Page 2-Friday, February 11, 1983-The Michigan Daily
Severe drought and sweltering 109 degree heat caused this dust storm rolling over the center of Melborne Australia.
FromAP and UPI
WASHINGTON - Congress must
make major spending cuts in the
growth of the military, social security
and Medicare if it hopes to slash huge
budget deficits, Congressional Budget
Office Director Alice Rivlin said
The budget office released a list of
spending cuts and tax increases
available to Congress in a report en-
ts budget alternatives
titled, "Reducing the Deficit: Spending
and Revenue Options." It did not make
"The areas that must be addressed to
significantly bring down the deficits
are national defense, Social Security
and Medicare and Medicaid," Rivlin
said at a news briefing.
"The only way to get big money out of
the budget is to reduce benefits to
people and slow (military weapons)
procurement," she said.
The office projects the deficit will
grow from nearly $111 billion in fiscal
1982 to $267 billion in 1988 if no new
spending 'cuts or tax increases are
made by Congress this year.
To bring the deficit down to about
$100 billion in 1988 would not be easy,
Rivlin said, because that would require
budget savings of about $170 billion
over the next five years.
"The annual rate of the domestic
budget cuts in the first year of the
Reagan administration was about $40
billion, and the hard-fought tax in-
creases of the second year realized an
average annual gain of about $33
billion," the report said.
Military spending will continue to
grow more rapidly than the rest of the
budget and will constitute almost ne-
third of all federal spending by 1988, the
report said. In kaddition the cost of
guaranteed benefit programs, such as
Social Security and Medicare-Medicaid
are expected to rise sharply.
FRANKFURT, West Germany (UPI)
- In response to growing West German
concern about America's jobless, Pan
American World Airways announced
yesterday it will airlift care packages
to help unemployed Americans.
Hundreds of West Germans, moved
by television news pictures of the
misery suffered by America's unem-
ployed, have responded to the aid par-
cel initiative launched by a group of
West Germans who remember being
kept alive by American packages
during the aftermath of World War II.
Irmgard Doebel, a spokeswoman for
the group based in Ludwigshafen, said,
"We're all wartime chldren. We
remember at least being able to get
enough to eat thanks to the American
packages after World War II.
"We were deeply moved by television
film we saw before Christmas of the
suffering unemployment is causing in
Detroit. We thought everyone sends
packages to Poland, but no one seems
to think there can be any suffering in
the United States. Everyone thinks
America is the land of the rich," she
Airline spokeswoman Trude Wen-
dihnger said the first shipment of an ex-
pected 100 parcels containing food and
clothing was scheduled to be flown from
Frankfurt to Detroit at the end of
Ark may not
to sell site
(continued from Page 1)
lease, would be responsible for main-
taining, renovating, and paying taxes
on the property, in addition to paying
the $20,000 per year rent.
Charles Reinhart, the church's
realtor, said he does not foresee the Ark
staying at the Hill Hoise location. "I
believe theArk is not capable of affor-
ding it," he said.
But Reinhard said he was confident
the church will fnd a tenant who is
willing to pay the expensive renovation
costs. Though there have been no for-
mal offers made, Reinhard said that
"interest" had been shown by a con-
sulting firm, a fraternity, and a family,
but he would not elaborate.
ANN ARBOR'S Historical District
Commission announced plans last week
to try to make Hill House a historic site.
The 88-year-old house was built for
Henry Carter Adams, who was a
distinguished University economics
professor and world-,renowned scholar.
Historic status will save the building
from the possibility of being
As for the Ark, Siglin said he had "no
idea where to go."
Kathy Dannemiller, a University
administrator and church member who
was one of the Ark's co-founders, said,
"It's the death of an era ... but the Ark
IN BRI EF
Compiled from Associated Press and
United Press international reports
Unemployment claims rise
WASHINGTON - The Labor Department reported yesterday the largest
increase since mid-November in new claims for state unemployment
benefits, amid signs the number of long-term unemployed people is growing.
Business and labor economists viewed the report as an indication the
nation's unemployment problems may not have peaked, despite the drop in
the January jobless rate from 10.8 to 10.4 percent.
A House Appropriations sub-committee approved legislation Wednesday
that would help states make unemployment payments by adding $5 billion to
the $6.8 billion trust fund that lends money to states for that purpose.
