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Show Gold Soars to $765 an Ounce United Press International Gold rocketed through the $700 barrier in Europe tay in an ‘absolutely crazy" market opening at $735 and later surged to $765 at the London morning gold fixing as the price leap-frogged around the world Gold earlier hit record levels in New York, Hong Kong and Zurich but the London morning fixing of $765 eclipsed themall. It was an increase of $78 from the London closingprice on Tuesday The price of gold is “fixed” each morning and afternoon in change as buyers sought to get on the bandwagon. It opened at $715 London by a meeting of the five WASHINGTON (UPI) — Industrial production rose 0.3 percent in December, despite the worst U.S. automobile production month in 4% years the Federal Reserve Board said today. principal dealers who gather to set a price on gold “Trading is hectic. We are rushed off ourfeet. Little time to talk, ‘‘a dealer for brokers Samuel Montagusaid. “Speculators have appeared from all over and the buying at the moment is mainly on the Afghanistan situation,” said a broker with Johnson Mathey. Another dealer said. “Some say the big buyers in the market are the Arabs.’” Theprice of gold in Hong Kong at one point zoomed to $740 an ounce, butit fell back $5 to close at $735 after breakingall records in the history of the 70-year-old Chinese Gold and Silver Ex- per ounce a $51 increase over Tuesday's close. It soared $50.50 an ounce overnightin Switzerland from $684.50 to a record $735 an ounce. In London it leaped $8 an ounce madness — buyers seemwilling overnight to § 35 but minutes later edged back to $730 It's absolutely crazy — the market has gonewild "a Zurich to pay any price for the metal gold dealer said “There just doesn't seem to be any end tothis Despite Autos Slump, Industrial Output Rises The small gain in the output of the nation's factories, mines and utilities reversed two consecutive months of small declines. It also supported administration forecasts that the overall economy expanded slightly during last year’s final quarter to delay once again the onset of an anticipated recession. The Federal Reserve's industrial production index for December, which stood at 152.2 of the 1967 average. was0.3 per: cent above the previous month and 0.3 percent above December, 1978. The yearly increase was far below the 1978's 7.7 percent gain. the Federal Reserve said It was also the most sluggish production year since 1974, when the deepest recession in post World War II history pushed down production by 9.1 percent the Federal Reserve said The automobile and construction industries were the main drags on the December production performance. Automobile production fell to an annualrate of 6.8 million units last month, 6 percentless than in November. and the market has lost all proportion of what is normal and sound dealing While Gold stole the headlines the dollar held up on the foreign exchange markets The dollar scored gains against continental currencies and London dealers said there was a reluctancetosell. ‘The dollar is looking cheap at currentlevels said one dealer who said mostof the bad news about the Afghan crisis and the U.S economy had now been discounted But West German dealers said the commercial demand wasapparently triggered by reported dollar purchases by the International Money Market in Chicago, rather than fundamental confidence in the dollar In Frankfurt the dollar opened at 1.7310 marks, up from 1.7267. and in Zurichit edged forward to 1.5985 Swiss francs from 1.5942 In Amsterdam the dollar rate was 1.9095 guilders, up from 1.9060, ‘The dollar opened in Paris at — 4.0537 francs. up from 4.0475, and As gold prices skyrocket, Miss Helen Tse of Hong Kong happily shows her 20-gram (just over a half-ounce) pure gold pendant. vri teieproto in Brussels it was rated at 28.955 Belgian francs, up from 28.78 ‘The dollar was up3 lire in Milan opening at 806.75 from 803.30 Hearings on MX 107TH YEAR, NO.143 PROVO, UTAH, WEDNESDAY, JAN. 16, 1980 $4.50—MONTH, PRICE 25 CENTS Soviet Troops Plan Winter Stay By United Press International Thousands of Soviet trucks carrying coal, firewood and arms are pouring into Afghanistan over pontoon bridges in a massive effort to provision Russian invasion troops for a winter stay, Moslem rebels said. Rebel leaders near Pakistan’s border with Afghanistan said Tuesday the Russians put up pontoon bridges at the river port of Hairatan over the Amu River on the Afghan-Soviet border. Thousands of trucks started rolling last week across the bridges into Afghanistan, carrying huge amountsofcoal, firewood and other wintersupplies necessary to keep an army warm in the harsh Afghan climate. Mostof the trucks have been covered, however, and the rebels say they suspect