Weather
Partly cloudy today with a 40
percent chance of rain late
in the. day. Variably cloudy
tonight with a 60 percent .
chance of showers and lows
near 40. Highs Saturday in
the upper 40s.
Copyright 1984 The Daily Tar Hed. AJ1 rights reserved.
Women's B-ball
The 15th-ranked UNC
women's basketball team
squares off with 17th-ranked
Maryland Saturday night.
See story, page 5.
Serving the students and the University community since 1893
Volume 91, Issue 125
Friday, February 3, 1984
Chapel Hill, North Carolina
NewsSports Arts 962-0245
BusirtessJAdvertising 962-1163
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Parties debate deficit reductions; politics may be the
bizze
st hurdle
By VANCE TREFETHEN
Staff Writer
Economists and political observers agree the
most controversial issue of the 1984 presidential
campaign may be the record $180 billion deficit in
President Reagan's proposed fiscal 1985 budget.
' An Analysis -
President Reagan has called for bipartisan talks,
and administration officials are suggesting closing
tax loopholes, spending cuts, and waste elimina
tion to reduce the deficit. But Democrats are
suspicious of the bipartisan talks, fearing political
fallout for themselves if suggestions for reducing
the deficit prove unpopular.
Just as controversial as the causes and solutions
to the deficits is the debate over what impact the
deficits will have on the economy. Democratic
presidential candidates are trying to maximize
public awareness of the deficits as a possible source
of economic problems in years to come. The
Reagan administration is hoping that the present
economic recovery will minimize, or at least
postpone, the effects of the deficit.
Economists also disagree on what the high
deficits mean for the economy. Some see it as
merely a political issue without real economic im
pact. "The Democrats say the deficits will have a
chilling effect on investment and long-term
growth," said Steven Rosefielde, UNC associate
professor of economics. They also say they (the
deficits) will cause another recession. There is no
compelling reason to believe that.
"There may be a cost in terms of long-term
growth, but growth-retarding effects will not be
substantial. They will be offset by price stability
and maintenance of an acceptable burden of taxes.
I see deficits as a way for the Democrats to raise
fear in people's minds."
Rosefielde is doubtful that Democrats are
serious about wanting to cut the deficits.
The Democrats want Reagan to increase taxes so
they can spend more," he said.
At issue is what effect the federal budget deficit
has on the nation's economic well-being. A large
deficit forces the government to compete with
firms for the available funds needed for expansion.
The increased demand for money then forces in
terest rates higher, many economists believe.
"It is not the deficit per se; it's the spending and
tax policies behind them," said UNC economics
professor Richard Froyen. "If we had tighter fiscal
policies higher taxes and lower spending, we'd
have lower interest rates," he said.
"When interest rates are high, the value of the
dollar is kept high. That tends to discourage in
vestment and exports."
Froyen sees political approaches to solving the
deficits as similar in goals but different in
priorities. "The Democratic candidates will pro
bably be calling for a combination of tax increases
and spending cuts by fiscal years 1986 to 1987. The
President will be vague until after the election
about what he will do" he said.
But Froyen believes Reagan will have to resort
to some mix of tax increases and spending cuts to
balance the budget, although the ways he would
accomplish these will differ from what congres
sional Democrats would recommend.
"The Democrats will try to rescind Reagan's tax
cut and cut the defense budget. President Reagan
will try to cut social programs," he said.
One line of thought is that the budget deficit so
far has not been harmful to the U.S. economy a
definite plus for Reagan. The economic danger
would come only in the long run, if interest rates
remain at their present levels or if they rise.
Maurice Lee, Boshamer Distinguished Professor
in the UNC School of Business Administration,
warns that unless the deficit is reduced, unemploy
ment and interest rates will climb.
In his latest quarterly publication, "Economic
Commentary," Lee wrote that the economic im
pact of the deficit so far has been minor. Excess
production capacity existing in the economy caus
ed by the 1981-82 recession has minimized the ef
fect of the deficit.
"Up to the present time, these massive federal
deficits have been tolerated by the economy
because it has had considerable excess capacity,"
Lee wrote in the Winter 1984 issue released Tues
day. "The government, following closely along the
path pioneered by the New Deal, has also been
able to stimulate output and reduce unemploy
ment and increase the number of workers
employed."
But in future years, Lee sees the deficits harming
the economy primarily by causing high interest
rates. '
"That deficit constitutes one of the primary
reasons interest rates have remained so high
throughout the recession and early stages of the ex
pansion. ...They (high interest rates) have
strengthened the value of the dollar in world
markets to a degree that 'would have seemed
unbelievable a few years ago. Such a high-priced
dollar has all but collapsed our export markets. It
has, at the same time, produced a massive increase
in imports. This negative trade balance coming so
quickly and so massively, has serious consequences
for the domestic economy."
