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Khomeini Orders Offensive Against Kurdish Capital
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102nd Year . . . . No. 258 © Washtngton Post Co. M 0 N D A Y , A U G U S T 2 0 , 1 9 7 9 8Ub30!IDttOfl Ratei
- See Box A3
Young Criticizes
.U.s. PLO Policy
As ‘Ridiculous'
U.N. Ambassador Calls
J ewish Leaders ‘Stubborn'
By Don Oberdorfer
Washington Post Stafl writer
Ambassador Andrew Young was at logger-
heads again yesterday with both the State Dc-
partment and Israel in the latest chapter of
the controversy that brough.t about his resigna-
tion last Wednesday. - .
. still in office as ambassador to the United Na-
tions pending selection and confirmation of his
successor, and still expressing strong views on
Mideast issues, Young told a national television
audience that the U.S. policy of not talking to the
Palestine Liberation Organization is “ridiculous”
and that the Israeli government is “stubborn and
thtransigent” as well as expansionist.
On “Face the Nation” (CBS, WDVM), Young re-
peated a charge made earlier to The New York
Times that the State Department, while claiming
to be in the dark about his meeting with a PLO
representative in New York City July 26, actually
had a detailed, almost verbatim account of the
conversation in its possession within four days.
“1 don't know how they got it. but I have seen
stich a report.” Young told his television inter-
viewers just before noon.
At 6 p.m., after consultations with Young and a
check of classified documents, the State Depart-
ment issued a terse denial of the ambassador's
charge.
The State Department had insisted since the
controversy came to light that it first learned
of Young's meeting with the PLO's U.N. observer,
Zehdi Labib Terzi. on Aug. 11, when Newsweek
magazine began asking about it. Newsweek is Fe-
ported to have received its tip from israeli sources
in Israel.
State Department spokesman Thomas Reston
said that, on the basis of a careful check of records
at the department and its United Nations mission,
“we have determined that prior to Aug. 11 there
was no account available in the State Department
of Ambassador Young's meeting with Mr. Terzi
on July 26.”
Reston added. “There was information available
on July 30 that on July 26 a suggestion was made
that Ambassador Young meet with Mr. Terzi but
not that a meeting had been agreed upon.”
Informed sources indicated that Young had been
given access several days ago to the July 30 intelli-
gence report. But the sources said that a reference
See YOUNG, A16, Col. I
Stalemate in Ulster After Decade ol Strife
By Leonard Downie Jr.
Vashinrton Fo t P'oreign Service
LOXDO/, Aug. 18——Since last weekend.
the streets of Northern Ireland anti the
newspapers and television screens of the
rest of Britain have once again been uI1
of sectarian marches and rallies, rioting.
mass arrestr, raids and disarming or
bombs by security forces. It all marked a
macabre annivcrsary. -
Ten years ngo this week. after several
days of battle between riating Catholics
and equally v( Ient Protestant police ann
reservisis in Northern Ireland, an euler-
gency British Army peacekeeping force
was sent there “to help out the police for
a few weeks.
Today, there are still 13,000 British
troops iii U1S E'1. The decade of sectarian
warfare has claimed the lives of 301 Bnt-
ish soldiers. 222 Ulstcr 1)011Cc officers and
reservists. an:l 1.413 civilian men, wonlen
and children. Nearly 21.000 people have
been injured ‘l'housands of buildings have
been damaged by 6,500 bomoir.gs.
‘l'he taxpa e S of the rest of Britain have
Spelit flloI-e S5 million a day to sup-
1)011 the trt)OpS atiti other security niea-
SIUCS ill Northern 1 'lnnd and to help its
dying econonty and jobless fandlies with
industrial sub iUics and wet fare paynients
Yet unernpii'yrnent in Ulster is twice as
high as in toe rest of Britain. a quarter o
the families live below Buitain's official
i)overty lint'. tic1 a third of the housing
is substandard. Furthermore, continuing
economic stagnation in Britain and Prime
1 i inistel- Margaret Thatcher's across-the-
board government spending cuts -are ex-
peeLed to make tIle economy of Northern
Ireland even worse.
