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Show it i iliil. M HakJeman's diaries peek into Nixon White House Local girl takes DARE; Fire up barbecue named national finalist for summer fun Page A3 Three of four valley teams get tourney wins Page B1 Page B8 C1 Page Central Utah's Newspaper for 120 Years, Provo, Utah Tuesday, May 17, 1994 50 cents Analysts predict interest rate hike Heavy metal By MARTIN CRUTSINGER AP Economics Writer WASHINGTON i. ".sin? - A fourth Many analysts believe the 3.75 percent rate will be increased by one-ha- lf percentage point and that the boost will be accompanied by a half-poihike in the Fed's discount rate, the interest that the central bank charges on direct loans to commercial banks. The discount rate, currently 3 percent, was last increased in February 1989. While the Fed's previous three small rate hikes have sent stock and bond markets spiraling downward, analysts said they were not looking for such a negative reaction this time. Indeed, on the eve of the widely in- crease in interest rates appears imminent, but the Federal Reserve's credit tightening for this year may be drawing to a close, many analysts believe. The Fed's key policy-makin- g group, the Federal Open Market Committee, planned to meet behind closed doors today to consider its next interest rate move. President Clinton, at morning photo session, said that even if the Fed were to boost rates once again, (J nt "I have every confidence that we're still going to have a good year this anticipated rate hike, financial markets staged a modest rally Monday. Bond yields fell to 7.45 percent, compared with an high of 7 63 percent a week year." "There room for interest rates over the rate of inflation that won't slow down our economy," he said. is clearly some th short-ter- m of the continuous caster at Geneva Steel Monday in Orem. Geneva officials say the U.N. Administration unveils plan to help homeless By SONYA ROSS Associated Press Writer WASHINGTON - The today Clinton administration unveiled a $1.7 billion strategy for getting government aid to homeless people on the street and then helping them into homes of their own. The report, if apClinton President proved by and submitted to Congress, would represent the first time the government has labeled homelessness as a major probfede lem demanding eral action. The plan, compiled by the Interagency Task Force on the e 100-pag- large-scal- Homeless, suggested that homeless people be taken in emergency through short-tershelters, given transitional housing while they undergo counseling or job training, then placed in affordable, permanent homes. . It also recommended a dramatic overhaul of current programs, and called for "emergency measures" to move homeless people back into society. ... "We must remember that government's role is to help people help themselves," the m report said. "The current homeless system across the ago, and the Dow Jones industrial average climbed by 1 .82 points. Federal Reserve Chairman Alan Greenspan and other Fed officials have insisted they are not trying to choke off the economic expansion with the rate hikes, but are merely pushing interest rates to a "neutral" level where they are neither spurring growth nor retarding it. The trouble is that the Fed has been vague about just where that neutral territory is, and many critics complain that is why long-terinterest rates have risen faster than 1 Every time the committee has met this year it has decided to raise interest rates, and there was widespread speculation the central bank would do the same this time. In fact, some economists were looking for something more dramatic than the three separate quarter-point hikes in the federal funds rate that the Fed has engineered so far. The funds rate, the interest that banks charge each other on overnight loans, has gone from 3 percent to 3.75 percent. AP Photo steel slab, measuring 10 feet 5 inches wide and 15 feet 512 inches long, rolls out A . slab, which weighs 27 tons, is the world's largest continuously cast steel slab. m (See FED, Page A2) approves peacekeepers for Rwanda By ANDREW KATELL Associated Press Writer country was not planned, but rather evolved as a result of uncoordinated efforts. ... The result is a disjointed approach which provides for some needs while ignoring others." The administration described two classes of homeless people: those with long-terdisabling conditions and those in "crisis poverty," who are so poor that sudden tragedy, such as the loss of a job or a house fire, pushes them onto the streets. "Homelessness is not just a housing problem, but a condition that can result from poverty, substance abuse, a lack of affordable housing or the col- lapse of institutions," said Housing Secretary Henry Cis-nero- s. The