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2The Daily Tar HeelMonday, November 28, 1988
World' and 'Nation
Saudi proposal may
From Associated Press reports
VIENNA. Austria A new OPEC
accord to limit production appeared
to be unraveling Sunday after Saudi
Arabia pressed for a $!5-a-barrel
benchmark price, $3 less than the
cartel's official level, officials said.
"Iran is not going to accept this
type of idea," said F. Barkeshli, a
senior Iranian delegate to the winter
conference of the I3-nation Organ
ization of Petroleum Exporting
The proposal, he said, "can totally
sabotage the agreement."
He said Algeria, Nigeria and Libya
also opposed changing the $18
benchmark. Barkeshli said he met for
two hours Sunday with OPEC Pres
ident Rilwanu Lukman of Nigeria,
but said afterward: "I am very
Analyst predicts cuts
From Associated Press reports
WINSTON-SALEM An inde
pendent analysis of the pending
leveraged buyouts of RJR Nabisco
Inc. indicates R.J. Reynolds Tobacco
Co. would be forced to cut costs by
millions of dollars, possibly cutting
jobs in Atlanta and Winston-Salem,
a newspaper reported Sunday.
An analyst, who shared his con
clusions with The Winston-Salem
Journal on the condition that he not
be identified, said his work indicates
Reynolds Tobacco is not in a position
to increase sales dramatically and
would have to cut costs to help pay
off the huge debt incurred in the
"This would almost surely mean
the . . . dismissal of all Atlanta
corporate people and additional cost
cutting in Winston-Salem opera
tions," he said.
Debt repayment also may cause a
significant reduction in money for
research and development and could
mean dropping Premier, the new
"smokeless" cigarette being test
marketed by R.J. Reynolds, the
Reynolds Tobacco, which has
about 32 percent of the shrinking
domestic cigarette market, employs
about 15,000 people in Winston
Salem, down from a few years ago
because newer plants have highly
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Iran's oil minister, Gholamreza
Aghazadeh, announced in Tehran
earlier Sunday that he would accept
the deal to cut the cartel's output and
drive up prices.
But Barkeshli said Aghazadeh
agreed to a preliminary draft that
would retain OPEC's $18
The announcement last week that
the ministers tentatively reached a
new output pact sent prices higher.
Brent North Sea crude rose $1.65 a
barrel to close Friday at $14.42.
Prices have been running $4 or
more below the $18 target due to a
world oil glut.
Each $l-rise in the price of crude
oil theoretically means an increase of
2.5 cents a gallon in retail gasoline
prices, although oil companies do not
always pass along the full increase.
A company official who asked not the company is under the manage
to be identified said the tobacco ment of people who know how to
operation "is a pretty lean organiza- run it."
tion as it presently exists." Further Such expertise would be a benefit
large cuts would be counterproduc- of a successful bid by the RJR
tive, he said. "We just couldn't make Nabisco management group led by
enough cigarettes," he said. Chief Executive F. Ross Johnson and
The official said people should not Vice Chairman Edward Horrigan Jr.,
put much stock in any outside the official said. That group put RJR
analysis of a situation as uncertain Nabisco in play Oct. 20 with a $17
as the RJR Nabisco bidding contest, billion buyout offer. Since then, the
He said the company would be able Johnson group and one led by buyout
to handle a large debt load because specialists Kohiberg Kravis Roberts
eocy directs bogus
From Associated Press reports
HOUSTON The U.S. Drug
Enforcement Administration admits
it has directed local law enforcement
agencies nationwide to stage phony
drug seizures and generate false news
reports about them to help DEA
agents gain the confidence of drug
DEA spokesman Maurice Hill in
Washington, D.C., said the technique
is employed in high drug traffic areas
across the country, including Florida
and Texas, the Houston Chronicle
"It's a procedure that is used, but
I can't begin to tell you with what
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.sink OPEC accord
The agreement, which would set
member quotas, would cut OPEC
production from the currently esti
mated 22.5 million barrels a day to
18.5 million barrels a day in the first
half of next year.
Barkeshli told reporters that Saudi
Arabia made two proposals Sunday
The Iranian delegate said one
would set a target price at $ 1 5 a barrel
and the other would set a price band
ranging from $ 1 5 to $ 1 8. This, he said,
"is a major divergence from OPEC
resolutions so far.
"We're not going to concede to any
new elements whatsoever," he said.
Barkeshli said the plan worked out
with Aghazadeh "did not have any
thing like $15" and that the Iranian
Cabinet approved the original draft
with the $18 reference price.
of its huge cash flow, "especially if
frequency," Hill told the newspaper.
"It's not a new technique, I can tell
you that." ;
Staging bogus seizures and feeding
the information to reporters appar-
ently came into practice several years
ago to resolve a problem for under-
cover drug agents posing as cocaine
importers for Colombian drug lords,
according to the Chronicle.
Often the DEA operatives, posing
as middlemen, deliver the drugs to
local dealers according to instructions
from Colombian exporters. They
then keep the shipment under surveil-
lance and try to intercept it before
it hits the streets, officials said.
for RJR if bu
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Aghazadeh left Vienna Friday to
try to sell the package to his govern
ment. Barkeshli said Aghazadeh will
not return to Vienna.
