Page 2 University Daily Kansan, February 20, 1981 News Briefs From United Press International Iran may accept Moslem mediation BEIRUT, Lebanon—U.N. peace envoy Olof Palme arrived in Tehran yesterday amid signs that Iran might be willing to participate in mediation efforts. Before Palme's arrival in Tehran from "constructive" talks with Iraqi President Saddam Hussein in Baghdad, a senior Iranian official confirmed his country would welcome a mediation team appointed by Islamic heads of state. The radio said Haqani confirmed the commission, which was appointed by the Organization of the Islamic Conference at its recent summit in Taft, Iran. Hojatoleslam Gulam Hussein Haqani, a member of the Iranian parliament and the Supreme Council for Information, made the statement to state-run Saudi Arabian radio after a meeting in Jeddah with the leader of the Islamic delegation. Iran said repeatedly it would not accept any mediation until all Iraqi troops withdrew from Iranian territory. Palme, on his third peace mission to the area since November, ended two days of talks with Iraqi leaders yesterday and flew to Tehran for more talks in Baghdad. The former Swedish premier has been trying to arrange the release of 72 merchant ships trapped in the disputed Shaat al-Arab waterway since the fall. Arms shipped illegally to Soviets SAN JOSE, CAIF.-The most advanced products of America's high technology companies have been shipped illegally to the Soviet Union and other countries. A federal grand jury in Los Angeles was trying to unravel the scheme in which at least 11 companies operated by two men—one a German and the other an American citizen born in Russia—served as fronts for shipping factories and other exotic materials to the Soviet Union through Germany. Millions of dollars worth of such goods, used in missile guidance systems and other military equipment as well as in computers, has been traced from the highly profitable industry concentrated on the west side of San Francisco Bay, the San Jose Mercury-News reported. The U.S. Commerce Department, the Customs Service and Santa Clara County authorities were conducting parallel investigations. Various federal agencies conducted similar investigations. State records show the two men formed 11 electronics distributorships between 1977 and 1979. Investigators believe the companies bought integrated circuits and other goods in legitimate deals with the major producers. They also bought parts from thieves. In some cases, the Mercury-News said, employees of the major companies took the tiny chips home and sold them. Others were stolen from loading rooms. Washington produces 'ash babies' SPOKANE, Wash.--The eruption of Mount St. Helens nine months ago seems to be producing another kind of explosion—a baby boom. For 10 days after the May 18, 1980, eruption of ash and dust, eastern Washington and northern Idaho loked like a moonscue. People pretty much stayed inside watching television, or at least that's what they said they did. The current amount of ash that they The current crop of thants are being called "as anbues". Joe Morris, administrator of Kootenai Memorial Hospital in Coeur d'Alene, Idaho, recalls that at the time, somebody in maternity said, "We should keep track of the period nine months later." The increasing number of births was first noticed last week. Nineteen babies were delivered in a single day, Kootenai's maternity ward was the second to have done so. Tom Heafey, a maternity warrior superviseur at Deaconex Hospital in Spokane, said the 137 babies delivered so far this month exceeded a total of 125. A check of hospitals on a path toward Mount St. Helens produces much the same story. At Ritzville, where the mountain dumped its heaviest load of ash, the nurse who worked on the day shift had to a supervisor said the nurse who normally worked the day shift had sent to it. The supervisor said the nurse "got stranded out in the country without her birth control pill." Ford sets annual deficit record DETROIT—Ford Motor Co., yesterday reported 1800 losses of $1.54 billion, the largest annual deficit in American business history. That mark will stand until Chrysler Corp. reports its 1980 results, expected to come in early next year. The company’s $1.1 billion 1979 loss held the previous record for largest annual deficits. Ford's performance brought the industry's overall 1980 losses to $3.9 billion, excluding fourth quarter red ink from Chrysler and American Motors. Ford chairman Philip Caldwell attributed the deficit to depressed car and truck sales in the United States and overseas and 'the continued high level of unemployment'. It is likely the red ink will continue into this year, although not at a record pace. Domestic car sales so far in 1981 are off 18 percent from last year's weak levels, and automakers have been forced to resort to costly plant purchases and cash rebate programs to balance production and stimulate sales. Caldwell said recovery from the auto industry's two-year slump would be slow and would depend heavily on the government's ability to slow inflation. Restoring overall industrial health to the United States would require a stable government action on tax, regulatory, trade and energy policies, he said. Commission favors mail rate raise The commission also recommended a 12-cent post card instead of the Postal Service's 13-cent one and suggested changes in a broad range of mail carrier WASHINGTON—The Independent Postal Rate Commission yesterday recommended the raising of the cost of mailing a first-class letter to 18 cents, instead of the current 19 cents. The Postal Service requested a $3.75 billion rate increase, a move it said was necessary to keep up with inflation. It would be the fifth raise in first round increases in the past five years. Its recommendation now goes to the Postal Service's Board of Governors, which may accept it and implement it, send it back for further action, or put it into practice under protest. Also the Postal Service could seek court review or ask the commission to reconsider it. The commission shaved $1 billion from the proposal, the largest revenue reduction ever made in a postal rate case, after 10 months of hearings. The Postal