Page 2 - The Michigan Daily - Friday, February 17, 1989
LSA juniors Julian Gordon and Jon Sonnenschein try out the new benches outside of the almost
completed computer center in Angell Hall.
Investigator says Flight 103
bomb was hiden in a radio
WASHINGTON - The Supreme
Court lifted its stay delaying the
start of Oliver North's trial yester-
day, but North's lawyers complained
he cannot get a fair trial under a deal
struck by his prosecutor and the
attorney general for handling testim-
ony involving national secrets.
"Defendant North still faces two
governments, rather than a single
prosecutor with full power to make
all trial decisions," said Brendan
Sullivan, the head of North's defense
team, in papers filed with U.S. Dis-
trict Judge Gerhard Gessell.
The Supreme Court, meanwhile,
lifted a stay that had been requested
by Attorney General Dick Thorn-
burgh while he was still arguing
with independent counsel Lawrence
Walsh over whether rules on dis-
closing classified information were
There was no word from Gessell
about when he would summon jur-
ors, who are already selected, to his
court to begin the trial of the former
Marine lieutenant colonel and White
The newest Thornburgh-Walsh
arrangement "would impose intoler-
able burdens on the court, the wit-
nesses, an the jurors," Sullivan said.
He asked Gesell to tell the attorney
general he can take action to dismiss
the entire case or any of the 12 crim-
inal charges but that he will not
"have the right or the opportunity to
intervene in the trial."
Sullivan recalled that Gesell had
said earlier in the week that Thorn-
burgh would have no right to inter-
vene "by bits and pieces" to object
to the introduction of classified ma-
terial. But Sullivan said the new ar-
rangement does give Thornburgh
Under the arrangement announced
Wednesday, Walsh argreed to ask
Thornburgh for an affidavit whenever
Walsh believed undisclosable secrets
were about to be spilled in the trial.
The attorney general would stay out
of the courtroom while the indepen-
dent counsel carried the battle.
"Under the independent counsel's
proposed plan," said Sullivan, the
attorney general will have the right
to step in "whenever the going gets
tough, precisely what the court has
forbidden him from doing."
In response, Walsh said North's
lawyer is under a misconception of
how the prosecutorial plan will
Compiled from Associated Press and staff reports
AMA proposes Medicaid expansion
WASHINGTON - A coalition led by the American Medical
Association yesterday proposed a sweeping overhaul of the Medicaid
program to expand coverage to 11 million more poor Americans,
improve benefits and raise reinbursement rates for physicians and
The proposed expansion of the federal-state health assistance program
for the poor would cost at least $13.2 billion and as much as $28 billion
above current Medicaid expenditures, with most of the additional cost
borne by the federal government, the coalition said.
In fiscal 1988, the federal government spent $30.5 billion and the
states spent $20.5 billion on Medicaid, but fewer than half of the 33
million Americans with incomes below the federal poverty line are
enrolled in the program, the coalition said.
"We're all for a system that truly cares for the needs of the poor," said
James Tallon Jr., majority leader of the New York State Assembly and
chair of the coalition's committee on Medicaid.
Big Three garner record profits
DETROIT - The nation's Big Three automakers set a record with
combined earnings of $11.21 billion last year, but forecasts of slower
economic growth are clouding hopes that the bonanza will continue.
"I think that earnings in the aggregate will be off 10 to 15 percent in
1989," said auto analyst David Healy. "I think we're getting a little closer
to saturating the market in cars, and interest rates will begin to take their
Automobile industry and economic analysts have been predicting a
softening of the U.S. economy and the auto industry this year. Sales are
expected to be around the 15-million mark for the 1989 model year,
compared to 15.6 million vehicles that were sold during the 1988 model
The combined earnings of General Motors Corp., Ford Motor Co., and
Chrysler Corp. for 1988 were up 14.5 percent from the previous Big
Three record of $9.79 billion set in 1984.
Fed penalizes bank for 'red-lining'
WASHINGTON - A Federal Reserve Board decision that for the first
time will penalize banks for failing to serve poor neighborhoods appears
to signal a new willingness by regulators to enforce a 12-year-old law
against such practices, community activists said yesterday.
The Board rejected a request by the Chicago-based Continental Bank
Corp. to purchase a small Arizona bank because it said Continental had
not fulfilled its duties under the Community Reinvestment Act. The act
requires banks to meet local credit needs, including those in poor
The law is aimed at preventing "red-lining," the practice of denying
loans to an entire neighborhood based on the predominant race or
economic class of its residents.
"The Fed has never denied an application on Community
Reinvestment Act grounds before... This is a major breakthrough," said
Allen Fishbein, a counselor at the Center for Community Change.
State Dems link investigator's
hiring to 1990 governor's race
LANSING - Minority Democrats in the state Senate questioned
yesterday the hiring of a special investigator, linking it to Senate
Majority Leader John Engler's expected run for the governor in 1990.
"This sets a very, very dangerous precedent on investigations," said
Minority Leader Arhtur Miller (D-Warren). He warned the hiring may be
"the initial move" to launching a "sleazy" campaign against Democratic
Gov. James Blanchard.
"What's the problem?" responded Engler. "We need to look at fraud (in
state government), and that's what we're going to do. We need more help
and that's what we're doing."
Noting the Democrats' unease with the appointment, he added, "I don't
know what he's (Blanchard is) hiding, but I'm sure interested in finding
Vicious dog mauls helpless child
LOCKERBIE, Scotland (AP) -
A radio-cassette player held the
bomb that brought down Pan Am
Flight 103, but the identity of the
bomber still is unknown, the top
investigator of the bombing said
Investigators believe the explo-
sive that shattered the Boeing 747 on
Dec. 21 was placed aboard the air-
craft in Frankfurt, West Germany,
where the flight began, said detective
Chief Superintendent John Orr. It
apparently had been put on the air-
craft as checked baggage.
"New positive lines of inquiry are
unfolding," he told a news confer-
ence in this southwestern Scottish
town where the Jumbo jet crashed,
killing all 259 people aboard and 11
on the ground.
"While there is insufficient evi-
dence at this stage to establish the
identity of the person or group re-
sponsible for this dreadful crime, the
progress made and the evidence ob-
tained has been substantial," Orr
Asked whether the investigation
would point to a specific country,
Orr said: "It may."
Continued from Page 1
from South Africa except this one,
and as a result anti-apartheid leaders
are redirecting attention to the real
issues of the day - that is the
struggle against the apartheid
system," he said.
Locally, Free South Africa
Coordinating Committee member
Barbara Ransby, a University
Rackham graduate student, said, "For
the (South African government) to
focus on one individual in a seeming
attempt to discredit her is highly
questionable whether they are trying
to cover what's really going on in
Mrs. Mandela, in the few public
statements she has made, denied she
was at home when the teen-ager and
four men were abducted to her house
on Dec. 29 by members of a so-
called soccer team known as Mandela
United who act as her unofficial
bodyguards. But she has defended the
abduction, saying the four were
taken to protect them from sexual
abuse at a Methodist Church
residence where they were staying in
S owe to.
The church has denied the charge,
and the anti-apartheid leaders made
their denunciation of Mrs. Mandela
at the Central Methodist Church in
Tom Sepina, a spokesman for the
African National Congress, said
from the organization's Lusuka,
Zambial headquarters that ANC
leaders were concerned at reports
linking Mrs. Mandela with the boy's
- Daily news staffer Lisa Fromm
contributed to this report.
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