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Nation/World
University Daily Kansan
Thursday, Oct. 24, 1985
News Briefs
DALLAS — A new and legal designer drug called Eve — a chemical cousin of the banned drug Ecstasy — is showing up in Dallas, one of only two places it has been found in the country, drug agents say.
LEWISTON, Maine — Police divers searched a Bates College campus lake yesterday for the weapon used to shoot the dean who handles discipline at the liberal arts college.
MUNICH, West Germany — An East German couple and their two children, ages 7 and 8, escaped yesterday across the border into West Germany, a spokesman for the border police said.
College dean shot;
police search for gun
Designer drug found
Wolfgang Schlee, the police spokesman, said the family, undetected by East German border guards, drove up to a fence and jumped over it from their small truck into Bavarian state territory in West Germany.
Eve is also being found in northern California, where local Drug Enforcement Administration has manufactured a DEA official said.
BANGKOK — Two leading Thai insurance companies have sought official permission to offer special "coup insurance," the Bangkok World newspaper reported yesterday.
Carignan was in the kitchen of his home when he was shot, police said.
The dean, W. Carignan,
46, was shot in the back Monday
night by an assailant who
aparently climbed the back porch of
Carignan's home and fired
through a window.
Coup policies sought
Family jumps border
The new type of policy will cover risks that arise from coups or revolutions, Sophol Kietpaibul, an insurance commissioner, said.
There have been 17 attempted coups in Thailand since 1932.
From Kansan wires.
More woes hit farm system
United Press International
WASHINGTON — The Farm Credit System — the nation's largest farm lender — said yesterday it suffered third-quarter losses of $522.5 million and predicted continued future losses.
The system said an estimate in early September of the operating loss for all of 1985 had been exceeded in the first nine months. It forecast loan losses would have increased through 1987, which could deplete a current capital surplus of $3.6 billion.
Although the Reagan administration has been reluctant to endorse a proposal for what would be the first federal bailout of the system since the Great Depression, Agriculture
Secretary John Block said he would like the government to address the farm credit issue in "some meaningful way" by the first of the year.
"We may not get it done." Block said. "It's going to be a tough winter to deal with it in January and February."
The third quarter report said nonacrual loans, which are 90 days past due, not adequately secured and considered uncollectable, increased to $3.5 billion, or 4.9 percent of loans outstanding, as of Sept. 30. Those figures at the end of the second quarter were $2 billion, or 2.7 percent of loans.
The report also predicted the system might have to deal with non-
earning assets of more than $10 billion over the next several years.
the federally chartered Farm Credit System is owned by farmers and holds enough loans to be the nation's fourth largest bank. The system also holds one-third of the nation's farm debt and raises its capital by selling securities on Wall Street.
The unaudited quarterly report was issued by its Wall Street entity, the Federal Farm Credit Banks Funding Corp.
"Agricultural economists, both within and outside the Farm Credit System, project that current negative trends in the U.S. agricultural economy will continue in the near term," the report said.
UAW to vote on Chrysler pact
The Associated Press
HIGHLAND PARK, Mich. — Chrysler Corp. and the United Auto Workers agreed yesterday on a tentative contract that will give 70,000 strikers wage parity with the company. The workers' sessions granted when the automaker faced bankruptcy.
However, the UAW did not get guarantees against subcontracting, and the company lost its bid for Japanese-style job classes.
Chrysler said the three-year agreement would cost the company at least $1 billion more than the contract that expired last week.
If ratified, the agreement would give each U.S. Chrysler worker an immediate minimum of $2,000 cash to compensate for the $1 billion in contract concessions that workers granted the company during its brush with bankruptcy.
Industry analysts said the pact generally would allow Chrysler to stay competitive with General Motors Corp.
and Ford Motor Co., but may do little, if anything, to allow Chrysler to make inroads against the advantages the Japanese have in labor costs.
Separate strikes here and in Canada, which began Oct. 16, will have cost the No.3 automaker more than $100 million in lost profits by the end of the week. A new contract for 10,000 Canadian workers was ratified Monday, and they have returned to work.
The UAW's Chrysler Council of 170 local union leaders will meet today in Detroit to review the tentative contract and recommit it for rank-and-file ratification this weekend. UAW President Owen Bieber said he expected the agreement to pass and workers to return on morning shifts Monday.
