Islamic Troops seize control of Saqqez

          
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          till is s J al l 23 sj l /u+. 2 ,
          P oQu Hi s a Nay pap 1 I a a .o a I 88Q 3i
          Ig I
          What's News
          Business and Finance
          T HE INFLATION RATE stayed
          I high last month and government
          economists said that could mean a
          deeper recession, higher unemploy
          ment and more problems than the ad
          mimstration expected, Consumer
          prices rose 1f4 m July, the same as in
          June and equal to a l2 annual rate
          before compounding Energy and
          housing costs continued to soar
          iStory on Foe. 31
          * * *
          A prime rate increase by banks to
          a record 12' from 12% is consid
          ered likely this week following the
          Fed's action to tighten credit. The Fed
          underscored its resolve to battle infla
          tion by raising to 1V 4 % from 11” its
          target interest rate on federal funds
          IStory on P se 31
          * *
          Machlne4ool orders fell i4 i iii
          July from the month before to $362 4
          million but producers said that under
          lying demand remains relatively
          strong despite the downturn in the
          general ecrniomy, July's figure was
          13% higher than the year earlier total
          Story on P e 31
          * * *
          Gasoline price controls may be
          loosened further by the Energy De
          partment to provide added incentives
          for oil companies to expand and up
          grade their refineries,
          lSlory on P e Ii
          * * *
          Supplies of gasoilne appear suffi
          cient around the U S for the final
          days of August and the holiday week
          end Demand is down, so most dealers
          have ample supplies from August allo
          cations
          i 1ory on Po o 41
          * * *
          EPA officials waived requirements
          for some 1981 model at omobiles that
          would have sharply reduced carbon
          monoxide emissions, AMC and finan
          daily troubled Chrysler won the larg '
          est concessions in the action.
          IStory on P o 21
          * * *
          LouIslana Pacfflc is holding pre
          liminaiy talks on the possible acquisi
          tion of Flintkote for $392 million, or
          $53 a share, in cash and preferred
          stock. Flintkote has been fighting a
          thkeover attempt by Genstar and has
          agreed in principle to be acquired by
          an investment group for $52 a share.
          1St ry on PoSe 41
          * * *
          Bluebird agreed to sell its 4,8 mil
          lion shares to Northern Foods of Brit
          am for $14,875 each, or $72 million,
          The transaction is subject to approval
          of a definitive accord by directors and
          holders of each company,
          Istory O Po 50 Iii
          Service Corp. said it will resist at
          tempts by dissident shkreholders to
          delay the funeral home company's an
          nual meeting, scheduled for Thursday.
          The holders have filed suit protesting
          certain expenses of top executives,
          (Story ni Poge (Si
          * * *
          Semiconductor companies, defying
          expectations of a slowdown, are hay
          ing a strong year Industry observers
          predict 1979 sales will rise 25 7 to $6
          billion,
          (Sm y on Po e (a)
          * * *
          Gold's price, which hit a record
          8314,75 an ounce Friday, could be sus
          tamed by some long term factors, ac
          cording to analysts, They cite evi
          dence of reduced sales by the Soviet
          Union, Demand continues high,
          (Story on Poge ai
          * * * ,
          United Airlines joined TWA and
          Am rw n A ritn c n cPPking highPr
          discount fares for the New York West
          Coast air travel market The two car
          riers are the UAL unit's major corn
          petitors in that market,
          (Story on P ge )
          * * *
          N,V, Philips was permitted by the
          West German Federal Cartel Office to
          obtain a major stake in Grundig, West
          Germany's biggest producer of elec
          tronic entertainment equipment
          (Story on Peg. (21
          * * *
          Esmark said that it purchased
          137,000 shares, or 7 t Z, of Reliance Uni
          versal, an industrial chemical coating
          company, and that the stock was pur
          chased to further its efforts in seeking
          to buy Reliance,
          (Story on Peg. (SI
          * * *
          Markets—
          Stocks: Volume 32,730,000 shares, flow
          Jones IndustrIals 880 20, off 0 18; transporta
          lIon 268,60, off 1,75, utIbhies 109,44, off 0,17,
          Bonds: Dow Jones 20 bonds 85 76, off 0 16,
          Commodities; Dow Jones futures Index
          414,60, off 1,04, spot Index 403, 5, up 1,42,
          World- Wide
          A STANDOFF CONTINUED between the
          U S and Russia over a Soviet balleriaa.
