Page 2- The Michigan Daily -Wednesday, September 19, 1990

MANDELA
Continued from page 1
President F.W. de Kierk and
Mandela met twice last week and
both say they want black-white talks
on ending apartheid to move forward
as quickly as possible. But the
township battles, combined with the
charges against Mrs. Mandela, make
setbacks appear more likely than
breakthroughs.
Klaus von Lieres und Wilkau, at-
torney general for the Johannesburg
Supreme Court, had said he would
await completion of the Richardson
case before deciding whether to
charge Mrs. Mandela.
"After careful consideration of all
the relevant facts, including possible
implications beyond the normal le-
gal ones, I have decided to prosecute
Mrs. Mandela," he said in a state-
ment.
Thnere was no immediate comn-
Tment from Mrs. Mandela or her hus-
band.
They have accused the govern-
inent of using the case as a propa-
ganda campaign against them and the
ANC, the largest black opposition
group. They have said they would
welcome a chance for Mrs. Mandela
to defend herself.
She has denied any wrongdoing
but has never given a full account of
the episodes.
An ANC statement refrained from
criticizing the government and urged
the news media to let the courts de-
cide the case.


Retail prices rise as"
oil costs increase

WASHINGTON (AP) - Sky-
rocketing oil costs pushed retail
prices up a sharp 0.8 percent last
month as the Persian Gulf crisis be-
gan hitting American's wallets, the
government said yesterday.
The seasonally adjusted increase
in the Labor Department's Con-
sumer Price Index was double the
0.4 percent rise in July and the
largest since January, when a severe
cold snap pushed prices up 1.1 per-
cent.
In a separate report signalling
slackening economic growth, the
Commerce Department reported the
sharpest increase in the trade deficit
since August 1982. Americans im-
ported $9.33 billion more than they
exported in July, up 75 percent from
June.
Analysts said the trade deteriora-
tion was particularly worrisome be-
cause it was recorded before Iraq's
August 2 invasion of Kuwait sent
oil prices, and thus the value of U.S.
imports, spiraling.
"We're looking at the worst of all
possible worlds for the economy:
worsening inflation and slower
growth," said economist David Jones
of Aubrey J. Lanston & Co., a gov-
ernment securities dealer in New
York.
Financial markets turned down in
response to the double dose of bad

news.
For the first eight months oF
1990, prices rose at a seasonally ad-
justed annual rate of 6.2 percent, up
sharply from the 4.6 percent rise dur-
ing 1989.
"Inflation is now at the worst
pace in eight years," said economist
Bruce Steinberg of Merril Lynch. "It
is the worst since 1982, when the
economy was coming out of double.
digit inflation."
The department attributed nearly
half of the August increase to energy
costs, up 4.3 percent. Gasoline
prices rose 7.6 percent, while fuel
oil prices jumped 15.4 percent after
six consecutive declines. It was the
steepest increase in both categories
since January.
Food inflation moderated. Prices
held back by a decline in fruit and
vegetable costs, rose 0.3 percent, the
smallest since May. Fresh fruit
prices tumbled 4 percent, but dairy
costs rose 1.3 percent. Prices in
other food categories also increased.
Excluding the volatile food and
energy sectors, prices rose a season-
ally adjusted 0.5 percent after a 0.6
percent increase in July. That trans
lates into an annual core inflation.
rate of more than 6 percent, a persis-
tently high rate to accompany an
economic slowdown, analysts said.

AP Photo

Refugee family
A Kuwaiti family moves about outside a tent at a makeshift refugee processing center at the Saudi-
Kuwaiti border. Kuwaitis, who are used to a wealthy lifestyle, are finding themselves living in tents
because of a lack of permanent shelter for them in Saudi Arabia.

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Europeans call for air embargo on Iraq

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by the Associated Press
European nations, their anger at
Saddam Hussein fueled by raids on
their diplomatic compounds in
Kuwait, demanded yesterday that the
U.N. trade embargo on Iraq be ex-
tended to the air as well as the sea.
The decision reflected the grow-
ing resolve among European leaders
to punish Baghdad. It came a day
after the European Community voted
to expel Iraqi diplomats and restrict
the movements of others.
At the United Nations, officials
said the five permanent members of
the Security Council had worked out
an agreement on terms of an air em-
bargo and were hoping to get it
passed by the full 15 member-coun-
cil before Monday.

