Pvg0a-Fridiay, June11 1982-'--The Michigan Dal " 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.