Page 4-Saturday, August 14, 1982-The Michigan Doily Israel doubles its demands as eaRse-fire holds By The Associated Press Israel has doubled its demands, in- sisting on the evacuation of 13,000 Palestinian guerrillas from west Beirut and deployment of the Lebanese army there before the arrival of an inter- national force, sources close to the talks said yesterday. A new cease-fire held, meanwhile, and Israeli officials said they hoped the withdrawal will begin next week. U.S. PRESIDENTIAL envoy Philip Habib refused to talk with reporters af- ter resuming negotiations with Lebanese President Elias Sarkis and Prime Minister Shafik Wazzan, who suspended talks Thursday to protest Israeli air strikes that left at least 156 dead by police count. Wazzan said Habib had gotten PLO and Lebanese responses to Israeli demands and that the answers would enable him to "conclude the negotiations and begin the implemen- tation process." WAZZAN DID not elaborate, but Palestine Liberation Organization spokesman Jamil Hilal said Israel now wants the Lebanese army to deploy in west Beirut at the first stage of the evacuation, rather than an advance contingent from a proposed force of U.S., French and Italian troops. Israel objects to U.N. qbservers and French troops, claiming they are anti- Israeli and pro-PLO. Several days ago Hilal listed 7,100 guerrillas for evacuation, but Saeb Salam, a key intermediary between Habib and PLO chief Yasser Arafat, said Israel now wants 13,000 guerrillas evacuted and has demanded their names. THERE WAS no immediate com- ment from Israel, where military sour- ces have said up to 9,000 guerrillas and between 3,500 and 4,000 Syrians could be in west Beirut. Previous estimates of guerrilla strength in west Beirut ranged from 6,000 to 8,000, but sources close to the PLO gave revised estimates that put the figures at 13,000: 7,600 from PLO factions, 4,040 from the Palestine Liberation Army, and 1,000 foreign volunteers. In addition there are said to be 1,000 Syrian troops in west Beirut along with an estimated 2,000 full-time leftist Lebanese militiamen, and several thousand fighters belonging to the Shiite Modslem militia Amal and the pro-Syrian Arab Knights militia. The evacuation plan does not include guerrillas elsewhere in the country. There are several thousand PLO fighters and 60,000 Palestinians at refugee camps near Tripoli in northern Lebanon for example. OFFICIALS in Jerusalem believe that despite recent ups andsdowns, the US.-Isreali foreign relations are sound and will mend after the war. Israeli opposition leader Shimon Peres told Amrican Jewish leaders in New York yesterday that the recent damage to relations "is not beyond repair." In Brief Compiled from Associated Press and United Press International reports Mexican government suspends trade on foreign currency MEXICO CITY- The government froze dollar accounts in Mexican banks yesterday and suspended trading in foreign currency until further notice ina move to save its dwindling dollar reserves. The step created confusion and fear in the Mexican business community, still reeling from the impact of an increase this month in gasoline and basic food prices and a devaluation of the peso last week. The surprise Treasury Department announcement late Thursday said Mexican banks would honor dollar accounts only in terms of the nation's weakened peso. Hardest hit by the measure are foreign and national businesses, as well as private citizens who have been changing their pesos into dollars in recent months, afraid the currency would continue losing value. Tourists, however, will be allowed to exchange the dollars they bring in at prevailing rates when trading resumes. GOP fires chief fund-raiser WASHINGTON- The chief fund-raiser who made the Republican Party the richest political organization in history was fired yesterday, months af- ter he described the recession as "a beneficial thing and a cleansing thing." The abrupt dismissal of millionaire businessman Richard DeVos as GOP finance chairman was attributed by sources to his outspoken views on the economy and organized labor and to a tendency to "talk down" to con- tributors. "It's simply a case where I think we could do better with somebody else," party chairman Richard Richards said in a telephone interview from Salt Lake City. "A little different approach, a little different style." Richards named California Lt. Gov. Mike Curb to replace DeVos in the fundraising job until the next meeting of the Republican National Committee in January 1983. "Chairman Richards has asked for my resignation because he wanted to put someone else in the job," DeVos said in a statement issued from his Washington office. "Apparently, he did not like