Peace plan in
Mideast urgent,

The Michigan Daily-Tuesday, January 11, 1983-Page 3
Reagan eyes tax
hikes to cure
budget crisis

says 'U'
By LAURIE DELATER
"The United States must not be lulled
into short-term optimism" because
most of the fighting in. Lebanon has
ceased, the Middle East correspondent
for the Sunday Times of London said at
the University Sunday.,
Robin Wright, a 1971 Michigan
graduate, expressed the urgency of im-
plementing President Reagan's Sept. 1
peace initiative in a lecture before a
crowd of 350 at the new Alumni Center.
AS THE FIRST participant in the
Alumni Association's Alumna in
Residence Program, Wright said that
the peace plan must be initiated within
the next six to nine months.
If the administration does not move
quickly, the initiative is likely to be
shelved until after the 1984 election in
order to keep the plan from becoming
an election issue, Wright said.
She added that the Soviets will not sit
back while Lebanon struggles under a
new leadership and watch U.S. influen-
ce grow in the region.
FINALLY, SHE said the moderates
of the PLO right now appear willing to
recognize Israel's right to exist. but
unless the United States capitalizes on

alumna
the moment, there is a very real danger
that the radicals in the group will
prevail. Although the PLO ,may have
faded into the background, she said, it
still holds the political clout to stop an
agreement.
If the United States fails to establish a
peace plan soon, she concluded, there
will be another war, one "that will af-
fect everyone, in everyway."
Wright, a 1969 Daily sports editor,
received her bachelor's degree (1970)
and masters in communications (1971)
from the University. She began her
professional career as assistant over-
seas news editor for the Christian
Science Monitor, after which she
covered Africa for The Washington
Post and CBS News.
The journalist concludes her six-day
stay on campus in a speech for the Cen-
ter for Near Eastern and North African
Studies today at 3:30 p.m. She met with
students yesterday to discuss the perils
of war correspondence.
The new Alumna in Residence
Program will periodically invite a
distinguished alumna to campus to
share her views, expertise, philosophy,
and talent with the University com-
munity.

Ar rhoto
These two banners hanging outside cell block 'B' of New York's state prison
indicated to officials yesterday that inmates involved in the three day old
seige may be willing to give-up.
NY prison inmates
release four hostages

WASHINGTON (AP) - President
Reagan is giving serious thought to
seeking higher taxes for 1985 and
beyond to bring the government's
burgeoning budget deficits under con-
trol, administration sources said
yesterday.
One source, asking not to be iden-
tified, said the president appeared
receptive in general to the tax idea
during an Oval Office meeting yester-
day with senior economic advisers, and
ordered the Treasury Department to
develop specific proposals.
REAGAN, FACING awesome
deficits that could swell from a record
$200 billion in 1984 to nearly $300 billion
by 1988, also was considering proposals
for reducing his military spending
plans, freezing spending for certain
non-military programs and helping the
unemployed.
Under intense pressure from vir-
tually all his advisers and political
allies to trim his record defense budget,
Reagan scheduled separate meetings
Police
notes
Computer stolen
A personal computer and spare parts,
together valued at $1,150, were stolen
from an apartment in the 1300 block of
Hill St. Police said thieves apparently
entered through an unlocked door
sometime between 10 p.m. Saturday
and 3 a.m. Sunday and took the equip-
ment.
Office equipment taken
Thieves stole $4,795 worth of office
equipment and cash over the weekend
from three area businesses, all housed
in the same building at 210 Huron View"
Drive. Police said Unitec Construction
Services, Howard King Associates, and
H.A.M. Corporation, were robbed bet-
ween Friday afternoon and Sunday
morning.
The burglars apparently forced open
the front doors of the offices and made
off with the equipment. Among the
stolen items were three typewriters;
dictaphone equipment, a radio, and $95
in cash.

