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2The Daily Tar HeelTuesday, February 20, 1990 World and Nation tcooomy takes surprise ypswno From Associated Press reports WASHINGTON, D.C. The weather isn't the only thing behaving strangely this winter. The economy has been topsy-turvy as well. In just two months, December and January, many economists went from predicting an impending economic decline to believing that the longest peacetime expansion in history has found another of its nine lives. The new general consensus of mod erate economic growth this year is likely to be an important element in Federal Reserve Chairman Alan Greenspan's testimony before Congress Tuesday when he reveals the Fed's policy tar gets for 1990. These targets w ill have a major influence on interest rates and economic growth. Greenspan could be excused for expressing a certain amount of per plexity about recent events. In December, the economic outlook was as bleak as the unusually cold w eather. Housing construction plunged; Christmas sales were lackluster, and the overall economy as measured by Auschwitz From Associated Press reports WARSAW, Poland A corner stone was laid Monday for a prayer center that officials hope will end the long-festering dispute over a Roman Catholic convent at the Auschwitz death camp. Also Monday, Edgar Bronfman, president of the World Jewish Con gress, met with President Wojciech Jaruzelski and Prime Minister Tadeusz Mazowiecki and declared later: "There are no outstanding problems between the Jew ish people and Poland." Your Own Apartment Makin' mm ft C&raimoi 929-0404wXCn) HiiL v"Aw nil nine ffX europa WvJ.viN. 933-2345 nj hotel FRANKLIN jt I J l ; W I Yvonne Ieastgate I fw V8 I ,,cnB "fl4 shopping I "15- 1 CENTER y SIENA f 1 X V HOTEL 1 CARR MILL j3Mijr JC 968-3983vA.MA" S () 967-2231 I r 7 c 9" SINGLE T0PPII1G PIZZA $2.89 WITH YOUR STUDENT ID 'DIKE IN OXLY K3T KUD WITH ANY OTHER DFTTB AUJULA3LE EUERY TUESDAY FROM 4 - MDiilGiiT AT tiie Fnmnaiii street pizza hut oiily. 110 VEST FRAHKLin STREET 920-3G05 n the gross national product turned in its worst show ing in years. All that gloom prompted recession worries as economists feared the im pending demise of the 7-year-old eco nomic recovery, an expansion that has already lasted almost five times longer than usual. But in January, the weather warmed and so did the economy. Housing construction soared 29.6 percent, the biggest monthly increase on record. Retail sales rebounded, largely on the strength of a pickup in auto demand, and the economy pro duced 275,000 new jobs, almost triple the December increase. The good news chased away the recession forecasts. Some analysts now look for 3 percent annual grow th in the January-March quarter, six times the pace from October through December. "The economy is doing a lot better than a lot of people thought it would." said Michael Evans, head of a Wash ington forecasting firm. "Everything we have seen so far this year has been strong." to be site The convent, housing about a dozen Carmelite nuns on the edge of the Nazi death camp, has angered Jews and others worldwide who see it as an intrusion of Christian symbols at a site where most of the victims were Jews. The Roman Catholic church agreed at negotiations in 1987 in Switzerland to relocate the nuns to an interfaith prayer and education center farther from the camp, but a February 1 989 deadline for moving the nuns was missed. After Polish church officials balked last year at fulfilling the agreement, the Now You Can Afford It THK P-kTMKT raru: Mon.-Fri. 9-6 Sat. 10-5 it great! 0 u Part of the rebound is almost cer tainly weather-related. The wannest January on record spurred business activity, which had been depressed in December. But Evans and many of his colleagues believe that, even taking account of January's weather, the economy is stag ing a modest revival from the depressed fourth quarter. Greenspan, in an unusually candid comment, said that the chance of a recession had diminished markedly since last spring and that the fourth quarter's sluggish growth was likely to prove only a "temporary hesitation." Economists believe Greenspan will restate those views Tuesday and are not looking for any immediate credit eas ing on the part of the central bank, especially in light of current inflation ary pressures. In January, wholesale prices surged upward at an annual rate of more than 24 percent, the fastest clip since the oil shock of the early 1970s. Analysts are of inferfaif h center Vatican intervened in September and upheld the decision. The new Solidarity-led government of Mazowiecki also has worked to speed up construction of the new center. Cardinal Franciszek Macharski of Krakow, whose archdiocese has juris diction over the site near the southern Polish city of Oswiecim, presided at the cornerstone-laying ceremony. Mazowiecki, meeting in Warsaw with Bronfman, said his government's support of the project was illustrated by the presence at the ceremony of Jacek Ambroziak, head of the Office of the Council of Ministers and the prime minister's close aide. Bronfman called the laying of the cornerstone "very important." Citing the prayer center construc tion, Poland's plans to launch full dip lomatic relations with Israel next week and the government's pledge to fight anti-Semitism, Bronfman said outside Mazowiecki's office, "There are no outstanding problems between the Jewish people and Poland." But Bronfman said he did not know exactly when the interfaith center would be completed and the nuns moved. "I don't think deadlines are useful. It creates a kind of emotionalism that I think is not good, so I did not press for an absolute deadline. The spirit was, as soon as possible." He also expressed concern at what he called "a resurgence of anti-Semitism in Poland." This "is part. I suppose, of the price of democracy," Bronfman said. 