my style. That is his privilege." House and Senate seek agreement on budget cuts WASHINGTON - House and Senate negotiators, working against a self-imposed deadline, sought agreement yesterday on a compromise package of budget cuts totaling $12 billion over the next three years. The biggest issue - whether to cap annual cost of living hikes on federal retirement pay - remained unresolved after a quarrelsome morning session. Officials predicted agreement later in the day on a different element of the bill that would cut more than $1 billion from food stamps and billions of dollars more from dairy price supports through 1985. House and Senate bargainers reached tentative accord on a plan creating a system under which farmers would be paid for taking wheat, feed crop, rice and cotton land out of production. In addition, the tentative compromise calls for a 10-cent a bushel increase in the federal minimum loan rate for the 1983 wheat and corn crops. The new loan rate for wheat would be $3.65 a bushel. The corn price would be $2.65 a bushel. GOP withdraws Tisch suit LANSING - State GOP Chairman Mel Larsen's abandonment of legal challenges to independent gubernatorial candidate Robert Tisch recognizes Richard Headlee's new status as titular party boss, a spokeswoman said yesterday. The party announced in a press release that Larsen and Headlee, the gubernatorial nominee, had ordered attorneys to withdraw the controversial suit. The decision reportedly came after Larsen met for several hours with Headlee, who had been publicly critical of the suit during the closing days of the primary campaign. Larsen claimed an investigation by the GOP demonstrated Tisch suppor- ters failed to collect enough valid signatures to qualify the Tisch Indepen- dent Citizens party for the fall ballot. He filed suit to force the Board of State Canvassers to investigate the charge. Thunderstorms slam Midwest Thunderstorms clobbered parts of the Midwest and West yesterday swamping one suburb of Kansas City, Mo., with 15.5 inches in the 24-hour period ending at 7 a.m. Streams poured out of their banks in the lower Missouri Valley. Hundreds of people were evacuated and several homes were swept from their foun- dations in the Kansas City area where water was 8Ito 12 feet deep over some roads. In Nebraska, the National Weather Service predicted the worst flooding since 1973 on the Big Nemaha River at Falls City, a town of 5,200 about 1;00 miles south of Omaha, where 7.3 inches was recorded. 4 Ann Arbor police decline bargain with Texas killer 4 (Continued fromPage 1) Ann Arbor victims have been recovered, while some of those in Texas and other locations have yet to be found. The only purpose for granting Watts immunity would be to possibly "close the file" on the Ann Arbor homicides. Although they were not able to obtain an official confession from Watts, Police Chief William Corbett said Watts "may have made that confession to his attorneys." CORBETT SAID earlier this week that Watts has been a suspect in the local killings since 1980, when he was arrested on a misdemeanor charge and interrogated about the slayings. Ann Arbor Police alerted Houston authorities when they learned Watts was moving from Michigan to Texas in 1911. The investigation into the 1986 deaths of Ann Arbor resident Shirley Small andUniversity students Rebecca Greer Huff and Glenda Richmond will con- tinue, Delhey said, and Watts is "the prime suspect," Delhey said. "The similarity between the homicides occuring in and around the city of Houston and in the city of Ann Arbor is remarkable," he added. I sHoustngp-a Galveston warhou e worker, Howard Mosley, 25, sentenced to life in prison for slashing a woman, took a lie detector test to bolster his claim of innocence after Watts con- fessed to the crime this week. "THE RESULTS of the polygraph were inconclusive," Galveston Police Chief Paul Hulsey said. But he added: "All the results are not in yet. The district attorney will be reviewing that and he'll be covering all the evidence on both Watts and Mosley, I'm sure." Houston officials continued the gruesome task of questioning Watts about a string of murders of women resulting from what a psychiatric report said was a psychotic belief that all women are evil. "We honestly don't know when the tale will end," said Houston Assistant District Attorney Jack Frels. Wayne County, Michigan Assistant District Attorney John McCloskey said his office was willing to grant immunity in a Halloween, 1979 stabbing in Grosse Pointe Farms, but officials in Kalamazoo and Weller County, Texas, as well as Ann Arbor, said they would not accept Watts' offer of information. Daily staff writer George Adams filed a report for this story. 4 d 4