
Suzuki's "politics of harmony' won
favor at first with a public tired of the
Liberal Democrats' constant feuding.
F$ut his popularity plunged with the
slide in the economy and his failure to
make good on his promise to reduce the
government budget dificit.
(Continued from Page 1)
president, said she hopes the Regents
will add an extra hour to the time they
usually set aside for public comments
at their meeting because so many
students have asked to speak.
At their regular weekly meeting in
the Michigan Union last night, MSA
members were divided in their op-
position to the budget plans.
Some members said they disagreed
only with the manner in which ad-
ministrators have targeted certain
programs and with what they insist is a
closed and secretive review process.
But as many other students wanted to
go further, and critize the ad-
ministration's entire philosophy of cut-
ting selected programs while beefing
up some others. All University
programs, these students argued,
should share the burden of the overall
UNABLE TO agree, student gover-
nment members put off the decision
and agreed that tomorrow's protest will
serve mainly to alert students to the
controversy and to let administrators
know they are concerned.
Among the organizations joining
MSA- in the protests are the student
governments of the art school and the
natural resources school, two areas
that have been targeted for possible
cutbacks or elimination.
Assembly members raised a number
of objections to the University's budget
redirection, ranging from its effects on
minority students to the unneeded
specificity in education some students
claim it promotes.
ANDY KEENAN, who represents art
students on MSA, backed the coming
protests as a way to fight what he said
was an unnecessarily secretive review
procedure. "We want some definitions
of terms like 'centrality' and 'high
priority,' which the University has
used," he said, adding that he hopes
that more than 200 people would turn
out for tomorrow's rally.
Keenan said many of his fellow
students will be willing to participate in
the protests. "I've spoken to a lot of
people, and they're all pretty pissed
off," he said.
Dan Munzel, the MSA representative
from the School of Natural Resources,
said that while maty natural resources
students would attend the rally, student
interest in redirection had dropped sin-
ce the school is thought to have fared
well in last week's review hearings.
"The (natural resources) school has
been busy showing support for the
school itself, it hasn't really had time to
participate in the other parts of the
redirection process,"he said, adding
that he hopes students will not lose their
enthusiasm for fighting the proposed,
cutbacks. "There'are students who
think, 'Well, we're done, with our
review' but, that's definitely not the
case," he said.
STUDENT leaders said they will hold
a meeting following tomorrow's protest
to brainstorm for ideas. Students at the
meeting will try to decide what their
next move will be toward fighting the
budget plans, said MSA President Amy
Moore pointed out that a similar rally
at last April's Regent's meeting failed
to channel the energies of student
protesters. Organized opposition faded
after that 'rally, Moore said, insisting
that it will not after tomorrow's.
Neither Gittleman nor Moore had
specific suggestions to present to
students at tomorrow's rally. But both
said the meeting after the rally would
help come up with specific strategies.
"There are still a lot of unknown
areas," Moore said last night. "Right
now, we're trying to just direct the
redirection already underway."
ROME- A platoon of police agents returned from Bolivia yesterday with
one of two Italians wanted for the bombing of the Bologna railway station
that killed 85 people and injured 200.
The other fugitive, the founder of Italy's most dangerous neo-fascist
terrorist organization, got away.
Airport sources said the captive, Pierluigi Pagliai, 28, was unconscious,
with serious wounds in the head and neck inflicted by Bolivian police when
they arrested him. An ambulance took him to a Rome hospital.
Twenty-three Italian police agents brought Pagliai back aboard a char-
tered Alitalia DC-10. The plane's departure from La Paz, the Bolivian
capital, was delayed for several hours, and Bolivian aviation officials repor-
ted that it had been hijacked. But Italian police sources said it was delayed
because guards at the airport apparently had no orders.
Intelligence sources said Pagliai had been living in Argentina with his wife
but traveled to Bolivia frequently as an operator in that South American
country's $2 billion-a-year illegal cocaine trade.
Milliken proposes 2% raise
for cooperative state workers
LANSING- The Milliken administration, predicting a modest recovery
and a hard-to-balance budget in fiscal 1984, proposed yesterday a 2 percent
pay hike for workers who made concessions and nothing for those who
The proposal came during a presentation to the state Employment
Relations Board in which budget experts said the state faces a potential
budget deficit of $225 million the 1984 fiscal year, which begins next October,
if all required and discretionary expenditures are approved.
The ERB is considering the issue of pay raises in fiscal 1984 for roughly
17,000 employees not covered by collective bargaining agreements. The
board will make recommendations to the Civil Service Commission, but the
ultimate hike granted is expected to closely parallel that given to unionized
The state's proposal is for a 2 percent pay hike, on top of the delayed 5 per-
cent hike which will take effect next September.
Reagan reassures Asian ally
WASHINGTON- President Reagan assured Indonesian President Suhar-
to yesterday that the United States will not let its ties with China undermine
the security of American allies in Southeast Asia.
Reagan also expressed sympathy with Suharto's concern about the
growing power in the region of the Soviet Union, the principal supporter of
the communist government of Vietnam.
Visiting the United States for the third time since he took office in 1966,
Suharto was hailed by Reagan as "a senior statesman of Asia" whose coun-
try is "an important force for peace, stability and progress."
A senior U.S. official, briefing reporters afterward, said countries in the
region are concerned about "a potential threat from China, not necessarily
an existing one. We understand these concerns."
Stressing that the Association of Southeast Asian Nations (ASEAN) is the
foundation of U.S. policy toward the region, the official said, "The United
States is not going to let its relations with any other country get in the way...
or in fact constitute a security threat to ASEAN."
ASEAN includes Indonesia, the Philippines, Malaysia, Singapore and
GRADUATIG in '632H
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Vol. XCIII, No. 30
Wednesday, October 13,1982
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