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House passes
revised
budget proposal
WASHINGTON (AP) - The House
answered the trans-Atlantic plea of
President Reagan yesterday burying a
budget drafted by Democratic leaders
and then passing 219 to 206, a revised
Republican blueprint for 1983 spending
of $765.9 billion.
Final approval for the GOP plan -
containing substantial cuts in various
social programs including Medicaid,
welfare, food stamps and nutrition -
came after the House embraced it on a
220-207 test vote.
EARLIER, THE House rejected a
$784.1 billion budget outline drafted by
leaders of the majority Democrats, on a
225-202 vote.
The House plan now goes to a con-
ference of House-Senate negotiators to
work out differences with the $784.3
billion budget plan the GOP-controlled
Senate previously had passed.
The Senate plan includes a $115.9
billion deficit, which makes the $99
billion shortfall in the House plan more
attractive to red-ink conscious
legislators.
HAVING FAILED to muster a
majority for any of the eight budget
outlines raised on the floor last month,
the full House finally succeeded this
time with the choices narrowed to the
revised plans drafted by Democratic
and Republican leaders.
Rejection of the Democratic plan,
which would make bigger cuts in defen-
se and trim deficits with higher taxes,
left the House with a choice between the
Republican outline and the president's
unpopular original budget.
The struggle on the House floor
became a tug-of-war for votes, pitting
Reagan and his GOP allies against
Democratic leaders who control the
House.
HOUSE SPEAKER Thomas O'Neill
(D-Mass.), and other Democratic
leaders sent a letter to colleagues saying
the choice was "between action on
unemployment and inaction, between
compassion for those suffering through
the recession and indifference, between
a budget that is fair and a budget that is
unfair."
But Rep. Delbert Latta of Ohio, the
ranking Republican on the House
Budget Committee, scoffed at the
Democratic plan, saying it made "no
attempt to solve the real and pressing
economic problems of the nation. Its
sole purpose is to attempt to solve the
political problems of the Democratic
Party.... it attemps to return us to the
old backroom politics of spend and tax
and spend and tax."
In Brief
Compiled from Associated Press and
United Press international reports
Businesses drop plans to expand
WASHINGTON- The government reported yesterday that business of-
ficials are cutting anew into expansion plans.
At least partly because of high interest rates, business executives are
planning to reduce spending for expansion and modernization by 2.4 percent
from last year, after discounting for increases due only to inflation, the
Commerce Department reported.
That estimate, based on polling in April and May, was more than twice the
one percent decline estimated three months earlier. The new survey results
predicted the first yearly spending drop since the 1975 recession.
The Reagan administration had hopd-and predicted-last year that new
tax-writeoff rules it pushed through Congress would encourage business
executives toward aggressive expansion and modernization plans.
Jordan's sniper pleads innocent
SOUTH BEND, Ind.- Avowed racist Joseph Paul Franklin pleaded in-
nocent in federal court yesterday to the sniper shooting of black civil rights
leader Vernon Jordan two years ago outside a Fort Wayne motel.
U.S. District Judge Allen Sharp ordered Franklin, 31, of Mobile, Ala., to
stand trial Aug. 9.
If convicted, Franklin, who is white, faces up to 10 years in prison and a
$10,000 fine, which would be added to the life prison terms he is already ser-
ving for federal and state convictions in the killings of two black joggers in
Salt Lake City.
Franklin was brought into the courtroom in a wheelchair and told the
judge he had a "back injury." He was stabbed repeatedly three days aftr
his arrival earlier this year at the federal prison in Marion, Ill., to begin his
life sentence for the Utah slayings.
Former hostages protest
U.S. purchase of Iranian oil
WASHINGTON- Fourteen former hostages at the U.S. Embassy in
Tehran on yesterday protested the government's decision to resume pur-
chases of Iranian oil-a move one described as "a kick in the teeth."
The 14 former hostages signed a letter urging Congress to adopt a
resolution against further purchases from Iran, a nation they described as
"an international outlaw" with a policy "of disregard for international codes
of decency."
An Energy Department spokeswoman said the $53.1 million purchase of
1.8 million barrels for the Strategic Petroleum Reserve was "strictly a
business consideration." She said she was unaware of any discussions on
changing that policy.
William Keough, one of the signers, told a reporter the letter "pretty much
represents the majority thinking of the group." He said more would have
signed but were out of the country or could not be contacted.
