Page 4-Friday, July 23, 1982-The Michigan Daily France decides to aid Soviets i pipeline project PARIS (AP)- France announced in 1984. About 20 European firms have yesterday it was ignoring President contracts worth an estimated $11 billion Reagan's sanctions on the Soviet gas to help develop the project, and pipeline and ordered a French thousands of jobs on the economically manufacturer to go ahead with depressed Continent depend on the deliveries of pipeline rotors developed deal. by the General Electric Co. The Reagan administration last mon- It was another blow to Washington's th expanded sanctions on U.S. exports battle plan for "economic war" against of oil and gas equipment to the Soviet the Soviets and further evidence of the Union to include equipment produced serious degradation in U.S.-European abroad under U.S. licenses, such as the relations. sophisticated GE rotors, and American equipment sold to Europe and intended ALTHOUGH President Francois Mit- for re-export. terrand's Socialists have ruled France Besides the economic interests at since May 10, 1981, the issue has little to stake, the pipeline fight represents a do with political ideology. Britain's fundamental split within the Atlantic Conservatives, Germany's Social alliance over the nature of Soviet inten- Democrats, and Italy's Christian tions. Democrats all oppose the sanctions. The U.S. ambassador to France, West Germany applauded the French. Evan Galbraith, has contended that the announcement, Britain announced it pipeline is the key to the rejuvenation of "sympathizes with the French action" the troubled Soviet economy, and a and Italy stood by its position that the strong Soviet economy encourages sanctions would damage Italian- Moscow in its "expansionist" and American relations. "aggressive" policies. In Washington, the White House said "We just don't want to bail out the it was studying "a number of possible Soviet Union at this time," Galbraith actions" the United States could take in said Wednesday, adding there is a retaliation for the French decision. "fundamental difference between THE PIPELINE is supposed to begin Europe and the United States on the shipping natural gas to Western Europe possibility of Soviet domination." IRA threatens more attacks in England In Brief Compiled from Associated Press and United Press International reports House defeats Reagan's proposal to fund nerve-gas weapons WASHINGTON- The House dealt President Reagan a setback in his defense program yesterday, voting 251-159 to ban money to produce a new generation of nerve-gas weapons. But the chamber went along with another key element of Reagan's strategic modernization plan, the B-1 bomber. An amendment by Rep. Ronald Dellums (D-Calif.) to delete the $4 billion for the plane was defeated 257-142. Reagan sought $54 million for production of "binary" nerve-gas weaponry, but the House, apparently heeding pleas that approval would have serious diplomatic and propaganda effects, cut the money from the $177.1 billion defense authorization bill. The $54 million would have gone to produce binary weapons, composed of two separate and sealed containers of chemicals that combine and become lethal only after the artillery shell or bomb in which they are packed are fired. The chemical weapons now in the U.S. inventory, all made before 1969, are of the so-called unitary type, meaning they have been mixed before firing. Iran and Iraq trade war claims Iran claimed yesterday that its forces punched 14 miles into southeastern Iraq, smashing enemy defenses and killing more than 2,000 Iraqis. Iraq claimed it repulsed the Iranian offensive and "annihilated" the invading force. Tehran's Islamic Republic News Agency said in a report from the front that Iranian forces launched a two-pronged assault Wednesday night north and south of the Iraqi border post of Zaid, six miles northeast of Iraq's oil port of Basra. A military communique carried by IRNA said Iranian forces destroyed 380 Iraqi tanks and armored personnel carriers, in what a senior officer described as an "unprecedented operation." An Iraqi communique conceded the Iranians advanced about three miles into Iraqi territory, but said Iraqi forces pushed them back in an "im- mediate counteroffensive." The communique, carried by the official Iraqi news agency INA, said Iraq's troops "totally crushed" the invading force, killing 2,235 Iranians, capturing a "considerable number of the enemy" and destroying 27 tanks and armored vehicles. It said the rest of the Iranian force "fled terrified from the field." Senate passes cigarette tax hike WASHINGTON - The Senate agreed yesterday to a temporary doubling of the federal tax on cigarettes and an even bigger boost of