Despite generally efficient British rule.
an overall lowering of tile violence since
the vorst yctrs in the mid 1970s and the
eerie norinal it:.' wi th wh iCil I he niaj ority of'
Ulster's Protestants and Catholics live
among the s&'iiers, checkpoints, bombed-
out building and shadowy danger of death,
there is. as little optimism as ever about
the future.
See ULSTEJ , A17, Col. 1
Strauss Finds
Little Support of
Middle East 1-lan
Israelis Reject PropOsal
To Alter U.N. Resolution
By Edward Cody
Washington Post Foreign Service
JERUSALEM, Aug. 19—Special U.S. envoy
Robert Strauss said today he has found “very
serious questions and reservations” in Egypt
and Israel about an American proposal for a
new U.N. resolution on the Middle East peace
negotiations.
“I shall faithfully report these questions and res-
ervations to the president and the secretary ol'
state,” Strauss said after a two-hour meeting here
with Prime Minister Menachem Begin.
Earlier today the Israeli Cabinet rejected the
U.S. proposal.
Begin strongly suggested that he expects the ,Car-
ter administration to go back on its announced in-
tention to propose the new Security Council resolu-
tion, designed to draw Palestinians into the Wrest
Bank and Gaza autonomy talks among Israel, Egypt
and the United States.
“I do believe that this difficulty will soon be re-
moved as a result of reconsidertng the problem b ,,
our American friends,” lie told rc-porters after the
talks with Strauss.
Taken together, their remarks cast a negative pall
on the U.S. initiative and raised questions about
whether it might be abandoned. israeli sources said
Begin is counting on Strauss to persuade President
Carter to abandon the plan, and the U.S. envoy's
aides went out of their way to put distance between.
Strauss and the new U.S. proposal.
Strauss received final instructions on (he initia-
tive in an envelope handed to him only after he
boarded his U.S. Air Force plane for the three-day
trip to Israel and Egypt, sources in Strauss' party
said. He opposed the idea when it was discussed e.a ' .
her in Washington, they added, parUy because he
foresaw the vehement Israeli reaction.
Begin's Cabinet, whkt'i met for four hours earlier
to(lay, accused the United States of trying to renege
on commitments to Israel under the Sinai with-
drawal accord of 1975, the Camp David accords of
last September and the Egyptian-Israeli peace
treaty of March 26.
Fienry Kissinger, then secretary of state, pledged
as part of the 1975 accord that the United States
would not recognize or negotiate with the Palestine
Liberation Organization until it acknowledged Isra-
el's right to exist. The Israeli Cabinet, reportedly
with rare unanimity, apparently believes the U.S.
See MIDEAST, A16, Col. S
Federal Loan Guarantees
Arouse Economic Concent
By Bradley Graham
Washin tOU Post Staff /Vriter
‘rhe Carter administration's offer to
rescue troubled Chrysler Corp. with
I'ederal loan guarantees spotlights OflC
of' the little-noticed but most impor-
taut of all the federal government's
activities: its dominant role in borrow-
ing and lencliitg in America.
‘i'he govei-nment is now responsible
fur a fourth of tile borrowing and a
sixth of the lending in this country.
The most comiiion form o jnvo1 'e-
meat is loan guarantees, which is the
way the government helped Lockheed
Corp. and New York City. But these
are just the best known examples of
federally backed loans.
The government has co-signed $1 of
evei y $12 in supposedly private loans
made in the United States. All told,
the government's guarantees added
up to $254 billion at the end of last
year, about twice what the govern-
inent had loaned directly.
Use of these loan guarantees is
growing. The value of the guarantees
last year was double what they were
in 1970 and six times what they were
in 1 5O. And much of the growth, ac-
cording to one study, has been unpian-
tied and uncontrolled.
Govei'nnient officials regard the
guaranteed loans as a free good, in-
volving only negligible jute l'vcntion in
the economy and costing taxpayers lit-
tie or nothing—inst Uncle Sam's sig-
nature on a loan application promis—
ing to make the l)aYfllents if the pri-
vat.e borrower defaults,
But the guarantees, in fact, are not
free, and their increasing popularity'
has prompted serious concern for
their economic impact.
