Ninety-four Years
of
Editorial Freedom
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Lit.43au
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Succulent
Sunny and cloudy with a high of 20.
Vol. XCIV-No. 83 Copyright 1984, The Michigan Daily Ann Arbor, Michigan - Wednesday, January 11, 1984 Fifteen Cents /t Xen pages
Committee
backs new
plan to
aid Central
America
WASHINGTON-The Kissinger
Commission on Central America,
preparing to submit its report to the
White House today, will recommend an
ambitious, long-term program to deal
with the region's social and economic
crisis, including steps tailored for
"basic human needs," officials say.
These sources, who asked not to be
identified, said yesterday the com-
mission will recommend a variety of
initiatives, including a guaranteed five-
year aid package worth $1 billion an-
nually, to help the region recover. Par-
ticular steps would be aimed at the
millions of Central Americans suffering
from malnutrition, disease, illiteracy
and inadequate housing, they said.
OFFICIALS SAID THE commission
also will urge multilateral
renegotiation of the region's debt and a
resurrection of the Central American
Common Market.
The measures represent a broad-
based effort to raise productivity and
living standards in Central America,
where the bulk of the population has lit-
tle stake in preserving the existing
systems and often look upon violent
revolution as an attractive alternative.
The economies of the area have suf-
fered sharp setbacks in recent years
because of civil war and low prices for
export commodities such as coffee, cot-
ton, bananas and sugar. The Central
American Common Market, born with
great expectations in the late 1960s, has
been dormant for much of its existence.
COMMISSION CHAIRMAN Henry
Kissinger, talking to reporters after
a meeting with senators'yesterday, said
he is confident President Reagan "will
be very positive" about the report. The
president received a summary of the
commission's recommendations from
Kissinger last Friday.
White House spokesman Larry
Speakes said yesterday the com-
See KISSINGER, Page 3
State funds to back
new high-tech park
By PETE WILLIAMS
A $7.7 million loan from the state's retirement fund will pro-
vide part of the financial backing for development of a high
technology park near North Campus, officials announced
yesterday.
Developers said the money will be used to build the roads,
power lines, and sewers necessary to begin marketing sites
in the 820-acre Ann Arbor Technology Park.
THE MONEY, which will be extended to park developers
as a line of credit at a fixed interest rate, is the first long-
term loan made from the pension fund for land development,
said state Rep. Gary Owen (D-Ypsilanti).
"Michigan is a competitive state in industries returning to
the Midwest area," he said. "This move will insure that
Michigan will get its share of technological firms.g d
Robert Peck, administrator of the mortgage and real
estate division of the Michigan Department of Treasury, said
the state was optimistic about the economic base and em-
ployment the project will provide.
"THIS WAS an economic decision - a good business
decision - on the part of Michigan," Peck said. "This project
benefits us, both in the economy as well as the jobs it will
provide."
Once complete, the $250 million park will be one of the
largest such developments in the state. State Sen. Lana
Pollack (D-Ann Arbor) predicted that the development
would have little trouble attracting high-tech firms.
"There are a very small number of people with financial
power who make the decisions on where these parks go," she
said. "They will know this park is here."
THE UNIVERSITY has had a hand in the park's develop-
ment since regents loaned developers $130,000 to get the
project off the ground in 1981. The money is to be paid back to
the University as land in the park is sold.
James Brinkerhoff, vice-president and chief financial of-
ficer for the University, said the University is interested in
the technological park as means for improving relations
between faculty, students and industry. "The companies in
Ann Arbor look for interchange of technology," he said. That
kind of exchange is encouraged in business and
engineering schools, where, in order to be more effective,
faculty must have a good relationship with industry."
Brinkerhoff said the University encouraged developers to
locate the complex in Ann Arbor because the park would in-
crease faculty research opportunities and the possibility of
graduate student part-time employment.
Officials of Wood and Co., the Ann Arbor-based developing
firm, say they will begin selling lots to high technology firms
immediately.
REX JENSON, president of Wood and Co., said the $7.7
million equity will allow the park to compete nationally for
technological firms. "Because of this line of credit, firms
who arrive at the beginning of the project can be assured that
the whole park will be developed as planned," he said.
Although two firms have already committed themselves to
the park, Jenson said, his marketing team is still in the "im-
plementation mode." He said Wood and Co. "couldn't show
their faces" in the commercial market without some major
source of funding.
"Our plans have always included funding of this type, from
some source," said Jenson. "We couldn't begin marketing
until we received it."
See $7.7 MILLION, Page 2
Daily Photo by DOUG MCMAHON
State Sen. Lana Pollack (D.-Ann Arbor) said at a press conference yesterday
in the Regents Room of theAdministration Building that the new high-tech
development will have little trouble attracting firms.
U.S.,
Vatican establish
diplomatic ties
From AP and UPI
WASHINGTON - The United States and the
Vatican established full diplomatic relations
yesterday after a break of 117 years, a move the
State Department said should result in "ob-
viously better communications" between
Washington and the headquarters of the Roman
Catholic Church.
President Reagan's decision, reflecting his.
eagerness to bolster his administration's stan-
ding with the Catholic hierarchy under Pope
John Paul II, encountered opposition from
Protestant circles that was considerable milder'
than when similar moves were attempted in the
past.
REAGAN nominated William Wilson, an old
friend and California real estate developer, to be
ambassador to the Vatican, subject to Senate
confirmation. Wilson has been Reagan's per-
sonal representative to the Vatican since 1981.