Under the embargo, officials said,
planes on their way to Iraq would
not be forced down but could be
challenged.
The five permanent members are
the United States, the Soviet Union,
China, Britain, and France.
In other developments yesterday,
the U.S. government economic fig-
ures for the month of August gave
an idea of how the gulf crisis is tak-
ing its toll at home: soaring energy
prices.
The flow of Kuwaiti refugees
across the newly opened Saudi border
thinned abruptly as news spread that
Iraqi troops were seizing young hus-
bands and sons from families as they
tried to leave.
Refugees said the erratic manner

in which the Iraqis were treating
them appeared part of a harsh cam-
paign to break down their will to re-
sist.
Syria and Iran announced that
President Hafez Assad would visit
Tehran next week. Assad was ex-
pected to try to persuade his Iranian
allies to join the West and other
Arab nations against Saddam.
Moscow and Washington have been
trying to sway Iran from a possible
alliance with Iraq.
Saudi Arabia, meanwhile, em-
phasized that its renewal of ties with
Moscow, another former ally of
Baghdad, should send a clear sign to
Saddam.
"When these two countries stand
together for the withdrawal of Iraqi

troops from Kuwait... and identify
their position in a common way,
this, I believe, should give a mes-
sage to Iraq that their position is un-
tenable," the Saudi foreign minister
said.
Saudi Arabia has been the staging
ground from some 150,000 U.S.
troops that have been deployed since
the August 2 Iraqi takeover of
Kuwait.
Jordan has tended to side with
Iraq, its most important trading part-
ner, and yesterday it received some
harsh criticism from the State De-
partment for acting as host to a radi-
cal Palestinian guerrilla conference,
where delegates have called for at-
tacks on U.S. forces.


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Assad to seek release
of Western hostages

JOSTENS
GOLD RING SALE
IS COMING!

NICOSIA, Cyprus (AP) - Syr-
ian President Hafez Assad's visit to
Tehran next week comes amid sig-
nals from several quarters that some
of the Western hostages held by pro-
Iranian Shiite Moslem militants in
Lebanon could be released soon.
Diplomats in Damascus, the Syr-
ian capital, said yesterday the plight
of the hostages is one of the main
topics Assad will discuss with Presi-
dent Hashemi Rafsnajani and other
Iranian leaders.
In Islamabad, capital of Pakistan,
Iranian Ambassador Javad Mansoori
told a news conference yesterday that
an unspecified number of the 13
Westerners held in Lebanon might
be freed "perhaps in the next few
days." Pakistan, a Moslem state like
Iran, has been used as an intermedi-
ary with Iran by the United States.
Mansoori gave no details but said
that Tehran has received "promises"
from Shiite zealots holding the cap-
tives that some will be released. He
did not name the groups.
Most of the hostages - six
American, four Britons, two West

Germans and an Italian - are held
by Shiite factions linked to the
fundamentalist Hezbollah, or Party
of God. It is Tehran's main ally in
Lebanon.
Syria, the main power broker in
Lebanon and Iran's main Arab ally;
has played a role in earlier hostage
releases. Assad's visit to Tehran fol-
lows talks in Damascus last weekO
with Secretary of State James Baker
III during which they discussed the
hostage issue.
Assad, long a maverick in the.
Arab world, has sided with the
United States in the Persian Gulf,
crisis against his longtime Arab rt-
val, Iraq. It is the first time Syria~a enai nd wt ahntni
any Middle East conflict and Assadi,
cast adrift from his longtime Soviet.
mentor because of detente, is eager
to establish new links with thp-
West.}.
Hopes that some hostages will be'
freed have brightened since the Per-
sian Gulf crisis set off by Iraq's Au-
gust 2 invasion of Kuwait.

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