6 Page 2-Wednesday, October 13, 1982-The Michigan Daily Court hears biased schools' tax break ease IN BRIEF 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 time. 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 supported. "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 discriminatory school." 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 discrimination. "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 schools. 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 spokesman. 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 rank-and-file. 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- ding rejection." 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 1981. Bolivia nabs Italian terrorist I - [ .. Rubble rouser 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 4 (Continued from Page 1) nearly all workers had joined the strike. 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' penalty. "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- taken. "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 policies. "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 better lately." 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 financial crunch. 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. 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 balked. 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 workers. 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 Thailand. 0 '0 C, I ,J GRADUATIG in '632H BEFORE IT'S TOO LATE! MAKE AN APPT. TO HAVE YOUR PICTURE TAKEN FOR THE '83 min ii.Illn rFNLuA * Read and Use Daily Classifieds I Vol. XCIII, No. 30 Wednesday, October 13,1982 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. 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