Page 4-Wednesday, May 26, 1982-The Michigan Daily House rejects budget-balance proposal WASHINGTON (UPI) - The Democratic-dominated House struck down a conservative Republican proposal yesterday to balance the budget in 1983 by slashing spending for all non-military programs, and then began debating three major alter- natives. The House voted 242-182 to kill the plan by Rep. John Rousselot (R-Calif.) with about an equal number of moderate Republicans voting against it as conservative Democratic "Boll Weevils' voting for it. THE PLAN would have maintained President Reagan's military buildup and tax cuts while forcing sufficient domestic spending cutbacks to bring about a balance. Rousselot told his colleagues economists agree interest rates would fall sharply if Congress passed a balan- ced budget. "This is it!" Rousselot said to the cheers of some lawmakers. "WE HAVE talked about it. We have discussed it. We have reehashed it. Now you can vote for it." The Rousselot plan was the last of four minor 1983 budget alternatives rejected by the House, which then got down to business considering the three leading contenders - the Democratic budget committee plan, a White House- backed GOP budget similar to the Senate-passed version and a moderate bipartisan proposal. Under the rules adopted by the Democratic majority, the House is allowed to vote on each of the budget plans - but only the last plan given preliminary approval will be brought up for a vote on final passage. IN ORDER, the House was to con- sider the Republican alternative first, then the bipartisan plan and finally the Democratic budget. Of the three plans, the GOP alter- native makes the deepest cuts in domestic spending - deeper than the Rousselot ... his plan voted down budget passed last week by the Republican Senate. The most controversial part of the GOP plan is its proposal for cutting $4.9 billion in 1983 from Medicare, the health program for the elderly, and reducing it by $23 billion over the next threeyears. The Democratic committee plan makes fewer cuts in domestic spending, but reduces defense spending more and raises more taxes. The bipartisan plan falls somewhere between the two, but is closer to the Democratic version than to the GOP alternative. The House also must dispose of 68 pending amendments, which could be attached to one, two or all three of the main budget proposals. In Brief Compiled from Associated Press and United Press international reports Pope to visit Britain VATICAN CITY- The Vatican, ending weeks of uncertainty caused by the Falklands conflict, announced yesterday that Pope John Paul II will go ahead with his historic six-day trip to Britain. The confirmation came in the form of a detailed itinerary for the trip that includes a meeting with Queen Elizabeth at Buckingham Palace and with the Archbishop of Canterbury, leader of the Anglican church. John Paul will be the first pope to visit Britain. The 62-year-old pontiff, who leaves for London on Friday, also may make a "counter-balancing" trip to Argentina early next month Vatican sources said. Vatican officials refused to comment and Argentine diplomats in Rome said they could not confirm there was such a plan. The Vatican said Archbishop Achille Silvestrini flew to Buenos Aires Tuesday with a personal letter from John Paul to Argentine President Leopoldo F. Galtieri. It did not release details of the letter. Silvestrini, the papal envoy, told reporters at Rome's Leonardo da Vinci Airport Tuesday that he was taking "the thoughts and sentiments of the pope for the entire Argentine people." Asked what his mission was, he said "My trip itself is a message." Citibank lowers prime rate NEW YORK- In the first sign of easing bank interest rates in more than three months, Citibank, the nation's second largest bank, yesterday cut its prime rate to 16 percent from 16 %percent. It was the first reduction in the prime rate by a major bank since late February. Treasury Secretary Donald Regan told reporters the move could be , "another patch of blue" for the U.S. economy and that interest rates should continue their downward trend in the months ahead. However, no other major banks immediately followed Citibank's move. Some analysts suggested that further declines may well hinge on Congress's coming up with a budget compromise. Citibank's move followed recent declines in other short-term interest rates, including short-term Treasury bills, which reflected some easing in Federal Reserve credit policy since the beginning of the month. Iraq retreats from Iranian port BEIRUT, Lebanon- Iraq yesterday conceded its forces had retreated from the Iranian oil port of Khorramshahr after a 25-day battle. Iranian leaders rejoiced at regaining the last Iraqi stronghold on the southern front and said they would not rest until they brought down Iraq's President Saddam Hussein. Iran also warned other Arab nations not to side with Iraq, or "take orders from the United States," and indicated that such action might prompt military retaliation. The Iraqi high command said its forces killed 2,711 Iranians and wounded and captured "many others" in forcing Iranian forces to retreat from an at- tack north of the city. Tehran radio said four Iraqi jets were shot down near Abadan, 15 miles to the south, but Iraqi artillery destroyed houses there. Iraq's retreat from Khorramshahr capped a 40-day offensive in which Iran said its forces recaptured half of the 7,720 square miles of land lost to Iraq in the first weeks of the war. It is presumed Iraqi forces still are dug in west of the Iranian mountain city of Sanandaj, 240 miles west of Tehran, and strategic areas farther south, and Iraq insisted in its communique that the retreat from Khorramshahr is not the "final outcome." U.S. debt limit may increase WASHINGTON - The administration asked Congress yesterday to raise the national debt ceiling to a record $1.275 trillion, about $196 billion more than the current limit, so the government can keep paying its bills. Roger Mehle, assistant secretary of the treasury, told the House Ways and Means Committee that, based on budget office estimates, "We now recom- mend and request that the debt limit be increased to $1.275 billion through Sept. 30, 1983. Mehle urged congressional action by the third wek of June to avoid a rep- tition of "past disloctions which have hampered Treasury financing operations." Congress has little choice but to increase the public debt ceiling so the federal government can finance its operations, but the measure is highly un- popular and almost invariably gets tied up by its opponents in parliamentary tangles and delays. Expert says Hinckley psychotic WASHINGTON - John Hinckley believes he impressed actress Jodie Foster by shooting President Reagan and is convinced he and the movie star will be "linked forever in history," a psychiatrist testified yesterday. Dr. Thomas Goldman also disclosed Hinckley staged a jail hunger strike after his arrest because he was blocked from getting a message to the teenage starlet who spurned his repeated approaches. Goldman, a Washington psychiatrist, told the jury he diagnosed the 26- year-old drifter as having a personality disorder similar to schizophrenia as well as other mental problems. 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