CHILN
University Daily Kansan / Thursday, May 3, 1990
Nation/World
New release not expected
Ex-hostage angry that others remain captive
The Associated Press
WASHINGTON — The White House said yesterday that it had seen no signs pointing toward release of another U.S. hostage in Lebanon.
Meanwhile, White House spokesman Martin Filipin志 said President Bush would meet with Frank Reed if he spoke. The president returned to the United States.
About the message Reed reportedly was asked to carry to Washington by his captors, Fitzwater said, "I'm not aware of anything."
Bush administration officials indicated Tuesday that there was nothing new in the oral message another president had delivered, related to Bush in a White House
meeting Monday.
Asked yesterday about reports that Iranian officials were still working to seek freedom for Western hostages, Mr. Hamidzai said there are any other indications of a release."
Reed, recuperating at a U.S. Air Force hospital in Wiesbaden, West Germany, said yesterday that he was angry that Terry Anderson and Thomas Sutherland were still hostages. Both were kidnapped in 1985.
"Mr. Reed is free to say whatever he wants," Fitzwater said. "I'm sure he was reflecting briefings he has received about the status of events, but he is free to say whatever he likes."
Of Reed. Fitzwater said. "I'm sure
if he wants to come in and see the president, a meeting will be arranged. He certainly has every right to do that. . . He has not indicated to us what his preferences are."
At the State Department, deputy spokesman Richard Boucher said the United States was making indirect contacts with Iran through third parties, including Switzerland, which represents U.S. interests in Teheran.
"We continue to hope that further hostages will be released," Boucher said.
Sixteen Westerners, including six U.S. citizens, remain hostages in Lebanon. Polish was freed April 22 after 39 months in captivity; Reed on Monday after 43 months.
Senate committee approves large Pentagon budget cuts
The Associated Press
WASHINGTON — The Democrat-controlled Senate Budget Committee yesterday made the deepest cut yet in proposed Pentagon spending, approving a 1991 budget that queens President Bush's military plans by $9.9 billion.
The panel adopted the $1.2 trillion spending plan, which says it will reduce next year's deficit by $40 billion, on a 1:49 pay. Sen. John McCain has only Republican to join the committee Democrats in voting for the
package
Committee Chairman James Sasser, D-Tenn., who placed together the proposal, called it a clear and clarion call to the White House to get behind some real deficit reduction.
Bush's budget seeks $36 billion in deficit reduction.
Sasser said his package could serve as a benchmark should negotiations be held this year between the White House and congressional leaders, but he iscerning whether a need exists for formal budget talks with Bush,
while Republicans argue that such bargaining is a necessity.
The administration and congressional Democrats have been dueling all year about how Pentagon spending should be adjusted as a result of political changes in Eastern Europe. The White House has urged a cautious approach, while Democrats are eager to use some military dollars for social programs and to reduce the deficit.
The $293.9 billion the panel recommended for defense is $1.6 billion less than the amount the House included in the budget.
Economy's worst times are past, report shows
The Associated Press
WASHINGTON — The government's chief economic forecasting gauge made its largest gain in more than a decade, the government said yesterday.
"Basically, the message is the economy is showing signs the worst is behind it," said Robert G. Dedelew Jr., a professor at the Northern Trust Co. in Chicago.
The Commerce Department reported that its Index of Leading Economic Indicators rose 0.9 percent in March, nearly offsetting the 1
Nation/World briefs
percent decline in February. It was the steepest increase since a 1.6 percent gain in June 1988.
The index is designed to forecast economic activity six to nine months ahead.
"The LEI is hinting at a takeoff for the economy later this year from an amnemic growth pattern of the fourth quarter of 1989 and the first quarter of 1990," said Allen Sinai, chief economist with the Boston Co.
However, Dederick said the economy was not prepared to go on a sudden spree.
HUD SCANDAL: A former housing official said yesterday that Samuel R. Pierce Jr. was deeply involved in steering federal grants to friends while HUD secretary and that one grant was arranged after a developer appealed to then-Vice President George Bush.
DuBois L. Gilliam, once deputy assistant secretary of the Department of Housing and Urban Development and now serving a federal sentence for corruption, linked Bush to a $500,000 federal grant for a Hispanic trade center in Kansas City, Mo.
Gilliam, who admired taking bribes, testified for a second day before a congressional panel investigating the HUD scandal.
Speaking with a grant of immunity from further prosecution, Gilliam detailed how he and his manipu-
saries direct lucrative subsidies to friends.
GERMAN AOREMENT: The two German states agreed on a treaty for merging their economies yesterday after West Germany agreed to give elderly East Germans more financial access from the thrives of the free market.
The tentative agreement, which still has to be approved by the parliaments of both countries, settles big differences between the two Germanies concerning how to assess the high costs of unification.
The agreement clears the way for a
WATER CONSERVATION: Los Angeles Mayor Tom Bradley yesterday proposed mandatory conservation measures requiring all water customers to cut use by 10 percent in California with California's worsening drought.
full merger of their economies by July 2.
The regional Metropolitan Water District, which provides about half the water needed by 15 million people in Southern California, has forecast a 10 percent shortfall in its supplies this summer.
The state is experiencing its fourth consecutive drought year.
HUNGARIAN INTERIM PRESIDENT:
Parliament made a firm departure from its Communist past yesterday,
choosing as Hungary's interim president a writer jailed for his role in the 1956 antil-Soviet revolt.
Arpaed Goenck, 68, replaced Matyas Szuores, a member of the Socialist Party, formerly the Communist Party, which ruled for 42 years. He received 393 of the 370 valid votes cast by secret ballot.
Goencz's nomination was the result of a pact between the two largest rivals, the center-right Hungarian Democratic Forum, which will most likely form the new government, and the general League of Free Democrats.
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