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Show A2 ge THE DAILY HKKAI.l), Prmo. Hah. Tuesday, January 7, 1997 Dallon. who was working for The Associated Press, said the noise seemed to be coming from inside the compound and sounded like at least one explosion, followed by an echo or another detonation Police said the sounds appeared to be automatic weapons fire but said they had no reports of any injuries. Peruvian television using night vision cameras showed a man. apparently a rebel w ithout a bandana on his face, running in the compound yard w ith an assault rifle. The shots were heard immediately afterward. It was the second time since the stand By BILL CORMIER Associated Press Writer Gunfire was heard "1IMA. Peru "before dawn today at the Japanese ambassador's residence where Peruvian rebels hate been holding 74 hostages lor three wejjks. Photographer Scott Dallon, who was on jh rooftop of a house across the street Cr$m the residence, said several photographers staking out the complex were startled about 4 a.m. by what sounded like a gunshot. off began Dec. 17 that there has been a detonation inside the compound. On Dec. 26. an explosion was blamed on one of the ambassador's dogs; it tripped a land mine and was killed. Rebels have said they have mined approaches to the residence, which they took over during a gala cocktail party. Chances for a dialogue that would end the hostage crisis appear to be fading, after the government choked off all official information and prevented rebel contact w ith the outside. The government's chief negotiator, w ho By MELINDA ABLARD DIAZ Associated Press Writer LENEXA. Kan. Miles Postlethwait. born with heart, kidney and intestinal defects, wanted a friend w ho w as just like him. So he and his mom, Marty, created one. That friend, a muslin "buddy" .with a plastic tube protruding from its abdomen and a row of scars across its heart, has helped the through more than 30 major surgeries. , Three years since its creation, that single buddy has grown into .Shadow Buddies, the Postleth- waits' year-ol- d company that makes 12 different disease- - and disability-specifi- c dolls. ' The rag "dolls have been stitched, fitted for casts, anes- -' hooked to thetied, up chemotherapy lines, given shots and loved by about 12.000 chil-- . dren across the United States. "Even little kids who have Down's syndrome and some of the ones that are a little more severely handicapped all say, '.me, me,' when they get them and look underneath the gowns." Marty president company 'Postlethwait said. The dolls come light and with knotted yarn hair in different colors. Each 'wears a printed hospital gown and underneath, ihey show the unique physical characteristics of their human buddies' disease or dis ..' , , , ; i 12-in- dark-skinne- The youngest is newborn also the Cheyenne Pyie nation's youngest heart transplant recipient. Chris Brown, a director at the Children's Hospital of Philadelphia, said children can take their buddy into the operating room during surgery, where it sits on the operating table and even wears a little mask. The custom-mad- e companions have made some patients more cooperative, said Cindy Mark-lana child life specialist at Denver Children's Hospital in By JOHN HOWARD Associated Press Writer As good MERIDIAN, Calif. weather allowed thousands of Northern California flood refugees to return home, crews labored to stem flooding that threatened contamination of the state's drinking water. J, Cys i ' i ' f H y t increase was equal to or less than the number of new jobs created, Matthew s said. itT ( Continued from Page A 1 ) Job growth made a smooth at 5.3 percent in 1996. or I landing ;!ou know am a notorious easy '"uraller." he told more than 500 48. 00 new jobs, second to Nevada as the highest in the nation. ; people who came to get a feel for Matthews said. First Security preroll will j which way their budget dicts another 41.100 new jobs by I hi; year. f)n the Utah f ront, the answer to the end of 1997. an increase of 4.3 he said. ! (.question. "Who's had a better percent, The ! rate in the BYU the unemployment Utah or die of slate year, w 1996 in dow n ent to 3.4 per! football stale team'.'," is not an easy one is expected to freeze there and cent K. noted Kelly !tftfr Matthews, senior vice president for the upcoming year, putting and chief economist for First Secu-- j unemployment at the lowest annual level in four years. Matthews Corporation. 