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2Jhe Daily Tar Heel Wednesday, March 1, 1989
World and Nation
rao 5ye y Dtimaty m to
From Associated Press reports
NICOSIA, Cyprus Iran's Par
liament voted Tuesday to sever ties
with Britain, restored to normal just
three months ago, unless it condemns
"The Satanic Verses" and stops
criticizing Iran for ordering the
The official Islamic Republic News
Agency (IRNA) said the Majlis, the
Iranian parliament, gave Britain a
week to meet the conditions, but
Prime Minister Margaret Thatcher's
government made clear that it would
not do so.
"The British position will not be
altered by threats of any kind," said
William Waldegrave, minister of state
in the Foreign Office. Waldegrave
spoke from London.
Thatcher told the House of Com
mons that freedom of speech and
expression are "subject only to the
laws of this land . . . and will remain
subject to the rule of law. It is
absolutely fundamental to everything
in which we believe and cannot be
interfered with by any outside force."
it economic growth reflects drought
From Associated Press reports
WASHINGTON The economy
grew at a lackluster annual rate of
2 percent in the final three months
of 1988, the slowest pace in two years,
reflecting a worsening trade deficit
and the lingering effects of the
summer drought, government offi
cials said Tuesday.
The Commerce Department said
the slowdown in the gross national
product, the total output of goods
and services, was accompanied by a
pickup in the inflation rate as food
prices and the costs of imports both
While the 2 percent overall growth
figure was unchanged from an initial
report a month ago, economists
labeled the new GNP statistics
disturbing because of the weakness
in trade, the speed-up in inflation and
an acceleration of consumer
"The shape of the economy looks
worse than we thought," said David
Wyss, senior financial economist for
Data Resources Inc., of Lexington,
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6 1 e i t n a
Mohammed Basti, Iran's charge
d'affaires, said on television before
leaving Britain: "It is very unfortunate
your government has taken the lead
in making this matter a purely
Salman Rushdie, 41-year-old
author of "The Satanic Verses," was
born in Bombay, India, to Moslem
parents but now is a British citizen
and does not actively practice
Rushdie has been in hiding since
Feb. 14, when Iranian patriarch
Ayatollah Ruhollah Khomeini com
manded followers to kill him. Kho
meini and many other Moslems
believe Rushdie's novel blasphemes
Islam and the prophet Mohammed.
In their first comment on the
controversy, Soviet Union officials
said the Kremlin leadership expressed
Foreign Ministry spokesman Gen
nady Gerasimov said Eduard She
vardnadze, the Soviet foreign minis
ter, discussed the matter for two
Mass. "All the changes were in the
Economists were concerned
because the new GNP report showed
that the country's trade imbalance
worsened even more than previously
estimated during the fourth quarter
as imports grew at an annual rate of
13 percent, swamping a 7 percent gain
Consumer spending rose at a
robust 3.5 percent annual rate, which
was too fast given current constraints
on production resulting from tight
labor markets and high operating
rates, economists said. The jump in
consumer spending, which went
primarily to big-ticket items such as
cars, also showed that Americans'
appetite for foreign goods is
"The surge in consumption pulled
in more imports with the result that
the deterioration in the trade deficit
was worse than previously assumed,"
said Jerry Jasinowski, chief econo
mist of the National Association of
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hours with Iranian Foreign Minister
Ali Akbar Velayati and President Ali
Khamenei during a three-day visit to
Iran that ended Monday.
Gerasimov said 1 Shevardnadze
would raise the issue with U.S.
Secretary of State James Baker and
other foreign ministers at a March
7 meeting in Vienna.
Charles Redman, the State Depart
ment spokesman, said Tuesday in
Washington that the United States
and Britain had urged Shevardnadze
to bring the subject up in Tehran.
"Every civilized nation has an
international responsibility to state its
abhorrence to death threats," Red
man said. "No responsible member
of the community of nations should
let them go unanswered."
IRNA said the parliament's deci
sion was endorsed by the Council of
Guardians, 12 clerics and laymen who
must approve legislation.
It said that "nearly all" of the 201
deputies attending Tuesday's session
voted for the bill, introduced two days
It marked the second consecutive,
quarter that the GNP trade deficit
worsened and served to emphasize
economists' contention that Ameri
ca's trade woes are a long way from
The fourth quarter GNP increase
followed a 2.5 percent third-quarter
rise and was the slowest quarterly
increase since a 1.4 percent rate in
the final three months of 1986.
The lingering effects of last
summer's drought depressed the
fourth quarter figure. Without the
drought effects, the economy would
have expanded at a 3.1 percent rate.
On the inflation front, a GNP price
measure that reflects changing con
sumption patterns rose at an annual
rate of 5.3 percent in the fourth
quarter, up from a 4.7 percent rate
of increase in the third quarter.
The GNP deflator rose at rates of
3.4 percent or less over the last three
years and economists said the spike
above 5 percent would set off alarm
bells at the Federal Reserve, which
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ago. The Majlis has 270 members, but
some were absent, and the credentials
of others have not been approved
since elections in April and May.
