Iran’s Armed Forces were mobilized to crush a Kurdish Rebellion

          
          What's ss Businss and Fmanc Worid-Witk
          I all Sti'etJ urnal 1 9 C tat antiC ‘, ug C l 1
          Pt Qt eat II at cal Saen apapets T e V/ Street l t r ( 88)
          I What's News
          Business and Finance
          DCA agreed to acquire CIT. Finan
          1 cia) for $65 a share, o a total of
          $1.35 billion in cash and preferred
          stock. The tentative terms, set In re
          sumed talks, would result in one of the
          largest corporate combinations.
          rY o i Pg 3)
          * * *
          Exxon delayed deciding whether to
          buy Reliance Electric after a U.S.
          court cleared the purchase but limited
          Exxon's control over the company.
          Under the $L17 billion offer, Reliance
          holders therefore may withdraw their
          tendered shares.
          , 3)
          * * *
          A prime rate of 12'4% before the
          end of the month is possble, analysts
          say, if pressures from sharp short
          term interest rate rises don't ease. A
          Fed panel voted on July 27 to push up
          the range of the federal funds rate, a
          base for determining other short1erm
          fees, to 1O % to 1O%% The Fed re
          cently indicated it wants the rate as
          high as 11%
          P e 2)
          * * *
          Corporate profits fell an adjusted
          2.4% an the second quarter after a
          7.3% first period gain, the Commerce
          Department said. Officials predicted
          that business won't soon sharply cut
          employment and production.
          Page 2)
          * * *
          Antitrust clearance will soon be
          given to Exxon, Standard Oil (Ohio)
          and Atlantic Richfield in an adminis
          tration attempt to gain their help if
          nducing the $12 billion Alaska High
          way ga&pipeline project.
          )Storv e Peg.)
          * * *
          Westinghouse and Conoco will de
          velop a uranium mine that will help
          Westinghouse meet future legal settle
          ments over canceled uranium supply
          contracts. Separately, Westinghouse
          reached a tentative contract accord
          with one of its striking unions, but
          chances of quick settlement with two
          other unions appeared dam.
          , Page )
          * * *
          Faster depreciation of steel coim
          pany assets will result from a Trea
          suay decision to shorten the span of
          such write offs to 12 years The move
          could bring the industry $118 rnilhon an
          cash over the next three years
          en Page )
          * * *
          G&W's board voted to end discus
          sions with the SEC staff after a three
          year probe of the company's affairs
          The decision could lead to SEC court
          action against G&W
          )S)ory en Peg. )O)
          * * *
          Holiday Hans will sell its Trafiways
          bus line for $100 million to an Invest
          ment group The transaction will re
          suit in a 1979 loss of about $12 million
          ( tOrv en Page )
          * * *
          Consumers' Gas proposed a $350
          million merger of its gnus unit and
          Home Oil, an affiliated company.
          IMory en Page 4)
          * * *
          Del Corp. agreed in prwcple to sell
          three of its computer units to Corn
          puter Sciences and one unit to Xerox
          for a total of $41 million. Separately,
          Itel was sued by two holders in U.S.
          court on charges of fraud.
          IS )ory en Page 4)
          * * *
          American Express faces an VrC
          probe over an ad campaign that im
          plies difficulty getting other travelers'
          checks refunded abroad and over the
          company's own refund performance.
          en Page )4)
          * * *
          VW of Anierica boosted prices on
          1980 model Rabbit subcompacts an av
          erage $261 from the most recent 1979
          quotes VW Is the first domestic auto
          maker to price new cars, but rises are
          expected from other companIes.
          (ataa en Page 4)
          * * *
          The U.S. dollar strengthened
          against all major European currencies
          and closed the week up from week
          e lie levels. Gold's price rose $2.70
          to $300.55 an ounce.
          t4tery en Page 4)
          * * *
          Markets
          Stocks: Volume 31,630,000 shares Dow
          Jones IndustrIals 883.36, off 0.68; transports'
          lion 268.70, off 1.26; utilIties 109 13, up 0 13
          Bonds. Dow Jones 20 bonds 86,01, up 0,15,
          CommodltIes Dow Jones futures index
          411.75, up 1.74; spot index 401.49, up 2.32.
          The Edltoda Page
          Arthur [ ffer, expositor of the “L ffer
          curve,' attacks British Prime Minister
          Margaret Thatcher for a “substantial” in'
          crease In taxation despite her campaign
          rhetoric, (Page 12.1
          Wor1d Wide
          ISRAEL'S CABIN o osed U.S. pro'
          posals for a new UN resolution.
          The cabinet said It “rejects unequivo'
          cally” Washington's suggestion for Security
          Council language giving guarded support for
          Palestinian rights. The proposal, aimed at
          encouraging Palestinian participation in the
          peace process, “contradicts the commit
          meat of the U.S. to Israel,” a cabinet
          spokesman declared
          later, U.S. Mideast envoy Robert
          Strauss emerged from a meeting with
          Prime Minister Begin, saying the U.S. will
          consider Israeli and E 'ptlan reservations
          before proceeding with the plan. The Secu-
          rity Council will take up the Palestirian is
          sue this week,
          Rejection of the UN initiative was an
          other sign of the strain in U.S. 1sraeli
          relations Israeli officials are said to be
          puslung for a Carter-Begin summit ti
          ease the tensions.
