OCR Text |
Show HousePrices Dip as Interest Nudges Upward Christmas, which showed home WASHINGTON (UPI) — After a lz-year rise. house prices prices rising declined 1.2 percent in November, the National Association of Realtors reported. ‘The report wasat odds with the government's Consumer Price Index, released before 1.8 percent in November Another report, on which there was no dispute, showed mortgage interest rates rising to an average of 12.93 percent in December. The realtors said the national median price of an existing single-family home fell from $56,300 in October to $55.600 in November whichstill was near ly 10 percent above a year ago. Kenneth Kerin the associa tion’s vice president for re- search, said it was the first time November in the 12 years the group has kept figures that home prices have The association said the past November's decline came in fallen when they shouldn't have everyregion of the country with He said house pricesoften dip in September and October after the medianprice falling $1.000 in the West $700 in the north families put their children in school. but they usually rise in Ghe Baily region $300 in curate than the Consumer Price Index because its figures are based on a large sampleof all types of homes from 142 multiple listing services around the the Northeast and $100 in the South country Surprise! U.S. eee 107TH YEAR,NO.136 central Kerin said the association believes its figures are more ac- Economy Gains PROVO, UTAH, TUESDAY, JAN. 8, 1980 $4.50—MONTH, PRICE 25 CENTS In Final Quarter WASHINGTON (UPI) — In surprise development. the U.S. economy may have expanded during 1979's October-December quarter at almost the same pace as the previous three months, a leading government economist said today However, the unexpected economic strength does notalter the forecast of a “moderate and relatively brief’ recession during 1980. said Courtenay Slater. “Many of us thought that recession d when real gross national I at an annualrateof2.3 percent in the second quarter,’ Mrs. Slater said “However, this loss was recovered in the third quarter’ when the economy grewby 3.1 percent she continued. “Based on the partial data presently available, it nowappears that growth has continued in the fourth yuarter — the Commerce Department's chief economist. Mrs. Slater is the first administration economic official to publicly acknowledge that the economy continued to grow throughout 1979, even though most economists believed a recession would begin in the fourth perhaps at an annual rate of 2 to 3 percent.” quarter. however, and relatively brief. In remarks prepared for delivery to the Richmond, Va.. chapter of the American Marketing Association. Mrs. Slater said preliminary statistics show that the economy grew at an annual rate of between 2 and 3 percent during the last quarter. “1979 can be characterized as the year in which recession refused to arrive,” she said. ‘All the makings of recession were there.” eae SN. =~ wet i through four inches of snow-covered ground at Gresham,Ore., as the first snowfall fell in that western Oregon egon region. Areas of the Pacific Northwest received up to a half-foot of new snow whileportions of the Upper Midwest were hardest hit by near-blizzard conditions that dropped up to a foot of snow. See story and temperatures data on Page 18. Carter Mulls Persian Gulf Bases WASHINGTON(UPI) — In responseto the Soviet invasion of Afghanistan, President Carter says the United States is considering making use of foreign military bases in the Persian Gulfregion and joining other nations in providing aid to Pakistan. in an interview Monday night with NBC-TV, Carter said the United States: —Will join Western industrialized nations and wealthy Middle East countries in forming a ‘‘consortium” to provide military and economic aid to Pakistan to help it repel any Soviet aggression. —Is consideringtheuseof navaland air facilities offered by Somalia, Oman and Kenya to meet any “Soviet threat to the peacein the Mideast, Persian Gulf, northern Indian Ocean area.” Without giving specifics, the president also warned Iran he was “‘prepared to take action that would be quite serious in its consequences”” if the American hostages, now in captivity for nine weeks, are puton trial. Carter said he has informed Pakistani President Mohammed Zia ul-Haq by telephone and through emissaries the United States ‘is willing to join other nations in giving necessary protection to Pakistan and meettheir legitimate defensive military needs.” “This is not a threat to India, an adjacent country,” he said, “‘butit is an ability for Pakistan to repel invasion,if it should occur, and particularly to let Pakistan be knownasa strong nation able to protect themselves so that a possible invasion will be prevented.” Carter said the amount and form of the aid to Pakistan depends on Pakistan's needsandthe other