yesterday to deal with that issue.
Several aides said they were hopeful
the president would approve a modest
cut for 1984 and larger reductions in
military spending for 1985 through 1988.
The president and his top advisers
are trying to reach final decisions this
week on the budget plan he must send
Congress on Jan. 31. The budget covers
fiscal 1984, which begins Oct. 1.
THE PRESIDENT already has ap-
proved administration plans to ask
Congress to cut $33 billion froi
domestic programs in 1984 to keep the
deficit from growing above $200 billion.
The administration sources, none of
whom wanted to be named, said budget
director David Stockman has specific
programs in mind for cuts, but the
president may expand the effort to in-
clude a partial non-defense spending
freeze to appease congressional
Democrats and Republicans who have
called for holding 1984 spending at 1983
levels.
Among the targets mentioned for
freezes are government salaries and
the automatic cost-of-living increases
each year in social benefit programs,
such as Medicare, Medicaid and food
stamps.
STILL UP in the air, sources said, is
whether the president will propose
Social Security benefit reductions or
tax increases in his 1984 budget to deal
with the pension system's deficit. A
presidential decision on this sensitive
matter hinges on whether a bipartisan
Social Security commission can agree
on a course of action by Saturday's
deadline, they said.
One tax-raising plan that could wind
up in the 1984 budget plan would require
workers to pay taxes on employer-paid
health insurance premiums beyond a
certain limit. Sources said a specific
ceiling had yet to be decided, but they
said the idea is to keep basic insurance
coverage tax-free and to tax only
unusually generous provisions. %
THIS PLAN, they said, involves only
modest tax increases and is intended
primarily to control rising health care
costs, not to narrow the deficit.

HAPPEIN
Highlight
Registration continues this week for the ACU-1 Games Tournament,
scheduled for Jan. 22 and 23. Events include pool, table soccer, table tennis,
chess, and backgammon. A $2 registration fee must be paid by Jan. 21 at the
Campus Games Center on the second floor of the Michigan Union.
Films
AAFC-5,000 Fingers of Dr. T, 7 p.m., The Secret Garden, 8:30 p.m., Aud.
A, Angell Hall.
German Dept. - In Search of Jewish Amsterdam, 8 p.m., Rackham Am-
pitheater.
Performances
Michigan Union Concert of the Month Series-Toni-Marie Montgomery,
performing sonatas by Beethoven and Poulenc with violinists Laura Roth
and Marla Smith, 8 p.m., Pendleton Room.
Dance Series-Dance Concert Review, students Valeri Vener and Kathy
Kibsey, noon, Pendleton Room, Michigan Union.
Speakers
Center for Western European Studies, Committee for Gender Research,
Women's Studies-Paoli Di Cori, "The Concept of Virginity in the 20th Cen-
tury," 4 p.m., West Conference Room, Rackham Bldg.
Urban Planning-Allan Feldt, "The Growth of Urbanism," 11 a.m., 1040
Dana Bldg.
Biomedical Research Council & Warner-Lambert Co.-Michael Peach,
"The Role of the Vascular Endothelium in Cardiovascular
Diseases-Pharmacologic Implications," 4 p.m., Warner-Lambert, 2800
Plymouth Rd.
Bioengineering & Mechanical Eng. & Applied Mechanics-Albert Schultz,
"Biomechanic Studies of Idiopoathic Scoliosis," 4 p.m., 1042 E. Eng. Bldg.
Computing Center-Chalk Talk, Consulting staff, "MTS Command
Language, Basic Use," 12:10 p.m., 1011 NUBS, Hartman & Blue, "Welcome
to MTS," 7 p.m., 131 BSAD.
Chemistry - John Goves, "Synthetic Models of Metalloenzymes," 4 p.m.,
1300 Chemistry Bldg.
Institute of Gerontology-Core seminar: "The Aging Network: Local,
State, and National Perspectives," 7:30 p.m., 400 N. Ingalls, Room 3120.
Chinese Studies-Nina Zubkoff and John Ang, "Travels in North China,"
noon, Lane Hall Commons Room.
Meetings
Amnesty International - General Meeting, 7 p.m., Michigan Union.
Society of Christian Engineers-Brown Bag Meeting, Noon, 315 W. Eng.
Bldg.
Ann Arbor Go Club-7 p.m., 1433 Mason Hall.
Ann Arbor Support Group for FLOC-7:30 p.m., 308 E. William.
Baptist Student Union-7 p.m., 2439 Mason Hall.
Cross Country Ski CLub - Meeting and film, 7:30 p.m., 19 Angell Hall.
Public Relations Club - Business meeting and yearbook photo, 4:30 p.m.,
Anderson Room, Michigan Union.
Students' Counseling Office-Mass meeting, 6:30 p.m., 1018 Angell Hall.
Washtenaw County Soil Conservation District-District Board Meeting, 8
p.m., 6101 Jackson Road.
Ann Arbor-Washtenaw NOW-Monthly meeting, topic "Pro Choice," 7:30
p.m., 1917 Washtenaw Ave.
Miscellaneous
His House Christian Fellowship-Fellowship & Bible Study, 7:30 p.m., 925
E. Ann St.
Museum of Art-Art Break, Barb Hamel, "Action, Please!" "The Nude"
exhibition, noon.
Ann Arbor Public Library-Booked-for Lunch Program, When Bad Things
Happen to Good People, 12:10 p.m., Public Meeting Room, 343 S. Fifth Ave.
WCBN-FM 88.3-Interview/discussion on Dr. Martin Luther King Unity
March in Ann Arbor, 6 p.m.
Society of Women Engineers-Open House, 9 a.m. - 4 p.m., 144 W. Engin.
Bldg.
To submit items for the Happenings Column, send them in care of
Happenings, The Michigan Daily, 420 Maynard St., Ann Arbor, MI. 48109.
PART TIME EMPLOYMENT
NIGHTS
The College of Literature, Science and The Arts is currently

