2The Daily Tar Heel Wednesday, February 22, 1989
World and Nation
Ceotiral baurok to raise imteresll: rates
From Auociated Press reports
WASHINGTON Federal
Reserve Chairman Alan Greenspan
said Tuesday that the central bank
will keep up its inflation-fighting
efforts by pushing interest rates
higher to combat what he termed a
troubling acceleration in price
pressures.
Greenspan, in his semiannual
report to Congress on monetary
policy, said the Fed expects "to
support continued economic expan
sion while putting in place conditions
for a gradual easing in the rate of
inflation over time."
He added, however. "Let me stress
that the current rate of inflation, let
alone an increase, is not acceptable,
and our policies are designed to
reduce inflation in coming years."
Since last March, the Fed has been
nudging up interest rates in an
attempt to slow economic growth and
avoid a flare-up of inflation. Those
efforts intensified last week after a
report on prices at the wholesale level
showed a 1 percent increase during
the month of January, equivalent to
a compounded annual inflation rate
of 1 2.7 percent.
Prices at the consumer level in 1988
increased by 4.4 percent, the same
pace as during the previous year and
a rate that Greenspan considers
worrisome.
"With the economy running close
to its potential, the risks seem to be
on the side of a further strengthening
of prices pressures," the Fed chair
man said. "In these circumstances, the
Federal Reserve remains more
inclined to act in the direction of
restraint than toward stimulus."
Greenspan said the Fed's always-
challenging task of charting monetary
policy has been made more difficult
by the unprecedented combination of
an aging economic recovery, financial
failures in the savings and loan
industry, rising levels of corporate
debt and the large trade and budget
deficits.
"We have never confronted a
situation that is exactly comparable
to what we are in at this particular
stage," he said.
Greenspan said the problems are
so large "that it very significantly
skews policy toward reducing the
budget deficit and making certain
that inflation does not accelerate."
"It's clear to me that much of the
problems that we are confronted with
could be assisted in an extremely
positive way by a very expeditious
and significant cut in the deficit," he
said.
Congressional leaders met with
President Bush on Tuesday to discuss
budget and 'deficit-reduction plans,
but legislators still were hoping the
administration would provide more
details on where it believes spending
can be reduced.
Greenspan said he remained
optimistic that an 'agreement could
be reached.
"We cannot take the risk of not
resolving it," he said. "The degree of
risk of allowing this whole process
to fester is unacceptable.
Analysts said that while Greens
pan's testimony before the Senate
Banking Committee demonstrated an
ongoing commitment to the fight
against inflation, financial markets
had hoped for something even
stronger.
Soviets urged to delay ties with flsirae
From Associated Press reports
NICOSIA, Cyprus A senior
Palestinian official urged the Soviet
Union on Tuesday not to restore ties
with Israel before Washington and
the Jewish state support an interna
tional Middle East peace conference
with the PLO.
Yasser Abed-Rabbo, a member of
the Palestine Liberation Organiza
tion's ruling 15-man Executive Com
mittee, also accused Washington of
stalling in a dialogue with the PLO
to gain time for Israel to crush a 14-month-old
Palestinian uprising in the
occupied West Bank and Gaza Strip.
"Washington is pushing Moscow
into an unconditional resumption of
ties with Israel, offering in return only
promises of a wider Soviet role in the
Middle East," Abed-Rabbo said in
an interview from the PLO's head
quarters in Tunis.
"We don't believe the Soviets will
fall into this trap," he said.
Abed-Rabbo made his comments
as Soviet Foreign Minister Eduard
Shevardnadze was visiting Middle
East capitals in a major initiative to
break the stalemate in the Middle
East peace effort and assert Moscow's
influence in the region.
Shevardnadze's 10-day, five-nation
tour the highest-ranking Soviet
mission in the region in nearly 20
years underlined Moscow's
increasing credibility in the Arab
world following the Soviet Union's
military withdrawal from Afghanis
tan and its efforts to moderate the
PLO's policies.
Abed-Rabbo said PLO chief
Yasser Arafat would ask Shevard
nadze about the possible restoration
of Israeli-Soviet ties broken after
the 1967 Middle East war in a
meeting Wednesday in Cairo.
- "We believe any resumption of
Soviet-Israeli ties should be linked to
the convening of an international
conference, attended by the PLO," he
said.