'rily ' Population grew at a rate of 2.2 said. ; Also on the rise is personal percent in 1996. an increase of 'about 43.000 people, the third income in Utah w ith a 8.2 percent ' fastest rate in the nation behind increase last year. A slight growth decrease for 1997 w ill put the total Nevada and Arizona. First Secur2.1 officials a percent personal income grow th at 7.7 perpredict ity cent, he said. ; population jump in 1997. bringing All in all. it looks to be a pretty j another 42.000 people to Utah. Matthews said. good year ahead for the Beehive i ....And the State. is not coming at growth ' "Utah's 1997 economic outlook he, expense of jobs, he said. ! . In fact. 1996 is the third consec-- ! remains highly favorable, but ulive year that Utah's population aggregate economic growth rates . 19. J i ( All but about 1,000 of the 125,000 Californians evacuated during the floods were believed to have gone home by Monday, said Marylou Schmidt of the state Office of Emergency Services. And in northern Nevada, some 250 evacuees from an Indian Reservation were still homeless. Elsewhere in the West, rivers continued to recede, but authorities worried about mudslides, particularly in Seattle, where 100 slides in the past week have blocked roads and destroyed homes. At least 29 deaths have been blamed on a series of storms that have hit the region since Dec. 26. including a body found Monday in a house near a levee break in Linda. In addition, three women are missing, Yuba County Undersher-if- f Gary Finch. "As the water recedes, we'll be able to get down to where we think those people were at," Finch said. "It's still several feet deep." Emergency crews in California's fertile Central Valley worked to shore up levees to prevent breaks that would flood thousands of acres of wheat fields, orchards t 'to ' v s f 'Ii ... i A NIm AP Photo d, GROWTH: Peru has said it will not use force totnd the crisis, but the stalemate is raising fears that the government may rethink that stance. Crews struggle to save levees ability. Miles, whose thumb prim is on the left hand of each buddy, designed the prototype when he was 6. When Mrs. Postlethwait asked her son how the buddies should look, he said. "We need to put heart eyes on them for love, so that the kids know that they're loved, and they all should smile so that w hen the kids look at the buddies, they are happy." The buddies were for children ages 6 months through 16 years. But all ages are comforted Mrs. them. by Postlethwait said. The oldest Shadow Buddy woman owner is an who needed a pacemaker and heart valve replacement. She still has her buddy one year after the surgery. 1 high-rankin- Dolls bring comfort to ailing children . Bolivian Foreign Minister Antonio Aranibar met with Peruvian President Alberto Fujimori for more than an Jjour Monday. Bolivia holds four jailed Tupac Aniaru rebels arrested for the 995 kidnapping of a businessman, but says it will not barter them for freedom for its ambassadorto Peru. That diplomat, Jorge Gumucio. is one of the hostages and is believed to bain poor health. has met with the rebels only once since they took over the residence, told El Com-erci- o newspaper that the government will not meet them again without a "clear sign" that the rebeis want dialogue. Each side is blaming the other for the lack of progress. g A Peruvian official, on condition of anonymity, told speaking The Associated Press that the gov ernment is content "to wait until they get bored." Individually or in groups, the rebels have released many of the 500 hostages they initially captured. Miles Postlethwait, 9, and his mother, Marty, are surrounded in Lenexa, Kan., by a few of the Shadow Buddies they made for children with health problems. likely will not duplicate the extraordinary gains of the past two years," Matthews said. But slightly less growth might end up being better for Utah in the end, he said. "Interestingly, the modestly slower growth may help solve Utah's two most evident economic problems: an excessively tight labor market and escalating single-famil- y home prices," Matthews said. On the national front, preliminary calculations show inflation at 3 percent for 1996, at the high end of First Security's forecast of 2.5-- 3 percent. Eccles said. A slightly higher inflation rate is expected for 1997 at a rate of percent, he predicted. But several factors make it hard to worry about inflation bouncing too much higher than 3 percent, Eccles added. "Quite simply, it's difficult to get very worried about accelerated inflation w ith stable gold prices, an average 7.3 percent strengthening in the U.S. dollar exchange rate over the past year, declining for-.5 eign interest rates and limited Iraqi oil production in 1997," he said. Further results show the national unemployment rate for 1996 sliding in at 5.4 percent, just below First Security's prediction of 5.5-- 6 percent. Bank officials are forecasting unemployment numbers for 1997 at 5.3-5.