contributing nations. He said he would have to seek authorization from Congressto provide the aid. Asked whether the United States would accept offers from Somalia, Oman, and Kenya for use of their naval and air facilities. Carter said: “Yes, we are consideringthe use of someof those facilities. We don’t have any definite agreement yet, butthat is the kind of thing that 1 think is importantto our nation to prepare for the long-range meeting of any threat to the peace in the Mideast, Persian Gulf, northern Indian Ocean area.” Y Don't Know’ Jobs Forecast Hints Gloom WASHINGTON(UPI) — The Carter administration has a gloomy unemploymentforecast for 1980. Labor Secretary Ray Marshall told reporters Mondayhebelievesthe jobless rate — currently at 5.8 percent — could rise to morethen6.5 percent by mid-year. He would not give a year-end prediction, but the mannerin which he answered questions did not indicate optimism. “I think we'll have trouble keeping unemployment below 6.5 percent during the first part of (1980), but I would be terribly surprisedif it went as high during this recession as it did the last one, which was 9 percent,” hesaid. “When it comes these days to forecasting, there are only two kinds of economists: There are those who don’t know, and those who don’t know that they don’t know,” Marshall said. ‘And I know I don’t Soviet Issues U.N. Veto, know.” ‘The Bureau of Labor Statistics will release its figure for December this Friday. Marshall said the government would avoid a repeat of the 9 percent figure because of larger programs to deal with unemployment. But AFL-CIO President Lane Kirklandcriticized the proposalto limit the number of persons receiving extended unemployment benefits. Former Justice the Soviet move as gross interventior and aggression. Only Moscow's ally, East Germany, joined the Soviet delegation in voting againstit. A White House spokesmancalledthe veto ‘‘a predictable and cynicalactioz! which demonstratesthe lack of respect for the principles of religious freedom and independence and territorial integrity of non-aligned states.” Non-aligned delegations proposed that the expected veto be followed up with a request to convene an emergency meeting on Afghanistan in the General Assembly. ‘Seriously Ill’ WASHINGTON (UPI) — Former seriously ill and being treated in an inSupreme Court Justice William 0. tensive care unit,’’ Walter Reed Douglas is ‘very seriously ill” at spokesman Peter Esker said. A hospital source said Douglas was Walter Reed Army Medical Center, it stable after treatment with antibiotics waslearned today. Douglas, 82, was admilled iv ihe and his fever is down. Douglas, one of the court's most hospital on Christmas eve with pneumonia andrespiratory distress, a liberal members, stepped down on Nov 12, 1975, after a record 36 years on the hospital source said. “All I can say ts thet be is very bench. of the year.”’ Explaining the inaccurate forecasts of a 1979 recession, Mrs. Slater said that growth during last year’s second half came largely from the consumer sector The savingsrate. she said. ‘reached an extraordinary low level by the fourth quarter.”” For Utah Problems WASHINGTON, D.C. — Solutions may be in store for problems with Geneva Works, the Central Utah Project and the MX missile — issues affecting Utah — predicts an optomistic Sen. Jake Garn. The 92nd Congress reconvenes Jan. 22. Garn commented on several important Utah issues in a Heraldinterview today. Because of recent developments in Iran and Afghanistan since the last session of Congress, Gam expects national crisis mattersto take the lead in congressional discussion before domestic legislation is resolved. An agreementbetweenU.S.Steel and EPA will be hammered out, Garn predicted, but the issue is shoving another problem into the background. “]'m worried that dumpingof foreign steel in the United States is continuing to hurt the nation’ssteelindustry,” he said. The Carter Administration has not pursued enforcement of anti-dumping laws, an unfair competition equaling any in the business world, said Gar. “Governments are obviously subsidizing foreign steel makersand I will push for an endto suchpractices waged against U.S. workers and the industry in this country.” The MX missile is needed bythe U.S. in light of Russian stockpiling of weapons that would enable Soviet missiles to render U.S. Minuteman missiles ineffective by 95 percent in three years, Garn said. But while the senator favors the missle and ‘organized Utah deployment,” heis critical of Carter’s plan for basing the missiles on series of race tracks calling it wasteful and costly. “I would prefer going back to the Air Force proposalthat the missile be on a vertical deploymet system. It is at least $10 billion less costly and uses less land.”” Governors of Utah and Nevada and their respective committees should not be ignored and they shold be agreeable