The Energy Department's April 22 decision to buy the oil through a Swiss
intermediary came almost two years to the day after eight U.S. soldiers died
in an Iranian desert during a failed rescue attempt.
State senate passes legislation
on election of incumbents
LANSING- The Senate yesterday approved legislation, designed
primarily to aid Sen. Jack Faxon, allowing incumbents in the wake of reap-
portionment to seek re-election from districts where they do not live.
The Senate also narrowly defeated a proposal to open up its partisan
caucuses. The vote came during debate on a bill, eventually passed and sent
to the House, to permit closed meetings for personnel evaluation and to
protect the privacy of students involved in discipline cases.
The Senate voted 26-4 to adopt a measure, drafted in the House-Senate con-
ference committee, which permits incumbents to run from a new area
without first moving there. If successful, however, they would have to move.
The measure also places some new restrictions on absentee voting designed
to stop fraud.
The measure now returns to the House, which had earlier rejected the
provisions dealing with incumbents.
Rainstorms move eastward
Thunderstorms that have spoiled spring in the Midwest turned eastward
yesterday, soaking southeastern Kentucky and West Virginia with floods
that chased families from their homes and blocked highways.
In Missouri, where rainstorms were blamed for four deaths earlier in the
week, authorities searched for the body of a 15-month-old baby swept from
his mother's arms when her car stalled in high water on a bridge.
Powerful winds and a flurry of tornadoes tore the roofs off homes and
buildings in Arkansas.
The 4,847 residents of Carrollton, Mo., struggled to hold back the rising
waters of Wakenda Creek, swollen by 8 inches of rain that fell in two hours
Wednesday. Volunteers pitched in to fill sandbags as shopkeepers removed
merchandise from their stores. About 18 families were evacuated during the
night.
Reagan asks allies to
increase NATO aid
From AP and UPI
BONN, West Germany - with upwards
of 250,000peace marchers thronging the
streets outside, President Reagan
urged NATO allies yesterday to help
encourge an economically hard-
pressed Soviet Union to adopt a "more
cooperative spirit with other nations."
Reagan made his conciliatory appeal
at a summit meeting of leaders of 16
NATO member nations, including
newly inducted Spain. The summit en-
ded withda joint denunciation of Soviet
actions in Poland and Afghanistan and
an appeal to Kremlin leaders to "join
now with us in the search for construc-
tive relations, arms reductions and
world peace."
THE CONCERNS of the alliance
were overshadowed by events in the
Middle East and Reagan's diplomatic
efforts to arrange a cease-fire in
Lebanon and withdrawal of invading
Israeliforces.
The summit leaders issued a
separate statement expressing concern
over the Israeli advance against
Palestinian strongholds in Lebanon,
and the end of the conference was
delayed a half-hour while West German
Chancellor Helmut Schmidt met with
Saudi Foreign Minister Saud Faisal.
Reagan also met with Saud Faisal,
who carried a verbal message from
King Khaled registering "serious con-
cern," about the Mideast situation, ac-
cording to Secretary of State Alexander
Haig.
REAGAN URGED the reluctant Nor-
th Atlantic allies to shoulder a greater
share of the burden of defending
Europe against Soviet attack, a request
the summit quietly refused. The allies
did endorse Reagan's. proposals for
substantial cutbacks in U.S. and Soviet
strategic and medium-range nuclear
weapons.
Summit leaders agreed to improve
NATO armed forces in Europe and ap-
plauded Reagan's arms control
proposals as offering "the possibility of
substantial reductions in United States
and Soviet strategic arms and inter-
mediate-range weapons and in conven-
tional forces."
ON THE STREETS of Bonn, a quar-
ter-million demonstrators, many in
holiday mood, but some burning
American flags and clashing with riot
police, marched against President
Reagan and nuclear proliferation.
A 36-year-old man doused himself
with gasoline and set himself ablaze,
police said. The man, identified as
Dietrich Sumpf, also tried to slash his
throat and was taken - severely burned
and cut - toa hospital by helicopter.
Helmeted riot police carrying plastic
shields clashed with some 5,000 demon-
strators who tried to head toward the
government center where the NATO
summit meeting was being held. About
500 protesters got through a cordon to
within 200 yards of the building and
ignited American flags.