By co-signing tens of millions of dot-
Jars worth of special-interest loans
each year, federal agencies distort i'd-
ationships among potential borrowers.
They help boi'i'owei's who are loss
CI'edit-WOFthy move to the front of' the
lending line, white more credit-worthy
ones, particularly small businesses
atid unaided home buyers, get forced
to the rear.
See CREDIT, Al2, Col. I
Maryland Steel Plant Deaths
Up Sixfold in Last 18 Months
By Saunclra Saperstein
V 'ash neton Post StaIt Write:
BALTIPsIORE—James Anderson Jr.
backed his 15-ton truck tip to a slag
1)011(1 filled /%‘ith plant wastes and
stopped just sliot't of the edge. A
I1ell)Cr signaled him forward, but the
ti-tick lurched back and plunged into
tile murky water, carrying Anderson
to his death oil I/'Iat-ch 13. 1978.
‘l'hat was just the begitining.
A IllOlitil later a foreman was
scalded to death in tile tin mill. Then
a man ‘as yanked onto a giant spool
of wire as it spun round and round in
the steel plant.
‘There was death by heat stroke, by
electrocution, and twice by carbon-mo-
IloXide poisoning. One maii plunged to
his death when a piece of sheet metal
gave vay, and another fell through
tin open manhole, A train struck a
Li uck and killed yet another man.
‘i'hen ]ast veek, a crane atop an 80.
foot towel' crashed to the ground like
a l'eiled tree, crushing the operator
and a helper below.
‘. It has been an extraordinary p c-
nod, unprecedented,” said 1-larvey Ej,-
Stein, conlmissioner of Maryland's Di-
vision of Labor and Industry. “We've
searched for a reason, tried to find a
common thread through the deaths.
But we have never found an answer,”
I ndeed, thei'e is no pattern apparent
in the 12 deaths at the Bethlehem
Steel plant and shipyards. wei-e 25,000
ilidU and women work. Tile reddish-
brown forest of pipes and towers and
gargantuan bi ast furn aces covers 3,000
acres on Sparrows Point, jutting into
tIle Chesapeake Bay southeast of Bal-
tiniore.
Between 1975 an I 1978, four work-
ers were killed at the plant and ship-
yards i'uti by 1/lat'yland's largest pri-
vate employer.
‘rliat death rate, which workers had
learned to expect as the risk OflO must
take. has increased sixfold In the last
18 fllOflthS.
After eight of the most recent
deaths, federal or state officials inves-
‘ tlgàting the accidents cited the corn-
See STEEL, A14, Col. 1
Khomeini Orders
Offensive Against
Kui'disl.i Capital
By Chris do Kretser
Stecial to The Wasninnon Post
TEHRAN, Aug. 19 — Ayatollah Ru-
hOllall Khomeini ot-clered a general
nlobihzation of Iran's security forces
today to crush a rebellion in the
Kurdish provincial capital of Sanan-
cla.j, but the govel-not- genet-al of the
city said there was no revolt.
The state radio broke into its aftei'-
noon news bulletin to broadcast the
mol)ilizatton order. ViliCh gave the na
tion's armed foic'es an hour to set up
an “air bridge” to transport troops.
police and Revolutionary Guards to
Sanandaj.
The radio said the city's military
garrison had been besieged and that
unless reinforcements reached Sanan-
daj within half an hour the Kurds
vould seize all the al-ms in the bar-
rae ks.
But the govel-nor of Kurdistan, Mo-
hanlmed Rashici Shakiba. con tacteci by
telephone in Sanandaj, said the radio
repoi'ts were “a complete fabrication”
and there was total calm in Sanaudaj.
“1 wish Ayatollaii Kiìoii eini would
contact me fit-st to find out the true
situation before he issues orders for a
mobilization on tile basis 0 lies,”
Shakiba said.
He said there had been one minor
disturbance in the city today and it
had not led to any violence.
“‘i'lwee truckloads of Revolutionary
G uards wet-c d isarnled and prevented
from leaving Sanandaj by i)eOPle in
the city,” he said.
Kurdisi-i sources in Sanandaj agreed
with tile governor's statement that the
city was calm.
