6 Tuesday, November 15, 1988 / University Daily Kansan PLO parliament recognizes Israel The Associated Press ALGIERS, Algeria — THE PLO's parliament today proclaimed an independent Palestinian homeland with Jerusalem as its capital, and extended the olive branch by implicitly recognizing Israel. Wearing the traditional black-and-white checked headress, Arafat read his speech in Arabic in a low, solemn voice. PLO chairman Yasser Arafat read the declaration early today to the 450-member Palestine National Council, Arab dignitaries and observers, who broke into long applause and loud cheers. "The Palestinian National Council hereby declares the establishment of a Palestinian state with Jerusalem as its capital, which will be for all Palestinians wherever they are," he said. The PLO leader declared the new Palestinian state would be government by "a democratic, parliamentary system based on freedom of opinion, multiple parties, freedom of worship and equality between men and women." The declaration of the new state did not set out its boundaries, which the Palestinians say should be determined in future negotiations. MIDDLE EAST Algerian Foreign Minister Boualem Bessaiah announced to the council that Algeria officially recognized the new state, becoming the first country to do so. It had been expected that the Israeli-occupied West Bank and Gaza Strip would be included in the homeland. Israel captured the West Bank from Jordan and the Gaza Strip from Egypt in the 1967 Middle East war. The declaration came shortly after the council had endorsed a new political strategy implicitly recognizing the state of Israel and renouncing terrorism. CAMPUS Continued from p. 1 preconditions for dealing with the Palestinian Liberation Organization. Deborah Gerner, assistant professor of political science, specializes in Middle Eastern politics. She said the United States and Israel have not seemed to be influenced much by the actions of the PNC. "The most recent meeting of the PNC) reflects their acceptance of the existence of Israel." Gerner said. "The question is what does the PNC have to do to please the United States and Israel." She said in the short run, the declarations probably won't affect Israel's actions. But in the long run, it might make the world community more supportive of the Palestinians. nesthands: Sadeq Abuobaid, Amman, Jor ian, senior who said his real home is Palestine, is president of the General Union of Palestinian Students at KU. "The action is probably not good for us, because what if we recognize Israel and then they still won't talk to us and continue the bloodshed in the occupied territories?] Whether we recognize Israel or not, I really don't think it will change anything. And whatever Israel does, I don't think America would criticize Israel," Aboubid said. The PLO has ordered that all Palestinian organizations respond with peaceful demonstrations, he said. His group, the General Union of Palestinians Students (GUPS) is planning to have such a march on campus tomorrow. Bush seeks to reassure markets The Associated Press GULF STREAM, Fla. — President-elect George Bush, seeking to calm skittish financial markets, said yesterday he considered the federal budget deficit a matter of "great urgency" that he intends to tackle quickly in the new administration Bush also said he was fully committed to the Reagan administration's policy of coordinated actions with other major countries to stabilize the value of the dollar on foreign currency markets. The vacationing president-elect added his voice to a chorus of Reagan administration and Bush aides trying to reassure financial markets after a huge sell-off last week. The big drop was blamed on the unforeseen shift in Bush's ability to handle the economic challenges facing the nation. The words of assurance apparently had some effect. The Dow Jones industrial average of 30 stocks, which had lost almost 80 points since Bush's first election, reached 47 point Friday. steadied and ended the day down only 1.95 points. The dollar, which had been battered last week, recovered some of its losses as traders reflected on the U.S. statements pledging further cooperation to stabilize the currency. "The dollar apparently is stronger this morning and apparently the Economic analysts have said the shaky markets are reflecting worries about Bush's ability to bring down the U.S. budget deficit, especially in light of his tough 'read my lips' stance against tax increases and his repeated insistence during the campaign that a "flexible freeze" on spending was all that was needed to balance the budget. Tokyo market is up, so these gyrations happen," he said. Bush told reporters he was "convinced that the deficit remains a major problem." "I will address myself to that early on in my presidency," he said. "It is a matter of great urgency." Bush's chief of staff, Craig Fuller, who is also co-director of his White House transition team, emphasized the deficit as "priority one" in an interview on the NBC-TV's "today show. Fuller sheds light on good contacts" with House Speaker Jim Wright on the matter. Both Fuller and Bush indicated there would be no major differences in spending priorities between the Bush and Reagan administrations. On the dollar fluctuation, Bush was asked if he favored lowering the dollar against foreign currencies, as was suggested last week by his occasional financial adviser, Martin Feldstein. Quayle, Indiana governor discuss successor for Senate The Associated Press WASHINGTON — Vice President-elect Dan Quaylo announced yesterday that he intended to resign his Senate seat in time to give his successor a jump in seniority over the new class of lawmakers be sworn in Jan. 3. Quayle said he had no recommendations to make on a successor when he met privately with the head of the company, who will make the appointment. Orr, a Republican, stressed that the decision would be his to make, and said he and Qayyle "talked about it" in people of land. That's confidential." The appointee will serve until a special election in November 1990. The list of possible successors includes Rep. Dan Coats, a former aide to Quayle who holds the House seat once occupied by Quaile; Indiana House Speaker Dan Paul Mannweiler and Mitchell Daniels, a former White House political director with close ties to Sen. Richard Lugar. Quayle's wife, Marilyn, has passed up several opportunities to say whether reports of her interest in the seat are true, although the vice president-elect told reporters he would tend to issue a statement shortly. Other names mentioned include Marion County prosecutor Steve Goldsmith; Lt. Gov. John Mutz, who was defeated in the election for governor last week, and Indianapolis Mayor William Hudnut. Others whose names have cropped up include former Indiana Secretary of State Edwin Simcox, one-time Environmental Protection Administration chief William Kleaus and Rep. Dan Butler. "The policy in effect is the admin- istration policy built around policy coordination and exchange market stability. That's the policy of the administration," he replied. Bush's comments were virtually identical to a brief statement issued in Washington. The Associated Press presidential campaign. BOSTON — Defeated Democrat Michael Dukakis, facing an uneasy transition back to the Massachusetts Statehouse, acknowledged Monday that his state has fiscal problems but insisted they're not as bad as George Bush said they were. As he did on the campaign trail, Dakikis refused to rule out new state taxes. But he promised to balance the current $11.6 billion state budget when the fiscal year ends next June. they are no longer from the cheering rallies of the presidential campaign, the governor fielded questions from his home-state press on issues ranging from taxes to a new car for the lieutenant governor. Asked about his own political future, Dukakis said he had made no decision about whether to run for governor again in 1990, when his current term expires. "We face major challenges," Dukakis acknowledged at a jammed Beacon Hill news conference. But he disagreed with critics who say the state faces a "fiscal crisis" and denied that problems had worsened at home because of his 20-month "It's too early to tell. I'm back at a job I love. I'm challenged by it." Dukakis said, promising to make a decision on his plans "sometime next year." Last Wednesday, Dukakis held a news conference to assess his unsuccessful presidential campaign. At the time, he said he planned to continue the fight for the national agenda his campaign will be able to evaluate on a possible second run for the presidency. Dukakis appeared rested yesterday after his first weekend of rest in months. While Republican George Bush vacationed in Florida, with federal office-seekers and international stock traders hanging on his every word, Dakikas walked from his home in suburban Brookline to the local trolley stop and rode public transit to work yesterday with no fanfare. The only news conference question touching on Dukakis' presidential campaign was from a reporter who wanted to know if the time the governor spent campaigning was to blame for the state's fiscal situation. If you need abortion or birth control services, we can help. 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