Ninety-four Years of Editorial Freedom E Lit.43au Iai 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. I II i