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2The Daily Tar HeelTuesday, January 30, 1990 World and Nation yh announces budget for 1 99 From Associated Press reports WASHINGTON President Bush on Monday sent Congress a $1.23 tril lion budget for fiscal 1991 that keeps new spending below inflation and rec ognizes "remarkable changes" in the world by scaling back defense and rewarding emerging democracies. Bush called the spending plan an "investment in the future." But Democratic leaders in Congress pounced on it as a "standpat budget" and challenged its claim to halve the federal deficit to $63.1 billion. Fights loomed with the Democratic controlled Congress on a range of fronts: Bush's desire to cut Medicare and capital gains taxes, to close military bases he considers outmoded and, on the other hand, to preserve some ex pensive weapons. Bush would increase spending on space, education, the environment and the war on drugs. Losers, this year, are Medicare, college student loans, farm subsidies, energy conservation grants and mass transit. The president's budget for the fiscal year that begins Oct. 1 calls for $36.5 billion in spending cuts and other deficit-reducing measures. The budget projects a 7-percent in crease in revenues, to $1.17 trillion, without a general tax increase and just a 3-percent boost in overall spending more than a percentage point below the current rate of inflation. Bush proposed defense spending of $292. 1 billion, a cut of 2 percent meas ured against inflation, while boosting foreign aid to Eastern Europe, the Phil ippines and Latin America. On the domestic front, his budget would leave in place the Social Secu rity tax increase that took effect earlier this month. But it honors Bush's 1988 campaign pledge to propose no general tax increase. Still, the budget recommends $15.6 billion in lesser tax increases and a $5.6 billion increase in user and service fees most of them recycled from Reagan budgets and previously defeated in Congress. The budget calls for "family sav ings" accounts under which families could save up to $5, 000 a year and pay no tax on interest on deposits held for seven or more years. "With an eye toward future growth, and expansion of the human frontier, the budget's chief emphasis is on in vestment in the future," Bush said in a brief message to Congress accompany ing the 1,569-page document. But Sen. James Sasser, D-Tenn., called it a document of "low aspira tions. ... It predicts huge fiscal prob lems ahead and then goes on to propose no change in course." And House Majority Leader Rich ard Gephardt, D-Mo., said, "I think it's a standpat budget," but he said law makers would "take it very seriously" rather than pronouncing it "dead on arrival" as Democrats had done with several Reagan budgets. Bush's budget director, Richard Darman, opened the annual budget battle by proposing a truce. "We fully expect to negotiate with Congress over priorities," he said. Bush's budget asserted it was meet ing the $64 billion deficit target for fiscal 1 99 1 , under the Gramm-Rudman budget balancing law, "with specific and defensible measures and with out gimmicks." However, critics claimed the administration's prescription for get ting the budget deficit down to $63.1 billion relies on accounting gimmicks. Former East German leader awaits tria From Associated Press reports EAST BERLIN Erich Honecker. who ruled East Germany for 18 years until his downfall in October, was re leased from a hospital Monday and .arrested immediately to be tried for treason, the national prosecutor said. , . Plans to put the former Communist . Party chief and three members of his Politburo on trial in March were an nounced by Prosecutor Hans-Juergen Joseph at a session of Parliament where Premier Hans Modrow offered a grim account of the state of the nation. The action against Honecker, 77, indicates the strength of a backlash against corruption in Honecker's Sta linist regime. It's Comlngl Gold Connection Q)aen(ine SaUk W OFF EVERYTHING! February lst-14th Don't Miss It! 967-GOLD f m Rasa n 'I- in r Laserset Resumes CO. COPIES Rushes possib'e Open 7 days a week on Franklin Street above Sadlack's 967-6633 Economic problems and widespread unrest have forced Modrow, the em battled Communist premier, to move the country's first free elections up from May to March 18 and bring the opposition into a coalition that will govern until then. Honecker was recuperating at Char ite Hospital from surgery performed Jan. 8 to remove a malignant kidney tumor. He was arrested as he left the hospital and taken to Rummelsburg Prison in East Berlin, the official news agency ADN reported. It said Dr. Peter Althaus, director of the hospital's urology clinic, consid ered Honecker too ill to be imprisoned. Bild, a mass-circulation West Ger man newspaper published in Hamburg, reported last week that Honecker would be arrested and kept at a prison