Tuesday, November 17. 1998 The University Daily Kansan Nation/World Officials skeptical about Iraqi promises Administration says troops remain ready if Iraq doesn't comply The Associated Press Section A · Page 5 WASHINGTON — Skeptical that Saddam Hussein will keep his word, the White House pressed for a swift test of Iraqi promises to cooperate with U.N. arms inspectors. The United States stopped its military buildup in the Persian Gulf but warned it could strike at a moment's notice. "The world is watching Saddam Hussein to see if he follows the words he uttered with deeds," President Clinton said yesterday. "Our forces remain strong and ready if he does not." The administration said it would be up to U.N. chief arms inspector Richard Butler and his team to judge whether Iraq, in fact, allowed unrestricted access to all sites. "He has not been shy in the past about expressing his views when he believes his work has been obstructed," White House press secretary Joe Lockhart said. own letterheadlalol With a teammate, Clinton to the morning off to play golf The White House also resumed plans for a presidential trip at midweek to Japan, South Korea and Guam that had been put off. Since the Gulf War, U.N. inspectors have forced Iraq to destroy 40,000 Clinton: Says Iraq will be watched closely. chemical weapons, 700 tons of chemical-weapons agents, a biological weapons plant, 48 missiles and 30 warheads fitted for chemical and biological weapons. Clinton said. "Governments all over the world today stand united in sharing the conviction that full compliance, and nothing short of full compliance, is needed from Iraq," he said. But the administration said Butler would not be able to render an immediate verdict. ance. is needed from Iraq." he said. Defense Secretary William Cohen announced a halt in the U.S. military buildup. "We will keep the forces that are already there for the time being." he said. "Those forces that did not yet arrive will in all probability be recycled back in the next several days." Several dozen F-16 and F-15 fighter planes, along with four F-117 stealth fighters, have been diverted to Europe and are expected to be ordered back to the United States. But those forces will be ready if Iraq violates its promises, Cohen said. About 4,000 Army troops at Fort Stewart, Ga., and Fort Bliss, Texas, who had been designated for deployment also will stand down, Cohen said. While the administration claimed an unprecedented coalition of nations opposing Iraq's interference with arms inspectors, State Department spokesman James Rubin said some countries were thrilled just to grab onto anything they saw as evidence of an Iraqi turnaround. The United States said Iraq would have to comply with five conditions: allowing the resumption of Hussein: Has agreed to allow U.N. inspections. tion teams said they were the same obligations that Saddam Hussein had ignored in the past. The administration also pledged to work more closely with Iraqi opposition groups to bring about a new government in Baghdad, Clinton said Sunday. Japan puts $196 billion toward economic recovery TOKYO — Japan's prime minister unveiled yesterday the government's biggest effort so far to spend the country out of economic distress, but markets and commentators found little to cheer about. The Associated Press Unimpressed by the figures — $196 billion in new public spending and tax cuts — critics focused on what Prime Minister Keizo Obuchi did not offer; a cut in the sales tax. The package surpasses the record $139 billion the government released in April and brings the total amount Tokyo has spent to stimulate the economy since 1992 to $820 billion. The problem, however, has been consumer confidence. Growing unemployment, bankruptcies and stingy lending by hard-pressed banks have prompted ordinary Japanese to cut spending and put tax cuts into savings, leaving merchants, from car dealers to department stores, with unsold goods. The government's decision last year to raise the sales tax to 5 percent from 3 percent was widely blamed for choking off a growth spurt and tipping the economy back into recession. The latest package is designed to stop Japan's economy from contracting for a third consecutive year - a pledge Obuchi made after taking office in July. Obuchi said the tax revenue was needed because of Japan's mounting budget deficit. "With this plan, our country can free itself from its current severe situation," Obuchi said before leaving for Malaysia for a summit meeting of the Asia Pacific Economic Cooperation forum. The package also contains $8 billion in aid for Asian countries. Japan has been under intense international pressure to do more to help the region fight economic woes. The economic newspaper Nihon Keizai was less than Obuchi: Unveiled a new economic plan for Japan. confident about the plan, saying that at best the measures would produce a brief improvement. the Yomuri, said, "After wiping off the thick makeup of money, only an unimpressive base appears underneath." "We should not jump to the conclusion that this would pave way for economic recovery." it said. The nation's largest circulation newspaper, Obuchi said the package's tax cuts, worth about $49 billion, would bring Japanese income and corporate tax rates in line with those in major Western economies. To encourage consumers to spend more, the package will distribute $5.7 billion in shopping vouchers. The plan is expected to be passed later this month in a special parliamentary session. Oobuchi said the package also would include more than $147 billion in spending, most of it on public works and steps to help smaller companies ride out a severe credit crunch as Japan's banks dispose of their massive bad loans. The Tokyo Stock Exchange's benchmark 225-issue Nikkei Stock Average climbed 1.12 percent yesterday, but traders attributed the rise to hopes that the government might do more. Michael Naldrett, an economist at Dressner Kleinwort Benson (Asia), said he was not sure that the government had done enough to bring about economic recovery. He predicted the economy could expand by 1 percent next year with the package — not by Obuchi's target of 2.3 percent. NOW. Ballard's • Banister Shoe Big Dog Sportswear G.H. Bass Outlet • Book Warehouse Bugle Boy • Carter's Childrenswear Corning Revere • Dress Barn Dress Barn Woman • J. Crew L'eggs/Hanes/Bali/Playtex Leather Loft • London Fog Oneida • Rocky Mountain Chocolate Factory • Van Heusen Vormehr Gallery and much more. 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