Ed Friedman, an economist at Chase
Econometrics, a Pennsylvania-based forecasting
firm, agrees that deficits will lead to dangerously
high interest rates. But he doubts that they will
hurt President Reagan politically.
"I don't think the deficits will matter to the
voters," he said in a telephone interview this week.
"When you have low inflation and low unemploy
ment, people aren't going to be that concerned
about the deficit."
See DEFICITS on page 3
Moslem mi
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assault positions
The Associated Press
BEIRUT, Lebanon Shiite Moslem
militiamen overran key Lebanese army
positions Thursday on a highway en
trance to Beirut in the first ground assault k
in the civil war since Christmas.
In the mountains overlooking Beirut,
Syrian-backed Druse militiamen battled
the Lebanese army.
Lebanese police said five people were
killed in Beirut and three in the moun
tains. They said 54 were wounded, in
cluding a French soldier hit by shraphel.
Spokesmen for Amal, Lebanon's fargests
Shiite militia, said at least one of its
fighters was among the dead, and 25 were
wounded. There was no word on
Lebanese army casualties.
At midnight, after 12 hours of fighting,
the army said it had regained control of
St. Michael Church and two adjacent
checkpoints that control the Galerie Se
maan gateway to Beirut's southern
suburbs. Amal claimed it still held the
positions.
The checkpoints control the Beirut
Damascus highway.
Army units and Syrian-backed Druse
fighters traded long-range artillery and
rocket fire for a second straight day in
hills above the U.S. Marine base at
Beirut's airport.
Marine spokesmen said their base was
untouched by Thursday's hostilities.
However, Capt. Jean-Yves Blouin,
spokesman for the French contingent of
the multinational force, said one French
soldier was "slightly wounded in the left
arm and leg" by an artillery shell that
crashed near a French position in the
southern suburb of Tayoneh.
The Amal mulitiamen charged about
. 150 yards from their positions in the
south Beirut neighborhood of Chiyah to
dislodge the Lebanese army from the St.
Michael Church and adjacent check
points, said spokesmen at Amal leader
Nabih Bern's Beirut office. They declin
ed to be identified.
Western Reporters who went to Chiyah
just before sundown said army shells
were slamming into the Galerie Semann
highway intersection at a rate of one
every 15 seconds.
The Shiite militiamen had captured an
army armored personnel carrier, and
were firing machine guns and rocket
propelled grenades from abandoned
high-rise apartment buildings toward ar
my positions about 500 yards away.
One Shiite militiaman jcreamedWe
are fighting for Khomeini." Many
Lebanese Shiites have pledged allegiance
to Ayatollah Ruhollah Khomeini, Iran's
Islamic revolutionary patriarch.
Ambulances raced with wailing sirens
to and from the battlefront. Beirut radio
stations blared warnings to people to stay
indoors as the staccato bark of machine
guns and the roar of artillery echoed
through the city.
Thousands of families in Chiyah, and
in Christian neighborhoods across the
"green line" that divides the capital's .
Moslem and Christians sectors, huddled
in basements and bomb shelters.
It was the first major confrontation
between Amal and the army since govern
ment troops dislodged militiamen from
pine woods a butting the Chatilla Palesti
nian refugee camp more than a month
ago. That three-day army offensive
followed an abrupt withdrawal of French
forces from several positions in the area
on Christmas eve.
The. Voice of the, Mountain radio sta-tioaof-
Drus4 -leader Walid Jumblatt's
Progressive Socialist Party hailed the tak
ing by "nationalist forces" of the army
positions on the Galerie Semaan
highway.
The Druse, a secretive sect whose creed
is based on Islam, are allied with the
Shiites in the civil warfare against the
Lebanese army and rightist Christian
militiamen of the Phalange Party.
Police said Druse gunners in the moun
tain ridge east of Beirut fired volleys of
rockets from multiple launchers Thurs
day into east Beirut's Christian
neighborhoods of Hazmieh, Sin el-Film
Dikwaneh and Mekalles, as well as the
eastern suburbs and the port area.
As the artillery duels intensified at
nightfall, rockets also slammed near
President Amin Gemayel's palace in
suburban Baabda, five miles east of
Beirut, and in the Christian suburb of
Hadath where the British contingent of
the multinational force is based, police
said.
