4 IN BRIEF 'U' prof helps Chinese clean Shanghai water By BARBARA MISLE After spending almost a year and a half in Shanghai, University Engineering Prof. Kan Chen, recently completed a collaborative project with Chinese researchers studying methods of solving the city's water pollution problem. The project, which was funded by the National Science Foundation, centered around the polluted Huangpu River, also known as the "Black Stink." The river is considered a health hazard to Shanghai residents because of the presence of possible carcinogens. CHEN EXCHANGED ideas with the Chinese on computer modeling, minimizing cost, and decision analysis regarding the river. Since the early seventies, the Univer- sity has encouraged academic ex- changes with the People's Republic of China. In fact, President Harold Shapiro and other University officials visited China in the summer of 1981. Chen said political and social dif- ference created problems because the Chinese were not accustomed to a "free-flowing" exchange of ideas. FOR EXAMPLE, he said, the topic of decision-making proved to be a sen- sitive area for the Chinese executives. "In China, decision-makers are very hesitant about revealing their true feelings about such things and their staff analysts feel very inhibited in asking the hypothetical questions. This presents a real challenge for future creative research." If the NSF will provide additional funds, a second project will begin in early April, Chen said. Daily Photo by JON SNOW University Vice President for Academic Affairs Billy Frye fields natural resource students' quesitons yesterday about the recent recommendation to ct one third of their school. Frye answers questions, Secretary Weinberger calls for cuts in defense on Nat. Res. (continued from Page 1) Frye also reminded students the cuts could have been a lot deeper. "This was not a charade.. This was a general review with the possibilities laid out in the original charge," he said. Other audience questions dealt with the changing direction of the Univer- sity, but Frye defended the University's position. "I WANT to discover what the right balance is" between teaching and research, Frye said. "I'm open to in- put." Frye said he will soon complete review meetings with SNR faculty and mem- bers of the school's review committee. A public hearing on the SNR report will take place on Jan. 17. He estimated the final SNR recom- mendation to the Regents would be ready a few days after the hearing. Frye also announced he and President Harold Shapiro have chosen their nominee to become the school's interim dean, replacing William John- son who resigned late last year. If the nominee accepts, he said, their name may be submitted to the Regents for final approval as early as next week. (Continued from Page 1) That still remains a top priority - the security of our people." He said the cuts are not "a ploy" and were not "intended to persuade Congress." But any further cuts im- posed by Congress, he warned, "would be endangering the security of our country." "I'M DELIGHTED with this $11 billion," the president said. "I'm ac- cepting that gladly. Cap did it. I'm pleased with it." Weinberger stressed that none of the proposed cuts would set back major weapons programs "needed to regain our national security." However, he cautioned that "no one should believe that these reductions will not adversely affect some of our military capabilities." Although he declined to go into detail on what military capabilities he was referring to, Weinberger indicated at another point that some troop maneuvers and training exercises would have to be curtailed. "I CANNOT recommend any further reductions beyond those discussed here, in view of the threat we still face," Weinberger said in a statement he read at a Pentagon briefing where he appeared without advance announ- cement. It was the first time in memory that any Defense Secretary had ever made public his budget recommendations before the president sent his overall federal budget to Congress. President Reagan's budget for fiscal 1984, which starts next Oct. 1, is expected to reach Congress Jan. 31. The $11.3 billion reduction in fiscal 1984's proposed budget authority would leave the Pentagon with $273.4 billion, a new record total about $35.4 billion bigger than the Pentagon received from Congress this year. THE BUDGET authority covers spending next year as well as some outlays spread out aver future years. There was no hint, meanwhile, as to whether Weinberger would go further in future years and cut substantially in- to the administration's five-year, $1.6 trillion Pentagon plan, which runs through 1987. Compiled from Associated Press and United Press International reports RenCen defaults on mortgage DETROIT - The riverfront Renaissance Center office-hotel complex was declared in default yesterday by one of its main mortgage holders, but its owners said they would try to restructure their debt later this week. Albert Abend, spokesman for Aetna Life & Casualty Co. of Hartford, Conn., which owns $50 million of the $200 million mortgage on the coplex, said the owners were in default in the morning because they failed to make a January mortgage payment due Monday. The deadline for the payment had been extended from Jan. 1. Richard Routh, a spokesman for Ford Motor Land Development Corp., a subsidiary of the automaker which owns 65 percent of the complex, said a meeting will be held in Detroit tomorrow with the insurance companies that are the main holders of the mortage. "We're meeting in hopes of discussing the restructuring of the mortgage and perhaps deferring certain payments,"Routh said. Banks lower prime rate to lowest point in 2'/2 years NEW YORK - The prime rate hit its lowest level in 2 years yesterday as the nation's major banks lowered it from 11.5 percent to 11 percent, con- tinuing a downward march in interest rates that began in July. Some analysts said they expected continued declines because of sharp drops in banks' costs of obtaining funds and of weak demand for business credit in the lingering recession. They disagreed about whether the prime would fall below,10 percent. The prime rate has not been in single digits since October 1978, when it rose from 9.75 percent to 10 percent, heading for a record high of 21.5 percent in December 1980. Otto Eckstein, president of Data Resources Inc., a research firm in