medical facility. ADN did not say whether Rummelsburg had a hospital. A dozen once-mighty Politburo members have been swept up in the anti-corruption campaign. In Parlia ment, Joseph said 23 officials from the former government were in jail. Honecker, ousted Oct. 1 8, is accused of leading the nation to the brink of economic collapse through misman agement and the misuse of power for personal enrichment. Joseph said Erich Mielkc, Guenter Mittag and Joachim Herrmann, former Politburo members, also faced trial for treason. Treason previously carried a maxi mum penalty of death, but East Ger many abolished capital punishment last year. Modrow's speech to Parliament explaining the decision to hold earlier elections and govern with the opposi tion painted a bleak picture of condi tions in East Germany. He said mounting challenges to au thority threatened the government's existence. Learn the ways of the world. Studv Abroad 101 information sessions for those wishing to study abroad next semester or next year INTERESTED IN BEING A GOOD PARENT SOMEDAY? YOU CAN HAVE A FUN FILLED SUMMER, "0 v A GREAT SOCIAL LIFE AND PRACTICE J? PAMP WAYNF 051&$l Known for having the highest standards for staff selection, it's the PEOPLE at Wayne who make it a unique and rewarding experience for everyone. Located in beautiful northeastern Pennsulvania 2 12 hours from NYC, 350 acres, private lake. I k - XT' Soviet government statistics indicate industrial failures From Associated Press reports MOSCOW New government figures have confirmed what Soviet shoppers already know: Most indus tries in 1989 failed miserably at ful filling President Mikhail Gorbachev's promise of more con sumer goods. A diplomat who spoke on condi tion of anonymity said what little increase there was in consumer goods could be attributed to inflation, a greater emphasis on producing alco hol and imports from the West. Wheat farmers had a good year, but they were about the only ones in agriculture, according to statistics. Realtor swindles funds BALTIMORE A real estate agent dubbed "Robin HUD" said Monday she tried to help as many poor people as she could before get ting caught for embezzling at least $4.75 million in housing funds from the government. Marilyn L. Harrell smiled through out a hearing in U.S. District Court, w here she pleaded guilty to charges that she stole money from the U.S. Department of Housing and Urban Development and lied on her tax returns and to federal officials. Her trial was to have begun Monday. "I thought I'd get caught a long time ago," Harrell, 46, said after the hearing. "I'm sorry for what I did. I figured I was history and would help as many as I could before I went down." Harrell, who claims she gave millions to charity because she is a born-again Christian, said she had decided to plead guiity as part of a plea agreement because she did not want to spend taxpayers' money on a trial. She pleaded guilty to stealing government property and failing to report income for taxes. News in Brief Computer aids patients NEW YORK Depressed pa tients who were treated by computer during an experiment improved as' much as those who consulted a human therapist, suggesting an economical treatment for a condition afflicting millions. Computerized therapy may one. day help roughly a third of people, with depression if further research, bears out its promise, said researcher John Greist. Depression strikes about 10 mil lion Americans within any six-month period. Human therapists can now treat only a fraction of that number, but using computers might let them reach more, said Greist, a psychiatry professor at the University of Wis consin Medical School in Madison. Computerized treatment could be provided day and night at a cost of perhaps only 50 cents an hour, he said. And unlike a human therapist, a computer "doesn't have bad days." Troops guard civilians SRINAGAR, India Exotic Kashmir, a tourist paradise of house boat hotels and Mogul gardens from whose name the English made "cash mere," has become a war zone of separatism and religious enmity. Military jeeps carry senior gov ernment officials and civil servants around Srinagar in these dangerous days, as soldiers and paramilitary troopers try to stop a campaign of violence by Moslem separatists in the Kashmir Valley. A spokesman for the Jammu Kashmir state government said the situation was peaceful and "abso lutely normal" in Srinagar, the state's largest city. For the Record In Thursday's Career Corner box on the business page, the incorrect date was given for the resume drop. Today is the last day to drop resumes, and the open sign up is Feb. 14. The DTH regrets the error. 2 12 hours from NYC, 350 acres, private lake. 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Daily Tar Heel (Chapel Hill, N.C.)
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Jan. 30, 1990, edition 1
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