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. 82 No. 50 USPS 045360 12 pages
College Station, Texas
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Reagan tries
to halt reports
on hostages
With The Punches
1 Joe Kendrick, a sophomore general studies major (left), throws
jUtolpunch Thursday at his partner Bruce Hartweg, a junior geo-
Photo by Jnhn Makely
physics major. The two were attending a self-defense
taught by the Texas A&M Self-Defense Club.
WASHINGTON (AP) — Presi
dent Reagan on Thursday tried to
quell reports that his administration
helped win release of three hostages
held in Lebanon by aiding the trans
fer of defense supplies by Israel to
Iran.
Israel, with the blessing of the
White House, shipped Iran spare
parts and missiles for U.S.-made F-4
jet fighters as well as parts for Amer
ican-made C-130 planes, radars and
other war supplies, according to the
Los Angeles Times.
Reagan, asked by reporters
whether he had a deal with Iran,
said: “No comment, but could I sug
gest an appeal to all of you with re
gard to this, that the speculation, the
commenting and all on a story that
came out of the Middle East . . . one
that to us has no foundation, that all
of that is making it more difficult for
us in our effort to get the other hos
tages free.”
Later, White House spokesman
Albert Brashear refused to specify
which story Reagan meant when he
said it had “no foundation.”
“I’m just not going to comment on
what he was referring to, which sto
ries might be factual and which are
not,” Brashear said. “I just can’t do
that right now because it would be
dangerous for me to do so.”
Reports of the deal began appear
ing after the speaker of the Iranian
parliament, Hashemi Rafsanjani,
said in a speech Tuesday that former
White House national security ad
viser Robert McFarlane had visited
Tehran, had been confined to his
hotel room and then expelled. Mc
Farlane carried a message from Rea
gan, Rafsanjani said.
The White House has declined to
comment on Rafsanjani’s remarks,
and McFarlane told reporters in
Cleveland Thursday that he could
not offer any specifics.
According to reports published
Thursday in the Los Angeles Times
and the Washington Post, adminis
tration officials began working with
Israeli authorities 18 months ago to
arrange top-secret deliveries to Teh
ran of U.S. arms desperately needed
by Iran in its see-saw war with Iraq.
The shipments, made with the
personal approval of Reagan, began
last year and led to the release of
See Hostages, page 12
SU says it could fold without rate increases
ATON ROUGE, La. (AP) —
Hoi nilf States Utilities Co. could go
WorBkrupt in March without emer-
nele pncy rate increases from Louisiana
H Texas, company officials said in
jBuments filed with a federal
1 vligency.
will Benedetto, a spokesman for
he utility, said GSU would be the
irsi investor-owned utility to go
blikrupt since the Great Depres-
ion.
Ifhe filing with the U.S. Securities
ml Exchange Commission marked
he first time the utility set a date for
Tsible bankruptcy,
Ipy federal regulations, utilities
list keep the SEC abreast of their
arplilems. .
||’>SU has been saying it needs
i)0 million in emergency interim
rate increases in both states to be
ble to borrow the additional $200
tii lion it needs to meet interest and
finance our
There is no
raising the
“We cannot
way out . . .
chance of
funds we need without
reasonable rate relief ”
— GSU President E. Linn
Draper Jr.
cash payments that come due in the
first week of March.
Should it become necessary for
the company to seek protection un
der the Bankruptcy Code, many un
certainties exist, GSU wrote to the
SEC.
“There is substantial risk that a
bankruptcy filing would adversely
affect the shareholders’ abilities to
exercise their corporate rights and
privileges, and there can be no as
surances that any equity would sur
vive for the benefit of shareholders,”
GSU wrote.
“Purchasers of preferred and
preference stock should take such
matters into account as well.”
Bendetto said that if the emer
gency rate increase is granted by the
Public Service Commission, resi
dential rates in Louisiana would in
crease by about $8 per month or 27
cents per day.
He said the average residential
customer in GSU’s Louisiana service
area now pays $65 per month for
electricity.
This summer, GSU filed a $202
million full rate increase request with
the PSC and since has filed the
emergency interim request.
GSU will file a similar rate in
crease request in Texas this year,
Benedetto said.
GSU would be the first in
vestor-owned utility to go
bankrupt since the Great
Depression.
— Bill Benedetto, GSU
spokesman
He said,“GSU’s financial prob
lems are caused by three major fac
tors: economic depressions in Texas
and Louisiana, federal regulations
which prompted the company to
build the $4.3 billion River Bend nu
clear plant and residential rates that
have been frozen in Louisiana since
1982.”
