N ATION/W ORLD The Michigan Daily - Thursday. November 4, 1999 - 9A
Senate pushes to pass new spending programs

Clinton vows to veto bill of
"mindless cuts"
WASHINGTON (AP) - Defying a veto
threat, Republican leaders narrowly pushed
through the Senate a plan to reduce spending by
nearly 1 percent at every federal agency, part of
* last of the major appropriations bills to clear
Congress this fall.
On a 49 to 48 vote that split largely along
party lines, the Senate approved a bill combin-
ing $317.5 billion in spending for labor, health
and education programs with the District of
Columbia's operating budget. The same mea-
sure passed the House last week.

With President Clinton firmly opposed to the
bill because it does not include funds for his
plan to hire 100.000 new teachers and reduce
average class size, the bill is merely another bar-
gaining chip in the budget negoitiions hetween
congressional leaders and \White Ilouse offi-
cials.
Clinton, who s in Norway for Mideast peace
talks, dismissed the unwieldy spending legisla-
tion as "a catalog of missed opportunities, mis-
guided priorities and mindless cuts."
"It forces America's schoolchildren to pay the
price for Congress' failure to make responsible
choices,' Clinton said. "I will not let it become
law."

But Republicans complained that Clinton was
attempting to dictate educational policy from
Washington rather than granting discretion to
local school districts, as their bill contemplates.
"We say that if the local school districts don't
agree that classroom size is their number one
priority, that they can use it on teacher compe-
tency or they can use it for local discretion," said
Sen. Arlen Specter (R-Pa.). "They don't have an
absolute straitjacket"
Even as the White House and congressional
Republicans remain divided on a variety of
issues, including the hiring of additional police
officers, environmental protection and the pay-
ment of backdues to the United Nations, they

appear remarkably close on overall spending.
In fact, the Republican-controlled C on-ress,
which made fiscal constraint and diownsizing
the government the cornerstone of its agenda,
has gradually moved toward the Democr;s in
showering funds on domestic and defense pro-
grams that they mutually support.
Under the labor-health-education bill, for
example, the Education Departmcnt - once tar-
geted by the Republicans for elimination ---
would receive S37.4 billion, or S30) million more
than Clinton requested. The National Institutes of
Health would receive SI7.9 billion, or more than
S2 billion beyond what the administration sought.
Republicans have shown little reluctance this

year to either match or exceed Cinton's budcet
requests, from defense and veterans health pro-
grams to space exploration and speci educa-
tion. Even some of the programs thtI
Republican rev olutionaries had marked for
extinction, including the National Endow ment
for the Arts and AmeriCorps, ha ve su i1d aid
in some cases thrived.
''The Republicans have not been able to deli -
er on their promise to get rid of things in the fed-
eral government and most of these programts
have higher budgets, not low er hudgets. than
they had fixe years ago,. said Stephen Moore, a
budget analyst with the libertarian (Zato
Institute.

Russia tests defense missile
as a message to U.S. govt

Dow Jones Industrial Average, NA ASDAQ2. and
S& 0 omosite for Week 10/281113

DJIA Close
10/28 10,622.53
10/29 10,729.86
1./1 10,648.51
11/2 10,581.84
11/3 10,609.06

Change
+227.64
+107.33
-81.3 0
-66.67
+27.22

NASDAQ Close
2,875.22
2,966.43
2,967.65
2,981.59
3,027.84

Change
+72.70
+91,21
+1.28
+13.94
+46.21

S&P Close
1,342.44
1,362.93
1,354.12
1,347.74
1,354.93

Change
.45.73
+20.49
-8.81
-6.38
+7.19

Test could be attempt
to prevent development
of ABM system in U.S.
*AOSCOW - Russia announced
yesterday that it had tested a short-
range interceptor missile for the
Moscow anti-ballistic missile system in
what appeared to be a symbolic warn-
ing to the United States not to go ahead
with a national missile defense system
now under consideration.
Col. Gen. Vladimir Yakovlev, com-
mander of the Russian Strategic Rocket
Forces, told Interfax news agency that
Tuesday launch at the Sary-Shagan
fting ground in Kazakhstan was the
first of its kind since 1993.
Russia has been warning in recent
weeks that if the United States goes
ahead with a national missile defense
system, then Russia will take counter-
measures, and yesterday's announce-
ment seemed to be a bit of muscle flex-
ing.
Russian officials recently have publi-
d a list of actions they might take in
response to a U.S. decision to deploy a

