Page 4-Tuesday, August 3, 1982-The Michigan Daily
Soviets lead
arms sales race
State Dept. says
WASHINGTON (AP)- The State
Department, seeking to dispel any
notion that the United States is the
worldl's largest arms peddler, said
yesterday the Soviet Union sold nearly
twice as much weaponry to developing
nations during the last decade.
The report concludes that from 1972
to now the Soviets delivered some 74,000
major weapons systems to nations in
Asia, Africa, the Middle East and Latin
America, compared to 44,000 by the
United States.
JAMES BUCKLEY, undersecretary
of state for security assistance, said the
"neutral" figures are "precise for the
United States and represent the best,
conservative, intelligence estimates
the U.S. government can make" on
shipments by the Soviet Union.
He made it clear that the State
Department was releasing the figures,
based on previously classified U.S. in-
telligence estimates, in hopes of coun-
tering what he said is the myth that the
United States is the largest supplier of
weapons to the Third World.
He said, for example, that the Soviet
Union provided 41 percent of tanks and
self-propelled guns, 56 percent of
supersonic combat weapons and 64 per-
cent of missile patrol boats supplied
Third World countries over the decade.
The rest in those categories came from
the United States and other countries
and private arms dealers.
"THERE IS no dizzying upward
spiral in U.S. arms transfers by any
real levels of measurement," Buckley
said.
He asserted that figures published
previously by private sources are
"flanboyantly off course" when they
indicate otherwise.
Those reports have been badly
skewed because they were based
largely on published figures which are
accurate for the United States and
largely non-existent for the Soviet
Union, he said.
AND HE contended that arms tran-
sfer reports based solely on dollar
figures have misled rather than infor-
med because they do not reflect sales
made at bargain basement prices by
the Soviets and do not include the fact
that "over 60 percent" of U.S. arms
deals include spending for construction
and training rather than actual
weapons delivered.
Soviet grain sales set,
Reagan tells farmers
In Brief
Compiled from Associated Press and
United Press international reports
Kenya capital under curfew
NAIROBI, Kenya - President Daniel Arap Moi, who survived a bloody
weekend coup attempt, putthe capital under curfew yesterday and gave the
remaining air force rebels an extra 24 hours to surrender.
Junior air force offices launched the coup against Moi's civilian gover-
nment at 3 a.m. Sunday for Embakasi. More than 90 civilians and military
personnel were reported killed and hundreds were injured.
Police, soldiers and paramilitary troopers searched for rebels yesterday.
Identification paperswere checked at roadblocks, and car trunks were sear-
ched. Some people, including foreigners, were made to kneel at gunpoint as
papers were inspected.
Government radio stations, which resumed broadcasts yesterday, said
Moi's Cabinet met to "express satisfaction" with the way the coup was sup-
pressed and to reaffirm its loyalty to the 58-year-old leader.
Moi became president in 1978 on the death of Kenya's first president Jemo
Kenyatta, who led the country to independence from Britain 19 years ago.
The government has extended its noon (5 a.m. EDT) Monday deadline by
24 hours for rebels to surrender with their guns or face "ruthless" treatment
Nairobi radio said.
Prime lending rate falls to 15%
Banks nationwide adopted a 15 percent prime rate yesterday, the third
cut of one-half percentage point in two weeks. But economists said the drop
in the key business-borrowing rate will not sharply reduce consumers'
financing costs for big-ticket items such as homes, cars and appliances.
Analysts predicted additional declines in the prime rate. but they
cautioned against expecting substained relief from the ravages of high
financing costs.
The move to the lowest prime rate since November 1980 was spurred by
dramatic declines in the cost of banks' funds. Banks have to pay less for
money because the Federal Reserve Board has relaxed its tight-money
posture in the face of a weak economy and slower growth in the nation's
money supply, analysts said.
Mellon Bank of Pittsubrgh, the nation's 15th-largest bank, led the pack
with its announcement Friday that it was cutting its prime rate from the 15.5
percent rate established a week ago. The prime - the base upon which banks
compute interest charges on short-term loans to their best business
customers - began falling July 19, when it stood at 16.5 percent, a level it had
held since February.
