Page 4-Friday, August 7, 1981-The Michigan Daily Reagan, Sadat coniclude talks, voi e good will From AP and UPI WASHINGTON-President Reagan and Egyptian President Anwar Sadat concluded two days of talks yesterday with expressions of good will but clearly are at odds over bringing the Palestine Liberation Organization to the Middle East negotiating table. Prime Minister Menachem Begin yesterday labeled the Palestine Liberation Organization a "bloody, murderous organization" and rejected Egyptian President Anwar Sadat's call to include it in Mideast peace talks. WITHIN TWO hours of Sadat's departure the White House reaffirmed what Secretary of State Alexamder Haig had said the previous night-the United States will not recognize or negotiate with the PLO as long as it refuses to recognize Israel's right to exist and does not accept United Nations resolutions calling for secure and recognized borders for Israel. Begin, setting the course for his new coalition government, said he expected negotiations on limited self-rule for the 1.2 million Palestinian Arabs in the oc- cupied West Bank of the Jordan and Gaza Strip to resume in the autumn. That would be after his meeting with Sadat later this month and his Septem- ber talks with President Reagan in Washington. Reagan called the talks valuable, particularly what he had learned from Sadat "about the complexities of the problems that we all face in seeking aj just and lasting peace in the Middle East." ON THIS SUBJECT, Reagan said, "to be completely candid, I was a willing listener." Summing up, after his three hours of meetings with Sadat, Reagan said the talks covered three general areas: " "The growing strategic threat from Soviet military power and Soviet surrogates in the Near East, Southwest Asia and Africa." * The Middle East peace Begmn ... rejects inclusion of PLO in talks negotiations, an area where Reagan said he mostly listened. Reagan said, "President Sadat has urged that the United States play an important part in the peace process. And this we will do." * Military and economic matters. The discussion, according to officials, in- cluded the use of an Egyptian base, Ras Banas, for an American defense facility, where equipment and fuel could be stored for future use by an American Rapid Deployment Force in the Middle East. SADAT SAID he agreed with Reagan on all points. Sadat called on Reagan Wednesday to open a dialogue with the Palestine Liberation Organization as "an act of vision and statesmanship" toward a permanent peace. Chief White House spokesman David Gergen said yesterday: "The U.S. position remains clear. The United States will neither negotiate with nor recognize the PLO until it recognizes Israel's right to exist and accepts U.N. resolutions 242 and 338." In Brief Compiled from Associated Press and United Press International reports More strikes hit Poland WARSAW, Poland - An estimated 270,000 workers struck south of War- saw yesterday and at least 800,000 more were reported ready to shut down the coal mines in Silesia if talks with the Communist government fail to ease Poland's food crisis. The Solidarity union and the government made little progress yesterday in food crisis talks and the union said a threatened strike in Poland's vital coal-mining sector had stiffened government resistance. The food shortages sparked a number of new protests such as a two-hour transit strike in Kelce province and local strikes or protests in a number of other areas, including a strike alert - meaning workers were ready to put down their tools at any time - in Poznan. Falwell's $30 million suit against Penthouse dismissed ROANOKE, Va. - A federal judge yesterday dismissed the Rev. Jerry Falwell's $50 million suit against Penthouse magazine for what Falwell called its illegal publication of an interview with him this year. U.S. District Court Judge James Turk said Falwell, founder of the Moral Majority and nationally known television evangelist, had failed to prove that the interview invaded his privacy. Nor did Falwell prove the article in the March issue of Penthouse was "an illegal commercialization" of Falwell's personality, Turk said. The judge also dismissed Falwell's claim that Penthouse conspired to injure Falwell's business, defamed his character and violated copyright laws by publishing the interview without his permission. Bolivian standoff continues LA PAZ, Bolivia - Rebel forces defying the ruling junta retained their hold on Santa Cruz yesterday - Bolivia's independence day - and the junta tightened security in the capital. Leaders of the army rebels in control of Santa Cruz, the country's second largest city, said they expected the ruling junta to order a ground and air assault on their power center. But there were no reports of military action, although communications with Santa Cruz, about 325 miles to the southeast, were difficult. Yesterday marked the start of the 157th year of independence from Spain, gained under Simon Bolivar's freedom fighters. The day was a national holiday so the effect of a general strike call by the big labor federation COB could not be measured. COB Leaders reported the arrest of an unspecified number of factory workers striking in support of the insurgents, who had forced President Luis Garcia Meza to resign his year-old presidency on Tuesday. The union leaders said the strike call would be in effect until the three-member junta, appointed by Garcia Meza, no longer ruled and democracy was restored. More ehemicals found at Swartz Creek site LANSING - The discovery of 20 new chemicals, some of them suspec- ted to cause cancer, only adds to the urgency of cleaning up a toxic waste ridden incinerator site near Swartz Creek, the state Toxic Substance Control Commission said yesterday. But the commission said none of the chemicals were found in high enough levels to causea more severe threat than already exists to residents near the Berlin & Farro Liquid Waste Incinerator Co. site. "It emphasizes the need to clean up the site," said Larry Holcomb, executive director of the commission. "If the residents were exposed to all the things they knew about before and the things there are now we would be more concerned." Newspapers scrambling for Washington Star's readers WASHINGTON - It's a newspaper version of Star Wars. As the Washington Star prepares to print its final edition today, papers ranging from the tiny Manassas, Va. Journal-Messenger to the mighty New York Times are scrambling to attract the Star's 322,000 readers. Neighboring newspapers have been hesitant about appearing to dance on a not-yet-filled grave, but the Star's readership constitutes a big market and many papers are laying claim to a piece of it. Sometimes a bit of sleight of hand is involved. He's not saying how, but Ron Bieberich, circulation director of the Annapolis, Md. Evening Capital, got hold of the Star's subscription list in Anne Arundel County, Md., and put a crew to work telephoning Star subscribers. He adds: "If we don't move quickly, Star readers are going to just disappear, or start taking the Washington Post of slide over to the Evening Sun of Baltimore. We want to get our share; we've picked up 700 subscribers since July 25." r T*G*ol 3=8 WITH 2 FOR 1 DRINKS BEGINNING AT 9 TILL CLOSE DICK SIEGEL & HIS MINISTERS OF MELODY i