Newspaper Page Text
Monday, November 10, 1981
The Ked and Black
Page 3
Nation & World
Reagan adviser predicts economic rally
NEW YORK (UPI) — A top economic adviser to President
Reagan said Monday the economy will remain in recession
for several months but rally strongly next spring, spurred by
lower interest rates and stepped-up defense spending.
Murray Weidenbaum, chairman of the president’s Council
of Economic Advisers, said the lower rates will help revive
the ailing savings and loan industry so that "mortgage
money should be more plentiful for homebuyers in the
months ahead.”
Weidenbaum said he favors spending cuts over tax in
creases to reduce the 1982 budget deficit, which he said will
exceed the administration’s $42 1 billion target, "but in fiscal
1983 it will be smaller and in 1984 it will be even smaller.'
"It’s clear we are now in a recession," Weidenbaum said at
a news conference and in a subsequent address to the annual
convention of the United States League of Savings
Associations
"I expect to see several more months of bad news, with the
unemployment rate rising a bit more before it starts to come
down (from October’s six-year high of 8 percent).
"But in the second half of 1962, we will begin to see a very
strong upturn as interest rates fall, the second round of tax
cuts is in place and defense procurements continue to in
crease."
Weidenbaum’s comments came as most of the nation's
major banks lowered the prime lending rate they charge top
corporate customers a half point to 17 percent, following
similar action last week by Chemical Bank and a handful of
others
Analysts expect the key rate to fall to 16' * percent in the
next few weeks in light of the lower cost banks themselves
must pay for money in the current recessionary en
vironment.
Countdown resumes for shuttle launch
CAPE CANAVERAL. Fla
iUPI) — A top launch of
ficial said things were
"looking real good" for
restarting the countdown
Tuesday morning for the
space shuttle Columbia's
return trip to orbit Thur
sday
The last big pre
countdown job was com
pleted Monday when
technicians, clad in
protective helmets and
baggy white suits, finished
refueling the hydraulic
engine system that led to last
week's launch post
ponement
Engineers were prepared
to resume the countdown at 8
a m. EST at the minus 35
hour mark and head toward
a launch at 7:30 am.
Thursday
"We really are going in
clean." said Donald Phillips,
chief of integrated test
operations at the Kennedy
Space Center.
"We re looking real good
There's nothing right now
that looks like it could bite
us."
The countdown included
12*2 hours of "hold" time to
give technicians time to
catch up on any lagging
work, but Phillips said the
ground crew was confident
everything would click along
smoothly for the second
launch try.
Astronauts Joe Engle and
Richard Truly, who spent
more than five hours on their
backs aboard the Columbia
during the ill-fated count
down last week, were briefed
in Houston on the status of
Moscow to Washington: keep out of Cuba
MOSCOW (UPI) - The
Soviet Union told the United
States Monday to keep its
hands off Cuba and accused
Washington of planning to
attack the Communist
nation.
"Cuba's friends and allies
resolutely demand that
Washington immediately
end its peace-endangering
play with fire,” the Com
munist Party newspaper
Pravda said
The newspaper said
Secretary of State Alexander
Haig "made it plain in a
threatening tone" that the
United States was planning
action against Cuba
"Alarming signs are
coming from across the
Atlantic indicating that the
United States is preparing
for fresh attacks on Cuba
"Washington should
clearly realize that
aggressive actions against
Soviet sub carried 18 torpedoes
BONN, West Germany (UPI) — Swedish Foreign Minister
Ola Ullsten said in an interview released Monday the Soviet
submarine stranded in Swedish waters for to days was ar
med with 18 torpedoes, at least one of which carried a nuclear
warhead.
"The indications were so clear that one could only have
done it better if one had gone on board and taken the torpedo
apart," Ullsten told the West German magazine Stern.
He said experts told the Stockholm government there were
18 torpedoes on board the U-137 sub that went aground on
rocks in a Swedish military zone of the Baltic. The vessel was
returned to Moscow Friday.
“We have indications that one of them (the torpedoes i had
a nuclear warhead," Ullsten said.
The Soviets refused to allow Swedish officials to examine
the torpedoes but. Ullsten said, the incident should make
Moscow “think twice before they send another submarine
into Swedish waters.”
"Ours was the clearest action taken against-the Russians
for a long, long time,” he concluded
Ullsten said the incident proved "how necessary it is for us
to demand a nuclear-free zone" in the Baltic.
