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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Oct. 17, 1989)
The Battalion WORLD & NATION 9 Tuesday, October 17,1989 Bush slashes budget by $16 billion WASHINGTON (AP) — President Bush signed an order Monday night cutting federal programs by $16.1 billion after giving up hopes fora last-minute compromise with Congress. “It’s the law,” said White House press secretary Marlin Fitzwatcr. “We’re ready to implement it.” He said that, while the administration had sought to avoid the almost across-the-board cuts trig gered by the nation’s Gramm-Rudman budget cutting law, “it might even be good” if the budget ax does fall. The order Bush signed shortly before 7 p.m., to take effect at midnight, was largely procedural as the spending cuts were automatic under the law. “We’ll continue to work with the Congress” in seeking to develop a compromise to reduce the deficit to roll back the spending cuts, Fitzwater said. “But there is some feeling here that (the au tomatic cuts) are the way to go. It will reduce spending in a very effective fashion. “Everyone’s going to have to take in their belts,” he added.“It will have a hit, there’s no doubt about it.” Earlier, budget director Richard Darman said “we are doing what the law requires.” The cutbacks are required under the Gramm- Rudman law because of the failure of Congress and the White House to agree on a deficit-reduc tion package. House leaders met during the day to see if there was any way to accomplish a lightning-fast completion of a budget-cutting bill, acceptable to the White House, by midnight. But this came to nought and the House recessed for the evening. Imposition of the cuts — as occurred in 1986 and 1987, remaining in place the first year, being rolled back the second — is nonetheless a politi cal embarrassment to members of both political parties, adding to a public perception of a Con gress congenitally unable to do its budget work properly. The practical effects for the first several weeks are expected to be nil, however, because agencies can juggle their funds to make up for spot short falls. Darman, in a move apparently aimed at in creasing pressure on Congress to finish the defi cit-reduction bill quickly, said Monday that the cuts would be imposed at a more detailed level than in 1987. He said the effect would be to give bureaucrats less flexibility and accelerate the time in which the cutbacks would be felt. “It has a little more discipline to it,” Darman said of the new method of applying the cuts. Darman said administration officials want Congress to send Bush the streamlined $14 bil lion deficit-cutting measure the Senate approved late Friday. Then, he said, the administration and GOP lawmakers would work for congressio nal approval of a capital gains tax cut on a sepa rate bill. If the House and Senate try instead to reach middle ground on their deficit-reduction bills, he said, “we’re going to insist on preserving capital gains” in the final measure. Darman reiterated his preference for keeping the Gramm-Rudman cuts permanent. House leaders said their bill would reduce the deficit by $11 billion, but Darman said it contains just $2.8 billion in true savings. It also includes a broadening of child care programs and other provisions the administration opposes. House, Senate negotiators agree on smoking ban for U.S. flights WASHINGTON (AP) — House-Senate negotiators agreed Monday to ban smoking on all continental U.S. airline routes and on all flights to or from Alaska and Hawaii that last six hours or less. The restrictions would prohibit smoking on more than 99 percent of all flights within American territory, supporters of the ban said. Current rules prohibit smoking on flights of two hours or less, covering 80 “With few exceptions, every airline passenger in America now can look forward to smoke-free travel.” — Richard Durbin, Illinois congressman percent of U.S. routes. “With few exceptions, every airline passenger in America now can look forward to smoke-free travel,” said Rep. Richard Durbin, D-Ill., an architect of the provision. The provision was a compromise between the Senate, which sought a permanent ban on all U.S. flights, and - - ■ • ■ ■ the House, which preferred making permanent the current two-hour restrictions. The full House and Senate will have to approve the legislation before it can be sent to President Bush for his signature. The restrictions are part of an $11.9 billion spending measure for transportation programs for the fiscal year which began Oct. 1. There are other disagreements on provisions in that bill that must be worked out, and ne gotiators will take several more days before sending a compromise bill back to their chambers for votes. The House voted 259-169 on Aug. 2 to make perma nent the current ban on smoking on airline flights of two hours or less. That prohibition has been in effect since April 1988 and would have otherwise expired next April. On Sept. 14, the Senate voted 77-21 to end delaying tactics by tobacco-state lawmakers who were trying to block a permanent extension of the ban to all flights. The chamber then adopted the stricter rules on a voice vote. The Senate-approved ban would take effect 95 days after the legislation is signed. Health advocates and airline unions have sought the tougher rules, arguing that the recirculated air in air line cabins is unhealthy even to non-smokers. The to bacco industry has insisted that more evidence is needed to make that claim. Trump withdraws AMR bid; considers making lower offer NEW YORK (AP) — Donald Trump scrapped his proposed $7 billion offer for AMR Corp. Monday but said he was still considering mak ing a lower bid for the parent of American Airlines. It was the second unraveling of a giant airline deal since Friday and came against a background of grow ing alarm over debt-financed take overs for large American companies. “I am currently reviewing all my options with respect to AMR includ ing making another offer at a lower price,” the New York-based devel oper said in a letter to AMR Chair man Robert L. Crandall. Trump said he was also consid ering increasing his holdings in AMR or selling his stock. He said he would take “any other actions that I may deem appropriate.” AMR, based in Fort Worth, said it had no comment on Trump’s deci