W hats /ens: Business and Finance World Wide
iiol/ SO ' otfoo i 1 192 (0 o 'tul , , i 19 0
P ties is c x s x polo 55 S e (1990 3)
p What's News
Business and Finance
MONETARY DISCIPLINE is es
A Y sential to curbing Inflation, Fed
Chairman Voicker said. At a session
with reporters, a cautious Mr. Voicker
wouldn't predict interest rates or the
economic outlook and argued that,
though he favors a tax cut more heav
ily we ghted to business, it is currently
a bit premature to make that decision.
lSbry n Pete 31
* * *
The basic money supply, Ml,
surged an unexpected $1.8 billion in
the week ended Aug. 15, while a
broader gauge, M2 , jumped $3 billion.
The gains put added pressure on the
Fed to squeeze credit further.
( *crv cn Page 3)
* * *
The budget deficit estimate for fis
cal 1979 was widened by the Carter ad
ministration to $30 26 billIon, due to a
$594 million increase in projected out
lays. The White House also raised its
estimate of receipts for the year
l t ry n P e 31
* * *
Car sales in the U.S. climbed 22%
in mid-August to an esumatea Z42,9S
units, a record, General Motors and
Ford posted volume highs In the pe-
nod, when they both had extensive
factory sales-Incentive programs
Most analysts termed the increase “a
fluctuation,” discounting any idea of
an auto sales recovery
on P g 21
* * *
American Motors and Renault hope
to decide by year-end on a previous
proposal to assemble Renaults at
AMC plants Ill the U S The project
would require a $100 million to $200
million investment, an AMC officer
said
IStory on P g 2)
* * *
Hertz cut its car rental rates for
leisure travel an average 33% and un-
veiled a standardized national fee for
those rentals Avis, the nation's sec-
ond largest auto renter, said it was re-
viewing its rates.
o P g 31
* * *
Money market funds increased
their assets a record $4 1 bIllion to
$30.01 billion in July. The funds, which
are yielding at least 9% to 10% cur
rently, have gained popularity as In
terest rates continue to remain high
on Peg. 71
* * *
Massey Ferguson posted a $53.8
million (U S I profit, due to a large
tax credit, for the fiscal third quarter.
The company had a $90 million loss
the year earlier. The concern is plan-
ning a $300 million to $500 million
(Canadian) sale of preferred stock
and warrants to buy common.
lSIoqy P g 4)
* * *
Three Importers of Algerian lique
lied natural gas were given a 40%
temporary price boost by the Energy
Department The rise was possible be
cause the U S lets the companies pay
their supplier triple the allowed rate
l )ory on P e 41
* * *
Houston (ill agreed to buy Colom
bia's third largest petroleum company
for $55 million in cash and notes
ISI,ry on Page 41
* * *
Air routes linking U.S. cities with
Belgium, the Netherlands and Luxem-
bourg were granted to 13 airlines by
the CAB, The carriers won't be re-
quired to offer the scheduled flights.
ISenry on 21
* * *
Jones & f ugblln, an LTV unit, will
close Indefinitely a blase furnace and
blooming mill starting this weekend at
its steelworks In East Chicago, md.
The company cited weak demand and
said the move will idle about 1,000
workers.
I S bn on P e 5 )
* * *
Former officials of National Amen
can Life Insurance were ordered to re-
pay $1.8 million that they allegedly di-
verted from the company and $2.1 mil-
lion In damages. The four men were
charged in a i m S u suit.
ISbory on P e n
* * *
Reading & Bates sued National Ira-
nian Oil Co. to recover a $20 million
offshore drillIng rig. The suit also
seeks over $60 million in damages
ISbory on P* 5 41
* * *
Markets
Siocks Volume 35,710,000 shares, Dow
Jones Industrials 880.38, off 5.46; transporta
tlan 270 35, off 0 30; utIlities 109.61, up 0,34.
Bonds: Dow Jou s 20 bund 8592, uff 0 13
Commadltlçs: Dow Jones futures Index
415.64, up 3.69; spot index 401,73, up 0.36
World Wide
THE SECURYfl' COUNCIL debated a UN
resolution on PalestinIan rights.
The U.S. failed to win postponement of
the debate an the resolution, a strong affir-
mation of Palestinian demands for “self-de
termination.” The U S is expected to veto
the resolution if it is Introduced when debate
resumes today.
Egypt opened the debate by saying the
council should restore “the Inalienable
rights of the Palestinian people.” But Israel
condemned the pending resolution as an at-
tempt to subvert its peace treaty with
Egypt.
