The Michigan Daily - Wednesday, November 24, 1993 - 7
-Clinton develops new approach to North Korea
U President discusses solutions with South Korean leader,
nbut keeps details secret; officials say new international
*-. ".*.. 77 policy will insist on limited inspection of nuclear arms
WASHINGTON (AP) - President
Clinton said Monday his administration has
developed a "new approach" to resolving a
dispute with North Korea over its nuclear
Clinton said he would discuss the new
strategy yesterday in a White House meeting
with South Korean President Kim Young
Sam, whose country has been locked in a
tense standoff with the North since the end of
the Korean war 40 years ago.
"Our administration has been working on
anew approach to deal with this issue," Clinton
said at a White House news conference. He
offered no details. He said he intended to
announce the new policy after the Kim meet-
Administration officials speaking on con-
ditin of anonymity said Monday the main
change in the U.S. approach was to offer to
engage North Korea in a broader range of
discussions if it, in turn, agreed to permit
outside inspections of its nuclear program.
North Korea is mainly interested in U.S.
diplomatic recognition and winning access to
Western trade and investment capital. It in-
sists that its nuclear program is strictly for
The United States also apparently will
insist, initially, on only a limited inspection of
AP PHOTO North Korea's nuclear facilities by the Inter-
national Atomic Energy Agency. It eventu-
ally would press for a fuller monitoring sys-
The administration also apparently will
agree to suspend plans for holding the U.S.-
South Korean military excercise known as
Team Spirit in 1994 if North Korea accepts
the limited nuclear inspections and agrees to
hold talks with South Korea.
The Team Spirit exercise would be
dropped, with the understanding that it could
be revived at short notice if North Korea does
not live up to other parts of the U.S. deal,
Selig Harrison, an Asia specialist at the
Carnegie Endowment for International Peace,
said Monday it remains unclear whether the
South Korean president will go along with the
softened U.S. approach. He said Kim may be
willing to forgo a Team Spirit exercise in
1994, but he may "try to put the brakes on" the
Clinton administration's drive to offer other
incentives to the North.
In a speech Monday at American Univer-
sity, Kim called on the North to "immediately
accept all nuclear inspections" by the Interna-
tional Atomic Energy Agency "and also come
to the table of dialogue with the South in good
Kim made no mention of the possibility of
imposing U.N. economic sanctions against
North Korea in the event it continues resisting
President Clinton and South Korean leader Kim Young Sam pause during a White House East Room press conference yesterday.
*Business, education leaders criticize
LANSING. (AP) - A bipartisan
school finance plan levies unfair taxes
and hurts Detroit schools' chances of
getting specialized services, business
and education leaders told lawmakers
A minimum $5,000 per pupilgrant
partly funded by a raise in business
property taxes would reduce
Michigan's-economic growth with no
guaranteed school improvements,
business representatives told the
House Taxation Committee.
"We are taxing manufacturing
WASHINGTON (AP) - The
Clinton administration proposed a
nmajor overhaul yesterday of banking
regulation it said harms the economy.
Supervisory duties of four agencies
would be folded into a single Federal
: The current system "was designed
for another time," Treasury Secretary
Lloyd Bentsen told reporters. "It just
makes no sense to have four separate
agencies, overlapping, often in con-
flict, in charge of our financial insti-
"It is a drag on the economy, a
headache for our financial services
industry and source of friction within
The plan would weave into an
independent five-member commis-
sion the bank regulatory duties of the
Federal Reserve Board, the Federal
Deposit Insurance Corp., the Office
of the Comptroller of the Currency
and the Office of Thrift Supervision.
The heads of the two Treasury
agencies that would be abolished -
the 0CC, now responsible for na-
tional banks, and the OTS, which
regulates the savings and loan indus-
try - applauded the move.
The proposed change received a
decidedly negative response from the
Federal Reserve, which has fiercely
defended its independence and fought
eff attempts to diminish its power
over monetary policy or the nation's
heavily. In a global market you can't
do it and maintain an economic base,"
said Gary Wolfram, a consultant to
the Michigan Manufacturing Asso-
ciation. "It means a loss of jobs."
Since October, legislative propos-
als for a minimum per pupil grant
increased from $4,300 to $5,000, said
Richard Studley, vice president of
government relations for Michigan
Chamber of Commerce. He submit-
ted written testimony to the commit-
"This alarming trend suggests that
tax policy is being driven by the de-
sire to throw more money at the prob-
lem," Studley wrote.
"The Chamber is opposed to any
increase in the Single Business Tax
that is not linked to meaningful
progress, on both education quality
and school cost containment."