someare carrying arms and ammunition for the estimated 85,000 Soviet invasion troops and 56,000 Afghan governmentforces fighting Moslem guerrillas. There was no independent confirmation of the rebels’ accounts but in Washington, White House press secretary Jody Powell said Tuesday the Russians have about25,000 troops within 70 to 100 miles of the Iranian-Afghan borderalong ‘“‘the traditional invasion route” into Iran. Afghan sources in Pakistan said today guerrillas have freed four of Afghanistan's northeastern provinces from the controlof the Moscow-installed government headed by President Babrak Karmal. Threeof these provinces — Badakhshan, Takhar and Kunduz —border on the Soviet Asian Moslem republic. The fourth, Baghlan. is closer to the Afghan capital of Kabul, seat of the new regime. The sourcesin Islamabad said Moslem guerillas fought a gruelling battle for more than a week against troops of the Soviet mountain division to liberate the four provinces. They gave no casualty figures. The guerrillas reported they kept up their pressure on the eastern province of Kunar, bordering Pakistan. Kunar’s district of Chigha Serai, where reinforcements of Soviet and Afghan troops were flown recently, is reportedly under siege. The guerillas said they hope to captureit soon. Missiles Plan Tonight in Nephi Citizens interested in \etting high Air Tuesday there is wide disagreementin Force officials know how they feel Congress about how the MX system about the proposed MX Missiles should be based and launched, but he vm are expected to do so in Nephi added that it appearsit will likely wind up in Nevada and Utah. Laxaltalso inay. The Air Fares will hold a public dicated the military can pretty wellput meeting on the system, proposed for it where they wanted. Utah and Nevada at Mickelson’s SALT LAKE CITY (UPI) — The unrestaurantin Nephi at 5:30 p.m., and in the Juab High School auditorium at 7 certain future of the SALTII treaty and the possibility of a new Cold War with p.m. the Soviet Union demonstratesthevital The MX Missile system plays a vital role in National defense, Air Force role of the proposed MX missile system Chayes. Undersecretary Antonia Handler to national defense, says Chayes and Hecker told Gov. Scott Chayes told Utah Governor Scott Matheson Tuesdaythatthe Air Force is Matheson Tuesdayin Salt Lake City. After speaking with the governor still committed to the planned $33 bilChayes and Air Force General Guy lion nuclear weapons system. And the Hecker traveled to Delta for a public officials said the Great Basin of Utah ea of the MX with residents and Nevada appears to be the most logical place to build the massive proere. Nevada Senator Paul Laxalt said ject. Wednesday: Provo PowerHike TakesEffect At the present rate of revenue depletion, the power budget will havea deficit of $647,000 by June 30. Mayor Jim Ferguson said this figure could be substantially reduced by the 15 percent rate hike. A 15-percent hike in Provo city electric rates officially took effect Tuesday as the Provo City Commission signed an ordinance which would raise the average homeowners rates each month by He added that within a year cash $1.50. The new hikein rates is expected to pull thecity electric budget out of the red and increase the cash reserves of the Provo City Power Department. Four days of steady rain on frozen Cache Valley caused extensive flooding. Disaster Status Asked in Utah Flooding SALT LAKECITY (UPI) — Governmentleaders in Box Elder and Cache counties today asked the state to declare flood damaged areasin northern Utah a disaster area. Emergency Services people from the two counties met with Paul Ross, acting director of emergency services for the State. Box Elder and Cache County Commissioners voted Tuesdayto seek a disaster declaration so the flooded areas would be available for federal assistance. Heavy rains falling on frozen ground caused extensive flooding throughout the two counties over the weekend and Monday. Some farms had to be evacuated and manyhomeshadflooded basements. Residents of several small towns in Cache County weretold to boil their drinking waterifit appeared . . cloudy. Box Elder Emergency Services Director Will Cross estimated the flood damage atcloseto $1milEarlier story on Page 23. lion. Legislature Pecks at Non-BudgetItems SALT LAKE CITY (UPI) — The Utah Legislature plodded slowly through a stack of non-budgetitemstoday as the 20-day budget session entered its third day. House and Senate leaders had hoped to race through votes on which nonbudgetitemsshould be considered during the session. But the pace slowed to a walk whenlegislators began debating the items rather than simply asking their colleagues to list the items for debateata later time. Rep. Ray D. Free, R-Salt Lake, became so frustrated by the tedious