2Jhe Daily Tar Heel Tuesday, November 29, 1988
World and .'.Nation'; j
Mz water
From Associated Press reports
.WASHINGTON President
elect George Bush announced Mon
day that Marlin Fitzwater, President
Reagan's spokesman for the past two
years, would keep his job in an
exaniple of "continuity in the best
serise."
Bush also sought to make peace
with a former rival, Senate Minority
Leader Bob Dole, inviting the Kansas
Republican to a private lunch and
declaring "the focus is properly on
looking to the future."
;X)ole, who lost the GOP presiden
tial nomination to Bush, agreed to
st any past animosities aside. "The
election is over and we both have
obligations and certainly mine is to
help him become a great president
Freshman
Ftom Associated Press reports
-WASHINGTON The 10 men
w&o will become new senators in
Jkriuary gathered in the Capitol
Monday for a hectic orientation tour
tjjat, for Democrats, included lobby
ing by the three veterans who want
tfeir votes for majority leader.
"It's a special day youH never
forget," said Sen.-elect Herbert Kohl,
DjWis. "But it's also like going to
college as a freshman."
?The newly elected senators, five
Republicans and five Democrats,
were quickly embroiled in Senate
politics as they eyed coveted commit
t& assignments, prime office loca
tions and other perquisites of life in
theSenate.
"For Trent Lott it wasn't necessarily
a, step up in life. The veteran con
gressman gave up his position as
House Republican whip to run for,
apd win, the Senate seat vacated by
t&e retiring John Stennis.
"You look at the House and the
Senate and there certainly are a lot
of differences," Lott said. "Like why
it, takes three months in the Senate
to move in 1 0 guys, when in the House
they move in 43 people in 30 days."
The five freshmen Democrats
hadn't even had time to sit down for
limch before being lobbied by the
three men who want their votes
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to stay
and I intend to do that," he said.
The naming of Fitzwater repres
ented yet another Bush selection from
the ranks of veterans of previous
administrations. Asked when the new
faces he has promised would begin
to appear, Bush said, "Stay tuned for
the changes. Well be getting to them
soon."
Transition sources said they expect
the naming of former Sen. John
Tower as defense secretary and Texas
oilman Robert Mosbacher as com
merce secretary later this week.
However, the vice president gave no
clue as to when he'd name additional
Cabinet choices.
He showed up unexpectedly at
Fitzwater's usual 11:30 a.m. briefing
in the White House to announce his
senators am v'e at Capito
Tuesday when the majority party
elects its leaders.
Kohl announced he would support
Sen. George Mitchell of Maine for
the job because "he's a person I'm
comfortable with." Joe Lieberman of
Connecticut said he hadn't made up
his mind and called it "the first major
decision IH have to make as a
senator."
"I honestly don't know them very
well," Lieberman said. "They're all
saying roughly the same thing. It
comes down to a decision in your
gut."
Banks raise prime lending rates;
consumer loans to be affected
From Associated Press reports
NEW YORK Major U.S. banks
boosted their prime lending rate a half
percentage point Monday to 10.5
percent, the steepest level since mid
1985 and the fourth rise this year.
The increase will mean a jump in
rates on a variety of consumer loans
pegged to the prime, including home
equity loans. It also will raise bor
rowing costs for companies that rely
on banks for financing.
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oo a spokesman
decision to retain the 46-year-old
career government spokesman, who
had been his press secretary in 1985
87. "I think he's the best," Bush said.
"He represents the old and the new.
He represents the Reagan adminis
tration and he also represents the
Bush administration. ... This is
continuity in the best sense."
Fitzwater, with his own brand of
self-deprecating humor, called the
offer "a wonderful opportunity" but
added, "I think I represent the old
and the older."
"The transition should be a smooth
one," Fitzwater joked. "I have a lot
of ideas for my successor, but I
haven't had a chance to think about
them yet."
Mitchell, 55, also picked up the
endorsements of Sens. Edward
Kennedy and John Kerry of Massa
chusetts and Bob Graham of Florida
over the weekend. But Sens. Daniel
Inouye, 64, of Hawaii and Bennett
Johnston, 56, of Louisiana also have
support and no one is predicting the
outcome.
"I haven't the vaguest notion who's
going to win," said Sen. Alan Dixon,
D-Ill. "There must be 75 of us if you
add up the promised votes," he said,
suggesting that some of the 55
Democrats were playing multiple
Economists had been predicting a
prime rate increase because interest
rates in the bond markets rose
recently due to inflation fears and the
dollar's weakness in foreign exchange
markets.
NCNB National Bank of Char
lotte, Wachovia Bank and Trust of
Winston-Salem and First Union
Corp. of Charlotte boosted their
interest rates Monday from 10 per
cent to 10.5 percent, effective
immediately.
The financial markets had no
major reaction to the announcement.
Stock and bond prices were up
modestly, while the dollar steadied
against other major currencies.
- "It comes as no surprise. In fact,"
they (banks) seem to have held back
longer than I expected," said Edward
Yardeni, chief economist for the
investment firm Prudential-Bache
Securities Inc.
Federal Reserve Board Chairman
Alan Greenspan also has warned of
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Fitzwater said the new president
would make the scheduling of news
conferences "as regular as possible."
"It's a new administration, a new
president. I'm sure well have new
ways of dealing with the press. I'm
sure thereH be all kinds of interviews
and press conferences and meetings,"
he added.
Fitzwater has had the title "assist
ant to the president for press rela
tions" since Febuary 1987, when he
succeeded Larry Speakes.