missile defense system. Some of the
measures, if actually undertaken, would
reverse commitments made in arms
control treaties in recent years, such as
outlawing multiple-warhead missiles.
But it is not known whether cash-
strapped Russia can afford to carry. out
its threats.
The test missile was not identified,
but is among those installed in the
Moscow anti-ballistic missile system of
radars and missiles built around the
capital in the Soviet era. The 1972 Anti-
Ballistic Missile treaty allowed two
such systems and a subsequent protocol
limited it to one.
The Moscow anti-ballistic missile
system, known as A-135, includes the
full complement of 100 interceptor
missiles permitted by the treaty. The
system has a dual defense against bal-
listic missiles, according to Air Force
Magazine.
If the radars spot incoming mis-
siles, Russia could launch up to 36
longer-range SH- lI Gorgon mis-
siles. Should any missiles penetrate
this layer, the system also has 64
short-range SH-08 Gazelle missiles,

which are quick-reaction, high-
acceleration interceptors.
Yakovlev said the tests confirmed
the combat readiness of the missile
and that the Strategic Rocket Forces
would extend its service life to 12.5
years, which suggests that the test
involved missiles that have been
deployed for some time.
Originally, the interceptors around
Moscow were armed with low-yield
nuclear warheads.
The missiles were not intended to
hit the incoming missiles but rather
explode near them. But news reports
in the last year have said that Russia
removed the nuclear warheads from
the interceptors around the capital.
The test-firing capped a string of
recent warnings to the United States
that Russia will oppose any major
changes in the ABM treaty, which
Presidents Clinton and Yeltsin earlier
agreed to discuss. The Russians have
been ratcheting up a rhetorical cam-
paign against major changes to the
document in anticipation -of a U.S.
decision on whether to proceed with
a missile defense system.

Highlights from the week: Yesterday marked the fourth straight day of a Nasdaq gain and the first time
in its history to close above the 3,000 mark. It rallied around strong Internet and computer gains. lmpcrtant
inflationary data was released as U.S. factory orders fell 0.9 percent in September. It shows a healthy
decline after an inflationary 1.3 percent rise last month. A crucial alliance in the drug sector pushed up all
companies involved. American Home Products and Warner Lambert are in the negotiations to merge in a
$65 billion dollar deal. The rally Friday marked the 70th anniversary of the 1929 stock market crash that
was a catalyst for the Great Depression. Many traders were glad to put the month behind them as two other
instances in recent years, 1987 and 1997, also had huge selloff days.
What is the Dow Jones Industrial Average? The DJIA represents 30 stocks traded on the New York Stock
Exchange and NASDAQ and are all major factors in their respective industries. These stocks are widely
held by individuals and institutional investors. Many financial advisers think of it as a good indicator in
telling whether the NYSE is doing well or poorly.
What is the NASDAQ Composite? The NASDAQ is the fastest growing stock market in the U.S. due to
it being a screen-based stock market, compared to a trading floor market like the NYSE. It also has almost
all of the technological stocks available for trading, which has proved to be a very volatile industry in the
last few years.
What is the S&P 500? The S&P 500 is a market value weighted index composed of 400 industrial
stocks, 20 transportation, 40 financial, and 40 utility. It is a far broader measure than the DJIA
because it takes into account 500 different stocks traded on the two main exchanges (NYSE and
NASDAQ-AMEX) compared to the DJIA's 30, traded on the NYSE and NASDAQ.


G

- Compiled h Daily Staff Reporter Kevin Magnusonjiom wire reports,

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