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October 03, 2001 - Image 4

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The Michigan Daily, 2001-10-03

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4 - The Michigan Daily - Wednesday, October 3, 2001


Bush supports Palestinian state

WASHINGTON (AP) - The Bush administra-
tion made clear yesterday that it foresees the cre-
ation of a Palestinian nation as the outcome of any
successful Mideast agreement.
"The idea of a Palestinian state has always been
a part of a vision, so long as the right to an Israeli
state is respected," President Bush said.
But the first goal, the president said, is reducing
the level of violence that has hit the region this
year. "I fully understand that progress is made in
centimeters in the Middle East," Bush said. "And
we believe we're making some progress.",
. Peacemaking efforts have new urgency after
the Sept. I1 terrorist attacks. An end to Israeli-
Arab violence is a priority for the Arab states
that Bush has asked to help -in the U.S. fight
against terrorism, especially Saudi Arabia, Jor-
dan and Egypt.
Jordan's King Abdullah II, speaking in his
country after meeting with Bush in Washington
last week, said he told Bush that a solution to the
Israeli-Palestinian conflict - under U.S. sponsor-
ship - could lessen terrorism worldwide, remov-
ing a key cause taken up by extremists.
"I told him that we need a speedy resolution to
the Palestinian issue and a quick one, too, for the
issue of Jerusalem," Abdullah said in remarks car-
ried by the official Petra news agency.
Secretary of State Colin Powell and White
House spokesman Ari Fleischer denied the presi-
dent's position was anything new. U.S. officials

have always envisioned a Palestinian state and
have been encouraging both sides to end violence,
they said.
"We were hard at work before the I Ith of Sep-
tember on trying to help in the region, and we are
hard at work after the I1ith of September," Powell
But a senior U.S. official said Monday night
that the terrorist attacks had temporarily side-
tracked a peace initiative by the Bush administra-
tion, planned to be made public at a Sept. 24
special session of the U.N. General Assembly that
was postponed after the terror attacks.
The resumption of high-level talks last week
between Israel and the Palestinians, arranged
through persistent telephone urging by Powell, has
revived the momentum of the U.S. drive, the offi-
cial said, speaking on condition of anohymity.
State Department spokesman Richard Boucher
denied a connection between peace efforts and
efforts to stitch together an anti-terror coalition.
But he added: "We know that people in the region
who are working with us ... we know that they
also care about the status of efforts in the Middle
East. They welcome the steps that we've tried to
U.S. officials had viewed the scheduled U.N.
meeting as a key moment in peace efforts, Bouch-
er said. "And we wanted to make sure it was a
moment when there was something positive going
on," he said. Boucher denied, though, that a

speech outlining a major new peace initiative had
been scheduled.
In the weeks leading up to that meeting, Powell
had begun quietly pressing Israeli Prime Minister
Ariel Sharon and Palestinian leader Yasser Arafat
to reopen the peace talks that broke down at the
end of the Clinton administration.
Fleischer said the first step needed in the region
was an end to violence, followed by talks on secu-
rity between the two sides, and then political talks.
"And at the end of the political talks, the vision
does include a Palestinian state," Fleischer said.
But an influential pro-Israeli group in the Unit-
ed States immediately criticized any support for
the creation of a Palestinian state. The group, the
American Israel Public Affairs Committee, said it
was "unthinkable" to give U.S. support for a
Palestinian state until Arafat took more action to
crack down'on violence against Israelis.
Violence in the region ,began a year ago. A
cease-fire announced last week is shaky, although
both sides say they remain committed to it.
Eighteen Palestinians have been killed in the
past week by Israeli troops. Last night, a Palestin-
ian gunman broke into a Jewish settlement in the
Gaza Strip, opening fire and killing two Israeli
Fleischer said Bush felt Arafat needed to do
more to control violence. "That's why the presi-
dent has called on all parties to make a 100 per-
cent effort."