Although Bush said Fitzwater
would be retained as "press secre
tary," that title is actually still held
by James Brady, who. was wounded
in the March 1981 assassination
attempt on the president.
choice in the verbal straw balloting.
"My experience, my seniority
should be in my favor," Inouye said
in an interview Sunday.
"Clearly, my centrist approach is
an advantage," Johnston said. "It
would be a good message for the
country; it would be a good message
for the Democratic party."
Most of the freshmen were more
interested in lobbying for office space
and committee assignments, and in
finding their way through the laby
rinth of hallways, corridors and
subways that honeycomb the Capitol.
higher short-term rates unless the
government trims its huge budget
deficit, the source of the dollar's woes.
"There's a building perception in
the marketplace that the Fed is, in
fact, tightening conditions . . . said
William Sullivan, an economist for
the investment firm Dean Witter
Reynolds Inc.
Sullivan and other economists
predicted the Fed might soon raise
its discount rate, or the interest it
charges on loans to member banks.
If that happened, the prime rate could
be increased again, they said.
Chase Manhattan was the first
institution to increase its prime rate
, Monday, and other major banks,
quickly joined the move. ! . ' "
The prime stood at 8.5 percent at
the start of the year and has been
raised four times since. Monday's
increase put the key lending rate at
its highest level since May 20, 1985,
when it was lowered a half percentage
point to 10 percent.
The prime rate reflects a bank's
costs of borrowing money, including
interest it pays on savings accounts
and certificates of deposit, and trails
subtler increases in other interest
rates.
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Grand jury may soon indict
former PTL leader Bakker
From Associated Press reports
CHARLOTTE A federal
grand jury investigating PTL
founder Jim Bakker and several
of his former aides returned to
Charlotte Monday amid specula
tion that indictments could be
returned before the end of the
week.
"It's anybody's guess," said
Bakker's attorney, Jim Toms of
Hendersonville. "All we can do
right now is sit around and wait.
"I would think they're not quite
to that (indictments) but they're
not far from it," he said. "They're
still taking testimony. I guess we
could all be surprised. We're
certainly getting closer."
Toms said earlier that he
believes Bakker will be indicted.
"It's a question of when," he
said, "and what the particular
allegations will be."
The 23-member grand jury re
convened Monday morning, hear
ing testimony from a number of
so-called "lifetime partners," peo
ple who contributed money to the
PTL ministry in exchange for free
hotel lodgings at Heritage USA."
Bakker, who resigned as PTL
president in March 1987 after the
revelation that he had a tryst with
church secretary Jessica Hahn and
paid her hush money, has denied
any criminal wrongdoing, and has
called the investigation "a fishing
expedition."
Three months ago he predicted,
"I dont think 111 be indicted. I
never have. If I am, I'll be
shocked."
Soviets change constitution
MOSCOW The Communist
Party Central Committee on
Monday endorsed constitutional
changes that critics say give the
Kremlin too much power, setting
the stage for approval over the
objection of several restive
republics.
Officials in Estonia, the tiny
Baltic republic that led the chal
lenge to Kremlin authority by
declaring its sovereignty in inter
nal policy and its right to review
all new Soviet legislation, said they
would stand firm despite a ruling
the move was unconstitutional.
The more than 300 members of
the party's policy-making body,
meeting on the eve of an extraor
dinary meeting of the Supreme
Soviet, or national parliament,
declared the amendments "will
mean a major step along the road
of democratization of Soviet
society," the official Tass news
agency said.
It instructed President Mikhail
Gorbachev, also chief of the
Communist Party, to make a
report on the amendments to the
Supreme Soviet.
The Central Committee prom
ised election campaigns "unlike all
the previous ones as real compe-
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titiveness of candidates is intro
duced in the political life of the
country," Tass said.
Gorbachev proposed the
amendments to make the system
more democratic, but the Estoni
ans, as well as activists in Latvia,
Lithuania, Armenia and Georgia
have criticized them "for taking
away some of the local control that
Gorbachev has said he wants to
foster.
They say the amendments take
away the right of the 15 Soviet
republics to secede, giving a new
2,250-member Congress of Peo
ple's Deputies the right to deter
mine the boundaries of the Soviet
Union.
Those republics have demanded .
major changes in the amendments,
or that they be rejected outright.
Some legislators from the small
republics have said they will object
in the Supreme Soviet, but they
most likely will be far outnum
bered by deputies from much
bigger republics such as Russia .
and the Ukraine.
Walesa to debate rival on TV
WARSAW, Poland Both .
sides have agreed to terms for a
nationally televised debate Wed
nesday night between Solidarity
leader Lech Walesa and the head
of the official trade union alliance,
a Solidarity spokesman said.
The debate between Walesa and .
Alfred Miodowicz is to take place
immediately after the main even-.
ing news show. ' ;
If it comes off as planned, the
debate would be the first time
Walesa has ever been allowed to
appear live on state-controlled .
Polish television to present his
reasons for wanting the banned ,
union made legal again.
Dali arrives at clinic
BARCELONA, Spain Span-,
ish surrealist painter Salvador
Dali was transterred to a Barcel
ona clinic Monday for suspected.
pneumonia and heart failure, a',"
hospital official said.
Elena Garcia, a secretary at the .?,
Quiron Clinic' in Barcelona, con- k
firmed that the 84-year-old Dali ,-1
arrived at the clinic from a hospital
in his hometown of Figueras, 60
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Dow Jones moves upward
NEW YORK The Dow '
Jones average of 30 industrials
rose 6.76 to 2,08 1 .44 Monday.
Advancing and declining issues
ran about even on the New York .
Stock Exchange with 704 issues
rising, 720 falling and 517
unchanged.
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