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'The Fed does not want to be per ceived as easing at a time when infla tion is accelerating, even if those infla tionary pressures were considered to be temporary," said David Jones, chief economist at Lanston & Co., a govern ment securities dealer. That could set up a potential clash with the Bush administration, which has been complaining over the last year that the Greenspan-led Fed has not been aggressive enough in pushing interest rates down to spur economic growth. In addition to releasing the Fed's 1990 targets for growth of the money supply, which influences interest rates, Greenspan will also reveal the Fed's economic forecast for the year. also to not like people." But he said the government's stance against anti-Semitism is "very clear." "I express the intention of the Polish government in all matters relating to Polish-Jewish relations to arrange them successfully and to remove all fric tions," said Mazowiecki, in a brief state ment after the meeting. "We are thoroughly opposed to any form of anti-Semitism and we believe that ... it should be counteracted by every means." Defense Secretary Cheney threatens retreat of troops from Filipino bases from Associated Press reports MANILA, Philippines Defense Secretary Dick Cheney, shunned by Philippine President Corazon Aquino, told Filipino officials Monday that the United States will abandon its bases there if it finds that keeping them is too expensive or that Americans are un welcome. As violence was reported in several clashes between leftist protesters and police near U.S. installations, Cheney met for nearly three hours with Defense Minister Fidel Ramos in discussions that were described as "very cordial, very forthright." Meeting reporters afterward with Ramos, Cheney said the United States "will stay only as long as the Philippine Israeli foreign minister wary about German unification From Associated Press reports JERUSALEM Foreign Minis ter Moshe Arens has caused a storm with his cautious embrace of Ger man reunification. Cabinet ministers demand he be rebuked and newspa per editorials accuse him of fostering "a Fourth Reich." Prime Minister Yitzhak Shamir remained silent Monday in a con tinuing debate that illustrates the dilemma posed for Israel by the prospect of a reunited Germany. Israeli leaders cannot afford to alienate West Germany, the staunch est supporter of the Jewish state in the European Community, but they also must consider the emotions of the many Israelis whose relatives were among the 6 million Jews killed by the Nazis. "We are still pondering the conse quences" of reunification, senior Shamir aide Avi Pazner said on Monday. . "The prime minister has concerns about such a possibility, but has not taken a stand opposing it." Czech leader meets with Bush WASHINGTON Vaclav Havel, the dissident playwright who went from prison to the presidency of Czechoslovakia inside of eight months, was to meet with President Bush on Tuesday, the first of Eastern Europe's new democratic leaders to visit the White House. Havel was arriving here Monday evening after stops in Iceland and Canada on a Western trip that comes conspicuously a week before his first trip to Moscow. The Czech Parliament elected Havel president Dec. 29, a few weeks people wish it to stay and only if the terms negotiated are acceptable to both parties." At issue in Monday's discussions was a $96 million cut Congress made in the Bush administration's request of $360 million to compensate the Philip pines for the six bases, which include two of the United States' largest over seas installations, Clark Air Base and Subic Bay Naval Base. "We recognize there is a shortfall of $96 million over what we had antici pated," Cheney said. "I also pointed out that in East Asia, in this part of the world, the United States provided a little over $600 mil lion, and about $500 million of that comes specifically to the Philippines." Cheney has said his discussions with Filipino officials did not amount to the beginning of negotiations to extend the base agreement, which expires next year. An influential Filipino minority is pressuring Aquino not to renew the agreement. In addition, leading Fili pino congressmen have urged her to postpone those discussions until this year's cuts are restored. Aquino was so upset over the congressional cut that BAR Lunch Daily 11:30-5:00 Deli Sandwiches Homemade Soups Large Assortment of Salads Tuesday Dinner Specials 5-9 Spaghetti w Italian Sausage $5.95 Stir Frv Chicken $4.95 Earn A Bundle For Spring Break! Receive $15 TODAY as a new plasma donor with this ad! CALL 942-0251 ' y it r News in Brief after a peaceful revolution led to the ouster of Communist Party chief Milos Jakes and his hard-line gov ernment. Now the country, under Havel's caretaker government, is preparing for June 8 parliamentary elections that will be its first free balloting in more than 40 years. Board sues over Channel One RALEIGH The State Board of Education decided Monday to sue the producers of Channel One and the Thomasville City School Board. After a one-hour closed session Monday, the state board said a con tract between Whittle Communica tions, based in Knoxville, Tenn., and the Thomasville board is unconstitu tional and violates state regulations. Thomasville signed up for the 1 2 minute broadcast news show after the state board decided to ban new Channel One sign ups. Board mem bers said they opposed having an outside company being responsible for that much school time. In a related action Monday, the board changed its ban on Channel One to make it retroactive. The board originally said that school systems that had already agreed to take the service prior to the ban could keep it for the length of the contract. But the board today removed that clause from its regulation, saying Channel One won't be allowed in any state schools. The lawsuit was filed in Wake County by the state Attorney General's Of fice. she announced before Cheney began his two-week tour of Asian nations hosting U.S. bases that she would not see him, leaving that task to her defense minister. The secretary pledged his "best ef forts" to restoring the $96 million cut but U.S. diplomats have said that an austerity-minded Congress is unlikely to change its mind. Despite the current differences Cheney said that ties between the two nations are strong. "I think that is a misreading of events to suggest that somehow, the United States is trying to send signals other than the one I have already given pub licly, which is our very strong commit ment to our alliance with the Philip pines," the secretary said. When asked whether he could say that his government wanted the base to remain, Ramos declined to answer the question, saying the issue was under discussion in the Philippine Congress. In Manila, about 200 members of the militant League of Filipino Students, chanting "Yankees go home," marched to the U.S. Embassy and hurled bottles and rotten tomatoes at police, who charged with clubs and tear gas. GRILL r 149 12 E. Franklin ''I, r. .- Mmm PS SERA-TIC BIOlCaiRAIi 109V2 E. FRANKLIN ST. (above R,teAa
Daily Tar Heel (Chapel Hill, N.C.)
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