The Battalion. (College Station, Tex.) 1893-current, June 30, 1987, Image 6

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    Page 6AThe BattalionATuesday, June 30, 1987
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World and Nation
Korean presidential candidati
asks for major election reform
SEOUL, South Korea (AP) — President Chun
Doo-hwan’s chosen successor made a surprise re
quest Monday that Chun adopt major democratic
reforms, and the opposition immediately called
for a direct presidential election by November.
The proposals by Roh Tae-woo, head of the
governing Democratic Justice Party and a long
time ally of Chun, followed 18 days of demon
strations and violent street protest.
Roh threatened to resign as party chairman
and presidential candidate if Chun refused his
demands, and reports indicated he did not con
sult the president before announcing his deci
sion.
Direct election of the president has been a ma
jor opposition demand, but Chun announced in
April that discussion of political reform would be
postponed until after tne 1988 Summer Olym
pics in Seoul. He said his successor would be cho
sen by the present electoral college system, which
favors the government.
Roh, a former army general like Chun, called
for a direct presidential election and declared
support for other opposition demands such as
press freedom, human rights guarantees and an
end to strong central government controls.
He said he acted because of enormous public
support for the anti-government protests that be
an June 10, the day a party convention en-
orsed Chun’s choice of his ally as its candidate.
“The people are the masters of their country,
and the people’s will must come before every
thing else,” Roh said Monday.
Presidential spokesman Lee Jong-ryool said
Chun was studying Roh’s demands and “will
make a final decision soon.”
Officials have predicted privately that the au
thoritarian government would have to make con
cessions, particularly in light of growing support
for the protests by the middle class and other in
fluential groups.
Opposition groups welcomed Roh’s package
of proposed ref orms and pushed for pres:;
elections by late October or early Novemlm
“The new development will be recordeii;
tory as a brilliant victory for the peoplt
fought vigorously for democratization,"si;
National Coalition for a Democratic Cta
tion, a new opposition alliance that spouses!
protests.
Kim Young-sam, president of then,
sition Reunification Democratic Party, im
vision of the constitution and electoral:
September to clear the way for a dirtc;
dential election.
In Washington, the White Housecaidll
proposals “very positive and forward-looki
Roh helped install Chun in poweraftal
dent Park Chung-hee was assassinatedc
and has long been regarded asoneoffc
allies. He has tried to present himselfasra
ate in the present crisis.
Official: Top embassy floors
should be torn down, rebuilt
WASHINGTON (AP) — The top
three floors of the U.S. Embassy in
Moscow, riddled with bugs, should
be torn off and a new six-story an
nex constructed alongside to house
the mission’s most sensitive func
tions, former Defense Secretary
James R. Schlesinger said Monday.
The cost of the rebuilding job is
estimated at $80 million.
Schlesinger, asked by President
Reagan to recommend what to do
with the crippled eight-story struc
ture, said the entire episode indi
cates how Soviet advances in spy
technology have pushed Moscow
ahead of the Unitea States.
“As a nation, we failed to allow for
the boldness, thoroughness and ex
tent of the penetration,” Schlesinger
told the Senate Budget Commitee.
“We now face a rising curve of So
viet technology with no gap between
what we can do and what tne Soviets
can do,” he said. “In fact, in some
areas they are ahead of us.”
Among other recommendations
for the embassy complex, Schle
singer said he believes the United
States should try to “neutralize” lis
tening devices hidden in the lower
five floors of the chancery building
and put that space to use for less sen
sitive functions.
Schlesinger said the top three
floors should be replaced with floors
made of shielded steel components.
He said those floors would then be
secure and could be used for sensi
tive diplomatic purposes.
But the embassy’s most secret ac
tivities would be carried out in the
annex, to be built next door, he said.
Deputy Secretary of State John C.