Israel and the United States have
rejected PLO participation in any
such forum.
Abed-Rabbo is also deputy leader
of the Marxist Democratic Front for
the Liberation of Palestine and
headed the Palestinian side in nego
tiations with the United States that
began in December. He said he still:
had no idea when the U.S.-PLO
dialogue, suspended after President
Bush took office last month, would
resume.
Washington lifted its 13-year ban
on public dealings with the PLO after
Arafat explicitly recognized Israel
and renounced terrorism.
U.S. officials said the talks were
suspended because the new admin
istration wanted to review U.S. policy
in the Middle East. But Abed-Rabbo
RHA
said this was "nothing but a pretext."
"The reality is that Washington is
trying to gain time for Israel to crush
the uprising in the occupied territories
so the pressure for a Middle East
peace settlement will ease.
"But they're ignoring a reality
which even the Israelis are slowly
accepting: that it's impossible to
suppress the uprising and return to
the situation that existed before the
uprising was launched."
At least 380 Arabs and 15 Israelis
have been killed since the uprising
against Israeli rule began Dec. 8,
1987.
from page 1
major issues of the race. "I think some
good issues were brought out by both
of us," she said. "But when you go
door-to-door you pick up lots of little
things that are more important to
students than the big issues of the
campaign."
Leslie has her
own apartment
Moreen lives in
Granville Towers
Leslie was too tired to drive to the campus
computer room.
Moreen has access to Granville's computer
room 24 hours a day.
Leslie locked herself out of her apartment.
Luckily she had a spare key.
If Moreen has a problem at Granville, there's
always someone on duty to help her.
wis
Last week Leslie lost three pounds, this
week she gained seven.
Granville offers balanced, nutritional meals.
They also provide diet and vegetarian
meals.
--H -r-1 pt'i'J-
iTOHria.-i'r-
with no time for housework, Leslie some
times finds things that she can't explain.
Moreen has weekly maid service at Gran
ville, as well as full-time maintenance.
GRANVILLE TOWERS
Because VouVe Got Enough
To Worry About
University Square. Chapel Hill 929-7143
f , 111,11
Granville Towers
ninninr
But she needs to familiarize herself
with the office of RHA president
before she can concentrate on the
issues, Jackson said. "IH be getting
more familiar with the inner office
and working on the transition with
Jimmy," she said. "Then itll be more
clear what needs to be done."
Smith said he would continue to
be involved in RHA, possibly as a
liaison between RHA and student
government. He also could look into
several positions in student govern
ment, Smith said.
But whether or not he holds the
liaison position would depend on
Jackson, he said. "I'm not in a
position to ask for anything now,"
he said. "I think Liz and I are ready
to start working fttfw."
WERE FIGHTING FOR
YOUR LIFE
American Hoart fzf)
Association U
North trial opens to conflict
as lawyers present arguments
From Associated Press reports
WASHINGTON Oliver
North's criminal trial opened
Tuesday with the prosecutor
portraying North as a liar who
placed himself above the law, but
with North's lawyer defending him
as a patriotic Marine who obeyed
unflinchingly the orders of his
commander-in-chief.
North, now retired from the
service, listened intently as prose
cutor John Keker told the jury the
defendant had lied time and again
to his president and to Congress
about the Iran-Contra affair.
Chief defense lawyer Brendan
Sullivan countered that North, a
former top National Security
Council aide, worked in a secret
world where "he always acted with
the approval of his superiors; he
acted always with the best interests
of his country."
Thus the two sides squared off
for the oft-delayed first trial to
come out of the Iran-Contra affair,'
a trial that may take as long as
five months to complete.
The first testimony comes this
morning when Rep. Lee Hamil
ton, DInd., the former chairman
of House Intelligence Committee,
takes the stand.
Democrats quibble over budget
WASHINGTON President
Bush and his budget director
Tuesday prodded congressional
leaders to join them in budget
negotiations, but Democrats
responded by chiding them for
withholding their views on where
spending cuts should be made.
Discussion of more talks was
put on hold while, with Bush
heading for Japan, Congress
began budget hearings amid
efforts to extract more detailed
information from the White
House.
"WeVe got an administration
here that wants to embrace the
concept of a line-item veto but
won't give us a line-item budget,"
said Sen. Jim Sasser, D-Tenn.,
chairman of the Senate Budget
Committee.