task force report estimated the nation's homeless population at 7 million at the close of the 1980s, with 600,000 on the street on any given night. Pre- vious administrations put the figure at 600,000; the most recent draft of today's report gave a range between 4.95 million and 9.52 million. The population estimates did not include 1.2 million families who are on waiting lists for public housing, the 1 million seeking federal rent assistance or untold numbers who move in with families or friends. - V. After UNITED NATIONS three days of delays which one human rights group said cost even more bloodshed in Rwanda, the Security Council today voted to send peacekeeping force to the war-tor- n nation to try to protect 'k Mikl i1:' rvJ "5o -- 4' "'' r" r" " See related stories, Pages A5, B7 refugees and help deliver food and medicine. It could still take months for the force of 5,500 soldiers to arrive, and they will be allowed to use force only for inside designated areas, such as stadiums or refugee camps. self-defen- se ry " The Security Council hopes they will nevertheless be able to stem what it called "a humanitarian crisis of enormous proportions." The resolution also imposes an immediate worldwide arms embargo on Rwanda. The Clinton administration reluctantly supported the resolution under pressure from other Security Council members anxious to act. The United States is not contributing troops but will pay about one-thir- d of the mission's total cost, estimated at $115 million for six months. About 200,000 people, mostly civilians, have been killed in more than a month of bloodletting between the Central African coun-- . Michael WilliamsonWashington Post refugees dig a grave in the background, a cross made of sticks tied with grass marks the border Monday. grave of a person who died at the Benaco refugee camp near the Tanzanian-Rwanda- n As Rwandan try's two main ethnic groups, the majority Hutus and minority Tut- sis. Nearly 2 million people have fled, the United Nations and aid groups say. Human rights organizations and aid workers blame militias led by extremist Hutu politicians for most- of the slaughter, which began after the president, a Hutu, died in a mysterious plane crash April 6. The New York-base- d group Hu- - man Rights WatchAfrica wrote (See RWANDA, Page A2) Government signs over gold mine for $5 acre Find it Classified Ads... Comics Crossword Legals Lifestyle Movies Obituaries Opinions Sports State Stocks TV listings World Weather D3 D2 D8 C6 'Entertainment '. JOSEF HEBERT Associated Press Writer By H. D4 C4 C6,C7 B2 B4 B8 B3 A6 C7 A5 Tonight and Wednesday mostly cloudy with scattered showers and thunderstorms. Lows in the lower to Highs in the lower 60s. See PageA8. mid-40- s. Air Quality Air quality conditions today were good for nearly all Wasatch Front areas. See PageA2. While calling - WASHINGTON Worth billions of dollars, the Goldstrike mine in Nevada is among the richest in North America, but it also may one day be remembered as the from gold mine that got away the government. Interior Secretary Bruce Babbitt formally transferred title to the k acre mine to American Resources Inc., a Canadian company that has held a claim there sinre 1987 under a 1 Bar-ric- -- ld U.S. mining law. it "the biggest gold heist since the days of (outlaw) Butch Cassidy," Babbitt said Monday that "the Jaw required him to give up the land and its mineral riches for a scant $5 an acre. The gqvernment received a check for $8,955. The mining company estimates that Goldstrike contains between $8 billion and $10 billion worth of gold, but under the Mining Act of 1872 which was designed to promote the West and help develop its resources the Treasury will not collect a dime in royalties, los ing perhaps as much as $640 million. Last year, 1.4 million ounces of gold worth roughly $600 million was taken from the surface mine. Legislation being considered by Congress would require royalty payments, perhaps as much as 8 percent, in future cases. American Barrick Resources, while acknowledging that it will make a hefty profit from the mine, says the numbers cited by Babbitt are misleading. They don't take into account the more than $1 billion the company has spent on mine operations and on developing technology used to separate the microscopic traces of go!d from thousands of tons of rock, it says. "Through the use of innovative new technology and risk of our own capital (we) created value where previously it didn't exist," Pat Garber, Barrick's general counsel, said in a recent interview. Critics, nevertheless, call the Goldstrike mine in the hills of central Nevada a prime example of what's wrong with how the government deals with the vast mineral riches on federal land ore-ric- h (See MINE, Page A2) |