‘I'iie Kurdish Democratic Party,
which the i'adio reported ‘as laying
siege to the garrison, said it , had no
knowledge of any such action.
The party, which has been fighting
for autononly for Iran's 4 ulillion
icurds, ‘as banned yesterday by Aya-
tohiab Khonieini. It vas accused by
the governnient of being involved in a
Kizi-dish rebellion in the town of Pa-
‘eb that ‘as quelled Satui'clay aftei-
Khomeini had ordered the ai-med
forces to crush it wiihin 24 hours.
Tile government also nullified the
election of the party's seci-etary gen-
et'al, Abdlurallnlan Qassem Lu , to I he
assembly of experts reviewing li-an's
draft constitution that opened its vorlc
in Tebran today.
Khomeini yesterday called for ban-
ning the pal-ty, saying the party /viis
“like poison to tile health of the revo-
“Their activities should be stopped.
their publications banned anti no
trace of thcnl should be left in tile
COUIltl.y,” lie said.
Eleven Kul'ds who ‘CI'C captured
See iRAN, A16, CoT. I
FINAL
68 Pages—4 Sections
Financial
Metro
Obituaries
Sports
Style
TV-Radio
D8
Cl
C4
Dl
Bil
ut ited Pres: iuter tattonai
Israeli Prime Minister Begin. left, and U.S. special envoy Robert Strauss meet in Jerusalem to discuss the U.S. plan.
Trappings of a Campaign
Spe echmaking, Haiicishaking, B aby-Kisshi. g
Intrigue President's Fellow Passengers
By Bill Peterson
Washington Post Staff Writer
ABOARD TFIE DELTA QUEEN,
Aug. 19 — President Carter's vacation
on the waters of the Mississippi is tak-
lug on all the trappings of a campaign
trip.
During the last two days, he IlaS
made nine speeches with this stately
old steamboat arid the bluffs of the
Mississippi as a backdrop. He has
shaken thousands of hands. He has
kissed at least a dozen babies. And lie
has had his pictuie taken with eveiy
one of the 150 passengers aboard this
steamboat as it wends its way past
rvlinnesota, Wisconsin and Iowa — all
early political states important for his
renomination.
This morning Carter was up at 3,
shaking hands among the hundred
people who had gathered in the fog at
a lock at Genoa, Wis. Hour. later,
wearing a baseball cap and jbgging
shoes, he was out shaking hands with
another group of people in a driving
downpour.
“It's a campaign, no doubt about it,”
said one passenger, Dr. Walter Balzei.
as he watched Qarter leave the Delta
Queen Witil a cli-enched crowd at
Lynchville, Wis. “1 think it must be a
terrific ego trip. He can't help but
think people are for him.”
Carter's 150 fellow passengers
aboard the Delta Queen think it is a
strange way to spend a vacation. They
aie both baffled and intiigucd. They
can't get over a piesident weating jog-
ging shoes and blue jeans. Fle isn't
getting much sleep,” said Richard
Dodge of New Hope. Minn. “But 1
think he's having a good time.”
More than half of the boat passen-
get-s appear to he Republicans, solid
Midwestern doctors, businessmen and
retirees. Their average age is about
60. They aren't won over easily.
“He's so common it's hard for me to
believe lie's that important — which
is to his credit,” said Baizer, a Daveti-
port, Iowa, physician, adding that he
didn't think he'd vote for Carter in
1980. “I admire hint and like him. But
he hasn't produced.”
The America that Carter is seeing is
a beautiful slice of the nation's heai-t-
land. Majestic bluffs rise from the
See PRESIDENT, A8, Col. 1
Associated Press
Smiling faces greet Fresideut Carter as he makes his way into a crowd at Prairie tIn Chi n, Wis.
7-- -
- . . : . .
., i. ... .. ...
Sirli.aii Sirhan,
ii Years Later
On June S, 1.968, Sit-hail
Sii'han shot Hobeit Ken-
iledy ill a Los Angeles hotel.
Eleven yeah's latci', Sirban says
he has macic peace “with my-
self and vith God.” The first of
a tWO-l)flrt interview begins on
Page Bi.