The British base was unaffected,
British spokesmen said. The United
States, Britian, France and Italy provide
troops to the multinational force that has
been in Lebanon since August 1982.
The bombardment later spread to
population centers along the 12-mile
stretch of the coast north of Beirut's
Christian sector, police said. No new
casualty reports were available . Army
Druse artillery duels the previous night
killed nine people, police said.
In Damascus, the Syrian capital, U.$.
Ambassador Robert PaganelU attended
part of a conference between Jumblatt
and Syrian Foreign Minister Abdul-halim
Khaddam, and then held a separate two
hour meeting with Jumblatt alone.
No statements were issued after the
meetings, but sources close to Jumblatt
said the talks focused on ways to end the
steadily worsening hostilities in and
around Beirut.
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Rows of shelves stand empty in Wilson Library after workers moved the books to Davis Library. Thursday was the
last official day of operation for Wilson, though about 200,000 books will remain there. Davis will open Monday.
. DTHSusie Post
Library workers say they will
miss.
Wilson
charms
By AMY BRANEN
Staff Writer
. Walking through the barren stacks of the Wilson
library was a nostalgic experience Thursday for most
people who have worked there. Now that Wilson is in
the final stage of the move to the new Davis library,
many people are discovering they will miss the history
and mystique associated with it.
Except for the Rare Book Collection, the North
Carolina Collection, Manuscripts and Southern
Historical Collection, and the maps and
Photographic department, Thursday was the last of
ficial day of operation for most of the library. About
200,000 lesser-used books will remain there and can
be paged through Davis library.
Many of the employees reflected about the move
to the new facility.
"I can't say I'm looking forward to the move,
because I love this building," said Cliff Jones, a
library assistant. "The new building is bright,
though, but it's going to be quite different. This is
where I started out, as a high school student. I've
been working here about 24 years."
"I'll be very glad when the move is over," said
Mary Ishaq, head of Humanities reference. We'll
have a lot more space in the new library. But I'll miss
. the elegant old beauty of the humanities room with
its beautiful high ceiling and columns. It's a pretty
room. I'll also miss my colleagues who will be re
maining in this building." Ishaq has worked at
Wilson for 15 years.
October Ivins, a library technical assistant, said,
"The move has been a big adventure. The new
library is clean and spacious, but I'm going to miss
our windows. I will not miss the dust."
Some of the newer employees said they really
didn't have that much attachment to the old building
and were ready to move into Davis.
"I like that new building," said Beth Mullaney, an
See WILSON on page 2
Late-night entertainment
UNC Student TV program to air next week
By JIM ZOOK
.Staff Writer
With the hope that this will be a sign of things to come,
UNC's first-ever "Late Nite" television entertainment "
program will be broadcast over Village Cable's Channel
1 1 next Wednesday night at 1 1 p.m. by UNC Student
Television.
"Our goal is to open students' eyes to what this televi
sion medium has to offer," said Walt Boyle, co
chairman of STV.
Thanks to help from Village Cable and the student
television station at Duke University, the newly formed
student station will be able to air this one-hour program '
, that promises a wide variety of entertainment with
something for just about everyone. Featured guests will
include fashion designer Bill Blass, some UNC athletes
who are contenders for spots on America's 1984 Olym
pic squads, a UNC student who was featured in
Playboy's "Girls of the ACC," two "Men of the ACC"
from UNC, "Candid Camera" interviews of students
and a few other surprises that Boyle said were in the
works.
At least 50 students from UNC and about 12 from
Duke are involved in putting together "Late Nite,"
which will be taped Monday night in Village Cable
studios. . '.
Students from Duke are handling the production and
editing of the show, while UNC students are taking care
of the writing and coordinating chores, Boyle said.
The show will be similar to another late-night s how
that is popular among UNC students.
"It will come across as being like the David Letterman
show," he said. "Duke's host has done this several
times. He's sort of a David Letterman personality, very
spontaneous."
Late-night entertainment is not the only program that
Duke students can enjoy on their station. In its eight
year existence, the station has grown to a staff of 260
students and has produced an array of shows.
"Duke has some great programming," Boyle said.
"They have Late Nite every Tuesday night, a show on
dorm cooking, a news show with campus and national
news, an exercise show and a sports show." He added
that the station sometimes broadcasts Duke athletic
contests live that otherwise would not be broadcast. The
dorm cooking program has become syndicated, and the
host has published a book on the topic.
"Ultimately I'd like to see us bigger and better than
Duke, who has done it without a RTVMP department or
a Communications department, which I find
surprising," Boyle said.
Boyle pointed out that the Duke station was limited to
the campus but that it had been fighting to get out into
the Durham community. "We have the potential to go
out into our community immediately," he said.