The bipartisan plan released last
week would guarantee each school
district at least $5,000 per pupil, but
keep districts now spending between
$5,000 to $6,000 at their current lev-
els, plus a 3 percent increase. Dis-
tricts spending more than $6,500
would be allowed to levy local prop-
erty taxes to match their current lev- a 20-mill levy and the SBT, the state's
els. main business tax, would go from
To fund schools, voters would 2.35 percent to 2.95 percent.
choose between two tax plans that Or they could choose to raise the
include an income tax increase and a sales tax to 6 percent from 4 percent,
partial roll back of last summer's $7 have a 5.3 percent income tax, a prop-
billion property tax cut. Residents erty tax on homes of 9 mills and no
could lessen the impact of both if they SBT increase. The ballot vote on the
vote to increase the sales tax to 6 proposed sales tax increase would be
percent from 4 percent. scheduled in February or March.
Residents would decide if they House leaders hoped to move bills
want the income tax increase to go through committee this week and be-
from 4.6 percent to 6 percent and thugh cmme wek andbe-
have a 16-mill property tax on their fore the full chamber when members
homes. Other properties would have return after Thanksgiving weekend.
21 killed in
SANTIAGO, Chile (AP) - Two
buses collided head-on in the fog ona
highway next to the sea in northern
Chile, killing 21, police reported.
Police said 70 people were in-
jured, some seriously. The crash oc-
curred near Los Vi los, 145miles north
The injured, including several chil-
dren, were taken to area hospitals.
Some victims had to be carried in the
luggage compartments of other buses
because of the lack of ambulances.
MSU feminists take
stand against sexism
EAST LANSING, (AP) -Mem-
bers of a women's group at Michigan
State University have made their pres-
ence felt off campus with protests at a
beauty pageant, topless bar and a
"I do this because I'd like to see
women have a better place to live in
society," said Nicole Newton, presi-
dent of the Michigan State University
The group bills its members as
"radical, militant, by-any-means-nec-
"We deserve enormous amounts
of respect for what we've had to put
up with in the past," Newton told the
Lansing State Journal for a story yes-
The council's latest protest took
place Sunday at the Miss East Lan-
sing Teen of the Nation and Ms. East
Lansing American Woman contest at
the Civic Arena in Lansing.
About 50 students, mostly women,
marched outside the arena chanting
"Objects never, women forever." One
woman carried a plate of raw pork
Three women stormed the stage
holding a banner that read "Pageants
Hurt All Women" as contestants pa-
raded past in one-piece bathing suits
to the song "I'm Too Sexy For My-
Newton, a junior, said she origiK
nally intended to protest the pageant:
as a contestant but changed her mind.:
She said pageant organizers inter-
viewed her in her dormitory room in
mid-September. Newton said the in-
terview focused on the financial obli-
gation ofcontestants and scholarships
awarded to winners.
"There were no tangible require-
ments to get into the pageant," New-
ton said. "They breezed over a few
questions like what issue I would feel
most comfortable talking about with
the judges.... The little public service
platform they have is just crap."
Pageant co-host Diana Priebe de-
fended the event. She said contestants
entered of their own free will.
"It's women choosing to do some-
thing," said Priebe, last year's Mrs.
Michigan-America. "These women
are up here using their communica-
tion skills. The two winners will be
helping charitable organizations, do-
ing a lot more beneficial things.
"They're not hurting anybody. I
don't think the protestors have the
first clue as to what goes on.
Police made no arrests. In April,
however, Lansing police arrested 13
women protesters on disorderly con-
duct charges for blocking the en-
trances of Omar's Show Bar, which
features topless dancers.
Norwegian medical personnel prepare lunch on an open fire at the Yugoslav-Bosnian border town of Mali Zvornik.
Serbia blocks U.N.caid to Bosnia
Yugoslavia blocked all U.N. aid con-
voys into eastern Bosnia on Monday,
while U.N. officials reported starva-
tion in the battle-scarred, southwest-
ern city of Mostar.
In Sarajevo, a mortar shell ex-
ploded near children sledding on snow
near a U.N. peacekeeper base. Doc-
tors at Kosevo Hospital said five were
wounded, two seriously.
Lyndall Sachs, a U.N. spokesper-
son in Belgrade, Yugoslavia, said
Yugoslav officials had begun demand-
ing special authorization for aid con-
voys tocross into Bosnia. They cited
a law passed by Yugoslavia last year
requiring such permission for the pas-
sage of goods.
"They have chosen to implement
it today," she said. "This has created
a bureaucratic nightmare for us."
As a result, U.N. convoys headed
for the Bosnian cities of Tuzla,
Srebrenica and Sarajevo had to return
to Belgrade Monday as U.N. officials
haggled with Yugoslav authorities.
U.N. attempts to resupply its own
operations in Bosnia also foundered.
A 46-truck convoy carrying sup-
plies for the Nordic peacekeeper bat-
talion in Tuzla stayed in Yugoslavia
after Bosnian Serb soldiers threat-
ened to shoot, said. Bill Aikman, the
U.N.'s military spokesperson.
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