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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Sept. 11, 1990)
The Battalion EWORLD & NATION 9 Tuesday, September 11,1990 defense, ers and i in the the bet- -am has h Ohio ons 33 nal line >utofit. lefense, m that ise will ikying 1 nous- reivers d more r game rs de- Satur- ig in a y don’t ' up un- ine like e can’t d must i third p the iat wor- think it ; game. I not be Ameri- dazard, with an rd be- ' Dykes many nd him ussein attempts to gain import with free oil offer ssociated Press its s well oil hip of se- Izer is ini' success, to get the the most mrsing a left hand t will Saddam Hussein offered free oil to developing nations Monday in a bid to win their support and circum vent a U.N. trade embargo, and he got a boost from a former enemy when Iran agreed to restore full dip lomatic ties. The White House characterized th developments as signs the Iraqi |resident is growing desperate and rasping at any straw he can find.” Secretary of State James A. Baker III, briefing NATO ministers on the eekend U.S.-Soviet summit, asked e allies to send ground troops into e Persian Gulf region — even as a mbolic presence — to increase ressure on Iraq to withdraw from uwait. There were no immediate ffers. Baker also announced he would Crisis forces social change in Arab world JIDDAH, Saudi Arabia (AP) — The ban on women serving as nurses was lifted Monday, which would have been unthinkable in this strict Moslem kingdom be fore Saddam Hussein’s army in vaded neighboring Kuwait a month ago. The announcement last week was an indication of the social and political change that began after King Fahd drastically altered Saudi policy and invited hun dreds of thousands of foreign sol diers, mostly Americans, to de fend his throne. Saudi, diplomatic and other sources said the crisis will accele rate a discreet move toward liber alization that has been creeping through the kingdom for a de cade. Some of the changes wrought by the U.S. intervention may not last, but Saudi society appears on the threshold of modernization. “The crisis will have a lot of im pact,” said Prince Abdallah bin Faisal, head of one of the coun try’s major industrial devel opments and a nephew of the king. “It will speed up certain ideas that the government has been thinking about for years.” Expected changes include a more professional, broadly based military, more freedom for women, greater press freedom, more public say in local matters and a foreign policy of cementing alliances. Fear of a backlash from the conservative Islamic faithful will temper the pace. “The White House characterized the offer of free oil and the restoration of diplomatic ties with Iran as signs the Iraqi president is “grasping at any straw he can find.” visit Syria to coordinate opposition to Iraq with President Hafez Assad. The United States and Syria have longstanding differences over hu man rights and terrorism but have formed a makeshift alliance during the Gulf crisis. Syria beefed up its contribution to the multinational force facing Iraq, saying it was sending more troops to Saudi Arabia at the desert kingdom’s request. Diplomatic sources estimate that Syria has already sent 4-5,000 combat troops to the kingdom. In other developments Monday: • Baker told reporters Saudi Ara bia, the United Arab Emirates and the exiled government of Kuwait would contribute a combined $12 billion to help defray the cost of the U.S. buildup in the gulf and to assist poorer nations hurt by the U.N. trade embargo on Iraqi goods. • The official Iraqi News Agency criticized President Bush’s motives in meeting with Soviet President Mikhail S. Gorbachev in Helsinki, Finland. It said the summit showed Bush’s “evil tendencies and his spite for the Arab nation.” Gorbachev plans visit to Tokyo Land dispute blocks Japan, USSR relations TOKYO (AP) — Japan and the Soviet Union view Mikhail Gorba chev’s coming trip to Tokyo as a sign frayed relations are on the mend, but a territorial dispute over a group of small islands remains a roadblock to normalization. Soviet Foreign Minister Eduard Shevardnadze returned to Moscow Friday after three days of meetings in Tokyo, where he set an April date for the Soviet president to visit Ja pan. It will be the first visit by a Soviet leader to Tokyo. Both sides noted a warming of long-strained relations during She vardnadze’s visit and pledged to work toward closer ties. In a joint statement released Fri day, the countries said “both sides must make efforts to make the visit to Japan by the Soviet president a major turning point in Japan- U.S.S.R. relations.” But it was unclear whether the countries were any closer to resolv ing a territorial dispute that has pre vented the signing of a peace treaty to formally end hostilities after World War'll. “I could not find any practical change in the attitude of the Soviet Union on the territorial issue,” Japa nese Foreign Minister Taro Na- kayama said Friday after two days of talks with his Soviet counterpart. For years, Tokyo has insisted that the sparsely populated Kuril Islands off northern Japan seized by the So viet Union at the end of the war must be returned before there can be any real progress in economic or political ties. The chain of islands were Japa nese territory from 1875 until after that with rom now up.” izier and h, players lie’s dog- »roach to ;nts. ie knows •iters) will (zier said' wn man, do. ing to rip year won he had to Slowing economy will require cuts in public, private spending NEW YORK (AP) — Americans are getting to the point where they will have no other choice but to cut public and private spending and, who knows, maybe ;ven taxes. As the economy slows, the strains and the pains are Showing up in the form of bank and savings and loan ^failures, personal and business bankruptcies, late and often incomplete repayments everywhere, and in gov ernment budget deficits. Recognition that spending must be supported by in- itome was a long time coming, because government, Business and individuals had myriad ways in which to avoid facing the facts. ■ The federal government, for instance, simply tossed main costly items off the budget, business kidded it self into believing sales would soar and enable it to pay off junk bonds, and individuals discovered easy credit. The latter also discovered the bankruptcy laws and ^Utilized them. Purdue University’s credit research cen- |er reports that the number of filings for personal bankruptcy in 1989 was 3.5 times the filings of a decade ?°- Past-due real estate loans at banks climbed $3.2 bil lion in the April-June period. Corporate junk bond de faults so far this year total $9.4 billion, or $600 million more than all of last year. State governments are in deep trouble. Even Massachusetts Gov. Michael S. Dukakis, who once suggested his colleagues lacked courage in seeking to avoid spending increases, has been forced to cut. The biggest blow to state budgets is the economic de cline, which has cut deeply into revenues. But if it weren’t for higher tax rates, the deficits in many states would be higher still. State tax revenues in fiscal 1989 rose nearly $20 bil lion to $284 billion, a 7.5 percent one-year jump, according to the Tax Foundation. To a great extent, those tax increases had hidden the problems — until the downturn. And now, with economies receding, outrage against high taxes is growing. The foundation study showed state tax collections from personal income last year rose 10.7 percent; from corporate income, 10.4 percent; and from sales tax, 7.3 percent. Still, cuts are inevitable. Grand Opening New Music Entertainment % KTV Club LASER VIDEO SING ALONG1 Hunan Restaurant and Bar pjg 50in. T.V. 707 Texas Ave.—Upstairs College Station 764-8200 50in. T.V. 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He also said the two countries were ready to discuss “new prin ciples” with Gorbachev’s visit. That appeared to echo comments attributed to Gorbachev in recent weeks that he was willing to talk about anything in a summit with Japanese Prime Minister Toshiki Kaifu. The Soviet Union has long sent conflicting signals on whether it was willing to negotiate the fate of the is lands. As recently as July, Gorbachev re fused to discuss Japan’s claim to the disputed islands, saying the issue had been decided after World War II and the Soviet Union abided by postwar arrangements. Some analysts say they expect the Soviets to seek a resolution to the territorial issue to gain access to Jap anese economic aid and investment to help shore up the faltering Soviet economy. Moscow has said it wants in creased Japanese economic cooper ation, particularly in remote Siberia. 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