(Continued from Page 1)
A somber Cuomo, facing the first
crisis of his 10-day-old administration,
let Russert answer questions at a noon
news briefing.
Asked why the prisoners hadn't been
subdued with tear gas, Russert said,
"We believe it is very important to con-
clude this episode in a nonviolent way if
at all possible. Our primary concern is
to get the hostages back safely."
IN OTHER developments, over a
public address system rigged up by the
prisoners, talk was heard about

clearing away a barricaded catwalk
connecting the cell block with parts of
the prison still in the hands of the
authorities.
Officials did not immediately say
whether the actions meant the siege
that began Saturday night was coming
to an end.
"We just sent four officers into the
negotiating room," one inmate said.
"The administration kept the officers.
We released them as a goodwill gesture
for food."

'U' med school prof

die s sudde
Dr. Keith Lieding, a University
pediatric anesthesiologist, died unex-
pectedly of an apparent heart attack
last Friday evening.
An associate professor of
anesthesiology, Lieding was 57 and had
been on the medical staff of the Univer-
sity's C.S. Mott Children's Hospital for
nine years.
A memorial service was held vester-

day afternoon at King of Kings
Lutheran Church, 2685 Packard Rd.
Lieding is survived by his wife,
Judith; two sons, Michael and Glenn of
Ann Arbor; two daughters, Amy of Ann
Arbor and Nancy Sager of New York
City; a grandson, Nicholas Sager; four
brothers and three sisters. Memorial
contributions may be made in Lieding's
name to C.S. Mott Children's Hospital.

State defers $26 million;
'U' officials fear big cuts

JOB HUNTERS! DON'T MISS ...
"THE NUTS AND B01 TS OF ON-CAMPUS INTERVIEWING"
WHERE: Modern Languages Building
Auditorium 4
. WHEN: Tuesday, January 11, 4:00-5:00
or
Wednesday, January 12, 4:00-5:00
Everything you need to know about:
-On-campus recruiting policies & procedures
-How to fill out your CIF (Campus Interview Form)
-Signing-up for interviews
-Tips on writing resumes & career objectives
-Prepping up for your interview
Career Planning & Placement, Office of Student Services

(Continued from Page 1)
in six months than administrators are
attempting to trim in the five years of
well-planned internal reductions in the
five-year plan.
-Administrators, who had been expec-
ting the cut since early last month, said
they had made some plans for saving
money but not nearly enough to cover
the deferral.
"We had taken some steps to slow
down some equipment and library pur-
chases in anticipation of a possible
(budget cutting) executive order," said
Kennedy, "(but) this goes way beyond
any of our expectations."
FOR THE meantime, administrators
said they will solve the cash flow dif-
ficulties by borrowing from other funds
within the University and pressure the

state into solving its problems as soon
as possible.
"Although the state's current fiscal
problem has been clear for some mon-
ths, I am alarmed at the lack of
progress in developing an appropriate
response up to this point, Shapiro said.
"I sincerely hope that Governor Blan-
chard and the legislature can resolve
this dilemma quickly."
The governor also froze the level of
state employment at 59,500 and ordered
department directors to report each
month on compliance. Although the
Milliken administration had been
trying to hold down employment as
well, the payroll increased in Novem-
ber and December for reasons not well
understood at this point.


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