Ullsten was not asked if he thought the West Germans
should raise the submarine incident in talks when Brezhnev
visits Bonn Nov 22-25
But West German Economics Minister Count Otto Lamb-
sdorff told foreign correspondents in Bonn Monday the in
cident severely damaged Western confidence in the Soviet
Union prior to talks Washington is due to start with the
Soviets on European arms in Geneva Nov. 30.
Lambsdorff did not promise the matter would be raised
with Brezhnev, but pointed out one chief topic in the Bonn
talks would be "confidence building measures” — steps
agreed by the East and West under the 1975 Helsinki accords
on exchange of military information
Cuba are fraught with
dangerous consequences,”
the article said
U S. officials estimated in
September that the U S S R,
has supplied Cuba with more
military equipment in the
first eight months of 1981
than in any year since 1962 —
the year of the Cuban missile
crisis
Pravda quoted a report
saying the Reagan ad
ministration plans air and
naval exercises off the coast,
"a complete armed blockade
of the Republic of Cuba.''
As a cover, the Pentagon
has organized a meeting
with military represen
tatives of Chile, Paraguay.
Haiti. El Salvador and
Honduras. Pravda said, to
make a U S. offensive look
like inter-American
cooperation.
the hydraulic system They
then honed their piloting
skills in a shuttle simulator
They planned to fly to the
Kennedy Space Center
Tuesday afternoon
The weather outlook
improved for launch day
The latest forecast said
there was only a 10 percent
chance of rain with scattered
clouds at launch time
Some officials in towns
around the sprawling
spaceport said they expected
smaller crowds for this
second launch attempt than
the estimated 250.000 space
buffs on hand when the five-
day, 83-orbit flight was
scrubbed last Wednesday.
The hydraulic refueling
was a major hurdle that
needed to be cleared before
the countdown could
resume
Each of the three turbines
that drive the hydraulic
pumps for the shuttle's flight
controls was an individual
tank holding 34.8 gallons of
hydrazine worth $2,100.
The refueling became
necessary when the three
hydraulic power plants,
designed to run less than an
hour and a half per flight,
consumed five minutes
worth of the hydrazine
before the scheduled launch
last Wednesday. Reloading
the tanks gave the space
agency two opportunities for
launch Thursday.
The Federal Reserve has cut the discount rate it charges
member banks for loans, and allowed the federal funds rate
banks charge one another for overnight borrowing to slip to
around 13*2 percent
“It's my expectation that the trend of interest rates will
continue downward through the Reagan term," Weidenbaum
said "But interest rates never move in a straight line We
will continue to see waffles."
He said additional actions will be necessary to reduce the
larger-than-expected budget deficit "My hope is most of
those actions will be on the spending side," he said
The administration currently is divided over how to trim
the deficit Budget Director David A Stockman advocates
revenue-increasing tax measures and Treasury Secretary
Donald Regan prefers to focus on additional budget cuts
President Reagan said Friday he will not take the tax-
increase route
Weidenbaum stressed monetary restraint by the Federal
Reserve "is the key to getting interest rates to continue to
decline in 1982 "
Asked how interest rates could be kept down if the economy
rebounds and credit demand rises in the second half of 1982.
Weidenbaum said a boost in the savings rate due to new
savings incentives and the lower inflation rate would help
Regan: ’82 deficit
could top $60 billion
WASHINGTON (UPI) - Despite deeper cuts in welfare
programs, the government's budget deficit next year may
well top the $57 9 billion for this year. Treasury Secretary
Donald Regan said Monday.
Regan spoke to reporters before attending a Capitol Hill
budget meeting with Republican leaders. White House chief
of Staff James Baker, presidential counselor Edwin Meese
and budget director David Stockman
White House press secretary Larry Speaker, said they met
for "a detailed discussion" of the proposed 1983 and 1984
budgets
It is "entirely possible” the 1982 deficit will be larger than
the $57.9 billion deficit for the 1981 fiscal year just ended.
Regan said. "All I II say is that it will be upwards of $60
(billion i but just how far up I don't know ’
But he said balancing the budget is only fourth on the list of
White House priorities after the need to cut back the size of
government, pass tax cubs and strengthen the country's
defense
Regan also offered the most pessimistic assessment of the
current economy yet from an administration spokesman He
said the economy is facing a "real downer" in the current
quarter with the gross national product down as much as 3.5
percent
Regan confirmed the administration is focusing its budget-
cutting on so-called "entitlement programs like Medicaid.