, However, all future plans will take money. Pro
ponents of STV will be looking for that money, when
students go to the polls Feb. 14, seeking a one-year in
crease of 50 cents in the Student Activity Fees to go
directly to STV.
The temporary increase would give STV $20,000 out
of the necessary $35,000 to get the station equipment
needed to get off the ground, Boyle said. The other
$15,000 is being sought in private donations from foun
dations, corporations and interested alumni, he said.
All necessary equipment for Wednesday's show is on
loan from Village Cable, the RTVMP department and
the Media Center. Because it is a public access channel,
Boyle said that advertising could be a source of income.
The date for the program actually was not chosen for
political reasons, Boyle said.
"We wanted to do it just as soon as we got back from
Christmas vacation," he said. "It turned out that a
See STV on page 3
Housing department proposes rent increase
i By STEVE FERGUSON
Staff Writer
Vice Chancellor for Student Affairs
Donald Boulton is reviewing a proposal
from the Department of University Hous
ing to increase residence hall rent by 18
percent and married student housing rent
by 20 percent.
The 1984-85 budget for residence halls
is expected to have more than $1 million
in increased expenditures over the current
year, according to a report released by the
housing office.
After an 18 percent increase last year, it
was predicted that a similar increase ,
would be needed this year, Boulton said.
"A year ago, we told everyone we would
need to shoot for another 18 percent in
crease," he said. "So far, I'm pleased
we're keeping within the framework we
said we would."
Wayne Kuncl, director of University r
Housing, said the biggest requirement for
the increased budget was debt service for
the new $6.5 million residence hall. The
payment for the new facility is similar to a
large home loan, Kuncl said.
A predicted 25 percent rise in utility .
costs and an estimated 8.4 percent rise in
salaries of state employees also con
tributed to the cost increase, Kuncl said.
Additionally, the housing office will
renew a maintenance program for dor
mitory upkeep that was stalled last
January, he said.
"We're trying to get ourselves in a
balanced position," Kuncl said. "We will
only maintain the level at a rate which we
require to meet operating expenses." The
housing office isn't supposed to make a
profit, only remain financially stable, he
said.
Residence Hall Association President
Mark Dalton said the housing office is
trying , to regain the financial stability it
has lost in previous years. "Students in
residence halls are paying for mistakes
made by previous administrations," he
said. "Past housing administrations have
made grave errors.
In past years, unexpected costs have
contributed to unusual increases, Boulton
said. For example, one year the housing
budget contained an 85 percent increase
in utility costs, he said.
"It's like going to the gas pump, and
gas is 80 cents one day and $2 the next,"
Boulton said.
In the future, Kuncl said, students can
expect only nominal increases com
parable to the rate of inflation.
When asked to define nominal, Kuncl
said: "If you can tell me what inflation is
going to be, I'll tell you what the rates are
going to be."
Though the budget is not finalized, the
18 percent figure is not expected to in
crease, according to Boulton. "Luckily,
we haven't had any surprises," he said.
Considering transportation, utilities
and various deposits, students still get a
better deal by living in University Hous
ing, Kuncl said. "It does cost less to live
on campus than it does in the communi
ty," he said.
When considering budgets, the ad
ministration always considers students'
welfare, Boulton said. The financial aid
office has a say in negotiation of the
budget, since so many students at UNC
receive financial aid, he said. .
About 95 to 98 percent of the revenue
for the housing office comes from rent in
come, Kuncl said. . The rest comes from
interest income and summer conferences
HOUSING RATE COMPARISON
(Per Semester)
1984-85
1982-83 1933-84 (Projected)
UNC-Chapel Hill $377 $445 . $525
UNC-Charlotte $463 $509 $557
UNC-Greensboro $415 $465 $520
N.C. State $395 $500 NA
University of Alabama $465 $488 , $513
University of Florida $525 $567 $597
University of Georgia $394 $432 $455
University of Kentucky $575 $604 $634
University of Maryland $844 . $921 NA
University of South Carolina $395 $460 $533
University of Tennessee $473 $503 $538
University of Texas $439 $482 $523
University of Virginia $465 $498 . $518
Typical double occupancy room, common bathroom residence hall
'Quarter Rates Averaged to Semester Rates
held in dormitories, he said. Kuncl is try
ing to increase revenues through summer
conferences.
"It's an attractive area and an attrac
tive state" he said.
The proposal goes next to Vice
Chancellor for Business and Finance Far
ris Wo mack, and then to Chancellor
Christopher C. Fordham III for final approval.