Bendetto said that GSU has tried
to cut its costs by eliminating 200job
positions, giving early retirement to
more than 300 employees, eliminat
ing dividends on common stock and
restructuring its debt.
GSU President E. Linn Draper Jr.
said in a press release, “Our cost-cut
ting efforts have helped reduce our
cash shortfall.
“However, cost reductions alone
will neither solve nor eliminate the
shortfall.
“We cannot finance our way out
of this problem. There is no chance
of raising the funds we need without
reasonable rate relief.”
Public Service Commissioner
Louis Lambert has criticized GSU
for not doing everything possible to
cut its debt and to raise money. Lam
bert has given GSU a list of things it
can do to raise money, including
foregoing payments on preference
stock, selling some of its assets out
right and selling and leasing back
some of its other assets.
Pre-registration
set for Monday
Pre-registration for Spring
1987 begins Monday, as graduate
students and seniors get the first
opportunity to make use of Texas
A&M’s new telephone registra
tion system.
Students must register during
their designated times, or they
will not be permitted to register
until the open registration and
drop-add periods.
Phone lines will be open Mon
day through Thursday from 8
a.m. to 10 p.m. and Fridays and
Saturdays from 8 a.m. to 6 p.m.,
Nov. 10 through Dec. 20, and
Jan. 7 through Jan. 9.
Phone lines will be open Mon
day through Thursday from 5
p.m. to 10 p.m. Jan. 12 through
Jan. 23 for open registration and
drop-add.
The registration schedule for
the Spring is as follows:
• Nov. 10-15, graduate stu
dents and seniors.
• Nov. 17-22, juniors.
• Nov. 24-29, sophomores.
• Dec. 1-6, freshmen.
• Dec. 18-20, open registra
tion and drop-add.
• Jan. 7-9, open registration
and drop-add.
• Jan. 12-16, open registration
and drop-add.
• Jan. 19-23, open registration
and drop-add.
cllhaney files
wsuit over letter
rk ‘ailed to voters
| By Olivier Uyttebrouck
Staff Writer
A former College Station mayoral
ijdidate has filed suit against the
fwher of a local advertising agency,
vhom she says produced a letter say-
ng negative things about her and
nailed it to voters in the days before
he April 1986 election.
I.vnn Mcllhaney’s sizit also names
unknown members” of an organi-
tion called Citizens for a Better
lege Station as defendants for its
t in creating and distributing the
ccording to the suit, the letter
stitutes a violation of the Texas
J lction Code because it doesn’t
■perly identify the individuals
Jp paid for the letter. For this rea-
Bl, the letter constitutes an im-
^■per use of campaign funds, the
Uu| says.
BWete Tucker, the owner of Abso-
Advertising and the only de-
^■dant identified by name in the
IB, says Mcllhaney knows who was
JHxmsible for creating and mailing
kW letters. He also says he thinks he
been singled out unfairly.
Tucker said he was never paid for
Printing and mailing the letter.
Vilen the letter became controver-
the people who originally
|gi|eed to pay for it denied having
to do with it, he said.
Tucker said he was advised by his
lawyer, Travis Bryan III, not to
name the individuals who hired him
to print and distribute the letter.
At the time of the elections, Larry
Ringer, Mcllhaney’s challenger, had
an account at Absolute Advertising.
Ringer said he knew nothing of the
letters.
Mcllhaney says she has no certain
idea who is behind the letter.
“If Mr. Tucker feels he’s being
singled out, he’s in the driver’s seat,”
Mcllhaney said. “He’s the one who
claims he was only doing his job.
Then let him say who he worked
for.”
The suit, filed Oct. 29, also named
the State of Texas as an interested
party and a copy of the suit will be
served to Attorney General Jim Mat
tox’s office. The suit notes that per
sons found in violation of the Texas
Election Code are liable to the state
for a sum of money equal to three
times that involved in the violation.
Tucker responded that since he
wasn’t paid for the letter, he can’t be
held liable by the state for any
amount of money.
Mcllhaney said she was not aware
that her lawyer, Austin attorney
Randall B. Wood, had named the
state as an interested party in the
suit. She said her motivation in filing
the suit is to set a standard for com
munity elections and ensure fair tac
tics are used in future elections.
Millions eligible to remain in U.S.
