Weather Today—Partly cloudy and humid, bigh 85 to 90, low 65 to 70. Chance of rain 30 percent through tonight. Tuesday—Partly cloudy, high again 85 to 90. Yesterday—3 p.m. AQI: 65. Temp. range: 85 to 69. Details, C2. 1jc aMjiitgbn lpost Amusements Classified Comics Crossword Editorials Fed. Diary BlO C5 D1O D12 A20 C2 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.