What’s News: Kurdish rebels surround an army garrison in western Iran

          
          W hats /ens: Business and Finance World Wide
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          P ties is c x s x polo 55 S e (1990 3)
          p What's News
          Business and Finance
          MONETARY DISCIPLINE is es
          A Y sential to curbing Inflation, Fed
          Chairman Voicker said. At a session
          with reporters, a cautious Mr. Voicker
          wouldn't predict interest rates or the
          economic outlook and argued that,
          though he favors a tax cut more heav
          ily we ghted to business, it is currently
          a bit premature to make that decision.
          lSbry n Pete 31
          * * *
          The basic money supply, Ml,
          surged an unexpected $1.8 billion in
          the week ended Aug. 15, while a
          broader gauge, M2 , jumped $3 billion.
          The gains put added pressure on the
          Fed to squeeze credit further.
          ( *crv cn Page 3)
          * * *
          The budget deficit estimate for fis
          cal 1979 was widened by the Carter ad
          ministration to $30 26 billIon, due to a
          $594 million increase in projected out
          lays. The White House also raised its
          estimate of receipts for the year
          l t ry n P e 31
          * * *
          Car sales in the U.S. climbed 22%
          in mid-August to an esumatea Z42,9S
          units, a record, General Motors and
          Ford posted volume highs In the pe-
          nod, when they both had extensive
          factory sales-Incentive programs
          Most analysts termed the increase “a
          fluctuation,” discounting any idea of
          an auto sales recovery
          on P g 21
          * * *
          American Motors and Renault hope
          to decide by year-end on a previous
          proposal to assemble Renaults at
          AMC plants Ill the U S The project
          would require a $100 million to $200
          million investment, an AMC officer
          said
          IStory on P g 2)
          * * *
          Hertz cut its car rental rates for
          leisure travel an average 33% and un-
          veiled a standardized national fee for
          those rentals Avis, the nation's sec-
          ond largest auto renter, said it was re-
          viewing its rates.
          o P g 31
          * * *
          Money market funds increased
          their assets a record $4 1 bIllion to
          $30.01 billion in July. The funds, which
          are yielding at least 9% to 10% cur
          rently, have gained popularity as In
          terest rates continue to remain high
          on Peg. 71
          * * *
          Massey Ferguson posted a $53.8
          million (U S I profit, due to a large
          tax credit, for the fiscal third quarter.
          The company had a $90 million loss
          the year earlier. The concern is plan-
          ning a $300 million to $500 million
          (Canadian) sale of preferred stock
          and warrants to buy common.
          lSIoqy P g 4)
          * * *
          Three Importers of Algerian lique
          lied natural gas were given a 40%
          temporary price boost by the Energy
          Department The rise was possible be
          cause the U S lets the companies pay
          their supplier triple the allowed rate
          l )ory on P e 41
          * * *
          Houston (ill agreed to buy Colom
          bia's third largest petroleum company
          for $55 million in cash and notes
          ISI,ry on Page 41
          * * *
          Air routes linking U.S. cities with
          Belgium, the Netherlands and Luxem-
          bourg were granted to 13 airlines by
          the CAB, The carriers won't be re-
          quired to offer the scheduled flights.
          ISenry on 21
          * * *
          Jones & f ugblln, an LTV unit, will
          close Indefinitely a blase furnace and
          blooming mill starting this weekend at
          its steelworks In East Chicago, md.
          The company cited weak demand and
          said the move will idle about 1,000
          workers.
          I S bn on P e 5 )
          * * *
          Former officials of National Amen
          can Life Insurance were ordered to re-
          pay $1.8 million that they allegedly di-
          verted from the company and $2.1 mil-
          lion In damages. The four men were
          charged in a i m S u suit.
          ISbory on P e n
          * * *
          Reading & Bates sued National Ira-
          nian Oil Co. to recover a $20 million
          offshore drillIng rig. The suit also
          seeks over $60 million in damages
          ISbory on P* 5 41
          * * *
          Markets
          Siocks Volume 35,710,000 shares, Dow
          Jones Industrials 880.38, off 5.46; transporta
          tlan 270 35, off 0 30; utIlities 109.61, up 0,34.
          Bonds: Dow Jou s 20 bund 8592, uff 0 13
          Commadltlçs: Dow Jones futures Index
          415.64, up 3.69; spot index 401,73, up 0.36
          World Wide
          THE SECURYfl' COUNCIL debated a UN
          resolution on PalestinIan rights.
          The U.S. failed to win postponement of
          the debate an the resolution, a strong affir-
          mation of Palestinian demands for “self-de
          termination.” The U S is expected to veto
          the resolution if it is Introduced when debate
          resumes today.
          Egypt opened the debate by saying the
          council should restore “the Inalienable
          rights of the Palestinian people.” But Israel
          condemned the pending resolution as an at-
          tempt to subvert its peace treaty with
          Egypt.
