The Michigan Daily- Wednesday, September 18, 1991 - Page 7

Feuding
parties
esign treaty
in Croatia
Associated Press
Croatian President Franjo
Tudjman, Serbian President
Slobodan Milosevic and Federal
Defense Minister Veljiko Kadijevic
*igned the agreement but acknowl-
edged that "deep and dangerous dif-
ferences" remained.
There have been sporadic attacks
by the federal air force on Croatian
positions around Zagreb recently,
but the exchanges last night repre-
sented the heaviest fighting by far.
Intense shelling lasted for about
30 minutes, interspersed with. heavy
machine-gun and sniper fire audible
*n the city center from all direc-
tions. There was no word on casual-
ties and it was not immediately
clear who was involved in the
fighting.
Zagreb was nearly completely
darkened as a precaution against air
raids. Public transportation, already
running without lights, was halted.
The fighting in Croatia pits the
republic's militia against ethnic
Serbs, who represent a minority in
the republic and oppose Croatian in-
dependence. Federal forces have been
fighting on the side of the Serbs, al-
though they claim to be trying to
keep the two forces separated.


Factory output
increases for fifth
straight quarter

WASHINGTON (AP) -
Output at U.S. factories, mines and
utilities grew 0.3 percent in August,
the government reported yesterday.
Analysts said the fifth straight ad-
vance showed the industrial sector
in the unusual position of trying to
lead the economy out of recession.
"The report says the recovery in
the industrial sector is alive and
well," said economist David Jones
of Aubrey G. Lanston & Co., a New
York securities dealer. "The prob-
lem is what's going on in the rest of
the economy."
Jones noted that in past recover-
ies consumer spending and the hous-
ing sector provided the economy
with the muscle to pull itself out
of recession.
This time, Jones added, consumer
spending has faltered since picking
up immediately after the Gulf War,
"housing is doing no more than
stumbling along" and the service
sector remains in a recession.
Without increased consumer
spending, which represents two-
thirds of the nation's economic ac-
tivity, "the economy either will
pause or perhaps slip into a double
dip sometime next year," he con-
tended.
But at the White House, Michael

Boskin, the chair of the president's
Council of Economic Advisers, was
more upbeat, saying the new figures
"augment other closely watched
data on the economy that also have
been improving in general in recent
months."
"The increase in industrial pro-
duction is further indication that
the economy indeed did turn around
in the second quarter (April-June)
and economic recovery is under
way," Boskin said.
The Federal Reserve report
showed industrial production
posted even stronger advances ear-
lier this summer than had been first
estimated.
Despite the recent increases, in-
dustrial production still was 2.0
percent below output in August
1990, a month after the recession
began.
Economist Michael Niemira of
Mitsubishi Bank in New York said
he believed the industrial sector has
more room to grow.
"The second leg of the manufac-
turing recovery has not yet been set
into motion," he said. "That will
come when the inventory cycle
stops declining and manufacturers
begin to build inventories."

Evan Haber, head of the Jewish community in the eastern Slovakian town of Michalovce, shows one of 12
broken tombstones yesterday after the local Jewish. cemetery had been vandalized by unknown people
Monday night.
loINIHE[CHIGANAILY jIAFF. CALI




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*Participating Briarwood Merchants will
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*Full and part-time employees for
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***
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ROOM MATES.
ATTN. FEMALES! Great apt. close to
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40

U

WHAT'S
HAPPENING

RECREATIONAL SPORTS
Club Sports Program
Club Sports President/Representative Meeting
Tuesday, September 24, 1991
7:00 p.m. (Doors close at 7:10 p.m.)
North Campus Recreational Building
All Club Sports Recognized by Club Sports Program must
have their Club President/Representative at this meeting.
FOR INFORMATION, CALL: 763-4560

L

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TEXAS
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00

with your host
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and student comedians
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H ~M