Government informant threatened tape says LOS ANGELES (UPI) - Hustler 1iagazine publisher Larry Flynt made public yesterday what he said was ,a surveillance tape recording in which a key government informant threatens John DeLorean's life if he backs out of a $24 million drug deal. There was no way of verifying the authenticity of the often unintelligible recording of a purported telephone conversation. Assistant U.S. Attorney James Walsh, the government's chief prosecutor in the case, said only, "The matter is being looked into." THE FORMER automaker's attor- ney said if the content of the tape recor- ding, played to reporters at Flynt's Bel Air mansion, was substantiated, he would expect all charges to be dismissed. Flynt, who claims he paid a gover- nment employee $25 million for copies of 12 hours of undercover FBI videotapes - some of which were telecast this week on nationwide television - said the latest recording came- from a different government source he refused to identify. He also refused to say what he paid for the recording. He said the source told him the tape was provided by John Valestra, a federal Drug Enforcement Agency un- dercover investigator who was a key go-between in the drug deal resulting in De Lorean's October 1982 arrest. A HAND-WRITTEN transcript of the tape recording, provided by Flynt, Squoted De Lorean as telling gover- nment informant James Hoffman he wanted out of a business deal because he had learned drugs were involved. "All I ever wanted was an investment to save the company," De Lorean was quoted as saying in the September, 1982 telephone conversation. "I was willing to pay to $1.8 million commission, and if you wanted to put that in a dope deal, that's your business. Just count me out." R Hoffman: "You honor your part of the deal. That way you obviously live longer." DE LOREAN: "I just want out. I just want out. I won't talk." Hoffman: "How is your little daughter? Want to get her head smashed?" ,. The government claims De Lorean got involved in a multimillion cocaine smuggling deal in hopes of raising money to save his failing auto firm. De rean has contended he was framed ky the government, and threatened when he tried to back out. * * 0 *0 * 0 b 410 4v Si The Michigan Daily - Saturday, October 29, 1983 - Page 5 Anomic growtb down, Commerce Dept. says WASHINGTON (AP) - The govern- ment's main economic forecasting gauge rose 0.9 percent last month. That's down from the pace earlier this year, but one analyst said it shows the economy is "still flying." The Commerce Department said yesterday its Index of Leading Economic Indicators, a compilation of a dozen forward-looking statistics covering manufacturing, employment, prices and other areas, posted its 13th consecutive monthly gain in Septem- ber. YESTERDAY'S report said five of 10 available indicators rose last month, with the biggest boost coming from formation of new businesses. Also on the rise were the average workweek, contracts and orders for new plant and equipment, stock prices and a decline in unemployment claims. The Commerce Department reported earlier this month that the gross national product had recovered all of what was lost during' the 1981-82 recession, bringing that measure of the value of total U.S. production above the peak pre-recession quarter. The department also said the revised index for August was up from a previously reported 0.1 percent decline to a 0.3 percent increase, and that July's gain was revised downward from 0.8 percent to 0.6 percent. THE THIRD-quarter months of July, August and September showed the smallest gains of the year. Nonetheless, Commerce Secretary Malcolm Baldrige said that together they pushed the index higher by a "still healthy" 1.9 percent, compared with gains of 6.9 percent in the first quarter and 4.4 per- cent in the second. Baldrige called the slowdown from the beginnng of the economic recovery "a normal development" which suggests "some moderation ahead from the early hectic pace," pointing to a steadier growth rate. But in a reminder of one .of the economy's main trouble spots, Com- merce reported later in the day that the nation's merchandise trade deficit in the first nine months of this year sur- passed that for all of last year. THE REPORT said U.S. sales abroad rose 4.6 percent in September and im- pdrts fell 2.6 percent, narrowing the deficit to $5.8 billion from a record $7.2 billion