Khomeini Orders to Crush Kurds

          
          WhaVs 1/e s: Business and Finance W o d Wide
          c it S r Jou nc / ( 123 u r n1 hid ,Au 2 , I
          FicQ tII t cl jip i e / tr tb r ç 8)-
          What's News
          Business and Finance
          THE PRIME RATE was raised to a
          I record 1V % rom 2% by Chase
          Manhattan, Bank of Amenca and
          other major banks. The boost was
          seen as on'y a stepping stone to higher
          rates as banks interest costs contrnue
          to rise.
          Story o Pane
          * *
          U S merchandise trade hgures for
          last month showed that the deflcat
          narrowed sharply to $1 11 billion, the
          slimmest red ink total this year, des
          pite soaring oil import costs June s
          deficli was $1 9 billion
          S ory on P e 2
          * * *
          GM and Ford made hütiaI eco
          nomic proposals to the Auto Workers
          ufflan that included higher wages and
          pensions and more paid time off. Bath
          sides indicated the pace of bargaining
          may be heating up.
          n P g 3
          * * *
          Chrysler is telling bankers it ex
          pects to post a loss of $600 million to
          $700 million this year and to be profit
          able in 1981, when it unveils a new line
          of compact cars. The estimates for
          1979 wou d indicate a lass of as much
          as $440 million in the second half.
          P e 5
          * * *
          United Stee1workers President
          Lloyd McBride predicted that the de
          veIop ng recession will close same un
          profitable steel facilities. But he said
          that the union, as it p'ans its negotiat
          ing strategy, views the recession as a
          short term sauation,
          5 Ory P e 4)
          * * *
          U S, Steel plans to raise prices on
          carbon steeft p'ate products about 5,1%
          and on carbon stee1 structurals about
          4 , effecUve Oct. 1, it also rncreased
          the price of railroad wheels and axles.
          ry on )
          * * *
          Wheefing P1ttsburgh signed agree
          ments to obtain $150 million in federal
          loan guarantees As expected, the
          steelmaker drew nmediate criticism
          from Reth hem Ste i nd cn t frni
          CF&I Steel
          (5 ory n P e ‘
          * * *
          Building contracts awarded hi July
          fell 1% to $14 72 billion, the F. W,
          Dodge division of McGraw Hill said. It
          cited “a recession added to the prob
          ems of inflation and high interest
          rates Ofhce building construction
          continued strong, but industrial con
          struction fell sharply
          Story o E
          * * *
          Unemployment Insurance beneñts
          have become so generous that many
          recipients ‘ack hnanc a incentive to
          get a job, said the General Accounting
          Off ce A report by the GAO urges
          Congress to require recipients to pay
          taxes on the benefits
          )S ory o i
          * * *
          The Rock Island railroad was hit
          by a wa'kout of L700 workers Govern
          rnent and private experts fear a long
          strike will stagger the nation s aver
          burdened grain transport system and
          deal a heavy blow to the troub ed line.
          tStory o i 6
          * * *
          LouIs ai aPadllIc agreed to ac
          quire Flintkate for $392 mililon rn cash
          and preferred stock. Flrntkote, which
          has been fighting a takeover bid by
          Genstar said talks on its sale to New
          York nivestors have ended
          Sto v o i 6
          * * *
          Capital spending plans are rela
          tively robust, the Conference Board
          rndicated, afthough the economy is
          weakernng. The board said that appro
          pnatians in the second quarter totaled
          $2L4 b Ihon, down 5% from the first
          period but up 42% from last year.
          S ory o 3
          * , *
          Mutual funds would be allowed
          greater freedom to adverUse their
          shares to investors under rule changes
          that will be considered by the SEC.
          Sthr ' n P , 9
          * * *
          Gold and silver futures prices hit
          highs as traders shrugged off such po
          tentlaHy bearish news as the increase
          in the prime rate. Sliver broke the
          psychologkally important $1O*an
          ounce barrier for the first time,
          ( rv Pi 24
          * * *
          Markets
          Stocks: Va uine 29,43O OOO shares. Dow
          James industrials 884M, off O 77; transporta
          ftan 269 3L off 0.73; uUllt es 108 69 oil O.17
          Bonds Dow Jones 20 bonds 8M7 off O.O4
          Commadftles: Dow Jones futures index
          412.60, off L76; spot thdex 403.21, off O €.
          World Wide
          ANDTHER IRA BOMB exploded n Brus
          se1s amid mounting outrage.
          The bombing In Belgium, which injured
          more than a dozen peopk, came as a British
          army band prepared to perform for tourists,
          It followed the assassination of Lord Mount
          batten and three others on a yacht and the
          killing of 18 BritIsh soldiers on Monday the
          bloodiest day in Northern Ireland in 10
          years.