- 8 percent, Eccles said. Also level is the increase in Real Gross Domestic Product, or the annual total of all production output by the federal government. These numbers came in at about 2.3 percent, just below the First Security forecast for last year and this year of 1.75-2.- 5 percent, Eccles said. But that is good news, Eccles said. "As in the Goldilocks analogy, this growth rate is neither too hot nor too cold, but just about right." Although the upcoming year's growth numbers for the national economy don't jump out and slap you in the face, the prognosis is still good, he said. And last but not least, the stock market is in good shape, said Sterling K. Jenson, president and CEO of First Security Investment Management Inc. He pointed out that last year, the Dow Jones Industrial Average hit new highs on 45 different days. "From the professional investor to the casual observer, the incredig stock market ble, both gratified and mystified individuals as it continued it's unrelentless climb to newer and loftier heights throughout 1996," Jenson said. And the stock market will continue its climb in 1997 because of the following catalysts: Stable to lower interest rates Moderate economic grow th Strong corporate earnings Positive cash flow in stocks A stronger dollar But even with a strong stock market, investors should expect a roller coaster ride to profit if they choose to play the game, Jenson said. "We continue to remind our customers that investing must be looked upon as a long-ter- PLAN: niche they must serve to survive and later thrive. Thalman and other merchants are also engaging in some self-helhaving recently organized the Provo Downtown Action Committee. Meetings are held on a monthly basis to discuss promotion and other ways to draw customers to the area. City officials are pitching in with a plan to enhance the area's possibly through appearance installing attractive period lighting. In addition, the city will be tearing up downtown streets this spring to upgrade water lines, bury power lines and install conduit for fiber optic cable and communications access. Other possibilities include formulating new city ordinances to require greater cleanliness standards for downtown. Thalman would also like to see a cash infusion from government sources like Community Development as well as block grants. Gleason said that's a call the mayor will have to make. and vineyards. "It's going to be a real nightmare for some of those folks to try and recover and stay in business once those flood waters recede," said Dave Kranz, a California Farm Bureau spokesman. Even without further damage, the flood of 1997 will probably be the most destructive in California history. Gov. Pete Wilson said. Preliminary damage estimates from nine of the 42 flooded counties already have hit S775 million. In Nevada, Gov. Bob Miller said flood damage there could reach $500 million. In Meridian, north of Sacramento, the National Guard punched a hole in a levee to relieve water pressure after a break over the weekend forced evacuations. And more than 300 people, including dozens of inmates, filled sandbags and bulldozed mounds of earth around the town into a new. wall nearly a mile long to protect the community. "It's a race with Mother Nature, but right now we're ahead." said Capt. Mark Bisbee of the state Forestry Department. High water in the Sacramerito-Sa- n Joaquin Delta threatened, to contaminate Southern California's water supply. The fear is that islands in the Delta will wash away, allow ing salt water to push upstream. The delta feeds the 444-mil- e California Aqueduct, which supplies the San Joaquin Valley and the Los Angeles area. endeavor with the understanding that some short-terpain most usually will accompany the long-tergain." he said. First Security executives had practiced economic telepathy every January in Salt Lake City for 29 years but brought the show to Provo six years ago. m m death-defyin- m tpfttty Herat 1555 North Freedom Boulevard P.O. Box 717. Provo, Utah 84603-0717Classified Advertising Retail Advertising Subscriptions and delivery service Newsroom For Departments not listed above .373-645 .375-510 .373-50- FAX 9 , .edit16itsnet.com PubUSPS 143-06- 0 (ISSN: 0891-277lished daily Monday through Fnday evening: Saturday and Sunday morning by Pulitzer Community Newspapers. Inc., 1555 North '' Freedom Boulevard Provo. Utah 84604. Periodicals postage paid at Provo. Utah. POSTMASTER: Send address changes, to: The Daily Herald. P.O. Box 717, Provo, Utah 84603-071Established