in August. Still, that put the January-September shortfall at $46.6 billion compared with $42.7 billion for all of 1982. Indicators with diminished perfor- mance were new orders for consumer goods and materials, building permits, changes in sensitive materials prices, money supply and the speed at which vendors make deliveries. The two not available were changes in business and consumer borrowing and business in- ventories. EyesoreA Trish Reilly cuts out polka dots for a room in a haunted house in Twinsburg, Ohio. Dots were painted on the floor and walls of this room but were glued to the ceiling. Gays los A judge in the District of Columbia has ruled that Georgetown University can refuse to officially recognize two student organizations for homosexuals. Judge Sylvia Bacon ruled last week that the First Amendment guarantee of freedom of religion outweighs a District of Columbia law protecting homosexuals from discrimination. COLLEGES, 0, . MEMBERS OF TWO student organizations filed the suit in 1980 against Georgetown, which is affiliated with the Roman Catholic Church. Recognition entitles the groups to use the campus mail system and apply for funds from the university, among other privileges. Officials at Georgetown argued that recognizing the two groups "would be interpreted by many as endorsement of the positions taken by the gay movement on a full range of issues." The Catholic Church teaches that homosexual activity is "gravely evil e Georgetown statement that "the faculty4 and a disordered use of the sexual ts will look to close the rift faculty," university officials said. ipenedoknd ch e thehrt But the attorney for the two. groups, opened and heal the hurt Ronald Bogard, argued that the school brought." Georgetown Uni recognizes Jewish groups, which ficials refused to comm reject the divinity of Christ, and details of the suit. women's rights organizations, which reflects the homophobia of may advocate the right to have an society," Bogard said. " abortion. Both groups beliefs clash unlike the issue of race t with Catholic teachings; Bogard said. faced a few decades ago." THE STUDENTS had also charged Bogard said he was "sur that since the University hosts some ac- disappointed" by Bacon's d tivities funded by the federal gover- said the groups plan to a nment, it should not be considered as a case to the District of Colum church-related institution. Bacon appeals. rejected this argument, however. The case first went to co Robert Keyes, president of the Gay when a judge ruled that Rights Coalition of the Georgetown university's action was prot University Law Center, one of the two First Amendment the groups that filed suit, said he felt "there recogition was illegal unde was no just cause for denial of univer- of Columbia statute. sity recognition."'- Thel Chrota u e H He added that although the First - Te Chronicle ofIHig/u Amendment guarantees freedom of MSU angers fish religion, "there have been circumstan- They don't call it "M ces where the courts have justified the nothing - a group at Mic intrusion (on freedom of religion) when University is protesting -an the protection of individuals overrides that bans fishing on school p the religion." MSU forbids anyone to fis GEORGETOWN'S president, the banks of the Red Cedar R Rev. Timothy Healy, said in a runs directly through camp lawsuit and studen- these days they have iversity of- ent on the Georgetown 'the entire This is not he country rprised and ecision, but ppeal their bia court of urt in 1981, unless the ected by the denial of er a District er Education iermen loo-U" for higan State ordinance roperty. sh from the iver, which us, because the river banks are home to plants and wildlife that "are an invaluable resour- ce for outdoor classrooms and laboritories," said Thomas Kehler, MSU's director of campus parks and planning. "THE CAMPUS of MSU is a san- ctuary for higher education. We're not here to provide forms of recreation that could conflict with that mission," Kehler said. But members of the Michigan United Conservation Club see the issue dif- ferently. Wayne Schmidt, staff ecologist for the group, said they ap- proached MSU's Board of Trustees Oct. 14 asking them to reconsider the or- dinance. "We said it was illegal on the grounds that there is a state law that says anyone can fish in a state-owned river," Schmidt says. Kehler says that fishing enthusiasts are welcome to