          The bombings prompted fresh calls for a
          new offensive agarnst terrorism and tighter
          security arrangements, OfflcIaIs are worrn
          ned about their ability to control reprisals
          by paramIIita y Protestant groups. An Irish
          government spokesman Said a visit by Pope
          John Paul on Sept 29 will go ahead as
          planned, but security wdl be increased,
          The IRA bombtng b1 under scorc
          the pahtical stalemate rn Ulster and
          rrnses new que f ions about the Bn1&
          anny s abthly to control the lerran.sts
          * * *
          CHINA'S PREMIER ACCEPTED “with
          delig) t” an invitation to the U S
          Vice President Mondale, concluding two
          days of talks with Chinese leaders, said Hua
          Guofeng had also expressed hope that Presi
          dent Carter would visit China next year He
          said steps taken during his nip, rnduding
          accorth on cultural exchange and hydroe ec
          mc power cooperation, have 1a d the bas s
          of our relationslup for the 1980s .”
          Monda'e said the U S. and China agree
          on a wide range of gIoba and regional
          prob1ems ' He renerated that the U.S. won't
          d seuss normalized relations with Vietnam,
          a foe of China, un ess Hanoi ends the occu
          patlon a! Cambodia and the expulsion of ref
          ugees But he denied that improved Sino
          U S relations are “thrected against any
          one.'
          The US n ‘t seeknu7 a milUar rela
          ftonslup with Chznu. Mondale said, and
          tr 'ngthenrnq tu' s shouldn 't he seen as a
          thrcat b i the Some! Unwn
          * * *
          Kurdish rebels In han should be crushed,
          not negotiated w th, Ayatollah Khamerni told
          a new religmus trouble shooter he appointed
          for the region MeanwhI'e, Ithamenu 's Is-
          lamic court chief in Kurdistan sent 20 more
          people to the Firing squad in Saqqez, where
          a three day uprising in support of Kurdish
          autonomy was put down Sunday,
          * * *
          Bo1sho ballerina LudmIIJa Vlasova was
          embraced by her mother at a Moscow air
          port and then told InteMewe her 73 i hour
          delay In New York was macthess” The So
          v et news agency Tass, referring to her hus-
          band'& defeet on for the first time, said he
          disappeared under circumstances which
          aren t yet c ear ' V1asova s plane was held
          until U.S. afficials determined she was re
          turning to Moscow freely
          * * *
          Ronald Reagan's closest aide for 13 years
          quit the former Caitforma governors presi
          denUal campaign In a dispute aver po1it ca!
          strategy. Lyn Nofzlger a staunch canserva
          tive, reportedly opposed moves to make
          Reagan appear more moderate. Reagan Is
          the frontrunner n the race for the Repubji
          can presidential nomnation
          * * *
          Heating oil stockpile goa's for the winter
          will be reexamined, Energy Secretary Dun-
          can promised Northeastern governors on his
          second day in the Job The governors had
          complarned that U.S. rules are creating
          shortages Administration energy pofley will
          be a major issue in the early pres denflal
          pnmanes In New Hampshire and Massachu
          setts
          * * *
          More curbs on nontaxic pollution 0! U S
          waters were canceled by the EPA. The
          agency s actions carried out congresswnal
          changes in the C ean Water Act and affect
          conventional” poI1utant , indudrng sus
          pended solids, oil and grease and certain
          bactena. The EPA esumated the saving to
          industry at up to $200 million.
          * * *
          Japan will hold gene I e ecLtaus Oct. 7,
          Prime Mini5ter Masayoshi Ohh 'a an
          nounced H s Liberal Democratic Party will
          seek a stronger posItion in the Diet's tower
          house, where ft has had difficulty passing
          1eg s atton, A substantial victory would
          boost Ohira's career, rncreaslng his chances
          of continuing as party president
          * * *
          Teachers' strikes continued In school dis
          tricts n eight states, In Ok'ahoma City,
          where a walkout by 1,000 teache was n Its
          fifth day, the school superintendent refused
          to resume barga nlng, citIng a state aw that
          makes teacher strikes illegal Addftlonal
          wa'kouts are possible next week In Detroit
          and Indlanapohs,
          * * *
          Hurrkane David bore down an Barbados,
          with winds of 75 m p h o greater extending
          I miles In all directians, Bndgetown, the
          CarWbean s and 's capilaL resembled a
          ghost town as residents and tornists heeded
          warnings to exercise “maximum precau-
          Uon ” Forecastei said David cotild be the
          worst threat to the Windward !s ands In 88
          years ,
          * * *
          Freedom for four Pue o Ricans mpr s
          oned for terrorist attacks n the 95Os was
          recommended by the JusUce Department s
          pardon attorney. Secreta y of State Vance s
          reported to favor cammufing the r sen-
          tences, too, on humanfta an and loreign
          policy grounds Cuba's Fidel Castro has
          promIsed to re ease four Jailed Americans n
          returu.
          * * *
          Tbe discovery of a pa Jde called the
          g uon that ha ds together the centers of at
          ams like g ue was announced by phys dsts
          at a conference in Batavia, ilL Any pracU
          cal application Is at least 50 yea away, the
          scientists cautioned. But they compared the
          dIscovei with the deve opment of quantum
          me hardcs, which paved the way for Iranst-
          tar rad os, telev s ons and X ray machines
          Reproduced wHth perrisson of lie copynght ov icr Further reproduCtion P101 bited v ithout periiss or