Service had no immediate comment on the commission's recommendation, although the Postmaster General, William Bolger, has suggested that the commission "should act." Commission Chairman A. Lee Fritschler said the mail service should be able to avoid another rate request for two years if the commission's agreement is violated. Under the commission's plan, existing rates for second-class mail—newspapers and magazines—would rise about 9 percent. Third-class rates would increase between 6 percent and 24 percent, and fourth class, including parcel post and books, about 3 percent. Correction Congress mulls Reagan budget proposals By United Press International WASHINGTON — Congress began work yesterday on President Reagan's economic recovery proposals, a plan of budget and tax cuts the president said he was sure would win support from the American people. "We believe the main source of strength in this country is going to be the people themselves," the president told 125 newspaper editors attending a meeting with him. "We believe also that they are ready to support a great change." IN AN ADDRESS to Congress and the nation Wednesday night, Reagan called for budget cuts totaling $4.1 billion and for extensive tax reductions, including a 30 percent cut in personal income tax over four tax-nowyears. Budget Director David Stockman and Treasury Secretary Donald Regan went to Capitol Hill yesterday to try to persuade Congress to approve the package of spending, tax and regulatory cuts and stable monetary policy. Congress will have to approve most of Reagan's proposals. In the Republican-controlled Senate, GOP leader Howard Baker said he hoped the Senate could act within four weeks on a reconciliation bill ordering budget cuts for fiscal 1981, but the Democratic-controlled House has Democratic leaders expressed good will but said they planned major changes in the program. served notice that it will follow the usual budget procedures no matter what the Senate does. SENATE DEMOCRATIC leader Robert Byrd of West Virginia said Democrats would support Reagan on some spending cuts and would approve a tax cut, "but not this tax cut," which Robert called inflationary. More than 300 religious leaders representing nearly every major U.S. religious body wrote a letter criticizing the president's failure to speak out on human rights issues and said the omission could cost human lives. Consumer groups were upset over drastic cuts in the solar and conservation budgets. Richard Pollock, director of Algal Nader's Critical Mass Energy Project, accused the president of turning his back on conservation. Charles Dibona, president of the American Petroleum Institution, predicted the oil industry would back the president generally, but Dibona and the American Gas Association reiterated strong support for the synthetic fuel program that would be out heavily in Reagan's program. Despite a general 26 percent slash in foreign aid defense, Israel has been informed that its $1.8 billion aid package for the coming year will not be bounced. The Israeli aid, the largest single U.S. assistance program, has been committed by past administrations as a result of negotiations involving Israeli withdrawals from some of the occupied territories. It includes $1 billion in military assistance, half in loans and half in grants, plus $800 million in economic assistance. Israel Foreign Minister Yihakh Shamir, in Washington to meet U.S. officials, was to be given formal notification of the continuing U.S. aid program in a meeting today with Secretary of State Alexander Haig. The Carter request for foreign aid in the coming year was cut by 28 percent in the Reagan economic proposals. Most of the cuts will be made by stretching previous U.S. payments to international organizations, such as the United Nations agencies. An estimated $270 million will be taken from the various bilateral aid programs around the world, with the majority of the Israel package, officials said. Total foreign economic assistance will cost about $7 billion in the Reagan proposal, approximately the same amount as this year. The Carter administration had proposed a large increase in its closing budget request. Rescue scheme used Cowboys FORT WORTH, Texas—Millionaire businessman H. Ross Perot and Dallas Cowboys coach Tom Landry were part of government schemes to use 'trojan planes' and signal-sending football films to rescue the American hostages from Iran, NBC News reported yesterday. last April's unsuccessful rescue attempt, a radio signal was recorded into tapes of Cowboy's games donated by Landry to be sent to the hostages. Perot who organized his own commando squad to free two of his employees from Tehran before the American embassy was seized, came up with the trojan plane scheme, but it was rejected because it seemed too simple, NBC News and its Fort Worth affiliate reported. Landry was unknowingly involved because of the popularity of his football team. After the hostages were held and the team American embaassy in retaliation for The television reporter said the government hoped that when the films were played, direction finders would be able to locate the television sets and locate the Americans. The plan fell through, however, because there was no way to know whether a hostage or one of the Iran militants was watching the game. Spokesmen for the state department and the defense department had no contact with the agency. Landry said he had no knowledge of the rescue plan. Perot acknowledged that he participated in the plan, but he refused to give any details. - Two Shows - Friday Herb Ellis 10-7 with Johnny Moore & Paul Miller Opening act-Chuck Berg Band 8-9-30 Saturday Herb Ellis 11-2:00 Solo late night performance Opening act: Midnight Sun, 10:10:15 Doors open at 10 p.m. Tickets $4.00 advance $5.00 day of show 926/MASSACHUSETTS 913-843-2645 SNEAK PREVIEW February 23 & 24 An Intel Recruiting Team Starring In Our business is built on this ability to introduce new technologies and products. To this end, we've been responsible for more than a dozen highly innovative semiconductor fabrication facilities, least seven major semiconductor fabrication facilities. 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