fish in the river - literally. Anyone who gains access to the river off campus and wades onto university property is welcome to cast their line, he said, as long as they don't step on the river banks. colleges appears every Saturday and and was compiled by Ken Wittenberg. Join The Daily 9 SIINDIVIDUAL THEATRES th 11 A"e at liberty 761.4700 $2.00 WED. SAT. SUN. SHOWS BEFORE 6 PM EXCEPT "NEVER" $3.00 ENDS THURS. "SIMMERS AND PULSATES-A ONE-QF- A-KIND MOVIE." -Newsweek MON. 7:25, 9:40 (R) SAT. SUN. 12:45, 2:55, 5:10, 7:25, 9:40 --._ - i AN ACTION ADVENTURE WITH NON-STOP THRILLS .SEAN CONIff i JAMES BOND n MON. 7:00, 9:30 SAT. SUN. 12:00, 2:20, 4:40, 7:00, 9:30 Mm U.S. denies knowing names of bombing suspects ANN ARBOR LATE SHOWS FRI &SAT. NIGHT AT 12:00 (PG) "NEVER SAY All "Never" NEVER AGAIN" Seats $3.00 All "First" AT 1200 A .Seats Sylvester Stallone $2.25 "FIRST BLOOD" R (Continued from page 1) :U.. Embassy and French officials said they knew of no arrests so far, but one Beirut newspaper, the conservative k A3-Anwar, quoted security sources as saying one person was arrested Thur- sday in connection with the bombings. "It said the unidentified suspect was seized at a food store in Bir Bassan, a neighborhood between the U.S. and French bases. The report could not be confirmed. THE LEBANESE source refused to say which spy services backed the at- tackers, but senior U.S. officials have said there were indications Syria and Iran were behind Sunday's attack. Both Syria and Iran have denied they were involved. The source said the drivers of the two bomb-laden trucks were blessed before their mission by Sheik Mohammed Hussein Fadlallah, leader of the Iranian-backed Dawa -Party, a Lebanese Shiite Moslem splinter group. But Fadlallah denied any in- volvement with the bombings. He said he "condemns the act and we don't believe in any kind of assassination or violence or bombings." MEANWHILE, MARINE spokesman Maj. Robert Jordan warned the actual neMber of casualties could rise to well 'over 250 dead because some body bags, filled over the six days of digging through tons of jagged concrete, may contain the remains of more than one man. 'Jordan said some bodies were so blown apart by the ton of explosives detonated in a speeding truck they may never be identified - a potentially heartbreaking setback for grieving relatives; many of whom have still not been formally notified whether their sons and husbands are dead. "The trauma of the explosion is vir- tually going to make it impossible to identify many individuals," said Jor- dan. "Certain individuals just don't exist in any form any more." Searchers reached the basement of the devastated U.S. Marine post yesterday and there was some sniper fire about a mile from the airport. Media wants Grenada access (Continued from Page 2) The dispute has been going on since the Defense Department barred repor- ters from Grenada whep the U.S. in- vasion began Tuesday. On Thursday, the Defense Department flew in a pool of 12 reporters with a military escort, but returned them to neighboring Bar- bados after a few hours. Until then, the administraton had maintained that secrecy was necessary to the operation and that the island was. too dangerous for reporters to be there. Rep. John Dingell, chairman of the House Energy and Commerce Commit- teew, said yesterday he will call hearings to investigate the ban on first- hand news coverage of the U.S. in- vasion of Grenada. The date and witness list for the hearings by Dingell's Oversight and In- vestigations Subcommittee have not yet been set, said staff director Michael Barrett. But he said the House panel plans to hear from "media representatives, from people from the defense depar- tment, those involved in supplying defense department film (of the in- vasion) and those people who interdicted movement of the press." Barrett said it is "too early to say" whether there would be testimony from anyone at the White House, where ten- sions have escalated between the press corps and White House spokesman Speakes over the 'restricted access to in- formation on the invasion. Barrett said Dingell, (D-Mich.) agreed to hold hearings because he was "'upset about the present move toward news censorship." Ann Arbor Civic Theatre presents THE PHILADELPHIA STORY .0 1 --r . E -o', a Cy~ MME. in ~ y:.a 'w} .w 3 am ;.a "''a- it -' k;: viAUaf ni .a ta .a0, . a _ I - - a ~ . i I r~ winmm.i ,.