Lexington, Mass., predicted the prime would "bottom at an average 10.85 percent in the first quarter of this year and rise to just over 12 percent by year's end. Reagan economist calls national deficit a time bomb' in economy WASHINGTON - The searing national deficit is "a time bomb" that will become increasingly difficult to defuse, a Reagan administration economist said yesterday. He and another Reagan official indicated that although the long recession seems to have almost run its course, deficits rising as high as $150 billion to $200 billion a year could severly cramp genuine recovery. "Time is not on our side," said Robert Ortner, chief economist at the Commerce Department. "You can't just sit back and wait for it to get bet- ter." The huge deficits now being talked about would require the government to spend billions more dollars every year in interest payments on the national debt, and that ever-increasing spending would make it harder every year to reverse the trend, Ortner said. He made his remarks in a panel discussion, during which Treasury Under- secretary Beryl Sprinkel also spoke of "a horrendous deficit this year" and worse problems in the next few years if action isn't taken. Reagan acts to help farmers DALLAS - President Reagan bypassed Congress to implement his program to give farmers surplus grain for idling up to half their fields, saying "We don't have time to stand around chewing our cud." Agriculture Secretary John Block predicted the plan, a major departure from Reagan's free-market philosophy, would save the government $3 billin to $5 billion in storage and loans over two years, while adding less than a penny to the cost of a loaf of bread in grocery stores. Farmers will at least break even, or perhaps earn more than if they had grown a crop, Reagan said. The president also announced that he has signed so-called "contract san- ctity"legislation which bars the government from imposing embargoes on agricultural exports already contracted. Contracts calling for delivery within 270 days of an embargo could be honored unless there was a declared emergency or state of war. 3month contraceptive criticized WASHINGTON - The risk of getting cancer from the injectable three- month contraceptive Depo-Provera outweighs the benefits of the drug and it still should not be generally available to American women, the gover- nment's chief judge of new drugs said yesterday. Robet Temple, acting director of office of new drug evaluation in the Food and Drug Administration, said little persuasive evidence of Depo-Provera's safety has been developed since the agency turned down a 1978 request for its approval as a contraceptive. "Depo-Provera is carcinogenic in beagles and monkeys at doses, especially in dogs, not enormously greater than those used clinically ... he told a special board of inquiry convened by the FDA to evaluate the drug. He said there were "no credible" epidemiologic studies which would assess the effects of the drug on women who used it as a contraceptive. Assertions by the manufacturer, Upjohn Co. of Kalamazoo, Mich., that no one has died after using the drug are both irrelevant and premature because not enough women have taken it long enough to draw conclusions, Temple said. Vol. XCIII, No.83 Wednesday, January 12, 1983 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. Sub- scription rates: $13 September through April (2 semesters): $14 by mail out- side Ann Arbor. Summer session published Tuesday through Saturday mor- nings. Subscription rates: $7.50 in Ann Arbor; $8 by mail outside Ann Arbor. Second class postage paid at Ann Arbor, Michigan. POSTMASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Ar- bor, MI. 48109. The Michigan Daily is a member of the Associated Press and subscribes to United Press International, Pacific News Service, Los Angeles Times Syn- dicate and Field Enterprises Newspaper Syndicate. News room (313) 764-0552, 76-DAILY. Sports desk, 763-0375; Circulation, 764-0558; Classified Advertising, 764-0554; Billing, 764-0550. Mike Bradley, Joe Chapelle, Laura Clark, Dan Coven, 4 is1 I 4 t t Smallrash fire hits Ann Arbor fire fighters had to empty a Arbor Fire Department. trash bin onto the driveway area of the The fire, which was reported by the School of Public Health on Washington school's housekeeping staff at 10:39 Heights late last night after the bin and p.m., was confined to the trash area, a,'trash compactor caught fire, accor- but the first floor of the building was ding to Capt. Charles Torey of the Ann filled with smoke. Fire and smoke damage to the building was minimal, Torey said, but there was still smoke in 737 N. Huron, Ypsi.-485-0240 the structure at press time last night. ALL GIRL REVIEW According to Richard Brown, a sophomore Markley resident, there Monday es were about 50 students studying in the pm mbuilding's classrooms when the fire broke out. -Fannie Weinstein Cargo jet crashes at Metro 14 (Continued from Page 1) BRUCE MATKOVICH, a Health Department physicist accompanying Sabo with a Geiger counter, said the seal on the cannister - which resem- bled a gallon paint can - was un- broken. Neither was the seal broken on an inner cannister, and total radioac- tivity was described as insignificant. "There was no contamination at the site," Matkovich said. The flight data recorder and cockpit voice recorder, bright orange boxes housed in the tail section, also were recovered and sent to National Tran- sportation Safety Board laboratories in Washington. Donald Engen, a board member who flew in with 10 other NTSB representatives, said removal of fragments would not begin "probably for a matter of days" and a deter- mination of the cause "truly could be months." The Americium 241, being shipped from Cleveland to South Korea for use in smoke detectors to be sold in the United States, was returned to UAL after inspection. Jay Strasma, a spokesman for the Nuclear Regulatory commission in Chicago, said the radioactive matter was "packaged and labeled properly according to the information we have." I Subscribe to The Michigan Daily 764-0558 I Dance Theatre Studio 711 N. University (near State St.), Ann Arbor " 995-4242 co-directors: Christopher Watson & Kathleen Smith day, evening & weekend classes New classes begin January 10 ." W Jr ON& 4 r Editor in-chief ... Managing Editor. News Editor. 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