Initial claims for jobless checks, considered by economists an indicator of
job market health, soared by 52,000 to 517,000 in the week ended Jan. 29, the
It was the largest increase since an increase of 54,000 for the week ended
Nov. 20, 1982.
Democrats take aim at tax cut
WASHINGTON - House Democrats, trying to put a brief but nasty
leadership fight to rest, renewed their vow yesterday to try to repeal or limit
this year's 10 percent installment of President Reagan's tax cut program.
When asked by reporters if Democrats would force a vote on the issue,
House Speaker Thomas O'Neill said, "We intend to."
Other members of the party leadership nodded their heads in silent
agreement. But Rep. Dan Rostenkowski of Illinois, who had called into
question Democratic unity against the tax cut, was not present for O'Neill's
session with reporters.
O'Neill (D-Mass.) made his comments two days after Rostenkowski, the
House's chief Democratic tax writer, called for an overall "tax freeze" that
would permit this year's cut to take effect unless the administration suppor-
ts changing it.
Reagan is adamant against any changes in the tax cut. Rostenkowski's
comments led O'Neill to call a private meeting of the House Democratic
leadership on Wednesday. Sources said Rostenkowski was sharply
criticized by his colleagues for undercutting the longstanding plans O'Neill
and others have for attacking Reagan's tax cut.
Calif, may send creditors IOUs
SACRAMENTO, Calif. - A compromise plan to remedy the state's $1.5
billion budget deficit fell apart yesterday, increasing the chances that
California would have to pay its creditors with IOUs for the first time since
Gov. George lDmukmejian has said the state would begin issuing the
IOUs-officially called "registered warrants"-later this month unless the
Legislature approved extensive spending cuts.
But in an early-morning telephone call to Assembly Speaker Willie Brown,
a SanFrancisco Democrat, Deukmejian rejected a compromise proposed by
Assembly Democratic leaders.
That plan included cuts in social programs next year, and assurances that
next year's budget would be balanced, if necessary, by a tax increase that
would take effect unless economic recovery restored state revenues.
Deukmejian vowed during his campaign to fight any tax increase.
California's 1982-83 recession-tight budget, which went into effect last
July, totaled $25.2 billion and marked the first time since World War II that
the state's budget was smaller than the one of the previous year.
In Michigan, the state constitution requires a balanced budget.
English church votes against
unilateral British disarmament
LONDON - The Church of England yesterday said Britain should keep its
nuclear weapons as a deterrent, but added the first use of such weapons
could never be morally justified.
After an impassioned six-hour debate on the morality of nuclear weapons,
the Anglican church's 550-member governing synod voted overwhelmingly
on a show of hands against unilateral disarmament by Britain.
The bishops, clerics and lay people then voted 275 to 222 in favor of a
proposal that "even a small-scale first use of nuclear weapons could never
be morally justified."
The synod said it believed "there is a moral obligation on all countries ..
publicly to forswear the first use of nuclear weapons in any form."
The debate foreshadows a meeting of U.S. Roman Catholic bishops in
Chicago May 2 and 3. In a pastoral letter, the U.S. bishops have said both the
use of nuclear weapons and the declared intent to use them as part of
America's deterrent policy are wrong.
Journalists enter negotiations.
to free kidnapped racehorse
BELFAST, Northern Ireland - Three journalists sped to a secret rendez-
vous on the countryside yesterday to act as go-betweens with kidnappers
demanding a $3.1 million ransom for super-stallion Shergar. It was reported
the kidnappers had threatened to cut off one of the champion horse's ears.
In Ireland, Chief Superintendent James Murphy, supervising the nation-
wide hunt for the $16 million Derby winner, said the kidnappers made their
ransom demand Wednesday night in a phone call to the Aga Khan's stud
The Aga Khan is a major member of a 34 person group which owns the
One report said the five or six armed kidnappers had threatened to cut off
one of the ears of the 5-year-old horse, which won the English and Irish Der-
bies and was named Europe's "Horse of the Year" in 1981.
The horse was grabbed Tuesday night from a stud farm 30 miles from
Dublin by six masked gunmen who told the groom they wanted 2 million
Irish pounds - $2.7 million - for the double Derby winner.
Vol. XCIII, No. 109
Friday, February 11, 1983
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