The news agency gave this text of
the bill: "From the date of the
approval of this law, if the British
government does not officially
declare in a maximum period of one
week its opposition to the unprin
cipled stand against the world of
Islam and the Islamic republic of
Iran, and to the contents of the anti
Islamic book 'The Satanic Verses,' the
Foreign Ministry of the Islamic
republic , of Iran is obliged to break
all bilateral political ties."
Deputies stood, cheered and
praised Mohammed and his descend
ants after the vote, the report said.
According to IRNA, more than 100
deputies proposed the amendment
giving Britain a week to comply with
Since the elections, Iran's parlia
ment has been dominated by radical
factions that do not always agree.
has already embarked on a new round
of credit tightening in an effort to
Federal Reserve Chairman Alan
Greenspan, in his first congressional
appearance since the Fed boosted its
key bank lending rate Friday,
repeated the central bank's "determi
nation to resist any pickup in infla
tion" and called on Congress and the
administration to agree on a credible
multi-year plan to reduce the budget
In another economic report Tues
day, the National Association of
Realtors said existing single-family
home sales fell a sharp 7.4 percent
in January to an annual rate of 3.63
million units. The median price of a
home rose 3.2 percent to $91,500.
In a third report, the Commerce
Department said the deficit in mer
chandise trade; measured on a bal
ance of payments basis, climbed to
$32 billion in the October-December
quarter, 10 percent higher than in the
Sale Through March 15th
President Bush begins drive
to rescue Tower nomination
From Associated Press reports
Bush launched a full-court press
Tuesday to salvage John Tower's
nomination, but his private meet
ings with a dozen swing Demo
crats and wavering Republicans
produced no immediate pledges of
support for his chosen defense
i'm working hard at it," Bush '
told reporters at a picture-taking
session during an afternoon
Cabinet meeting. . "I'm
Republican Sen. Larry Pressler
of South Dakota, key to the drive
to hold all 45 Senate Republicans
in line, announced he was "very
much leaning against" confirma
tion and urged Tower to withdraw
before a vote.
MI think that he may very well
be doing him (Bush) a favor in
this case," said Pressler, who said
he was fearful that Tower would
not be capable of cleaning up the
Pentagon procurement system if
Bush invites controversy
Bush said Tuesday he had no
obligation to inform the Chinese
government in advance that he
had invited the country's leading
dissident to dinner.
Bush acknowledged the Chinese
"may have a point" in contending
that the flap over their unwilling
ness to let Fang Lizhi attend the
U.S. -hosted dinner in Beijing
might have been avoided if the
United States had submitted the
guest list ahead of time.
But when asked during a
Cabinet meeting picture-taking
session whether he felt he should
clear such dissident invitations
with the host government, the
president replied, "No. And I think
they understand that."
Bush said the question of
human rights and the United
States' commitment to them is
much broader than whether a
dissident is allowed to attend a
Earlier Tuesday, White House ,
press secretary Marlin Fitzwater
had said Bush believes he should
push human rights in talks with
communist leaders but that it
should not be: pursued . to - the .
exclusion of other concerns.
Soviets criticize Communists
MOSCOW A prominent
state-run magazine has scathingly
criticized the Communist Party,
accusing it of spreading "political
lies" that have deceived the Soviet
people for generations.
The unprecedented attack in the
literary monthly Novy Mir also
questioned the rationale of the 20
million-member party's legal
monopoly on power, enshrined by
the 1977 Constitution, and says
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News in Brief
genuine democracy is impossible :
until the party permits open
dissent in its ranks.
Even in the franker atmosphere "
fostered by President Mikhail
Gorbachev's campaign for "glas
nost," or greater openness, such '
harsh criticism of Communist
Party practices in an official Soviet
publication would have recently
The article, by widely known
sociologist Igor Klyamkin, also
hints at the central paradox of
Gorbachev's blueprint for political
change, by noting that Soviet
"democratization" is taking place :
in a system where one party has
declared itself society's sole legit- :
The criticism comes at a time
when Soviets are preparing for '.
their first national multicandiate
Klyamkin does not openly call .
for the creation of a multiparty .
system, but that seems the ines
capable conclusion many will ,
draw from his criticism of anti-.
democratic practices he says the..
Communist Party has engaged in . .
starting from the days of Soviet
founder Vladimir Lenin.
Israeli warplanes fire on school
AINAB, Lebanon Israeli
warplanes struck Palestinian bases .
in the Chow Mountains southeast ,
of Beirut on Tuesday, killing two
guerrillas, and also blasted an,
elementary school, wounding 26
children, police said.
Panicked children aged 4 to 10,
some with blood streaming down
their faces, ran screaming and
sobbing from the school, a teacher
said. A blackboard in one class
room still listed Tuesday's subject
for discussion: "The War."
Five of the children were crit
ically hurt. In addition, eight other
people were wounded in the raid
on the bases by six fighter
bombers. The guerrilla casualties were
members of the Democratic Front
for the Liberation of Palestine, a
Marxist group that is part of the
Palestine Liberation Organiza
tion, said a police spokesman, who ,
cannot be identified under briefing
Five of the wounded were
militiamen of the leftist Druse
Progressive Socialist Party. They'
were manning a post near Ainab,v
a mountain village nine miles
southeast of Beirut.
The air strike coincided with the
front's 20th anniversary and came'
five days after the guerrilla group'
lost three fighters in an attack on
Israeli-backed militiamen in south'
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