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2AThe Daily Tar Heel Thursday,
Veto on textile import limits stands
By TOBY MOORE
The textile industry suffered a step
backward this month when Congress
failed to override a presidential veto
on a bill that would have limited
The Textile and Apparel Trade
Enforcement bill failed Aug. 6 to'
garner the necessary two-thirds of
the House vote. The final vote was
276-149 in favor of the measure,
seven votes short of two-thirds.
Ozie Raines, vice president of
Ficldcrcst Cannon Inc., the state's
second-largest textile manufacturer,
said the failure of the House to
override the veto was "a major
setback not only for the textile
industrv but for other industries as
Both parties share credit for tax reform
From Associated Press reports
Reagan proclaimed that the tax bill
poised for approval by Congress is
"good for the taxpayer" and his
fellow Republicans are hoping that
means it also will be good for the
But this sweeping revision of the
tax code stands as a tribute to
bipartisanship and it may end up as
an issue in which there are no
Certainly, Reagan comes out of
the long tax debate a big winner. He
fought hard for tax simplification.
The revised tax code, with its lower
rates for individuals, is sure to be
a centerpiece of the speeches the
president will deliver this fall as he
stumps for Republican candidates.
But Reagan won't be running
again. Not even the move to repeal
the two-term limit for presidents is
likely to lead to the 75-year-old chief
executive deciding to go for a third
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"We're not in any way opposed
to foreign trade," Raines said. He
said the textile industry had always
supported previous agreements, and
if the Reagan administration had
enforced the existing treaties, "I
don think the industry would have
seen the need (for the bill)."
The legislation would have cut
clothing imports about 30 percent
from such producers as Hong Kong,
Taiwan and South Korea. It would
have also cut shoe imports from 80
percent to 60 percent of the U.S.
Annette Mackey, spokeswoman
for the N.C. Textile Manufacturer's
Association, said the organization
wanted to "put some teeth" in the
trade agreements. The NCTMA
Representative Bob Packwood
And sharing a lot of the credit with
Reagan was Democratic Rep. Dan
Rostenkowski of Illinois, chairman
of the House Ways and Means
Committee. Rostenkowski and
Republican Sen. Bob Packwood of
Oregon, chairman of the Senate
Finance Committee, dominated the
conference committee that worked
out the final compromise which
appears certain to pass Congress
Rep. Guy Vander Jagt of Mich
igan, chairman of the House Repub
lican Campaign Committee, said the
new bill would cut taxes for about
three-quarters of the people and "it
will be the vehicle we ride to the best
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estimates that North Carolina has
lost 48,000 jobs over the last six years
because of the growth of foreign
The textile bill was the object of
intense lobbying by industry repre
sentatives and unions. The NCTMA
had several North Carolina textile
executives in Washington the week
of the vote trying to counter the
Reagan administration's opposition
to the bill..
Mackey said the bill had "good
support" in Congress, and that
despite the defeat, the textile industry
would continue to push for similar
legislation. She pointed out that the
bill originally passed the House, 255
161, and that the Senate passed the
measure by 60 votes.
All North Carolina legislators
election showing in history for a
party in the sixth year of controlling
Normally, that sixth-year election
is disasterous for the party in power.
Democrats counter by pointing to
polling results that indicated the
party benefited from the public
perception of the House bill as
providing greater relief for middle
In the longer term, no one can tell
yet who will benefit politically.
When Reagan started his drive for
tax simplification, Republicans
believed it was an issue that could
boost party fortunes for the
remainder of this century.
That may prove to be true. But
no one knows yet whether the bill
will be seen as a boon or a bust a
few years from now.
The public maintained a skeptical
attitude to the whole process while
it was being debated. One of the
frustrations faced by the president
was his inability to generate much
public pressure on Congress.
That was one reason why when
the bill cleared the conference
committee, it seemed nothing short
of a political miracle, a tribute to
Anyone looking for evidence of
that need only recall the dark winter
days of 1985, when tax simplification
was being prepared for burial. It was
terminal; the obituaries were being
pace industry eyes
From Associated Press reports -
SPACE CENTER, Houston 4"
"Have Rockets Will Launch" is
the message from companies gearing
up to grab their share of an estimated
$6 billion space launch business
created by the government's decision
to remove commercial satellites from
Companies that manufacture or
plan to launch space rockets said
their phones started ringing earlier
this month when rumors circulated
t n i f ) f ( w . i f Mitt
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lfil Kasl Kmnkliii St CfuifN-l Hill North Curnlin.i TA
supported the bill. Sen. James
Broyhill was a strong supporter of
the bill while a member of the House
earlier this year.
"No matter how productive it is,
the U.S. industry cannot pay its
workers wages of 16 cents per hour
.. . . Yet, these are the real wages for
10 hour days, six days a week, in
many textile producing countries,"
he said in a news release.
The Reagan administration
opposed the legislation on the
grounds that it would ruin existing
agreements and prevent the United
States from negotiating .the end of
protectionist legislation in Japan and
other countries. The administration
also feared retaliation if the United ,
States protected its markets.
Politicians were prepared to des
cribe it as a nice idea but one whose
time had not come. No. one out in
America cared and without the
pressure of overwhelming public
demand, Congress wouldn't act..
But tax simplification proved to
be an idea that wouldn't die.
It was a Republican revolt in the
winter of 1985 that nearly killed the
Tm becoming convinced that true
tax reform and true tax simplifica
tion cannot come out of this Con
gress the way I envision them,"
declared Rep. Bob Michel of Illinois,
the House Republican leader.
President Reagan tried a political
gambit that seemed shaky at the time
but ended up saving the day. He
urged Republicans to support the
Democratic bill even while saying he
was depending on the GOP Senate
to come up with a version he could
The reaction was outrage.