Virtually all major banks yesterday followed Mellon's move.
Donovan under investigation
NEW YORK- Special prosecutor Leon Silverman is investigating new
allegations against Labor Secretary Raymond Donovan, one of Silverman's
law partners said yesterday.
"I can say only that we have received further allegations and that he is
looking into them," Michael Rauch, a partner in Silverman's Manhattan law
firm, said of the special prosecutor.
Silverman was out of town and could not immediately be reached for
comment on the latest probe against Donovan, who got an unqualified vote of
confidence from President Reagan on June 30.
Two days before Reagan made his statement, Silverman-concluded a six-
month investigation of Donovan, saying there was "insufficient credible
evidence" on which to prosecute him on allegations of past ties to mobsters.
In Washington, FBI spokesman Lane Bonner said the bureau was "looking
into additional allegations." He also noted that Silverman's job as special
prosecutor did not end with the submission of a 1,000-page report on June 28.
Bonner said Silverman's job as special prosecutor "was never formally
abolished."
The White House had no immediate comment on the new inquiry by
Silverman.
Soviets expel U.S. reporter
MOSCOW- The Soviet Union yesterday ordered Newsweek magazine's
Moscow correspondent to leave the country because of "impermissible con-
duct," the first such expulsion since 1977.
Andrew Nagorski, 35, was summoned toa meeting at the Foreign Ministry
where Soviet officials read a prepared statement detailing his alleged tran-
sgressions.
Nagorski labeled them "all bogus."
"Whatever their real reasons were, they were not spelled out," he said.
"We all know that this is the sort of thing that can happen to any journalist
here if he does his job."
The action may have stemmed from a Newsweek cover story in April
titled "Brezhnev's Final Days," but Nagorski said he was given no hint of
such a connection.
Nagorski, who speaks fluent Russian and Polish was accused of imper-
sonating a Soviet newspaper editor while on a trip outside Moscow last year,
passing himself off as a tourist from Poland on another occasion and trying
to visit off-limits areas of Soviet territory near the Afghanistan border.
DES MOINES, Iowa (AP) -'
President Reagan, trying to mend
political fences in the Midwest, assured
farmers yesterday that they should be
able to sell large amounts of grain to
the Soviet Union next year even though
he has ruled outa long-term agreement
for now.
The president set the tone for his
speech to the 25th annual convention of
the National Corn Growers Association,
by declaring at the outset that "the
farmers of America are very much on
my mind."
THE FORUM he chose and the tenor
of his remarks were a departure from a
visit to Des Moines in February, when
he spoke exclusively about his
federalism proposals and never men-
tioned farms.
That omission - in a speech to the
Iowa Legislature - raised the ire of
many local Republican leders, who also
were concerned that he met only with
people who paid $1,000 for breakfast
with him.
- This time he was meeting with Iowa
Farm Bureau officials and flew by
helicopter to the State Center Farm
where Donald Dee and his sons, Eric
and Allan, raise hogs and corn.
AFTER TOURING the 500-acre farm
in temperatures of about 100 degrees,
Reagan held an informal chat with
about 30 area farmers.
One farmer asked Reagan to be alert
to efforts to pass federal laws requiring
better treatment of farm animals. The
farmer contended such legislation is
unnecessary.
"We will be on guard," the president
promised.
In his speech, Reagan said that under
Reagan
...granary door 'open'
a one-year grain sale extension "we are
now exploring, we will be able to sell
large quantities during the next year.
In other words, the granary door Js open
and the exchange will be cash on the
barrelhead."
DEPARTING from his prepared text,
the president told the corn growers he
believes "farmers are in a business that
makes a Las Vegas crap table look like
a guaranteed annual income."
His speech was interrupted by ap-
plause 16 times, but it was delayed
briefly at the start by a small group of
hecklers protesting draft registration.
Three people were ejected from the
auditorium after shouting: "Reagan
lies. Stop registration. Stop the draft."