levies on telephone service as it rushed toward passage of the biggest tax increase in history. Leaders hoped to complete action during the night on the package, which would boost taxes by $99 billion and cut federal spending for Medicare, Medicaid and aid to the needy by about $17.5 billion over the next three years. Congress and the Reagan administration expect the bill to force down interest rates and revitalize the economy. The excise tax on telephone service would be raised from 1 percent to 2 percent next year, and then to 3 percent for two more years before returning permanently to 2 percent. The cigarettes tax would go from 8 cents to 16 cen- ts a pack until 1985, when it would return to 8 cents. In addition to the dozens of tax increases, the Senate package would make the largest cuts ever - more than $13 billion - in the Medicare program, which provides health care for the elderly through the Social Security system. The net result of the reductions willarequire a typical Medicare recipient to pay about $4.20 more for health care in 1983. Offshore drilli plan challenged WASHINGTON - A clamor arose yesterday over the administration's decision to open 1 billion offshore acres to oil and gas leasing, with California preparing a court challenge and Interior Secretary James Watt accusing critics of "political posturing." California state officials arranged to file suit in U.S. District Court in Washington seeking to challenge Watt's final decision Wednesday to open vast areas of the outer continental shelf to leasing over the next five years. On Capitol Hill, Sen. Edward Kennedy and Reps. Edward Markey, (D- Mass) and Gerry Studds, (D-Mass.) introduced a resolution disapproving the leasing plan. Kennedy said, "Secretary Watt has decided to play Russian roulette with a price-less and irreplaceable heritage - our coastlines and our vast marine environment. Watt said the plan was developed after consultaton with states, the Congress and "all the interest groups, and I'm pleased to report it is not con- troversial except as it is 'hyped' in the media." LONDON (AP)- The outlawed Irish Republican Army, saying bombs are the only thing Britain will listen to, hin- ted yesterday at new attacks in England like the devastating double bombing that killed nine soldiers in two Londonparks. In Parliament, Prime Minister Margaret Thatcher rejected a fresh call to bring back hanging for terrorism. Thatcher, a supporter of capital punishment, noted that the House of Commons refused to restore the death penalty in May by a 357-195 vote. Scotland Yard's anti-terrorist squad staged a partial reconstruction of Tuesday's IRA blast in Hyde Park, where three mounted members of the Household Cavalry were killed. A dark blue car identical to the one packed with a 10-pound nail bomb that ex- ploded was parked in the same spot. A SCOTLAND Yard spokesman said police hope photographs of the parked car, which will appear in the news media tomorrow, will jog the memories of witnesses. A spokesman said one witness has described a man seen parking the car a half-hour before the blast. Two weeks ago, posters went up in London subways warning passengers to beware of unattended parcels and bags. After the bombings, Scotland Yard con- firmed it had recently obtained infor- mation that a new bombing campaign was planned. The Belfast weekly Republican News, which supports the Irish nationalist movement, yesterday quoted an IRA spokesman as saying of the bombings, "Such actions are the only thing Britain will listen to." The Republican News said one bomb in London is worth 100 in Belfast. "It is obvious that the IRA has overcome the extremely difficult logistical problems of carrying out operations in England," an editorial said. Israelis attack Lebanon (Continued from Page) C v Syrians continue with this conduct, the Christian civil war, but increasingly Israel Defense Force will act in the had attacked Israel's Lebanese place, at the time and with the might Christian allies. which it chooses," it said. U.S. PRESIDENTIAL envoy Philip The bulk of the 30,000 Syrian troops in Habib, who worked out the cease-fire 12 Lebanon along with their guerrilla days ago and has been trying to find allies have regrouped in the Bekaa Arab countries to accept the guerrillas, Valley, 20 miles east of. Beirut, after flew to Damascus for further talks. clashes with the Israelis who invaded As he arrived in the Syrian capital, Lebanon on June 6 to crush the PLO. Israeli warplanes attacked Palestinian The Syrians entered Lebanon six 130mm cannons in the area of Beirut's years ago, ostensibly to police the ar- stadium, airport and Sabra quarter, an mistice that ended the 1975-76 Moslem- Israeli military communique said.