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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Dec. 7, 1990)
Friday, December 7, 1990 The Battalion Page 7 son Bush will not offer Iraq concessions to end crisis t som Stephen l >rt “nonsr. ition in At; | ?0, it has $251 bilk { r the penc nstitutions ets rougtiiii;, into the nr. link it's fe r.” ; buyers m? icy want to; rchase au: : rather t U r bidders. Congress» on,” he s omplainenl o are a lol have bo® IUSI 981 nore pr eu '; 'ere anioiii ; lifetime^ seventh i o 69 : from l females ii' f student uring the : dAmon? ip from 21 ercent in • -pW BUENOS AIRES, Argentina (AP) - President Bush said Wednesday “I am not optimistic” that Saddam Hussein will withdraw without a fight from Kuwait and vowed that Iraq will not be offered any concessions to end the crisis peacefully. “I have no feeling whatsoever that Saddam Hussein is willing to do now that which he should have done five months ago, four months ago,” Bush said. Bush’s tough approach was echoed by Argentine President Carlos Menem of Argentina. “We whole heaijtedly condemn what Iraq has done, to invade and occupy a territory which does not belong to it,” Menem said at a joint news conference with Bush. “The only way is for Iraq to withdraw without any pre conditions.” Bush met with Menem at Casa Rosada, the presi dent’s palace, within eyesight of the army headquarters seized by rebels in a short-lived military uprising Mon day. Bush congratulated Menem for ending the rebellion quickly. “The Argentine people proved again this week that they will not permit any group to return Argentina to the days of violence and dictatorship in a superb show of strength and commitment,” Bush said. The president got a red-carpet welcome. A proc ession of presidential grenadiers on horseback led Bush’s motorcade to the Hall of Congress for an ad dress to lawmakers. “Let those who would attack constitutional democ racy understand: in Latin America the day of the dicta- “I'm not optimistic. I see no evidence that Saddam Hussein is ready to comply fully... to the U.N. resolutions.” — President Bush tor is over,” Bush declared to the Congress. He also praised Menem for his tough free-market re forms to cure Argentina’s inflation, estimated at up wards of2,000 percent in 1990. “We know of the painful, short-term sacrifices you are being called upon to make, in what your own presi dent has called ‘surgery without anesthesia,”’ Bush said. “For this tremendous undertaking to succeed, it will not take miracles, it will take work.” Bush was Menem’s guest at an evening rodeo and a state dinner. In his prepared toast, the president lauded Menem, saying “You have helped re-establish Argentina’s democratic tradition and I salute your bold reform of the economy.” Bush also expressed appreciation for Menem’s sup port in the Persian Gulf. “Together, we will do what is right and good,” the president said. “I’m not optimistic,” Bush said. “I see no evidence that Saddam Hussein is ready to comply fully without condition to the U.N. resolutions.” Leader of Texas economy University of North Texas economist predicts Houston most vibrant during recessionary pinch DENTON (AP) — Houston will have the state’s most vibrant econ omy next year as Texas feels a reces sionary pinch, University of North Texas economists said Thursday. “Houston has been leading the state out of the wilderness just as Houston led the state into the depths of depression,” said Bernard Weinstein of the Center for Eco nomic Development and Research at the university. About one-third of all new em- tent in the state next year will in Houston, Weinstein and his colleague, Harold Gross, predict in a new study. Job growth in Texas will decline from about 1.5 percent this’year to 1 percent in 1991. The state’s four largest metropolitan areas will all have fewer new jobs next year, the economists said. Houston jobs will continue grow ing the most, at about 1.5 percent compared to 3 pefc^nt this year, they predicted. New jobs in Dallas-Fort Worth and Austin will occur at a rate of .5 percent. Dallas-Fort Worth jobs grew at a 2 percent rate this year and Austin jobs grew at 1.25 percent. San Antonio, which had a .5 per cent rate this year, will show virtually no job growth in 1991, the econo mists said. The job picture for Houston is “amazing” because of the slump it went through in the mid-1980s, Weinstein said. Houston lost 212,000 jobs be tween 1982 and 1986, but has recov ered 170,000 since then. “It’s a dra matic recovery and says a lot about the vitality of the area,” he said. Houston’s economy has benefited the most of any in Texas from higher oil prices driven by the Per sian Gulf crisis, Weinstein said. It will still prosper when the prices fall after the Middle East tensions ease, he said. Weinstein and Gross predict oil prices will settle at between $22 and $25 per barrel when the Persian Gulf crisis is resolved. “That’s going to be good for Texas and help insu late us from vicissitudes of the na tional recession,” Weinstein said. A hint occurred Thursday of the likely decline in oil prices that reso lution of the crisis would bring. West Texas Intermediate fell 90 cents to $26.40 a barrel after Iraqi President Saddam Hussein said foreigners held hostage in Iraq and occupied Kuwait could go home. Energy extraction Was flat in Texas during October and Novem ber, the Federal Reserve Bank re- E orted earlier this week. Producers aven’t increased drilling because of fears they’d lose money if prices fell. The gulf crisis has harmed the two key components of San Anto nio’s economy, the military and tou rism, Weinstein said. The city has lost the spending power of locally-based military per sonnel cleployed in the Middle East and tourists who are staying closer to home because of gasoline costs. The city’s economy will still fare better than many places, though, the economists said. Perry plans to attract new industry LUBBOCK (AP) — Agricul ture Commissioner-elect Rick Perry said Wednesday that at tracting processing plants to the Texas for such goods as leather, cashmere and mohair may help spur a slowing economy. Perry, who is replacing Agri culture Commissioner Jim High tower, said bringing processing plants to Texas will be one of the highest priorities on his agenda. He takes office next month. ‘T think we can buffer any re cession woes in the agricultural industry very quickly with proc essing,” Perry said during a brief press conference. “Obviously, you can’t build a processing plant overnight. But processing will be one of the ma jor things the Texas Department of Agriculture will be focusing on in the next four years.” Perry said he already has re ceived support from Gov.