Reagan OKs immigration bill
WASHINGTON (AP) — Presi
dent Reagan, signing into law the
most sweeping immigration reform
in more than 30 years, expressed
hope Thursday that the measure will
preserve “one of the most sacred
possessions of our people — Ameri
can citizenship.”
Millions of illegal aliens may be
come eligible to remain in the
United States legally under the act,
approved in the waning days of the
99th Congress after years of political
wrangling.
But sponsors of the measure have
expressed fears the complex law
may trigger an administrative night
mare.
Reagan, before signing the mea
sure, noted that illegal immigration
should not be seen as a problem be
tween the United States and its
neighbors.
Some opponents of the measure
had argued the bill would prompt
widespread discrimination against
such groups as Hispanics.
With nearly two dozen lawmakers
and administration officials standing
behind him, Reagan used four pens
to sign the two-inch thick bill during
a brief ceremony in the Roosevelt
Room.
For aliens who have been living in
the United States illegally since be
fore 1982, the bill contains an am
nesty provision that will enable them
to obtain temporary legal residency. •
That can be converted to permanent
residency status after 18 months for
those who can demonstrate a mini
mal understanding of English and
some knowledge of U.S. history and
government.
Officials do not know how many
people will fit in that category but
expect several million applications.
Under the measure, the govern
ment changes hiring practices across
the country by requiring all employ
ers to verify that newly-hired em
ployees are legal U.S. residents.
And those caught hiring illegal
aliens will be subject to tough new
penalties — a system of civil fines
and criminal prosecutions that could
result in prison terms for habitual
offenders.
Officials also must administer a
new program for thousands of mi
grant foreign workers who enter the
country to harvest perishable fruits
and vegetables.
Rep. Peter Rodino, D-NJ., chair
man of the House Judiciary Com
mittee and long-time proponent of
immigration reform, said the law
means employers know there is a
penalty for hiring illegal aliens.
The employer sanctions would be
phased in after a six-month educa
tion period. The following year, first
offenders can be issued warning ci
tations, and repeat offenders would
become subject to $3,000 to $10,000
fines for each illegal alien they hire.
Those who make it a practice to
hire undocumented workers could
face up to six months in prison.
Future of arms control, summits in doubt
VIENNA, Austria (AP) — U.S. Secretary of State
George P. Shultz and Soviet Foreign Minister Eduard
A. Shevardnadze failed Thursday to make headway to
ward curbing nuclear weapons and left the future of
arms control and superpower summits in doubt.
Shultz told reporters after his five hours of talks with
Shevardnadze over two days: “I can’t say that the meet
ings have moved arms control matters along in any sig
nificant way and I regret this.”
Shevardnadze said he was returning to Moscow with
a bitter taste after being confronted with “a mixed bag
of old mothballed views and approaches.”
Summing up the meetings, which took place while
Shevardnadze and Shultz were in Vienna for a confer
ence on human rights and East-West relations, one se
nior U.S. official said: “It was a bust.”
Another senior U.S. official, also speaking on condi
tion of anonymity, said there would be no further high-
level sessions until the Soviets indicated a willingness to
negotiate constructively.
Shevardnadze said another superpower summit will
depend on further contacts. He said talks will be contin
ued. Soviet leader Mikhail S. Gorbachev agreed last No
vember to a meeting with President Reagan in Wash
ington this year.
Shultz said the subject never came up in his talks with
Shevardnadze.
Speaking of efforts to reverse the arms race, Shultz
said: “This is a long-paced negotiation, I’m sure, and it
has its rhythm. . . . The pace cannot be forced by either
party.”
U.S.-Soviet arms control talks in Geneva are to recess
next week until January. Shultz offered to have U.S.
and Soviet experts meet in the interim, but Shevard
nadze apparently did not accept.
A package of U.S. proposals, reflecting the tentative
arms reduction accords reached in last month’s Iceland
summit, were presented last week to Soviet negotiators.
U.S. officials said the Soviets have not responded to
the proposal package.
Shevardnadze, at an airport news conference, said
the Soviets would put forth new proposals Friday at Ge
neva. He said the proposals would be guided by the po
sitions reached at Reykjavik.
A senior U.S. official said he expected no change in
basic Soviet positions.
The official said the Soviets would again demand
testing of “Star Wars” technology be limited to laborato
ries, abolishing all strategic weapons by 1996, and an
end to U.S. development of short-range nuclear weap
ons to be used for Western Europe’s defense.
si