NATION AND WORLD University Daily Kansan, January 28, 1985 Charities join to fight possible loss of funds Page 8 By United Press International WASHINGTON — Non-profit groups and charities from across the country — motivated by fear of losing billions of dollars in donations — hope to convince Congress this week to leave their deductions alone. Up to 300 leaders of non-profit organizations plan to be in the capital this week to push against three parts of the Treasury Department's tax simplification proposal that would reduce tax deductions allowed for charity. These segments could cost American charities about $5 billion, according to a study done for the Independent Sector, an umbrella group for about 600 non-profit groups and major donors. "IT'S THE ONLY time I've ever known the whole sector to be united out-of fear and determination," said McDowell, president of Independent Sector. In addition to the efforts by Independent Sector, some larger charities such as The United Way and the American Cancer Society are launching their own lobbying campaigns. The Treasury Department, however, disagrees that the problem would be as devastating as the charities contend. In a two-volume explanation of its tax simplification plan, the department conceded that some of its suggestions would have 'some effect on charitable giving,' but contended that it is not expected to be significant." Charitable groups are not so sure, and are taking aim at three parts of the Treasury plan. The groups propose to: - Eliminate the charitable deduction for those who do not itemize. John Madigan, Washington lobbyist for the American Cancer Society, argued that while most of those people did not make contributions in order to take the deduction, "in many cases I think the contribution is higher if people know they can take the deduction." - Limit charitable deductions to amounts that exceed 2 percent of a taxpayer's adjusted gross income. - Donate a mortgage donor gives about 1.9 percent. - Restrict the deduction that is taken for a gift of property that has increased in value. Instead of allowing a deduction for the fair market price, the deduction would be limited to the original cost, plus an inflation adjustment. Mexicans disbelieve threat of Soviet goals, envoy says By United Press International WEST HOLLYWOOD, Calif. - Central America is the gateway to Soviet aggression in Mexico but Mexicans underestimate the threat; U.S. Ambassador to Mexico John Gavin warned Saturday night. "If you try to tell Mexicans that they will say, 'Oh, the United States will never allow that.'" "Some of the Sandistas have said, 'We'll see you at the Mexico-American day.'" Gavin told about 100 members of the California Republican Assembly. Gavin, a former actor appointed ambassador by President Reagan in 1981, dismissed published reports that he is resigning. "I enjoy the job greatly," he said. "The press announces about every two months that I'm resigning. I haven't yet, but if they keep announcing this regularly one of these days they'll be right." Gavin credited Mexico with improving social services, but said the country was still crippled by overpopulation and inflation that he estimated will reach 35 percent this year. Gavin said reports that he was not a popular ambassador in Mexico were false and stemmed from misinterpretations by the U.S. news media. He said reports that his ouster had been described by Mexican government were based on incorrect reports in Mexican newspapers. John Longhurst, 14, son of Lawrence City Commissioner David sored by the civic classes at Central Junior High School. After a day Longhurst, makes his debut as guest disc jockey on campus station at the station, Longhurst said, "It's been a lot of fun. It's been neat to KJHK. Longhurst participated Friday in a 'Career's Day', spon- meet the people I've heard." U.S., China to discuss naval weapons By United Press International PEKING - A U.S. Navy delegation arrived here yesterday for detailed talks that could result in China's first large purchase of sophisticated American naval weapons and technology. Chinese navy. The Americans attended a welcome banquet last night A 23-member Navy team — led by Melvyn Paisley, assistant secretary for research, engineering and sys- ting at the Naval Air Force for a 10-day visit at the invitation of the Western diplomats said the Paisley delegation would conduct three days of talks with Chinese defense officials in Feking before leaving the capital to visit key naval installations in Shanghai, Qingdao and other port cities. Paisley and his Chinese counterparts will discuss the specific capacities of their turbine systems, gas turbine engines, sonars, guns and torpedoes, which Pentagon officials said China had agreed in principle to buy. "WHAT WE'LL DO is to take a look and talk with the Chinese more about their need for weapons — what they think of them, said one senior Western diplomat. For example, he said, the delegation will advise the Chinese on the frequency and power capacities of various Navy sonar systems. "We'll let them know what's given us the most for our money," he said. China is trying to upgrade and expand its 360,000-member navy, which has more than 2,000 vessels, from primarily a coastal defense force to a technologically advanced, deep-water fleet. It also wants to improve its capabilities in the field of anti-submarine warfare. China is trying to upgrade and But China has not concluded any formal purchase orders or signed contracts to buy U.S. weapons. Tight U.S. export restrictions on weapons sales to China could impede some purchases.