The president met at the White
House early Tuesday with Sasser;
Senate Majority Leader George
Mitchell, D-Maine; House
Speaker Jim Wright, D-Texas;
and other top Republicans and
Democrats from Capitol Hill. -
It was the first such meeting
since Bush revealed his $1.16
trillion fiscal 1990 budget in a
speech to Congress on Feb. 9.
Guerrillas propose cease-fire
OAXTEPEC, Mexico El
News in Brief
Salvador's leftist rebels offered
Tuesday to lay down their wea
pons if the armed forces are
sharply cut, the police forced
reorganized and next month's4
presidential elections postponedt
by at least four months.
The Farabundo Marti Nationaf ;
Liberation Front presented its t
revised proposal on the second dajr
of talks with delegates from 1J;"'
political parties seeking ways to'"
end El Salvador s nine-year civij
war.
The front's offer attempted to ;;
address a major stumbling block
in the talks the constitutional
requirement that President Jose
Napoleon Duarte leave office b-'
June 1 by proposing an interim
president.
The proposal appeared to be.d
aimed at neutralizing El Salva-jH
dor's rightist-dominated mihtaryj
which has warned publicly it might
seize power in a coup if Duarte v
does not step down as scheduled.
The revised proposal came as
guerrillas in El Salvador attacked
the country's principal army base
and an engineering detachment,1,
leaving eight dead and 17 injured.-.
The war. has taken 70,000 lives, ,
most of them civilian.
System to aid alien processing
BAY VIEW, Texas The
Immigration and Naturalization
Service on Tuesday began erecting
tents inside the fence of a
minimum-security prison under a,
plan to speed up processing of
aliens and to jail those denied :
political asylum.
The Catholic Bishops of Texas
charged that they foresaw "the
creation of the largest concentra-
tion camp on U.S. soil since the
incarceration of Japanese
Americans during World War II
a shameful page in our history."
State Department officials,
began making recommendations
on asylum applications here under -
a plan announced Monday to deaL
with an influx ot Central Amer
ican immigrants and speed up the
1 : r i.." '
wccuing uui ui iiivuiuua nouns.
Under the plan, applicants will
get an answer as early a the same, d
day and will be subject to imme-
diate arrest and detention if denied
asylum. .
Before Tuesday, applications,
could take weeks to process, and;
aliens were released on their own .
recognizance while they awaited
appeals or deportation.
Candidates to fulfill the following descriptions:
CHANCELLOR'S UNDERGRADUATE AWARDS CEREMONY
Wednesday, April 12, 1989
Morehead Building 3:00 p.m.
Nominations are now being accepted from all members of the University community
, for the following student activities awards:
I
Name of Award
Algernon Sydney Sullivan
Award
John Johnson Parker, Jr.,
Medal
Nature of Recipient
Senior one man, one woman
Senior man or woman
Frank Porter Graham Award Senior man or woman
Irene F. Lee Award
Senior woman
Walter Spearman Memorial Senior man
Award
Jane Craige Gray Memorial Junior woman
Award
Robert B. House " any undergraduate
Distinguished Service Award
International Leadership any undergraduate
Award
Jim Tatum Memorial Award any undergraduate
Ernest H. Abernathy Prize any undergraduate
Ferebee Taylor Award Senior - man or woman
J. Maryon Saunders Award Senior - man or woman
Cornel iuos O. Cathey Award any undergraduate
Albert & Gladys Hall Coates any undergraduate
'Award
Primary Area of Achievement '
humanitarian contribution
student self-governance
improving quality of life of University
community through principles of equality,
dignity and peace among men ''?.
character, scholarship, leadership
character, scholarship, leadership
character, scholarship, leadership
unselfish commitment through service to the
University and the surrounding community
international awareness and understanding
1 .... , .
athletics plus extracurricular activities
student publications
recognizes the principle of honor as one of the
University's most hallowed ideals
preservation and enhancement of loyalty and
good will between the University, its students,
alumni and friends
greatest contribution to the quality of campus
life or the efficacy of University programs for
students
recognizing service through the Student
Congress
Nomination forms are available at the Union Desk, Y Building and
the Office of Student Affairs (01 Steele Building). The deadline for
nominations is Wednesday, March 1, 1989.
For further information contact Lee Marks, Dean of Students
Office, 966-4041