          A Palest i ne Liberaflon Organization
          observer sold he wdl ask his Arab sup-
          porters to seek an emergency General
          Assembly session lf the US uses its
          veto
          The Ismell military reported that its
          troops staged an armored raid into southern
          I banon, blowing up two houses allegedly
          used by Palestinian guerrillas One officer
          was killed and two soldiers were wounded,
          I banon said the 40-man IsraelI unit struck
          the village of Barrachit six miles from the
          border. * * *
          A PRESIDENTIAL PANEL blocked re-
          swnptlon of nuclear-plant licensing.
          The panel, which is probing the Three
          Mile Island accident, sharply criticized the
          Nuclear Regulatosy Commission s plan to
          lift a moratorium It imposed on licensing
          May 21 The criticism prompted Harold
          Denton, a top NRC official, to agree to put
          off action until the five NRC commissioners
          meet on the question
          Dartmouth College President John Ke-
          meny. chairman of the presidential commis
          sian, said the NRC shouldn't resume licens
          lug until his panel issues Its report Oct. 25.
          Panel member. Carolyn Lewis complained
          that the NRC “seems to be thumbing Its
          nose at this commission.”
          Kemeny suggested to reporters that
          the panel aught go direc fly to President
          Carter to keep the licensing freeze in
          effect.
          * * *
          KURDISH REBElS surrounded an army
          garrison In western Iran.
          The encirclement took place during an in
          tense battle In Saqqez. Helicopter gunshlps
          strafed the city while troops lobbed mortar
          rounds at Kutoish posItions, Withesses said
          the garrison could fall unless government
          reinforcements break through Kurdish de
          fenses on the city's outskirts Casualties
          were said to be high on both sides.
          It was the heainest fzghhag since the
          rebellion erupted in Kurdistan Province
          it! days ago
          Separately, President Carter was ques
          tioned for the second time on his Mississippi
          tour about his decision to allow the sale of
          kerosene and diesel fuel to Iran. An auto
          worker In Qulncy, Ill, said the U S should
          have extracted a promise that Iran would
          look Into “human rights violations.” Carter
          later toured Hannibal, Mo
          * * *
          Zimbabwe Rhodesian troops struck six
          more guerrilla targets Inside Zambia, the
          military command in Salisbury reported
          The officials didn't give the location of the
          targets or casualty figures in the second day
          of attacks on the Zainbian bases A peace
          conference on Zimbabwe Rhodesia Is sched'
          uled to begin in Lendon Sept 10
          * * *
          Eschel Rhoodle arrived under guard in
          Johannesburg South Africa, to face fraud
          charges arising from a governmenl Influ-
          ence-buying scandal. The former head of
          South Africa's information department was
          extradited from France
          * * *
          Uganda banned hunting for five years in
          an effort to save what remains of the herds
          of elephants, lions and other animals In its
          game preserves A Ugandan official said
          poaching by soldiers and others has deci '
          mated the herds
          * * *
          Mexico will be asked to pay at least for
          part of the damage to the Texas coast from
          an oil spill off the Yucatan Peninsula For
          mer Rep Robert Krueger, a Texas Demo-
          crat recently appointed coordinator far Mex-
          ican affairs, said the U S. has proposed talks
          an the issue.
          * * *
          The U.S. rejected a Soviet complaint that
          the proposed MX mobile missile system
          would deiy venficanon procedures unoer
          SALT II, the Pentagon said Moscow was
          told the deployment system will allow spy
          satellites to count the missiles. President
          Carter Is expected to approve a plan to
          place the missiles In shelters around a cir-
          cular track,
          * * *
          Vice President Mondale will fly to Peking
          today for a five-day visit in which he hopes
          to have extensive meetings with the Chinese
          leadership The talks probably will focus
          on expediting economic assistance to China
          and plans to establish an American consu-
          late in Canton
          * * *
          A Unl d Airlines jet carryIng 119 people
          from Portland, Ore. to Los Angeles was hi-
          jacked by a man pretending to carry a
          bomb The hijacker forced the plane to re
          turn to Portland, where he surrendered to
          the FBI The FBI said the 26-year old man
          appeared “mentally confused” during ques
          tioning after the Incident
          * * *
          RussIan dancer Alexander Godunov of
          the lamed Bolshol Ballet was granted asy-
          lum In the U.S., immigration officials in
          New York City dIsclosed The Bolshoi, on
          tour In the U.S., Is In Its final week in New
          York.
          * * *
          Thirty Inmates breke out of a Maryland
          prison near Jessup by cutting through a
          barred window and security screen,
          Hundreds of police concentrated their
          search along the Baltimare Washlng1on
          Parkway and by late yesterday 20 of the
          escapees were back In custody.
          Rep ad ed xi no issa of he a yri h a nor Fu e recta u to nra ibi e w a t e soon