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World and Nation
China’s nuclear offer to Iran
threatens U.S., China pact
Associated Press
WASHINGTON — Newly uncov
ered information that China re
cently has offered sensitive nuclear
technology to Iran and other nations
threatens to derail the U.S.-China
nuclear cooperation agreement
signed in July, congressional experts
and other analysts said Wednesday.
They voiced concern that China
will help other nations, including
Iran, acquire a nuclear weapons ca
pability in violation of the spirit of
the U.S.-China nuclear agreement,
which provides the framework for
sales of U.S. commercial nuclear
technology to China.
Sen. Alan Cranston, D-Calif.,
went public with charges Monday
that China has aided, or offered aid,
to Brazil, Argentina, Pakistan, South
Africa and Iran.
“My information is that China has
either engaged in serious nuclear
trade negotiations with or actually
has continued a series of nuclear ex
ports to each and every one of these
five ‘nuclear outlaw’ nations subse
quent to Chinese discussions with
the Reagan administration officials
on the importance of curbing such
troublesome exports,” he said in a
statement on the Senate floor.
Cranston accused the Reagan ad
ministration of a cover-up in sup
pressing such information and said
he would oppose the agreement,
which would take effect early next
year unless Congress blocks it.
No other member of Congress has
gone as far as Cranston in making
public information and suspicions
about Chinese activity that could re
sult in other nations acquiring nu
clear weapons. But other informed
congressional sources confirmed the
information about Chinese dis
cussions with Iran and said that
China had offered to sell nuclear
technology to Iran after the
agreement with the United States
takes effect.
The sources, who insisted on not
being identified, said the discussions
were held during a visit to China by
Iranian House Speaker Hashim Raf-
sanjani in June just three weeks
prior to the visit by President Li
Xiannian to the United States when
the agreement was signed.
Sen. John Clenn, D-Ohio, is
known to share Cranston’s concerns
about Chinese proliferation activity,
although he said he didn’t want to
comment on Cranston’s latest
charges. Clenn was the chief author
of the Nuclear Nonproliferation Act
of 1978 and Cranston was a sponsor.
In an interview with The Asso
ciated Press on Tuesday, Glenn
called on the administration to plug
loopholes in the agreement that he
saicl would make it possible for
China to help spread nuclear weap
ons in violation of the spirit of the
accord.
Glenn has introduced legislation
to amend the agreement by setting
rigid licensing requirements for any
exports of American nuclear tech
nology to China. In effect, these re
quirements would rewrite the
agreement because they would re
quire China to first agree to specific
safeguards it hasn’t endorsed in the
agreement itself.
Several key congressional staff
members and outside analysts said
Wednesday they thought the Glenn
legislation had a good chance of ap
proval. They said it would be a face
saving solution for both sides be
cause it wouldn’t require rejecting
the agreement itself.
Analysts predict sluggish growth
in yearly inflation, tax increases
Associated Press
WASHINGTON — The fifth
straight 0.2 percent monthly in
crease in the government’s Con
sumer Price Index means inflation is
running at such a slow pace that So
cial Security recipients will get their
smallest cost-of-living raise since
benefits were tied to inflation.
Moreover, the September retail
price measure reported Wednesday
by the Labor Department added the
final figure to a federal income tax
“indexing” formula that will trans
late 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 1984 — will result
in the $l,040-per-person income tax
exemption rising to $1,080 for re
turns filed in 1987. The standard
deduction for single people' will go
from $2,390 to $2,480 and for cou
ples from $3,540 to $3,670.
Tax table brackets will be widened
by the same 3.7 percent so more in
come 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 receipient starting Jan. 1.
In all, the modest changes are a
reflection of analysts’ months-long
assertions that inflation is no longer
a major factor in the U.S. economy.
Donald Straszheim, of Merrill
Lynch, Pierce Fenner and Smith said
the declining dollar is 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.”
Robert Wescott, of Wharton
which is projecting 1986 inflation at
about 3.5 percent, said, “With com
modity prices as low as they are and
wages under control, we are still
going to see very moderate inflation
for the next year.”
In another report Wednesday, 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 else
where.
Without last month’s 19.3 percent
drop in defense contracts, new or
ders would have posted a 0.7 per
cent increase in September and a
particularly key category; non-de
fense' capital goods, showed a 4.7
pet cent increase.
In a separate report, the Labor
Department said Americans’ aver
age weekly earnings, after adjusting
for inflation, rose a sharp 0.7 per
cent in September, the biggest in
crease since April 1984.
The big gain stemmed from in
creases in wages and hours worked
which were offset only slightly by the
0.2 percent increase in inflation.
September’s seasonally adjusted
0.2 increase in the Consumer Price
Index means retail prices are rising
at a 3.2 percent rate for the first
three-quarters of 1985.
El Salvador releases plan to trade
jailed rebels for Duarte's daughter
Associated Press
SAN SALVADOR, El Salvador —
The government said Wednesday it
will free 22 jailed rebels and permit
evacuation of 96 wounded guerrillas
in exchange for the kidnapped
daughter of President Jose Napo
leon Duarte, a friend of hers, and
some abducted municipal officials.
The deal ended more than six
weeks of tension that nearly par
alyzed the Salvadoran government
while leaders negotiated with a little-
known guerrilla group.
Julio Adolfo Rey Prendes, the
president’s chief adviser, said
Duarte’s daughter, Ines Guadalupe
Duarte Duran, 35, would be re
united with her family by today. He
said her friend, Ana Cecila Villeda
Sosa, 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.
Rey Prendes said the deal was
made in a series of meetings held in
Panama between Sunday and Tues
day. He said government officials
dealt with two ranking officials of
the Farabundo Marti National Lib
eration Front, or FMLN, the Salva
doran guerrillas’ umbrella organiza
tion.
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A group calling itself the Pedro
Pablo Castillo Front initially claimed
responsibility for the abductions of
the two women outside a private uni
versity where they were going to at
tend classes. A presidential body
guard was killed by the kidnappers
and another guard was seriously
wounded.
Rey Prendes described the deci
sion to evacuate the wounded rebels
as “humanitarian” and said the gov
ernment had contacted the Roman
Catholic Church about sending
wounded rebels out of the country.
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