The Vatican will also appoint an ambassador,
known as a papal nuncio, to Washington. It has
been represented in Washington by an apostolic
delegate, a post currently held by Archbishop
Peio Laghi.
Reagan made no public comments about his
decision, and the first announcement from
Washington - a one-sentence statement - was
issued by the State Department nearly five hours
after the Vatican's announcement.
U.S. OFFICIALS did not dispute a suggestion
that the White House sought to de-emphasize
Reagan's role in the announcement to deflect
Protestant criticism of the move while allowing
him to benefit from the approval of Catholic
voters in an election year.
White House spokesman Larry Speaks said
Reagan acted at the "virtually unanimous
recommendation of his foreign policy advisers."
Speakes said the move was initiated by Congress
last year when it lifted an 1867 ban on public
financing of a U.S. diplomatic post at the
Vatican.
Criticism from some Protestant church groups
seemed much less strident than in 1951, when a
strong outcry forced President Harry S. Truman
to reverse his decision to resume diplomatic
relations with the Vatican that were severed in
1867.
Television,.evangelist Jerry Falwell, head of
the Moral Majority, said the move "will
establish a precedent which we will regret later.
How long before Mecca (the holy center of
Islam) makes such a request?
"While I personally feel it is a bad precedent
and am on record as opposing such formal ties
with the Vatican, it is obvious that the Congress
and most Americans favor this move and it will be
done," Falwell said, however.
See TIES, Page 3
GM divisions split into
large, small car groups
From AP and UPI
DETROIT-General Motors Corp.
announced yesterday a realignment of
its five car building divisions into large
and small car groups, a move
executives said would enable GM to
more quickly respond to marketplace
demands.
"This will enable us to deliver our
products at a higher quality, lower cost
and in a shorter amount of time," said
GM Chairman Roger Smith of the plan,
which was implemented immediately.
"THIS IS going to let us take better
advantage of our engineering talent,
because we will not now have separate
pools of engineers," he said. "We will
have one pool of engineers that will
have complete product responsibility."
But, critics said the plan will only add
another layer of bureaucracy to the
giant automaker. Its eventual impact
is unclear, they maintained, because
GM plans to make many changes
through attrition.
The plan places the Chevrolet and
Pontiac divisions plus GM of Canada in
a small car group under the leadership
of Buick General Manager Lloyd Reuss,
who becomes an executive vice
president.
FORMER Chevrolet General
Manager Robert Stempel will take
charge of a big car group made up of
the Buick, Cadillac and Oldsmobile
divisions.
Published reports had placed Reuss
and Stempel in opposite positions. But
GM President F. James McDonald said
the automaker switched the two so they
could "start this off from scratch" and
not show favoritism to their old divisions.
"Primarily, we're after improving
our effectiveness in getting a car to
market on time," McDonald said.
"Each group will have its own
engineering operation and each group
will have its own manufacturing
operations."
ALEX CUNNINGHAM, previously
vice president in charge of the body and
assembly group, was named an
executive vice president in charge of
North American Passenger Car
Operations, a new position. He will
oversee the entire car-building
operation.
Under the plan, the five divisions will
keep their current nameplates and
general managers. They also will
maintain the same sales, marketing
and service operations.
But design, development,
engineering and manufacturing
operations will be consolidated under
the two new groups. Operations at the
General Motors Assembly Division
eventually will be phased out, although
officials said there was no timetable
when this would occur.
The large car group, GM officials
said, will have responsibility for the
production of higher-priced, full-sized
models including those sold by
Chevrolet and Pontiac.
Likewise, the small car group will
take charge of subcompact and com-
pact production, including those sold by
Oldsmobile, Cadillac and Buick.
The group's responsibilities also in-
clude GM's new generation of subcom-
pacts, including the Isuzu and Suzuki
models it plans to import from Japan
and the cars it will build in California
with Toyota.
Anniversary Daily Photo by DOUG MCMAHON
A man purported to be Dr. Strangelove (in wheelchair) is escorted into the Michigan Theater last night to see the film
Dr. Strangelove. The showing was to commemorate the 20th anniversary of the film's release. According to his en-
tourage, Dr. Strangelove has been in exile somewhere in South America for the last 20 years and returned to the United
States last night.
TODAY-
First class
STATE-OWNED luxury and sports car maker Jaguar
unveiled a new limousine yesterday for the busy
avapttivp hn w nt- ok irn with his work andi the world
Junk mail
K EM BLACKMORE receives Cuisine magazine at his
office in Casper, Wyoming. Not so unusual. for a
nutritionist, you might think. But he's also started getting
about 100 other magazines, and the diet is more than he can
stand. The unsolicited mail began in early December, and
included Playboy, Cat-Fancy, Motor Trend, Kit Car,
Modern Photography, U.S. News and World Report, and
Guns. As if the magazines weren't bad enough, Blackmore
is being billed for them. He estimates it will cost $20 in
Withdrawal x 100
A CONSTRUCTION worker in Norco, La. handed a
teller a $64 check and walked out with 100 times that
much cash, but decided honesty was the best policy before
police could track him down. "The teller didn't see the
decimal point and gave him $6,400," said Glenda Clement, a
spokeswoman for the St. Charles Parish sheriff's office. Of-
The Daily almanac
O N THIS DATE in 1968, some women at Bursley proposed
a 12:15 a.m. teach-in to protest the University's curfew
for women.
Also on this date in history:
" 1960 - The University announced plans to add a liberal
arts division to its small Dearborn campus.
" 1952 - The state fire marshall called for the razing of
five University buildings, even though administrators held
they didn't have the money to replace the much-needed
classroom space.
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