The OPEC ministers had been
scheduled to resume formal discus
sions Sunday, but discussions were
postponed until Monday.
The price issue in the accord, which
would replace one arranged in 1986,
is critical. Many OPEC countries
need as much money as possible from
their oil sales.
Iran and Iraq want additional
revenues to rebuild their economies,
which were badly damaged in an 8
year war that ended with an August
Under the new agreement, Iran and
Iraq would each get the same quota
of 2.64 million barrels a day.
& Co. have accelerated bids to almost
A third group, led by First Boston
Corp., said it's considering a bid of
$26.8 billion. A special committee of
RJR Nabisco directors has set Tues
day as the deadline for accepting new
or revised bids.
The market analyst told the news
paper that regardless of the winner
of the auction, investment groups that
lend money for the buyout will
demand whatever steps are necessary
to repay the loans.
drag seizures to and
But the DEA sometimes uses
another way to ensure that drugs
never reach the street, the newspaper
reported. The DEA may have local
authorities seize the drugs before they
are delivered to the local dealers. In
some cases, even the officers involved
in the raid don't realize that the whole
thing was planned in advance by their
Newspaper clippings about fake
drug busts help convince the traf
fickers that the seizures were for real,
according to the Chronicle, which
determined that at least two highly
publicized seizures in the Houston
area had been staged.
Syrian troops in Beirut stop
clashes between rival Shiites
From Associated Press reports
BEIRUT, Lebanon Syrian
peacekeeping troops intervened
Sunday to halt fighting by rival
Shiite Moslem militias around the
Iranian Embassy on the fifth day
of fierce street clashes around
The Syrians set a 1 p.m. dead
line for fighters of the pro-Syrian
Amal militia and the Iranian
backed Hezbollah, or Party of
God, to withdraw from the streets
in west and south Beirut.
"The Syrian army has orders to
shoot on sight any gunman on the
streets in Beirut and the southern
suburbs after the deadline," the
Syrian officers, accompanied by
soldiers armed with shoulder-fired
rocket launchers, blared the warn
ing through bullhorns in all
embattled districts. It was also
broadcast by several Beirut radio
"Apart from a few sniper shots,
the fighting stopped in all districts
at the deadline set by the Syrians,"
said a police spokesman who
could not be named under stand
But several hours later, heavy
fighting resumed in two districts
adjoining the Beirut airport high
way. A police spokesman said the
Syrian command called on repre
sentatives of the two militias to
Harris County Sheriff Johnny
Klevenhagen, whose office cooper
ated in at least two staged seizures,
said local police agencies use the tactic
only at the request of the DEA. He
praised the bogus seizures as "very
productive in taking illicit drugs off
He added that withholding infor
mation is a common police proce
dure, and it does not constitute lying
for officers to withhold the true origin
of drugs when discussing a staged
Hall, is still losing money, Loughran
said, and there is no reason for the
company to stay on campus unless
it can turn a profit.
Expanding Lenoir Hall. has been
discussed, but there is no room for
expansion, Loughran said. Broaden
ing Marriott's revenue base by
consolidating all campus food servi
ces must be carefully examined.
Bill Dux, director of Marriott,
agreed. "I don't know if total con
solidation is even feasible now," he
said. "We need a lot of information
and a few years to find out what we
need, but one of the big problems is
that all of the dining services at the
University are not coordinated."
DO YOU HAVE
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INTERESTED IN LEARNING
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News in Brief
quickly recall their fighters.
It was the first serious effort byv
the 12,000-man Syrian contingent.
to halt five days of fierce fighting ','
that, by police count, left 35 people
dead and 74 wounded.
The warning was issued after-.
Amal and Hezbollah militiamen -v
battled near the Iranian Embassy
building in west Beirut.
Pakistan to choose new leader
President Ghulam Ishaq Khan v
said he will name the new prime
minister on Thursday, two weeks-,
after Benazir Bhutto's party won .
the most votes in the first free
election in more than a decade.
The official television network :
said Sunday that Khan will make
the announcement in an address
to the nation. '.
The newly elected members of
Parliament are to be sworn in
Wednesday, the television report
Bhutto met with the president-
last week and urged him to let her
left-leaning Pakistan's People's ;
Party form the new government t
and make her the first woman
prime minister of an Islamic ,
While many law enforcement
agencies defend such ruses o.n
grounds that they preserve investiga
tions and protect agents, journalists
say the scams raise ethical questions
about government deception of the
news media and the public. '
"If the DEA is willing to lie to the
media and public about this issue,
what else might they be willing to lie
about?" asked Chronicle Managing
Editor Tony Pederson.
from page 1
The committee will also gather
information about how food services
at other colleges operate, Loughran
The survey 'will also be used to
determine if the new Union Station;
a snack bar under construction in the.
Student Union, will make Student
Stores' Pit Stop obsolete, he said.
"We want student needs to be met
and we do not want them to be.'
inconvenienced," Loughran said. "By
finding out how the students use tbe
Pit Stop, we will be able to discover;
whether the Pit Stop is serving the;'
same needs as the Union Station;
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