-elect Ann Richards about pursuing the plants. “Ann Richards; is a great pro ponent of value-added proc essing and talked about it in her economic development plan,” Perry said. “Ann and I are going to work very closely together. I am excited about the possibility of taking her processing ideas and putting them to work.” Perry said West Texas is an ideal location to tan leather. “Obviously a leather-tanning plant would be right out here (in West Texas),” he said. “Texas Tech is the premier institute in the country on it, and I would ex pect a major tanning plant within a 100-mile radius of Lubbock.” Perry said he has gotten off to a quick start in his new job after vistting with President Bush, Vice President Dan Quayle and U.S. Agriculture Secretary Clayton Yeutter in Washington last week. Perry said he recommended to Bush that federal laws restricting U.S. trade with the Soviet Union due to oppressive Jewish immi gration laws in Russia be relaxed. Perry said the laws should be handled with sensitivity out of re spect to the Jewish community worldwide. But he added that re laxing the laws would open the U S. export market, especially for Texas farmers of wheat, feed grain and soybeans. “We were well received by the U.S. Department of Agriculture,” Perry said. S&L owner agrees to pay $1.9 million AUSTIN (AP) — One of the largest civil lawsuits from the Texas savings and loan crash was concluded with former Lamar Savings Association owner Stan ley Adams and his wife agreeing to pay the government $ 1.9 mil lion. The Federal DepositTnsurance Corp. claimed Adams, his wife, Christie, and former Lamar offi cials breached their fiduciary duty and committed negligence in a series of transactions that helped cause Lamar’s financial collapse. The lawsuit was filed 33 months ago and sought $92 mil lion in damages. As part of Tuesday’s set tlement, a judgment of neg ligence was entered against Ad ams and his wife. Two other defendants, ex-Lamar executives Reuben Coleman and Mike Perry, were released from the case without a financial payment or judgment against them. Terms of the settlement with former La mar director Jack Ritter were not disclosed. Also, the government agreed to drop civil claims against Adams and his parents in connection with the failure of City Savings of San Angelo, which Adams also owned. FDIC lawyer Steven DeWolf said settlements from defendants in the case have totaled more than $10 million. The largest single settlement was made Nov. 21, when Lamar Financial Corp., the holding com pany that owned Lamar Savings, and a trust established for Christie Adams, agreed to pay the government $4.4 million. DeWolf said he was disap pointed the case didn’t go to trial. But he said the settlement was the most efficient way for the FDIC to recover some of the massive expense resulting from Lamar’s collapse. Lamar Savings, once the larg est Austin-based financial institu tion, was closed by federal regula tors in 1988. Workers’ compensation under fire Lawsuit questions new bill AUSTIN (AP) — A labor lawsuit challenging the new state workers’ compensation law was blasted Wednes day as “a slap in the face to our system of government” by the president of the Texas Association of Business. “Union leaders and trial lawyers are using this law suit in a last-ditch attempt to overturn something that was decided by the duly elected representatives of the people of Texas a year ago,” Dane Harris said. He attributed the lawsuit to “professional greed.” A TAB release said the workers’ compensation measure will cut excessive attorney fees in lawsuits and lower business costs. Tommy Townsend of the Texas Trial Lawyers Asso ciation said, “I don’t want to get into that kind of rhe toric on that issue.” The lawsuit asking that the law be declared unconsti tutional was filed by the Texas AFL-CIO in Maverick County. Union President Joe Gunn agreed the court system is a last resort. “My responsibility is to do everything I can to get the workers fair and honest treatment,” he said. The lawsuit asks that current rules stay in effect until the legal issues are settled. The new law is to take effect Jan. 1. A hearing on a temporary court order is set for Thursday in Eagle Pass. The lawsuit says the new workers’ compensation law will lower disability benefits to most injured workers, restrict employee access to court and discriminate against Hispanics because it reduces benefits for agri cultural workers. The law was passed last year, after two special ses sions in which business interests lined up against labor and trial lawyers, who represent injured workers. Harris said the lawsuit is irresponsible, jeopardizes the state’s economic future and would deny workers im proved benefits and job opportunities. Gunn responded, “I’m so proud to have Dane Harris looking out for workers. That’s like giving the fox the henhouse.” Harris questioned why the lawsuit was filed in Eagle Pass, rather than in Austin, where the Workers’ Com- E ensation Commission is located. A co-plaintiff in the iwsuit is from Maverick County. And Harris said O.B. Kenemore, who serves on the AFL-CIO executive board and on the Workers’ Com pensation Commission, should resign one position. The commission is a defendant in the lawsuit. Holiday Bowl Special-^ SAN DIEGO ... THE BEST WAY TO STAY A. r* plus tax is on the Bay! 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