Page 4--Friday, July 16, 1982--The Michigan Daily PLO expects street battle with Israelis The PLO's security chief said yester- day that despite negotiations to end the siege of west Beirut, the trapped Palestinian guerrillas expected a street battle with Israeli troops and tanks ringing the Lebanese capital. "We are engaged in political negotiations, but a fight remains the foremost probability," said Salah Khalaf, better known by the code name Abu Lyad. "WE ARE engaged in political negotiations, but a fight remains the foremost probability," said Salah Khalaf, better known the code name Abu Lyad. "WE ARE prepared to fight and shall do it with everything we have, even with our nails," he said in a speech broadcast by the Palestine Liberation Organization's radio station. Defense Minister Ariel Sharon of Israel said yesterday that Israel was showing "great patience" with the diplomatic negotiations to evacuate the Palestinian guerrillas from Beirut. But he said, "It is better that everyone connected with the matter remember that we have not returned the sword to its sheath and won't return it until the last of the terrorists has left Beirut." Sharon spoke at a ceremony in southern Israel honoring the country's air force. U.S. MEDIATOR Philip Habib will resume his effort today to break the diplomatic stalemate on how, when and where to evacuate PLO leader Yasser Arafat's estimated 8,000 guerrillas from Moslem west Beirut, Lebanon radio reported. U.S. and Lebanese mediators can- celled a scheduled conference yester- day because Lebanese President Elias Sarkis was ill, the radio said. In Damascus, diplomatic sources said yesterday that Syrian Foreign Minister Abdul Halim Khaddam will fly to Washington on Tuesday for talks with President Reagan on the Lebanon crisis. WHITE HOUSE officials have said Reagan, Secretary of State George Shultz and the Syrian and Saudi foreign ministers will meet in Washington in a few days to discuss the Lebano"n sid The Reagan administratio-s yesterday that "now is the appropriate time" for the Arab world to help find a home for the PLO guerrillas. In Brief Complied from Associated Press and United Press International reports Congress approves $5.5 billion emergency spending bill. WASHINGTON- Congress gave final approval yesterday to a com- promise, $5.5 billion emergency spending bill, hoping to avert a third veto by President Reagan and head off the unpaid furlough of thousands of federal employees. The House speedily approved the measure on a 389-13 vote and sent it to the Senate, which soon followed with a 91-6 affirmative vote that sent the legislation to the White House. Because the bill is similar to one already passed by the Senate with the blessing of budget director David Stockman, its adoption by the Senate was virtually assured from the outset. There were strong indications that Reagan would sign the bill this time. "I've been informed this morning that the president will sign this bill," Rep. Silvio Conte of Massachusetts, ranking Republican member of the Ap- propriations Committee, told his colleagues on the House floor. Deputy White House press secretary Larry Speakes said the president's advisers recommended that he sign the bill. "We think it looks like a good bill," Speakes said. Industrial production falls again WASHINGTON- The nation's industrial production fell in, June for the 10th time in 11 months, the government reported yesterday and one federal economist called the 0.7 percent drop a "rude awakening" for anyone who thought the recession had ended. The new decline in output by factories and mines made it much more likely that figures on overall national economic activity will show a drop for the April-June quarter-the third quarterly slide in a row-rather than the slight increase that preliminary estimates showed last month. Robert Ortner, the Commerce Department's chief economist, said that "the report is very disappointing, a rude awakening." But he said he still expects recovery from the recession to begin in the current July-September quarter, adding that "we'll just have to take a deep breath, tighten our belts for one more month and hope July will show a little more light." More pessimistic on the state of the economy was private analyst Michael Evans, president of Evans Economics in Washington. "It looks pretty bad," he said. "And it looks like the economy is not going to do much in the second half of the year either." Dam gives way, 4 missing ESTES PARK, Colo. - An earthen dam gave way yesterday and unleashed a boiling brown wall of water up to 30 feet high, leaving at least four people missing in Rocky Mountain National Park and clogging this vacation city with a sea of mud. The water poured through the 80-year-old dam at Lawn Lake, scoured plants from the banks of the Roaring River, engorged Fall River and sent 5 to 7 feet of water down Estes Park's main street, said Glen Kaye, a public in- formation officer for the park. There was no official word on the cause of the collapse. The flood washed out power lines west of Estes Park and several gasoline pumps and propane tanks were ripped loose, but Gene Rough, a volunteer firefighter, said there were no reports of fires. Up to 200 businesses along Elkhorn Avenue were reported damaged. "I'm just sick," said Estes Park Mayor Harry Tregent, who appeared near tears as he surveyed the damage. "I suppose it can be cleaned up but the damage is done." Kaye said one camper was reported swept away in his sleeping bag and another three were missing from a campground in the park. Lt. Gov. Nancy Dick ordered 55 National Guardsman into town to protect it against looting and to help the police. Dick said he was told there "was some evidence of looting," but did not elaborate. New hope for the overweight CINCINNATI- Researchers said yesterday that a synthetic fat substitute that resembles cooking oil, but is not absorbed by the body, could offer new hope for the overweight and those with heart problems. The substance, sucrose polyester, was substituted for fatty items in a recent study and helped a group of obese people to lose nearly a half pound a day without harmful side effects, the researchers said. Sucrose polyester passes through the digestive system without being ab- sorbed, reducing the number of calories taken into the body. It also reduces blood cholesterol levels, according to Charles Glueck, head of the research team that conducted tests with 100 obese people at the University of Cincin- nati. His study was published in the June issue of the American Journal of Clinical Nutrition. Other weight control products tend to reduce amounts of carbohydrates taken into the body, or to alter a person's eating habits. But by using the fat substitute, obese people can "literally have their cake and eat it, too," Glueck said. Glueck said 50 million Americans with high cholesterol levels or weight problems might be helped by sucrose polyester if the Food and Drug Ad- ministration eventually gives its-approval for use under a doctor's care. no a I