NATION/WORLD
University Daily Kansan / Friday, October 18, 1991
7
NATION/WORLD BRIEFs
Belgrade, Yugoslavia
Federal army attacks Croatia
The Serb-dominated federal army launched an all-out onslaught yesterday on parts of Croatia. Thousands of Croatians fled strongholds in the secessionist republic.
Warpplanes bombed a marina on the northern outskirts of the tourist mecca of Dubrovnik, the Yugoslav news agency Tanjug said. A gunship assisted in the attack while mines and grenades exploded in other parts of the city. Tanig reported.
About 1,500 people had been evacuated by ferry from Dubrovnik before the attack.
The attacks on Dubrovnik and several nearby areas appeared to be a last push by the army and Serb rebels to occupy large areas of the city, and on Yugoslavia's future structure start today.
palestinian Liberation Organization leaders yesterday approved the participation of seven Palestinians from the occupied West Bank and Gaza in planned Mideast peace talks as part of a delegation with Jordan, Palestinian sources said.
Tunis. Tunisia
Palestinians to ioin peace talks
Whether the Palestinians would participate had been one of the significant unanswered questions as Secretary of State James Baker III and other diplomats agreed acceptance. The talks would be the first ever directly between Israel and its Arab neighbors.
The Palestinian sources, who spoke on condition of anonymity, said the decision was made during a closed-door session of the PLO's 90-member Central Council. The delegates have not been identified, but PLO officials have submitted a list of candidates.
Washington
Republicans urge tax breaks
Republicans urged President Bush yesterday to propose an economic-stimulus package with tax breaks for the middle class, saying the economy was worse than predicted.
White House officials said Bush was considering offering such a package to Congress, but the president has not made a decision.
"We have to do better in terms of selling what we believe in terms of a growth pack-and-sell strategy."
GOP leaders said the president had agreed to join them in proposing a package to Congress that would include new tax cuts and other measures to spur the economy.
-From the Associated Press
NATO reaches historic nuclear weapons pact
The Associated Press
Alliance to cut arsenal in Europe by 80 percent
TAORMINA, Sicily — U.S. Defense Secretary Dick Cheney and other NATO defense chiefs reached a landmark decision yesterday to cut NATO's nuclear arsenal in Europe by 80 percent, effective immediately.
The reduction is the biggest in the alliance's 42-year history. The action will rid Western Europe of more than 2,000 nuclear artillery shells and short-range missiles, gritty bombs, which are dropped from warplanes.
the 100 remaining bombs will amount to one-tenth of the number of nuclear weapons stockpiled a
Defense ministers cited the unlikelihood of a surprise attack by the Soviet Union and its former allies in the Warsaw Pact as the reason for the reduction.
"The risk of a massive and immediate threat that the Warsaw Pact used to poise has gone," British Defense Secretary Tom King said at the end of the first day of talks.
"But the uncertainties are very great, and we
think it prudent to maintain a minimum level of deterrence."
The ministers' dramatic decision was shaded by concerns about a Franco-German proposal for a European force that could operate independently of the alliance.
The proposal was offered as part of negotiations by the 12-nation European Community to create a political union with a common foreign, security and defense policy.
The NATO chief emphasized the enormous size of the cuts in battlefield nuclear weapons but refused to release the exact number of reduced weapons.
But NATO sources previously estimated the number at 3,500, including 1,200 to 1,600 nuclear artillery shells and 1,400 gravity bombs dropped from warplanes that can carry nuclear or conventional arms. Eighty-eight Lance launchers, with 700 nuclear warheads, also could be cut.
The allies' move comes after a decision by President Bush last month for extensive cuts in the U.S. nuclear arsenal in Europe.
Bush cites the economy as sluggish but on the rebound
The Associated Press
WASHINGTON — Consumer prices, buffered by higher costs for energy, food and housing, jumped 0.4 percent last month in the biggest inflation spurt since January, the government said yesterday.
The 0.4 percent overall increase in the Consumer Index came after three consecutive monthly Fitch Ratings.
In other economic news, industrial production rose 0.1 percent in September while the country's merchandise trade deficit widened dramatically as demand for American products decreased.
Economists blamed the worse-than-expected inflation number mostly on temporary factors, but they worried that the other reports depicted a listless economic recovery losing what little momentum.
Manufacturing and export sales had been among the few bright spots as the economy has struggled to break free of the 1990-91 recession.
"This is not a good report card on the performance of the U.S. economy," said Allen Sinai, chief
economist of the Boston Co. "We are seeing a fading of momentum on the industrial side of the economy along with higher inflation than we had been running."
President Bush met with Republican leaders yesterday to put the finishing touches on an economic package of tax breaks and other proposals to spur economic growth.
Many elements of the GOP package, including a lower capital gains tax and tax breaks for first-time homeowners, were expected to be recycled from previous Bush plans that so far have been ignored by Congress.
While Bush said that a variety of economic statistics were showing an economic rebound, a new poll released by the U.S. Chamber of Commerce found that confidence among business leaders had plummeted to an 18-month low as business executives worried about weak demand.
The chamber said that just 29.6 percent of the business people surveyed predicted their sales would increase in the next six months and that only 13.2 percent said they planned to hire new workers during that time period.
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