Interest rates cut to lowest in 39 years
The Federal Reserve, faced with an economy that went from bad to worse
after the terror attacks, cut a key interest rate yesterday by a half-point, driving it
down to a level not seen since 1962.
The rate cut, the ninth this year, is aimed at getting consumers and businesses
- whose confidence has been badly shaken by the Sept. 11 attacks - to spend
and invest to keep the economy from becoming even weaker.
After a closed-door meeting, Federal Reserve Chairman Alan Greenspan and
his colleagues announced they were cutting the target for the federal funds rates,
the interest banks charge each other on overnight loans, to 2.50 percent, the low-
est level since May 1962.
In response, JP Morgan Guaranty, Chase Manhattan and Bank of America
were among the commercial banks reducing their prime lending rates, the
benchmark for millions of consumer and business loans, by a half-point to 5.50
percent, the lowest since Oct. 3, 1972, when the prime rate matched that level.
On Wall Street, stocks rose in a last-minute rally that overcame investors' ini-
tially lukewarm response to the Fed's action. The Dow Jones industrial average
closed up 113.76 points at 8,950.59, according to preliminary calculations. Nas-
daq, meanwhile, rose 11.83 points to 1,492.29.


Thurmond collapses in Senate, hospitalized

Sen. Strom Thurmond of South Carolina, 98 and ailing, fainted in the Senate
chamber yesterday and was staying overnight in a hospital for observation and
While Thurmond has been to the hospital several times - including a Febru-
ary stay for fatigue'- this was the first time health problems affected him while
in the Senate chamber.
Thurmond reported feeling weak to colleagues and then slumped over at his
desk shortly after 10:30 a.m., said Sen. Ben Nelson (D-Neb.), who was presiding
over the Senate at the time.
After an aide called for help, the senior Republican was moved to the floor in
the aisle between the Senate desks, where Sen. Bill Frist (R-Tenn.), a heart sur-
geon, and several medical personnel worked on him for several minutes.
"Dr. Frist checked his response and the best way to describe his condition was
that he was woozy," said Sen. Wayne Allard, (R-Colo.).
AftereThurmond's legs were raised, "he started getting less woozy," Allard
said. "Senator Thurmond was conscious the entire time."

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Katherine Harris to
run for Congress
Florida Secretary of State Katherine
Harris, who was vilified by Democrats
and feted by Republicans for her cen-
tral role in the Florida recount that
gave George W. Bush the presidency,
announced yesterday that she is run-
ning for Congress.
"In light of the recent tragedy, I am
more committed than ever to serving
the president and our nation," she said,
referring to the terrorist attacks. "I
can't put on a uniform. I can fight for
this president in another capacity."
Harris, 44, wants to succeed GOP
Rep. Dan Miller, who is not seeking a
sixth term in 2002. The Democrats,
who have yet to field a candidates,
reacted with glee, saying they wanted
Harris to run so they can use her as
their poster girl for everything that was
wrong with the election last fall. Har-
ris "will help us in our turnout," said
state Democratic chairman Bob Poe.
Logan Aitport takes
new security steps
Acting Gov. Jane Swift unveiled new
security steps yesterday that include a
new chief of security at Logan Interna-
tional Airport, where hijackers boarded
the two planes that smashed into the
World Trade Center.
State Police Superintendent Col.
John DiFava replaces Joseph Lawless,
who was reassigned to oversee security
at the Port of Boston.

"That two of those lanes took off
from Logan airport is particularly
painful for us,"Swift said.
She also announced the creation of
a State Police anti-terrorism unit and
a new cabinet-level position - Direc-
tor of Commonwealth Security -
that mirrors President Bush's decision
to create an Office of Homeland
She urged officials in Washington to
federalize security at airports, which is
now provided by airlines.
Condit's apartment
in D.C. up for sale
Rep. Gary Condit's Washington
apartment is for sale. The California
Democrat and his wife, Carolyn, are
asking S130,000 for the one-bedroom,
one-and-a-half bathroom top-floor con-
dominium in the Adams Morgan neigh-
borhood. It has high, ceilings and a
washer and dryer and may be seen by
appointment only, according to a com-
puterized real estate listing.
Brian Hong, an agent with Pardoe
Real Estate, confirmed that the apart-
ment was for sale but declined further
comment. Condit has yet to announce
whether he will run for re-election. His
current term runs through the end of
next year. Pictures of Condit entering
or leaving the building were staples of
news coverage at the height of interest
in his relationship with Chandra Levy,
a 24-year-old from Modesto, Calif.,
who disappeared in Washington five
months ago.
- Compiled from Daily wire reports.



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