Page 2 University Daily Kansan, January 29, 1981
News Briefs From United Press International
Reagan lifts controls on domestic oil
WASHINGTON—President Reagan abolished nine-year-old federal controls on domestic drugs a year earlier, a move expected to reduce the numa to 3 to 12 children.
stegan, in a statement accompanying his executive order, blamed federal controls for increasing energy costs. He added that the balance of payments
"Ending price controls is a positive first step toward a balanced energy program—a program free of arbitrary and counter-productive constraints—one designed to promote prudent conservation and vigorous domestic production." Reaan said.
Energy Secretary James Edwards said that because of increased profits to oil companies under decontrol, the federal government would reap about $20 billion in revenue from oil exports.
U. S. automakers in Detroit said they would welcome the end of price and allocation controls on gasoline, blaming the controls for the public's sudden decline.
The U.S. oil industry hailed the decontrol as a step toward energy independence.
William Douce, president of Phillips Petroleum Co. said, "Decontol will help us reduce emissions on imported oil in the long run and make us less expensive to OPEC."
At least five U.S. oil companies raised wholesale gasoline prices from 1 to 2 cents a gallon yesterday. This increase is on top of a 4.5 cent a gallon increase earlier this year in reaction to the Organization of Petroleum Exporting Countries 9 percent increase for crude oil Jan. 1.
U.S. to withhold weapons from Iran
WASHINGTON—Secretary of State Alexander M. Haig said yesterday that Iran would receive no U.S. military equipment and made it clear that the new administration would shift foreign policy emphasis from promoting human rights to fighting terrorism.
Haiq, speaking at his first scheduled State Department news conference, said the administration had not yet completed its review of the hostage situation.
"I anticipate the United States will fulfill its obligations, within the context of domestic law and international practice," he said.
However, he said, the administration already has decided to change one policy of the Carter administration. Iran will not be permitted to take nuclear weapons.
"1) state categorically today that there will be no military equipment provided the government of Iran, either under earlier obligations or con-
ditional ones."<sup>2</sup>
Haig said at the news conference that the emphasis on fighting international terrorism would take the place of human rights because it was the greater problem now and that protection from such acts of violence was an obligation of all governments.
"The greatest problem now is rampant international terrorism," he said.
"Human rights are an essential aspect of foreign policy, but when you give it to a dictator, you're going to get corrupted."
Weinberger wants 'drastic re-arming'
WASHINGTON - Defense Secretary Casper Weinberger called yesterday the announcement of America and said social programs might have to be cut for it.
He also said the United States had forces ready to swiftly counter terrorist attacks against Americans abroad.
Weinberger told the Senate Armed Services Committee that defense was "the highest priority of the nation."
He said the administration, which wants both tax cuts and a balanced budget, would "have to re-examine the whole policy of the nation."
For example, the administration will have to examine whether anti-poverty programs really are reducing poverty.
povery programs really are reducing poverty.
"It's one of the examinations that has to be made." Weinberger said.
Sen. Dan Quayle, R-Ind., asked Weinberger about the readiness of American units to carry out anti-terrorist strikes.
"We are developing and have ready at this point some forces that could respond immediately," Weinberger said. "We're well embarked along that
Weinberger's call for re-armament came with a warning the world situation had raised the chances that the nation might have to use its armed forces.
Weinberger said the Soviets had, over the past 15 years, "embarrassed upon
meeting them in the Middle East," according to a United States official in conventional and strategic power and readiness.
"We will spend whatever is necessary to improve our capabilities as expeditiously as possible," he told the committee.
Auto makers seek relaxed standards
WASHINGTON-Chrysler, Ford and General Motors are seeking a moratorium of at least two years on existing automobile environmental and safety standards and test procedures and a two-year deferral of any new standards.
Ford also asked for temporary restraints on foreign auto imports.
Executives of the three companies said yesterday that federal regulations were a major reason the auto industry was in its worst depression in 50 years.
"All the major American manufacturers will report huge losses for 1980." The Senate Commerce Subcommittee on Surface Transportation told the Senate Commerce Subcommittee on Surface Transporation.
"While there is no question that there are several causes for this crisis, there is also no question that the heavy burden of regulation has been a major factor."
All three companies asked that passive restraint standards be set aside and that Congress review emission standards for cars and trucks and the bus.
Major U.S. bank lowers prime rate
The economy showed two positive signs yesterday when the prime rate was lowered by the nation's 12th largest bank and the Commerce Department announced a $4.5 billion loan package.
In New York, Marine Midland, the nation's 12th largest bank, dropped its 19/percent share from 20 percent to 19 1/2 percent, spearheading what analysts say will be a major sign of the bank's recovery.
In Washington, the Commerce Department said that increased exports of goods and agricultural products narrowed the nation's merchandise trade deficit.
The biggest cause for improvement in 1980 was a substantial turnaround in the trade of manufactured goods.
Captain blames shipwreck on upkeep
In 1979, the United States ran up a $2 billion trade deficit in manufactured goods—that is, it imported more of these goods than it exported. In 1980, the U.S. exports $2.3 trillion worth of goods.
JAKARTA, Indonesia—the captain of the Indonesian ship that sank in the Java Sea, apparently taking more than 500 people to their deaths, yesterday accused the state-run ship company of poor maintenance on the Tampomas-2.
Searchlight-equipped rescue ships plucked 21 more bodies from the choppy sea, bringing the number known dead to 55, and found one more survivor - the 618th. But officials said there was little chance the 468 people still missing, including 75 children and many women, were still alive.
An Indonesian newspaper, the Sinar Harapan, quoted Captain Rival, who commanded the ill-fated vessel, as saying the state-owned Pelni Company ran the船 too hard, with too little maintenance.
There were about 1,100 people aboard the ship when it exploded, burned and sank Tuesday.
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