Chrysler chief negotiator Thomas Miner said Chrysler did not gain the reductions in job classifications that it had sought but would pursue the issue in local negotiations. The company, in the pursuit of higher productivity, had wanted about 500 job classes reduced to six to eight.
President to speak to U.N. today
United Press International
NEW YORK -- President Reagan began three days of talks with world leaders at the United Nations yesterday and sought to provoke a response from the Soviets with a "far-reaching, broad new initiative" in a speech to the General Assembly today.
Reagan first met with Deputy Secretary of State John Whitehead for a report on Whitehead's travels to the Mediterranean to patch up relations with Italy, Egypt and Tunisia in the aftermath of Israel's raid on
Palestinian Liberation Organization headquarters in Tunis and the Achille Lauro hijacking.
It appeared that Reagan, who has scheduled his first summit with Soviet leader Mikhail Gorbachev for next month, is trying to shift world attention away from arms control efforts of the Soviet Union's behavior worldwide.
White House spokesman Larry Speakes said that the president's speech would go beyond the arms control issues that have so dominated U.S.-Soviet relations in recent months.
He declined to further describe the initiative, but said it would "provoke a response from the Soviets."
Reagan was skipping the United Nations' 40th anniversary ceremonies and sending Vice President George Bush instead. The centerpiece of his third visit as president to the world organization was to be the General Assembly address.
He was scheduled to meet with Prime Minister Rajiv Gandhi of India, President Mohammed Zia of Pakistan and Prime Minister Margaret Thatcher of Great Britain.
Cost-of-living raises slow with inflation
The Associated Press
WASHINGTON — The fifth successive 0.2 percent monthly increase in the government's Consumer Price Index means that inflation is running at such a slow pace that Social Security recipients will get their smallest cost-of-living raise since benefits were tied to inflation.
Moreover, the September retail price measure reported yesterday by the Labor Department added the final figure to a federal income tax "indexing" formula that will translate to a barely noticeable change in the average American's 1986 taxes.
The 3.7 percent tax indexing change — based on comparing fiscal 1985 inflation to that of 1984 — will result in the $1,040 a-person income tax exemption's rising to $2,676 as filed in 1987. The standard deduction for all ple will go from $2,390 to $2,490 and for couples, from $3,540 to $3,670.
Tax table brackets will be widened by the same 3.7 percent, so more income will be taxed at lower rates.
The 3.1 percent Social Security
benefit increase, based on a slightly different set of statistics than those used for tax indexing, works out to a $14 monthly increase for the average recipient starting Jan. 1.
In all, the modest changes are a reflection of analysts' monthlong assertions that inflation is no longer an important factor in the U.S. economy.
Donald Strasheim of Merrill Lynch, Pierce Fenner and Smith, said the declining dollar was likely to push inflation up slightly in 1986. "maybe a few tenths of a percent, but not dramatically so. We see continued good news on inflation."
In another report yesterday, the Commerce Department said orders to U.S. factories for durable goods dropped 1.1 percent last month as a big decline in demand for military hardware offset small gains elsewhere.
Without last month's 19.3 percent drop in defense contracts, new orders would have posted a 0.7 percent increase in September and a particularly key category, non-defense capital goods, showed a 4.7 percent increase.
El Salvador to trade rebels for Duarte Duran's release
The Associated Press
SAN SALVADOR, El Salvador — The government said yesterday it would free 22 jailed rebels and permit evacuation of 96 wounded guerrillas in exchange for the kidnapped daughter of President Jose Napoleon Duarte, a friend of hers and some abducted municipal officials.
The deal ended more than six weeks of tension that nearly paralyzed the Salvadoran government while leaders negotiated with a little-known guerrilla group.
Julio Adolfo Rey Prendes, the president's chief adviser, and Duarte's daughter, Jenga Guadalupe Duarte Duran, 35, would be reunited with Cecilia Villa de San Jose, a friend, Ana Cecila Vilada Sea 23, who was kidnapped along with
Duarte Duran on Sept. 10, also would be freed.
But he said the exchange would be "at a determined date" and would be private by mutual agreement.
A group calling itself the Pedro Pablo Castillo Front initially took responsibility for the abductions of the two women outside a private university where they were going to attend a graduation. An essential bodyguard was killed by the killerpers and another guard was seriously wounded.
Rey Prendes described the decision to evacuate the wounded rebels as humanitarian and said the government had contacted the Roman Catholic Church some time ago, apparently before the kidnapping, about sending wounded rebels out of the country.
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