"It is not reasonable for the
president to expect me to vote for
a tax bill that he himself would not
sign," Rep. Richard Cheney of
Wyoming, chairman of the House
Republican Policy Committee.
Reagan went to the Capitol and
personally appealed to reluctant
Republicans to support the bill and,
as a result, it passed the House. That
may have been the critical moment
that guaranteed eventual approval of
the tax bill.
about the change in government
President Reagan confirmed the
rumors Friday by announcing that
only 14 of 44 satellites scheduled for
the shuttle would be carried into
orbit once the craft resumes flights
And on Tuesday, Martin Marietta
announced that it is offering its Titan
111 to launch commercial satellites.
"We've had enough inquiries and
market analysis to believe that there
is a market there. Until the president
made the announcement the other
day, we weren't sure it was a viable
business," said spokesman Jack
Boyd. "We examined it and have
now decided it is, so we will go back
to the people who made the inquiries
and other companies."
Denver-based Martin Marietta
said it was the only company in the
or friends with
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Postal worker opens fire
on co-workers, killing 14
From Associated Press reports
EDMOND, Okla. A part
time postal worker facing dismis
sal opened fire in a post office
Wednesday morning, killing 14
co-workers and wounding at least
six others before taking his own
life, police said.
The gunman, identified by .
police as Pat Sherrill, 44, was
hired last year and was about to
be fired, said postal officials in
Sherrill was carrying at least
three handguns, including two .45
caliber automatics, when he
entered the post office through an
employees entrance around 6:45
a.m. and opened fire, authorities
It was the nation's worst attack
by a lone gunman since a rampage
at a McDonald's restaurant in
San Ysidro, California, on July
18, 1984, left 21 people dead.
One of the wounded was listed
in critical condition with a neck
wound; four were in stable con
dition, and one was treated for
superficial injuries and dis
charged, hospital officials said.
Reagan takes break from D.C.
SANTA BARBARA, Calif.
As the House and Senate flung
last-minute legislation about
Capitol Hill in a rush to adjourn,
President Reagan hopped aboard
his Marine One helicopter to start
a three-week California vacation.
There was little reason to
begrudge the president his respite
from Washington; in the hours
before Reagan's departure, things
had not gone his way on Capitol
The Senate, ignoring his
staunch opposition to punitive
sanctions against South Africa,
voted overwhelmingly to adopt
far stricter steps against the white
ruled nation than anything Rea
gan has proposed. The House
voted unprecedented cuts in his
defense buildup and approved
curbs on his arms control policies.
But Reagan did win some
victories earlier in the week when
the Senate gave its approval to
his plan for $100 million in aid
nation currently operating a produc
tion line for space launch vehicles,
and the first launch could be as soon
as early 1989. Titans have had . 129
successful flights in 134 launches; the
last two failed.
Reagan's announcement "was a
green light for the ELV (expendable
launch vehicle) industry. We antic
ipate a very strong investor
response," said Mark Daniels of
Space Services Inc.
Daniels said Space Services had
signed two customers to launch a
total of eight satellites on its Cones
toga II, capable of putting only 300
pounds into a high orbit. The first
launch is expected late next year.
Rick Endres, corporate vice pres
ident of Transpace Carriers Inc.,
which owns the marketing rights to
the Delta, rocket, said his company
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to the Contra rebels battling the
leftist government of Nicaragua
and congressional negotiators
forged a tax reform plan Reagan
Navy rescues 7 washed
HONOLULU Seven men.
swept off a Navy aircraft carrier
on maneuvers in stormy seas were
picked up by a rescue boat and
helicopter, the Navy said.
None suffered serious injuries.
The wave washed over the
flight deck of the USS Carl
Vinson on Saturday, the- Navy
said Tuesday. The deck is 25 feet
above the ship's normal water
line, and the wave swept the men
into 62-degree water in the eastern
An eighth man suffered inter
nal injuries when the wave
slammed him against a parked
plane. He underwent surgery
aboard the carrier and was in
satisfactory condition, the Navy
Talk show host goes national
LOS ANGELES Oprah
Winfrey is taking her brand of
hands-on, emotionally involved
talk show to a national audience
Viewers in 130 cities will have
the opportunity to see why her
Chicago show zoomed from third
place to first in the ratings and
moved ahead of Phil Donahue's
highly regarded, nationally syn
Winfrey, nominated earlier this
year for an Academy Award for
her supporting performance as
Sofia in "The Color Purple," hugs
and cries and laughs and relates
on a personnal level with the
people on her show.
Her show, like "Donahue,"
tackles such provocative subjects
as sex, divorce, rape, battered
women and incest.
believed there was a need for 120
satellite launches, both military and
commercial, over the next six years.
Endres estimates that satellite
launch service from now until 1992
represents about a $6 billion busi
ness, and other companies confirm
Jack Isabel of General Dynamics,
which makes the Atlas Centaur, said
seven companies have made inquir
ies. He said his firm expects for 15
to 16 launches a year in the long
Commercial services would use
Tha Air Force is expected to make
a decision on Feb. 8 about new
medium-sized launch vehicle. Mar
tin Marietta, General Dynamics and
a partnerhip of Hughes Aircraft and
Boeing Aerospace are all bidding for
Whoever wins the contract will
have a guarantee of at least four Air
Force satellite launches a year,
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open. This would enable the winning
company to compete" more easily for
Hughes and Boeing propose using
rocket engines from the Saturn V
booster of the Apollo program to
build a launcher called the Jarvis,
named for Hughes engineer Gregory
Jarvis who died in the Challenger
Richard Dore of Hughes said the
Jarvis would be able to launch four
to six satellites at once, putting
85,000 pounds into high orbit. But
the system would be built only if it
wins the Air Force competition.
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