August 1, 1873. NEWSSTAND PRICE Daily Weekdays and Saturday Sunday $.50 $1.25 SUBSCRIPTION RATES lOATH: (Continued from Page A 1 ) to prepare and to preserve." I' ..Thai will require the planned nuissive reconstruction of Inter-- ; state 5. the conservation of previous water and land and. most the proteciion and ; importantly, 'nurturing of Utah's children, the i governor said. hard as the state might try. jit, can never do the job as well as .two loving parents." he said. ""Government can't change hearts." Leavitt said. "We can lock up 'criminals, but w e struggle to Jrehiibilitate them. We can lake children from abusive parents, but bind up their broken j we "can't hearts. In the realm of human character, government tries hard, but ! flounders." ! ' 4raviti drew a direct correlation Ibotween personal responsibility, iscif'teliunce and his view of the Jrolff of government in general. Hammering on a theme thai defined hi first term and shot him into the nuiinal arena. Leavitt said govcrn-!m- jt should be smaller, closer to Ihiwite. and is best run at the slate and local level rather than by face-lebureaucrats in Washington. At the same lime, he acknowledged thai the states' rights move-Imenhe helped launch has stalled a Ibit.' "Major course corrections take , ', ', J si I a democracy." he said. time "This movement is still in its early and formative stage. I want you to know that I intend to remain a solin T dier in this fight." Dignitaries from government, business and the state's churches attended the inaugural. They included Sen. Bob Bennett. Rep. James Hansen, and Rep. elect Utah Merrill Cook, all House Speaker Mel Brown and Senate President Lane Beattie also were on the stand. The invocation was offered by Salt Lake Roman Catholic Bishop George H. Niederauer and the benediction w as given by Elder M. Russell Ballard, a member of the Quorum of the Twelve Apostles of The Church of Jesus Christ of Latter-day Saints. Mormon Church President Gordon Hinckley sat in the front row next to Leavitt's parents. The Mormon Tabernacle Choir, accompanied by the 23rd Army Band, sang "America the Beautiful." "Utah. We Love Thee" and "The Battle Hymn of the Republic." An earlier 'Hag raising ceremony was performed by Ida Beck, a cenienarian residing at a Salt Lake rest home, and Orein Junior High School student Haley Justin, who celebrated her I4th birthday Mon-- day. ""It is a celebration of the old and the new ... as the stale enters its second century." said Larry Lewis, media coordinator for the event. NEWT: (Continued from Page Al) curate responses to investigators the heart of an ethics case that is nearing completion. Contrite about his misdeeds but insisting on the need to him speaker. Gingrich said. "Let members know this is not about New t Gingrich, this is about political assassination." according to Majority Whip Tom DeLay. Democrats want to kill the Republican message "by killing the messenger." DeLay said. Also appearing on Fox. Rep. Jim said Gingrich would Moran. be the weakest speaker in congres- sional history and added. "If Democrats had written this scenario ourselves, we couldn't have written it any better." Clarification On Page A4 of Sunday's Daily Herald, there was a story about an encounter a Moses Shepherd had with escaped felon Keith Shepherd. Moses The Shepherd referred to is Moses Shepherd Jr. This is not Moses Shepherd Sr.. who works as a bus driver for the Provo School District. (Continued from Page Al) every case, every business that has left has been immediately replaced by another." So Provo is already undergoing change well before the mall arrives. And even it does open, a mall doesn't necessarily portend a gloomy future for downtown. Thalman. for example, believes the short-tereffect will be negative, but is relatively hopeful over the long term. Here's why: When the Orem University Mall opened, many customers quickly deserted smaller stores for the indoor convenience and glamour of the enclosed shopping area. Long-terresults were more beneficial. In the next several decades, the mall sparked the development of a business corridor that now extends from the University Parkway to Interstate 15 in Provo. Thalman believes the same scenario will unfold in Provo. Once again, the key is helping local business weather the initial storm. The city is already rendering some assistance in that area. Gleason's office, for example, is teaching downtown retailers how to market and promote their businesses and understand the m p, Monthly City zone Rural or motor route" One Year City zone Rural or motor route" Mail. 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