4 Page 2-Friday, February 11, 1983-The Michigan Daily AP Photo Dust storm Severe drought and sweltering 109 degree heat caused this dust storm rolling over the center of Melborne Australia. Report lisi 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 yesterday. 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 any recommendations. "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. Germans send care packages to Jobless in Detroit 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 said. 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 February. Ark may not stay afloat: Church votes 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 demolished. 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 will survive." 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 department said. 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 the Depression. 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 farm. The Aga Khan is a major member of a 34 person group which owns the celebrated horse. 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 I W# :I I *1 F ." West Side Book Shop designers of travel unlimited Present DAYTO0NA,,EACH a. AT University of Michigan #1 Blue Ribbon Spring Fling Feb. 18-27 $15900 " Roundtrip Motorcoach Transportation - .7 Nights Accommodations at Beachfront Hotel " Welcome Party " Special Poolside Parties " Entertaiment and Discount " Full Time Staff Member in Daytona- 'Optional Side Tours *A Survival Kit Sponsored by Pabst Blue Ribbon Brewing Co. 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