sion. The airline, which has said it wanted to remain independent, had said it would study Trump’s propo sal but the company made no other response to his overtures. Trump sent his letter after AMR’s stock dropped $13.75 a share to $84.87'/a on the New York Stock Ex change Monday as volatile trading on Wall Street continued following Friday’s 190-point decline in the Dow Jones industrial average. Trump had offered to buy AMR for $120 a share. Friday’s stock plunge was caused in part by word that the manage ment-led employee group seeking to buy UAL Corp., the parent of United Airlines, had been unable to secure financing for its proposed $6.75 billion buyout of that airline. Blue chip issues made a comeback Monday, but the broader stock mar ket remained lower and trading was extremely heavy. AMR’s stock was depressed amid the uncertain outlook for airline takeovers. Trading in the airline’s shares was temporarily halted pending the an nouncement of Trump’s withdra wal. Trump’s proposed bid, an nounced Oct. 5 but never formally presented to stockholders, had been shrouded in skepticism, partly be cause of growing criticism over a rash of airline takeovers that rely on borrowed money. The developer gave no details of his financing strategy besides a plan to include $1 billion of equity in his proposed offer. Friday’s stock drop had cast fur ther doubt on the proposed deal. High court to hear case on mergers Power of states could be strengthened WASHINGTON (AP) — The Supreme Court said Monday it will consider bolstering the power of states and private citizens to break up corporate mergers. The justices agreed to hear an appeal by California officials seeking to use federal antitrust law to kill the $2.5 billion merger of the Lucky and Alpha Beta su permarket chains. The high court acted at a time when much of the nation’s anx ious attention was focused on Wall Street developments follow ing Friday’s market tailspin. Last week’s steep drop was attributed in part to investor worries over the future of debt-financed cor porate takeovers. The supermarket case focuses on the merger of Lucky, Califor nia’s largest supermarket chain, and Alpha Beta, the fourth larg est. They operate 550 stores be tween them. The high court action Monday will keep in effect an order Jus tice Sandra Day O’Connor issued in August. In other action, the justices: • Agreed to take a new look at the rights of motorists suspected of drunken driving. The court will hear an appeal by Pennsylva nia officials seeking to reinstate the drunken-driving conviction of a man videotaped answering police questions before he was warned of his right to a lawyer or to remain silent. • Rejected an appeal by a po litical action committee linked to fringe presidential candidate Lyndon LaRouche. The group now may have to pay $2.7 million in contempt-of-court fines. • Refused to free Pan Ameri can World Airways from having to pay $951,500 plus interest to two families of victims of a 1974 crash in Indonesia that claimed 107 lives. • Agreed to use a Washington, D.C., case to set guidelines for pe nalizing lawyers who file frivolous lawsuits. Look out below It’s time you gave yourself a GSE If you’re sexually active, you should know about the GSE. GSE stands for genital self-examination. It’s a simple examination you can give yourself to check for any signs or symptoms of a sexually transmitted disease. Send for your free GSE Guide today. Be cause when it comes to sexual relationships, there are some important things to look out for. To receive your free GSE Guide, simply fill out and return the coupon or call, toll-free, 1-800-234-1124. Sponsored by Burroughs Wellcome Co in conjunction with the American Academy of Dermatology, the American Academy of Family Physicians, the American College of General Practitioners in Osteopathic Medicine and Surgery, the American Osteopathic Association, and the American Social Health Association Copr. © 1989 Burroughs Wellcome Co. All rights reserved F< For your free GSE Guide fill out this coupon and mail to: GSE, PO. Box 4088, Woburn, MA 01888-4088 Name (please pnnt) Address [_Ar City State □ English version □ Spanish version Are you over 18 years of ageP □ Xes ZIP □ No Come See Us at our New Location! BUY • SELL • TRADE LESSONS - RENTALS - REPAIRS Guitar • Bass • Banjo • Fiddle • Mandolin • Amps P.A. 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Oct 23 - Dec 6 Intermediate Aerobic Exercise D T/Th, 6-7pm, Oct 24 - Dec 7 Beginning Aerobic Exercise F M/W, 5-6pm, Oct 23 - Dec 6 H M/W. 7 8pm, Oct 23 - Dec 6 J T/Th, 5-6pm, Oct 24 - Dec 7 L T/Th, 7-8pm, Oct 24 - Dec 7 $20/Student $22/Nonstudenf 845-1631 PLUS $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 IRRITABLE BOWEL STUDY $ 10 o $100 Symptamatic patients with recent physician diagnosed, irri- linn table bowel syndrome to participate in a short study. $100 $100 ' ncent ' ve * or tbose chosen to particpate. qq $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 gS PAINFUL MUSCULAR INJURIES $50 Individual with recent lower back or neck pain, sprain, strains, $50 $50 muscle spasms, or painful muscular sport injury to participate $50 $50 in a one week research study. $50 incentive for those chosen $50 $50 to participate. $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 HIGH BLOOD PRESSURE STUDY Individuals with high blood pressure, either on or off blood pressure medication daily to participate in a high blood pressure study. $300 incentive for those chosen to participate. $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 11“ FEVER STUDY *1“ $50 Short at home study to evaluate individuals 17 years and $50 $50 older who have a temperature over 100° f. $50. incentive for $50 $50 those chosen to participate. Nights and weekends call 361- $50 $50 1500. $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 Cold Study $50 $50 $50 550 Individual 18 years & older who suffer from recent onset of jcq 550 the common cold. $50 incentive for those chosen to partici- 550 $50 P^e 55 0 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 Hacky Cough-Bronchitis-Pneumonia We are looking for these symptoms in individuals to partici pate in a short study to monitor and treat your illness. Free chest x-ray, EKG and monetary incentive for those chosen to participate. CALL PAULL RESEARCH INTERNATIONAL 776-0400