Thursday, Oct. 24, 1985
University Dailv Kansan
11
Nation/World
O'Neill urges action to solve fiscal issues
United Press International
WASHINGTON — House Speaker Thomas O'Neill urged swift action on the debt ceiling and balanced budget issues yesterday to avoid juggling Treasury bonds to free up money for Social Security payments next month.
O'Neil also called on House-Senate confeeers working on the Senate's balanced budget plan to require spending cuts this year, rather than waiting until next year.
Under "disinvestment" the Social Security trust fund would redeem long-term government securities it now holds. That would provide room under the current debt ceiling to allow issuance of new short-term Treasury bills to finance the Social Security payments. Treasury officials said the procedure would not result in any loss of principal to the fund, but would mean lost interest earnings.
Treasury Secretary James Baker warned this week that if Congress fails to increase federal borrowing authority by the first weekend in November, the Social Security and other benefit trust funds will have to be "disinvested" to issue checks.
"I'd hate to see them do that," O'Neill, D-Mass., said. He also said he didn't like using trust funds and he was urging the conference committee to work out an agreement with the Senate.
The debt ceiling increase from $1.8
trillion to $2 trillion is being held up by the balanced budget effort, which was added to the bill by the Senate. The Senate-passed plan would cut the deficit to zero by the fall of 1990
Charging that the GOP-led Senate delayed the start of the spending cuts until the fall of 1987 as a way to avoid the issue until after the 1986 elections, O'Neill called for the budget ax to begin falling now.
"I think we'll go back to what (Texas GOP Sen. Phil) Gramm originally had in his bill," O'Neill told reporters, noting Gramm's initial balanced budget plan would have required the estimated $172 billion deficit this fiscal year to be brought down to $144 billion.
The Senate's plan now sets the deficit ceiling for fiscal 1986, which began Oct. 1, at $180 billion. If the estimates pan out, no extra cuts would have to be made this year.
House members of the budget conference committee met yesterday in four task forces, trying to come up with changes in the Senate plan.
"It if we're serious, the sooner we begin the better," said Rep. Leon Panetta, D-Calif., a member of the conference committee. "One of the very real pressure points is to make this thing bite in an election year."
House Republicans were ready to call their bluff. "If they press that point so much, we just might agree." said Assistant House Republican Leader Trent Lott of Mississippi, also a member of the conference.
Foreign Ministry media spokesman Vladimir Lomeiko said the charge leveled Tuesday by Defense Secretary Caspar Weinberger "does not conform to reality." Lomeiko was in the Bulgarian capital with Soviet leader Mikhail Gorbachev for a seven-nation Warsaw Pact summit.
Weinberger said Tuesday, "I can officially confirm that one of the Soviet Union's new ICBMs, the mobile SS-25, is now being deployed and is an unquestionable level of assurance assurances given to us under the SALT 2 accord."
SOFIA, Bulgaria — A Soviet Foreign Ministry official yesterday rejected U.S. charges that the Soviet Union violated the SALT 2 treaty by distributing SS-25 missiles and he accused the United States of seeking to sabotage next month's superpower summit.
The remark comes just four weeks before Reagan
United Press International
Soviets deny U.S. charges
U. S. officials argue distribution of the SS-25 violates the SALT 2 pact because the treaty allows each side to develop only one new intercontinental ballistic missile and the Soviets have built two.
But the Soviets, who advised the Americans of their plans at the Geneva arms talks in March and deployed the missile soon afterward, maintain the missile is merely an updated version of their older single-engine variant.
Lomeiko said, "The main point of the Weinberger statement is that the Soviet union is breaking down Saskatchewan."
Lomeiko also said the Nov. 19-20 summit between Reagan and Gorbachev offered a hopeful chance for achieving some sort of agreements on arms control. But, he said, "Those that are making these statements now are trying to liquidate that possibility."
Pakistani leader addresses U.N.
United Press International
and Gorbachev meet in Geneva, Switzerland, to discuss arms control and other issues.
UNITED NATIONS — President Mohammad Zia ul-Haq of Pakistan said yesterday that he was irrevocably against possessing nuclear weapons and urged India to join him in clearing nuclear weapons from their region.
11/30-25
Zia spoke with Indian Prime Minister Rajiv Gandhi at a meeting that a Pakistani aide described as cordial.
Zia told the U.N. General Assembly, "I suggest that the United Nations should examine the regional perspectives on nuclear non-proliferation with a view to devising ways of preventing or preventing the spread of nuclear arms.
"I take this opportunity to reaffirm Pakistan's policy of developing nuclear energy for peaceful purposes only, and its irrevocable commitment not to acquire nuclear weapons and nuclear explosives."
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