A Palest i ne Liberaflon Organization
observer sold he wdl ask his Arab sup-
porters to seek an emergency General
Assembly session lf the US uses its
veto
The Ismell military reported that its
troops staged an armored raid into southern
I banon, blowing up two houses allegedly
used by Palestinian guerrillas One officer
was killed and two soldiers were wounded,
I banon said the 40-man IsraelI unit struck
the village of Barrachit six miles from the
border. * * *
A PRESIDENTIAL PANEL blocked re-
swnptlon of nuclear-plant licensing.
The panel, which is probing the Three
Mile Island accident, sharply criticized the
Nuclear Regulatosy Commission s plan to
lift a moratorium It imposed on licensing
May 21 The criticism prompted Harold
Denton, a top NRC official, to agree to put
off action until the five NRC commissioners
meet on the question
Dartmouth College President John Ke-
meny. chairman of the presidential commis
sian, said the NRC shouldn't resume licens
lug until his panel issues Its report Oct. 25.
Panel member. Carolyn Lewis complained
that the NRC “seems to be thumbing Its
nose at this commission.”
Kemeny suggested to reporters that
the panel aught go direc fly to President
Carter to keep the licensing freeze in
effect.
* * *
KURDISH REBElS surrounded an army
garrison In western Iran.
The encirclement took place during an in
tense battle In Saqqez. Helicopter gunshlps
strafed the city while troops lobbed mortar
rounds at Kutoish posItions, Withesses said
the garrison could fall unless government
reinforcements break through Kurdish de
fenses on the city's outskirts Casualties
were said to be high on both sides.
It was the heainest fzghhag since the
rebellion erupted in Kurdistan Province
it! days ago
Separately, President Carter was ques
tioned for the second time on his Mississippi
tour about his decision to allow the sale of
kerosene and diesel fuel to Iran. An auto
worker In Qulncy, Ill, said the U S should
have extracted a promise that Iran would
look Into “human rights violations.” Carter
later toured Hannibal, Mo
* * *
Zimbabwe Rhodesian troops struck six
more guerrilla targets Inside Zambia, the
military command in Salisbury reported
The officials didn't give the location of the
targets or casualty figures in the second day
of attacks on the Zainbian bases A peace
conference on Zimbabwe Rhodesia Is sched'
uled to begin in Lendon Sept 10
* * *
Eschel Rhoodle arrived under guard in
Johannesburg South Africa, to face fraud
charges arising from a governmenl Influ-
ence-buying scandal. The former head of
South Africa's information department was
extradited from France
* * *
Uganda banned hunting for five years in
an effort to save what remains of the herds
of elephants, lions and other animals In its
game preserves A Ugandan official said
poaching by soldiers and others has deci '
mated the herds
* * *
Mexico will be asked to pay at least for
part of the damage to the Texas coast from
an oil spill off the Yucatan Peninsula For
mer Rep Robert Krueger, a Texas Demo-
crat recently appointed coordinator far Mex-
ican affairs, said the U S. has proposed talks
an the issue.
* * *
The U.S. rejected a Soviet complaint that
the proposed MX mobile missile system
would deiy venficanon procedures unoer
SALT II, the Pentagon said Moscow was
told the deployment system will allow spy
satellites to count the missiles. President
Carter Is expected to approve a plan to
place the missiles In shelters around a cir-
cular track,
* * *
Vice President Mondale will fly to Peking
today for a five-day visit in which he hopes
to have extensive meetings with the Chinese
leadership The talks probably will focus
on expediting economic assistance to China
and plans to establish an American consu-
late in Canton
* * *
A Unl d Airlines jet carryIng 119 people
from Portland, Ore. to Los Angeles was hi-
jacked by a man pretending to carry a
bomb The hijacker forced the plane to re
turn to Portland, where he surrendered to
the FBI The FBI said the 26-year old man
appeared “mentally confused” during ques
tioning after the Incident
* * *
RussIan dancer Alexander Godunov of
the lamed Bolshol Ballet was granted asy-
lum In the U.S., immigration officials in
New York City dIsclosed The Bolshoi, on
tour In the U.S., Is In Its final week in New
York.
* * *
Thirty Inmates breke out of a Maryland
prison near Jessup by cutting through a
barred window and security screen,
Hundreds of police concentrated their
search along the Baltimare Washlng1on
Parkway and by late yesterday 20 of the
escapees were back In custody.
Rep ad ed xi no issa of he a yri h a nor Fu e recta u to nra ibi e w a t e soon