          With Pres dent Carter making the policy
          decisions, U S authorities softened their
          stance and said It wasn I absolutely neces
          sary that Ludmilla Vlasova come off the
          grounded Aeroflot Ilyushin airliner for
          them to determine If she is being forced to
          return to Moscow, The dancer's husband,
          Bolshoi Ballet star Alexander Godunov, de-
          fected to the 'U,S, Wednesday,
          The Russian news agency Tam quoted
          the ballerina as saying that the grounding
          was “outrageous” and that American au
          thoritles were “trying to detain me in the
          U S despite my will,” Sixty seven other So-
          viet citizens remained on the plane, which
          has been grounded since Friday
          Donald McHenry, U,S, deputy am
          bassadar to the UN, said the U.S. has
          the authority to board the plane and re
          niove the ballerina but that American
          officials were hoping for a more “dip
          lomatic resolution
          * * *
          ISLAMIC TROOPS seized control of
          Saqqez, iran, from Kunfish rebels,
          The battle for the western Iranian town
          near the Iraqi border ended after a garrison
          of 700 government troops arrived and over
          powered Kurdish fighters The four days of
          fighting caused heavy damage to the city,
          There was no estimate of casualties,
          The autonomy minded Kurds' vowed
          to fiqht aqatn elsewhere, Both sides
          were said to he preparing for a major
          battle for the Kurds' tnrnn ctronqhold of
          Mahabad, about O aides narthaest of
          Saqqe ,
          In Tehran, three unidentified assailants
          killed two of the Ayatollah Khomeini's sup-
          porters and wounded a third, One of those
          killed was a member of the Ayatollah's rev
          olutionary council,
          The Soviet Union has offered to cooperate
          with Iran in the oil sector, the iranian news
          agency reported, Meanwhile, the head of
          National Iranian Oil Co conceded that Iran
          would buy 547 million of kerosene and fuel
          oil from the U,S.
          * * *
          Renewed artIllery duels broke out in
          southern Lebanon, hours after the UN an
          nounced a cease fire UN peacekeepers were
          trying to salvage the shattered truce be'
          tween Palestinian guerrillas and Lebanese
          Christian forces aligned with Israel Four
          Lebanese civilians were reported killed,
          Robert Strauss, special Mideast negotia
          tor for the U 5, said the Carter administra'
          lion will stick to Its policy of refusing to ne-
          gotiate with the Palestine Uberation Organi'
          ration until it recognizes Israel's right to ex
          1st, Strauss urged the involvement of
          moderate Palestinians In any comprehen-
          sive peace settlement
          * * *
          Vice President Mondale called for In-
          creased Sino American cooperation at a
          banquet in hIs honor In Peking. The Vice
          President said an improved relationship be
          tween the two countries ‘can emerge In the
          1980s as one of the major bulwarks of peace
          and justice in the world,” Mondaie is ex
          pected to sign a new cultural agreement
          durine his week'ionr visit,
          * * *
          Rapid transit workers from three unions
          in Les Angeles struck after negotiators
          failed to agree on a new contract About 1 2
          million bus commuters are affected by the
          strike, which began yesterday, In Cleveland,
          train and bus workers continued a wildcat
          strike that began Friday that affects 250,000
          corrmuters
          * * *
          Former President Ford said he's under
          intense pressure to seek the GOP presiden
          tial nomination. But Ford said in an inter-
          view in U,S, News & World Report that he's
          doing better as a noncandidate than as a
          contender, The tormer President said that
          Ronald Reagan currently appears to have the
          edge for the Republican bid and that he ox
          pects Carter to get the Democratic nod in
          1980
          * * *
          Textile executive Wlillarn Boorstein re
          turned to the U S after escaping from his
          captors at a plant outside San Salvador,
          Boorstein, manager of an Apex Textile Co
          factory in El Salvador, was taken hostage
          Aug. 14 durIng labor negotiations,
          * * *
          Sand Is being used to keep the mammoth
          Mexican oil spill away from the winier
          home of the whooping crane, As debris from
          the spill continues northward from Part Ar'
          ansas, Texas, officials are using sand to fill
          In the only natural passage to the back bays
          where the rare cranes migrate, Meanwhile,
          officials are keeping a close watch on a
          storm in the Bay of Campeche that could
          hamper their efforts
          * * *
          State police were called In to help secure
          a Maryland prison near Jessup after two
          more escape attempts were made. Neither
          attempt was successful and prison officials
          wouldn't say how many inmates were In-
          volved Eight of the 30 prisoners Involved In
          Wednesday's break'out remain at large,
          * * * *
          Armed inmates holding three guards has
          tage at a Las Vegas prison Issued a list of
          demands, Including warmer food, a full tIme
          nurse, mare experienced guards and a radio
          in each cell Prison officials saId they didn't
          know how many of the 84 Inmates were par
          ticipating in the uprising, which began Sat'
          urday,
          * * *
          A sniper wouflded five tourists In Wai'
          kiki, Honolulu, Police arrested a mental pa
          tient who allegedly was Involved in a sniping
          Incident six years ago Officials bald the
          snIper fired a ,fl caIiber rifle from a sec'
          and floor construction site In the heart of the
          tourist area,
          * * *
          Died' Stan Kenton, 67, bandleader and an
          innovative force in jazz for more than 35
          years, at a Holl ood, Calif, hospital of a
          stroke,
          Rep ad ed ai ne Cs an af he a ynch a ncr Fu er renra u a nra I I ed ai a t per snaan