Medicare and Welfare He said Health and Human Services
Secretary Richard Schweiker has proposed about $9 3 billion
of cutbacks "beyond what w e had originally proposed
Look for the
crossword puzzle
in the classifieds
on Tuesdays and Fridays
BE A T THE CHRISTMA S RUSH
, f oC)tU leAChcp c 0
And fashions ' a ^v
2nd ANNIVERSARY Sale
Hand Crafted Leather Fashions
FROM $1.00 to $100 off
In Athens
I Flea Market Sale end Nov.18th 546-7524
Tho mo»t Personal
Gift for Chriatmos-
YOUR PORTRAIT,
SOMEONE would
LOVEITI
IIAVTIH/L
POUTA AITS
SUNOS MSNOSJX
I4T MOar»M AVI
Connit Copps
Delta Delta Delta
Brumby
STUDENT AFFAIRS
CITADEL NATIONAL STUDENT
CONFERENCE
Two junior or senior University of Georgia
students will be selected to represent the
University at the sixth annual Citadel Na
tional Student Conference in Charleston, S.C.,
Feb. 18-20, 1982. The topic for the 1982 con
ference is the Soviet Union and Border
Regions.
For an application or further information,
contact David Fletcher, 201 Academic
Building, 542-3564. Application deadline is
Nov. 23, 1981.
This information has been prepared and submitted
by the Office of Student Affairs.
GA. WINNER TO COMPETE ON CBS TV IN MAY
*
*
*
1981 MISS GEORGIA;
USA PAGEANT
APRIL REID
Miss Georgia USA
NO PERFORMING TALENT REQUIRED *
You can win fame and fortune as Georgia s repre- *
sentative in the nationally televised Miss USA »
Beauty Pageant next spring The search for Miss
Georgia is on. The state finals will be Feb 28 thru
March 1 in Atlanta. If you re single and between *
the ages of 18-26 as of July 15,1981. youarequali- *
fled For FREE entry information, send name. *
address, age and telephone to: Miss Georgia USA. ^
PO Box 676. Silver Spring. Maryland 20901. or
phone (3011589-2107. *
♦ ★★★★★★★★★★■A ★ A ★ ★
★ ★ W ★ ★ *
CUSTOM-BUILD YOUR OWN
COPYING SYSTEM
WITH SHARP S SF-B11.
If you need a copier that will automatically
feed up to 50 originals for single or
multiple copies, take a look at
Sharp's SF-811 And if you
need a copier that can
automatically sort and collate
up to 20 sets of up to 100
pages each take another look
at the Sharp SF-811 Because this
unique Sharp copier offers you two
options The SF-460 automatic document feeder
and the SF-450 electronic collator
You can add them both at the same
time or one at a time because
they>e modular
And Sharp s SF-811 copier assures
you of crisp clean copies up to
ir*17" at speeds of up to 24 per
minute on any paper It has micro
computer technology for consistent copy
quality and outstanding reliability
The Sharp SF-811 The custom copying
system
AOIKHC
XJCT/
1875-A Commerce Rd.
Athens, Ga. 353-2770 "*
Before
ATHENS MEDICAL WEIGHT LOSS
A SPECIAL ANNOUNCEMENT FOR
OVERWEIGHT WOMEN
& MEN
LOSE 30 LBS. BY CHRISTMAS
• medically supervised
• no bad-tasting pre-packaged food
• drop 4 dress sizes in 30 days
• ask about our Starch
Blocker Program
DilCOUnt on all naw 7 *hIi a, lanf ar p refrorm n JO |i
WE GUARANTEE YOUR WEIGHT LOSS
CALL NOW FOR FREE CONSULTATION I
YOU’VE NEVER LOST WEIGHT SO QUICKLY. SO SAFELY
$1.50 Pitchers
Every Mon. & Thurs.
$2.99 All You Can Eat Spaghetti
Every Wed.
New Lower Prices !
All new game room. 2 6*t T V s. a 23 item
salad bar ana the best pizza in town-nones"
10Q3 Baxter St.
549-3484
IT'S TIME TO
SAY CHEEZE!
1982 PANDORA
JNli ; i
Will be taken Nov. 2nd thru Nov.20th
at Memorial Hall Rm. 404
from 8:30-12:00 and from 1:00-4:30
Sitting fee-$1.00 for four proofs
Orders For 1982 Pandoras
Are Being Taken At Business Office
In Memorial Hall — $15