Whitehead, who testified at the same
“We now face a rising
curve of Soviet technology
with no gap between what
we can do and what the
Soviets can do. In fact, in
some areas they are ahead
of us. ”
— James R. Schlesinger,
former Defense secretary
hearing, said that depending oh the
size of the annex, which he said
should be roughly one-fourth the
size of the main chancery building,
the project would cost about $80 mil
lion to complete.
Reagan asked Schlesinger on Feb.
26 to study the embassy’s construc
tion problems.
Scnlesinger said he presented his
findings and recommendations to
Secretary of State George P. Shultz
on Friday at a private meeting. Mon
day’s testimony was the first public
discussion of the report.
He said Shultz had been “very re
sponsive” to his suggestions, al
though they have not yet been for
mally adopted.
He said the 1972 agreement un
der which each country is building a
new embassy in the other’s capital
should be adjusted to make clear
that all new U.S. construction in
Moscow will be done with security-
cleared American personnel, not
with Soviet workers.
But he said that when the new em
bassy in Moscow finally is completed
— in 1990 if the Soviets cooperate —
the Soviets should be allowed to oc
cupy their new complex on Mount
Alto, one of the highest sites in
Washington.
Schlesinger said while much has
been made of the advantages of that
site as an intelligence-gathering post,
“the intelligence potential of Mount
Alto is consideraoly less than popu
larly assumed.”
Young pilot
doesn't qua
for record bo
CAHOKIA, Ill. (AP)-Ae
year-old pilot took off Modi
for Cincinnati on oneoftk
legs of a trip he hoped would
him in the Guinness
World Records as the
person to make a transom:!
tal ilight.
But his dream maybesla
lived.
Guinness spokeswoman
Smith in New York said John
vin Hill of Arlington, Ti
doesn't qualify for the rtc
book. Guinness doesn't tot
category for “the youngso
son to fly across country.'
It does, however, have a
egory for youngest solo pik
and that record is held b G:
Locke, who at 9, flewa&s
150 in Mexicali, Mexico in!
ruary 1983, Smith said.
John is “not going to geta
Guinness book,” Smith said
I’m sure he's having a J
time.”
The young pilot, whoearfe
the day toured Cardinal Cler;
Children's Hospital in St.
was unaware of Smith's
ments when he departed it
Cahokia’s St. Louis Down:
Parks Airport.
New home sales take 14.9% plunge
biggest decline in more than 5 yean
WASHINGTON (AP) — New
home sales plummeted 14.9 percent
in May, the biggest decline in more
than five years, as a sharp spike in
mortgage rates drove first-time
home buyers out of the market, the
government reported Monday.
The Commerce Department said
new single-family homes were sold
at a seasonally adjusted annual rate
of 616,000 units in May while the
median price of a new home shot up
to a record $ 106,800.
Analysts attributed the jump in
home prices to the fact that many
first-time buyers, who normally pur
chase less expensive homes, had
been driven out of the market by the
higher mortgage rates. With fewer
low-priced homes sold, both the me
dian and average sales prices in
creased.
Unless there is a downward revi
sion in later reports, the May in
crease marked the first time the me
dian price of a new home has topped
$100,000. The May increase put
prices 9.1 percent higher than in
April, when the median price of a
new home was $97,900. The median
price means half the homes sold for
more and half for less.
In addition to the jump in median
prices, the average price of a home
rose as well, climbing 10.3 percent to
a record $ 129,600 in May.
The 14.9 percent drop in sales fol
lowed a slight 1.0 percent increase in
April and was the biggest monthly
sales decline since a 19.5 percent
plunge in January 1982.
The May decline, which left the
annual sales rate at its lowest point
since December 1984, was blamed
on a big jump in mortgage rates
caused by financial market jitters
over rising inflation and a weaker
dollar.
After declining to a nine-year low
of about 9 percent in late March,
fixed-rate mortgages shot up to a
high of 10.81 percent on May 22.
They have retreated slightly since
then and now stand at 10.35 per
cent, according to a weekly survey by
the Federal Home Loan Mortgage
Corp.
In the first five months of
sales of new homes havefallf-
percent from the same tiiti
year.