          UN Ambassador Andrew Young, who re
          signed after a furor surrounding his meeting
          with a Palestine LAberation Organization of
          ficlal, said U.S. policy toward the PLO Is
          “ridiculous,” He said peace won't advance
          unless the U S opens communications with
          the PLO. But policy changes are being
          blocked
          * * *
          CARTER USED his Mississippi River
          trip to plug his ener program.
          A crowd in Alma, Wis., was urged by the
          President to “contact your own members of
          Congress” about supporting his program
          He specifically mentioned his plan to tax the
          so-called windfall profits oil companies will
          make when price controls are lifted Carter
          made a similar pitch in Prairie Du Chien,
          Wis., where he took questions from a radio
          audience.
          At Mmnesota city, Minn,, the Presi-
          dent denied the steamboat trip was ii
          partisan foraij “It's a campaign for a
          stronqer countri/ and a comprehensive
          energy poliq,, “ he said.
          Separately, the White House announced
          last wgek that Uoyd Cutler, a prominent
          Washlngtol lawyer will become presiden-
          tial counsel. He succeeds Robert Lipshutz, a
          Georgian who resigned In the recent White
          House staff shake up
          * * *
          IRAN'S ARMED FORCES were mobl '
          lized to crush a KUTdISII rebellion.
          Ayatollah Khomeini ordered all leaves
          canceled and called on reserves and retired
          soldiers to report for duty. Iranian troops
          Saturday retook the western city of Psych
          from rebels, but Khomeini said new fighting
          had erupted In the town of Sanandaj, Kur-
          dish sources denied the report, and the gov
          ernment later said it controlled Sanandaj,
          Khomeini also banned the Kurdish Demo-
          cratic Party, Its leaders were being sought
          for Inciting the uprisIng, the government
          said Eleven Kurdish rebels were executed
          Saturday.
          There were reports that some air
          force perronnel had balked at bambinq
          Paveh The powerful Islamic Revolution-
          arv Council decreed that disobedient
          troops would be tried and perhaps
          executed,
          * * *
          More than 50 miles of Texas coast were
          fouled by crude oil from a Mexican well blow-
          out, and scientists warned that even more
          could hit the beaches. The oil extended from
          the Rio Grande to 12 miles north of Mans
          field Cut. Little of the oil apparently reached
          the inland watei ays where shrimp lye and
          breed
          * * *
          Cambodia's pro-Vietnamese regime de-
          clared ousted Premier P01 Pot and his dep-
          uty, leng Sary, guilty of killing more than
          three million people. Both were sentenced in
          absentia to death P01 Pot and leng Sary
          disappeared into the Jungle after last Janu
          ary's Vietnamese Invasion of Cambodia.
          * * *
          Two Sevlet cosmonauts returned to earth
          after a record-breakIng 175 days in space
          aboard the orbiting Salyut 6 statIon The
          capsule carrying Vladimir Lyakhov and Val-
          ery Ryumin landed In Soviet Kazakhstan,
          the government news agency Tass said.
          Both men appeared to be healthy.
          * * *
          Joshua Ntomo and Robert Mugabe, lead
          ers of the guerrilla groups fighting the Zim'
          babwe Rliodeslan government, met In Dar
          es Salaarn, Tanzania, to discuss the British'
          sponsored peace talks set for Sept, 10. They
          were trying to work out a joint program be-
          fore respondIng to an invitation to the l n
          don talks
          Both guerrilla leaders rejected BritaIn s
          call for cease 'flre. Nkomo ruled out a truce
          until ‘that which has brought about the war
          has been removed.”
          * * *
          Three Nigerian parties charged that Al
          hail Shehu Shagarl won the recent presIden
          tial election through fraud, Shagati's oppo.
          nents also charged he failed to meet a re
          quirement that the winner poll no less than
          25% of the vote In at least two-thirds of the
          19 states. Shagarl Is scheduled to take office
          Oct. 1
          * * *
          Fofly seven Army sergeants and one su-
          pervising officer have been relieved of du
          ties In a three-month old probe of recruitIng
          fraud, the Defense Department announced.
          The Investigation was begun after officials
          found evidence some recruits may have got
          Illegal coaching on tests, Three of the ser-
          geants face court martial
          * * *
          Pope john Paul H called for a resump-
          tion of ties between the Vatican and Chinese
          Roman Catholics. Speaking at the papal pal
          ace at Castel Ga dolfo, he said there had
          been a “thriving church” in China before
          the Communists came (0 pour In 1949, Vat-
          ican sources said the remarks were a diplo-
          matic overture to Peking,
          Rep oduced valh perri svon of the copynght ov re Further eproduchon pro nbted v thou) pe m svo 1