discussions that he said. ‘This is supposed to be a budget session. I think we need to get rid of some of these superfluous bills and do our jobs.’” Under budget session rules, a legislator who wants to introduce a non-budget item must get the okay of two-thirds of the membership in each legislative chamber.Theoretically, the lawmaker is supposed to simply explainthe natureof his proposal and why it is an emergency item which should take up part of the session time. Legislators are not supposed to debate non-budgetbills until they are formally approved by a two-thirds vote. But discussion of whetherto allow introduction of a bill that would raise bidding limits on contracts took nearly half an hour today. House members finally voted against introducing the hill in this session House action was slowed even more when the representatives discovered that several of their bills set for discussion had not yet been printed. The Senate recessed for a lengthy Republican caucusafter Senators considered only one measure. Ruling Paves Way for Medicaid Abortions fre’ YORK (UPI) — A federal forcement of the decision for 30 days, e's decision that the ban on to give the federal governmenttimeto appeal his decision. The law will rejedicaid-funded abortions is uncon stitutional could force statesto provide mainin effect during that period. An appeal is expected in the case, the procedure for any poor woman who which caused the 71-year-old Dooling to wantsit. The ruling by U.S. District Court d.Jay his retirement from the. bench until it could be completed. Judge John Dooling Jr. in Brooklyn “The need for health care during Tuesday overturns the so-called Hyde amendment, vinich bans the use of pregnancy is basic,'’ Dooling wrote. Medicaid funds for abortionsunless tne “To exclude from the pt sicians’ battery of procedures legal abortion, when mother’s life is in danger. Dooling, however, postponed er- it is medically necessary, is repugnant to the schemeofthe entire Medicaid abortion,they also said the amendment abridged the separation of church and program.” The plaintiffs — Cora McRae, a state section of the First Amendment Brooklyn mother, along with Planned to the Constitution. Dooling decided medically necessary Parenthood and Dr.Irwin Teran, a city physician — filed suit in 1976, im- abortions cover a wider ground than mediately after Congress passed the the “‘life endangerment” test laid down i Hyde amendment, named after Rep. by the Hyde amendment. He also appeared to acceptthe plainHenry Hyde, R-Ill. Arguing that the definition of a tiffs’ arguments that the decision on whether an abortion was medically “medically necessary” abortion should extend to cover any decision by a doc- necessary should be left up to a tor that the patient should have an woman's physician. reserves could be upwards of $1 million if no major rate increases are passed on from the Department of Energy from which Provo obtains a majorityof its power. Here’s Latest in Local Basketball Orem’s girls basketball team improved its season record to 8-0 and its Region Two mark to2-0 with a 5947 victory over Brighton Tuesday while Pleasant Grove and Provo recorded non-conference victories For details, see Kaylene Nelsen's roundup on page7. In addition, former Orem High and BYU cager Jay Cheesman has beenplaying pro basketball in Italy. He’s home now because he injured his knee and needed surgery. Sports editor Marion Dunnvisited with him andgives an in-depthlook at him on page6. FTC Issues Advertising Warning A warningto advertisers has been issued by the Federal Trade Commission, advising that well-known personalities should use the products they endorse andtell the, truth about them The FTCalso said that companies using consumer endorsement claims must be able to prove that the average person can expect the same satisfaction. See story on Page 16. Charged With Cheating Taxpayers Eight former federal employees and three private businessmen have been charged with cheating taxpayersout of more than $415,000 by setting up inflated or phony General Services Administration contracts. A two-yearinvestigation of fraud in the GSA hasled to 115 prosecutions to date. See story on Page5. More Snow orRain Expected , Mostly cloudy and a 50 percent probability of rain or snow through Thursdayis forecast for the Central Utah area. Expect southerly winds with temperatures turning colder and snow likely by Thursday after- noon. Overnight lows should be near freezing with highs near 40. See additional Utah weatherinformation on Page 2, and national temperatures on Page 16. Here’s Where ToFind It Amusements Arts Classified Ads Comics Commerce (Stocks) Editorial 23 22 40-47 38 13-14 a National-International Obituaries Society Sports Utah-Regioaal Wandertas 3, 16 4 19-22 6-11 15, 23, 27 % |