For May, sales were dowi
stantially in all parts of the*
led by a 34.5 percent plunjf
Midwest, whicn left salesthw
annual rate of 78,000 units.
Sales were down 12.5 p 1
the South, which accounted'
most half of the newhomesst'
year, dropping the annuaU
253,000 units in that area.
In the Northeast, sales*';
10.3 percent to a rate of •
units, and in the West.salesff |
9.5 percent to a rate of I f *
units.
ERA announces plans
restricting construction
of air pollution sources
WASHINGTON (AP) — The En
vironmental Protection Agency on
Monday announced tentative plans
to restrict construction of large new
air pollution sources in 14 metropol
itan areas.*
The agency said it was acting gen
erally because state air pollution con
trol plans for those areas show they
won’t meet federal air quality stan
dards for either ozone or carbon
monoxide by or soon after the Dec.
31 deadline.
The turn of scores of other dirty
areas — those for which papers are
in order — will come later this sum
mer, the EPA said. However, only
about a dozen of them are expected
to face similar restrictions on con
struction because most areas are
near compliance.
One of the 14 areas — Cleveland
— could lose federal highway aid
and air pollution program grants for
not living up to a commitment to in
spect cars for exhaust pollution. It.
was the only area proposed for a fi
nancial penalty and EPA officials
said they did not know how much
money was involved.
EPA Administrator Lee M.
Thomas said in a statement the
agency wants to reserve such harsh
penalties for situations “only when
there is no longer a reasonable pros
pect that the state will progress at a
satisfactory pace.”
Though air pollution profession
als refer to construction “bans,” the
builder of a large new pollution
source — 100 tons a year or more,
such as a refinery, a steel mill or a
large paint shop — may go ahead if
he can win emission reductions from
other sources to offset what the new
project would add.
Spokesman for the California Air
Resources Board, Bill Sessa, said,
“Our air quality rules are so strin-
ent that it is rare we would ever
ave an industrial facility that would
put out as much pollution as EPA
chooses to define as a major source.”
Dallas and Fort Worth are the
only Texas cities under consider
ation for charges.
SEC to have Texas court
review Texaco defense
NEW YORK (AP) — The Se
curities and Exchange Commis
sion said Monday it would ask the
Texas Supreme Court to review a
crucial part of Texaco Inc.’s de
fense in the oil company’s multi-
billion-dollar legal battle against
Pennzoil Co.
The SEC, in a letter to Texaco
from general counsel Daniel L.
Goelzer, stated it would file a
brief focusing on an SEC rule
that is central to Texaco’s appeal
of a $10.3 billion judgment
against it in Texas state court.
The SEC would not comment
on the contents of its planned
brief, but analysts familiar with
the case said the commission’s in
volvement likely signaled a legal
interpretation favoring Texaco,
which in turn could increase pres
sure on Pennzoil to settle the mat
ter out of court.
Texaco stock rose 75 cents per
share to $38.62‘A, while Pennzoil
tumbled $3.87‘/2 to $79 in New
York Stock Exchange trading fol
lowing news of the brief.
Texaco earlier this month
asked the Texas Supreme Court
to overturn a 1985 state J ;
award of more than $10bil-
Pennzoil, which had conie*
Texaco wrongly interfered i 1
attempted merger with Gelt'
Co. in 1984.
A state appellate court
the award in February.
Texaco, which is
White Plains, N.Y
Chapter 11 bankruptcy [t'J
tion April 12. It said it
forced into the action by tlief
sibility, under Texas law,
might have posted a
ruinous $12 billion security
while pursuing its appeal.
At issue is Pennzoil’sclaii";
it had a binding agreeuieit 1
Getty to merge, and than 1 ;'
fered damages because
interference in the merger
aco later merged with Getty
Texaco contended that
Pennzoil had an outstandiir
der offer for Getty sharer
nzoil also had a p r ;j
agreement to purchase thedj
held by the J. Paul Celt'
seum, of Malibu, Calif.