to any federal proposal for the MX, Garn said. “J don’t intend the MX should be put in by the government in a slipshod manner,” he said. ‘Possible invasion ae rights can do more harm to the “It’s one of those things that has pluses and minuses whenyou consider its tremendous impact on the economy of Utah towns nearby. But careful plan- ing by local governments to ensure sewer, water, education for increased population and other important matters can be worked out if we look ahead,” Garnsaid. America has had enous experience with boom towns like Rock Springs, Wyo., to foresee problems in growth and curb them byplanning aheadon the locallevel, he said. The CUPreceived thedistinction of roving off the president's hit list of water works projects last year and funding was obtained for the Uintah and Upaico Units despite the administration’s considering them new construction. This points to a funding position in Carter's next budget appropriation to be presented to Congress sometime after it convenes, Gar predicts. Tuesday: Says Council ‘Meddling’ UNITED NATIONS (UPI) — The Soviet Union vetoed a resolutioncallin for the ‘immediate and unconditional withdrawal of all foreign troops in Afghanistan” and accused the UN. Security Council of meddling in the war-torn country’s affairs. The resolution ‘is a flagrant intervention in the internal affairs of a sovereign siate,” said Soviet Ambassador Oleg Troyanovskybefore casting the 113th Russian “nyet’’ in U.N. history Monday. In earlier debate, 13 Western and Third World countries had denounced with growth resuming again before the end Senator Garn Sees Solutions in Store Snows Prompt Travel Warnings Snowstorms have brought travel advisories about poor driving and flying conditions in the Northwest down into the Colorado Rockies and the Uj Midwest regions. In photo above, a lone pedestrian walks Mrs. Slater cautioned however, that “the forces making for recession are still with us.” “In 1980. the United States must expect to experience a recession." she said. ‘It will be moderate in its depth, Test Tube Babies The nation’s first test-tube baby laboratory gained final approval today from Virginia's health commissioner. That's good newsfor Sandra Smith, 31, cae of 11 womenselected as theinitial group of potential candidates. Researchers plan to use the same technique used in the birth in Oldham, England — homeof Louise Brown, the world’s first test-tube baby born July 25, 1978 See story on Page 18. Provoans Advised A. John Clarke, sworn in as a Provo City Commissioner yesterday, surprised everyone by saying that Provo’s present form of city overnment is outmoded and now ‘ails to meet the city’s needs because it combineslegislative and executive functions in the same eclarxe pleaded with Provo Citizens to examine alternative governmentforms. Hesaid thatif it is decided that the current triumvirate of executive-legislators is best, he will support the status quo. Clarke added thecity lacks expertise in managementand administration. See story on page 2. Crises Roundup The crisis in Afghanistanis still building, whiie the one in Iran continues. Fromreports on the invasion of Afghanistan by the Soviets, the Russians plan to stay for a while. ‘The U.S. has recalled seven Soviet consulate staff members; South Yemen defended the Soviet invasion of Afghanistan, and the CBA ordered a cut in Aeroflot flights between the U.S. and Russia In Iran, thousands of workers marched onthe beleagued U.S. Embassy in Tehran, and Ayatollah Khomeini announced heis going into two weeks of seclusion to rest. See stories on Page 5. Car Repairs Plan Americans spending an estimated $50 billion annually to repair and maintain their 124 million vehicles and much of that moneyis wasted. the government says. As a result, the National Highway Traffic Safety Administration is starting a program designed to reduce auto repairbills. It is all part of a consumer protection plan. See story on Page 5. tributed to doctor errors. See story on Page 18. Snow Won't Stay Snow showers today are expected to decrease tonight under Central Utah’s variably cloudy skies. Some Scattered snow is expected into Wednesday when southerly winds should increase, bringing 20 percent or less chances of snow. Expect overnight lows in mid 20s and highs Wednesday in the lower 40s. See additional Utah weatherinformation on Page 2. Abortion Deaths A report in the Planned Parenthood Journal blames physician errors for more than two-thirds of all abortion deaths during the second trimester — the fourth, fifth and sixth months The study states that 86 percent of the abortion deaths studied between 1975 and 1977 were preventable. And of those deaths, 68 perceiit were at- Where ToFindIt Amusements ......--...+0+00+ 5 Classified Ads . Comics ..... Commerce Editorial ...... National-International Obituaries ........ Society . UralRegional. |