The Michigan Daily Vol. XCII, No. 31-S Ann Arbor, Michigan-Thursday, June 17, 1982 Ten Cents Twelve Pages Lebanese claim PLO has ofere tto end fight From The Associated Press Lebanese sources said yesterday that the PLO, encircled by Israeli forces, has offered to discuss laying down its arms in west Beirut in exchange for recognition by the United States, safe conduct out of the city for its leaders, and a role in negotiating the future of the Palestinians. Palestine Liberation Organization spokesman Mahmoud Labadi, however, called the reports "distorted" and vowed: "We will never lay down arms." THE SOURCES, who refused to be identified, said PLO leader Yasser Arafat suggested the deal at a meeting AP Photo earlier in the day with Lebanese Prime bag Minister Shafik Wazzan. The reported proposal envisions allowing the t holding the bag when the puppy's Lebanese government to send in its MORALE IS HIGH, DIRECTOR REPORTS army to try to reestablish its control over west Beirut, which has been dominated by Palestinian and Syrian forces for seven years. Arafat's political adviser, Hani el- Hassan, said the PLO also wants to talk directly to the United States. "If the Americans make a step to us, everything can be discussed." "The Palestinians are willing in .. . direct talks with the United States to discuss disarmament of their guerrillas in Lebanon," Lebanon's state television quoted el-Hassan as saying. THE BROADCAST quoted El-Hassan as saying U.S. presidential envoy Philip Habib, now in Lebanon, should "offer something to the PLO if he wants to save Beirut. Direct talks could be a first step." See LEBANESE, Page 10 Doggie Norm McCarthy of Selah, Wash. was lef master went to have fun without them. ILIR readies for review results Dy - ~,s.. ss..A By SCOTT STUCKAL Although 25th anniversary celebrations ended only last week, the University's Institute for Labor and In- dustrial Relations must now turn its at- tention from past accomplishments to an uncertain future. The institute currently is awaiting results of a budgetary review that may lead to major funding cuts or complete elimination. The review, conducted by a subcom- mittee of the Unitersity's Budget Priorities Committee, is expected to be completed by next week, according to Engineering Prof. Joe Eisley, a sub- committee member. The review com- mittee's findings will help determine the fate of ILIR's $300,000 budget. DESPITE THE uncertainty of the review's outcome, however, the in- stitute's employees are not discouraged, said ILIR Director Malcolm Cohen. Letters received from ILIR's supporters and positive respon- 'A lot of working class people would never have the opportunity to step foot on campus if it weren't for ILIR.' -Dorothy Jones, former ILIR student se elicited during public review hearings held this spring have kept morale at ILIR high, Cohen said. The institute has received letters of support from such prominent figures as Ray Marshall, secretary of labor under President Carter, Wilbur Cohen, secretary of health, education and welfare under President Johnson, as well as Donald Reigle and Carl Levin, Michigan's Democratic senators. Last week, State Rep. Perry Bullard (D-Ann Arbor) presented the institute with a state legislative resolution in recognition of the institute's achievements. THE REVIEW of ILIR is part of the University's Five-Year Plan which will reallocate $20 million from low priority areas into those areas considered most valuable. The review committees' fin- dings will be given to the Budget Priorities Committee and Vice- President for Academic Affairs Billy Frye, who will make the final decision on budgets cuts. Any plans for elimination of ILIR, however, must be presented to the University's Regents. "Are there compelling reasons not to close the ILIR?" is one of the questions the administration has asked the review committees to consider. ILIR employees and supporters readily an- swer this question with an emphatic 'yes'" "MY PERCEPTION is that the in- stitute is very highly regarded across the nation and internationally," said University of Alabama Prof. Trevor Bain, head of Alabama's Human Resources Institute. Alabama's institute uses ILIR as a model for studying labor problems, Bains said. The institute has conducted "very good concrete applied research" into employment problems, said Boston College economics Prof. Barry Bluestone, a former University student. ILIR'S TWO main areas of research, labor research and worker re- education, are integrated, Cohen said. ILIR filters the results of its labor research into the worker re-education program, headed by Prof. Hy Kor- nbluh. See BUDGETARY, Page 10