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Show Bill Rescinds Law on Wage Kates Measure Iran Leader isks Mandate for Rule Aw ailing Tribune Wire Service TEHRAN. Iran - A mob hauled down and burned tin Ameru an flag in front of the U S. consulate in Shiraz Thursday as Pnnu Mmi-U- t Shuhfiour ParUa-rrnBakliUar appealed in Tehran for a mandate to restore order in the troubled nation lie announc ed a program of reforms Secret police agents opened fire on the riobis in Sinra is they stormed SAVAK headquarters, residents said Between two and eight demonstrators were reported killed and from 10 to 15 wounded The cit is 275 miles south of Tehran Meanwhile, scores of political prison ers streamed out of jails in Tehran to a tumultuous welcome from relatives and friends. Their release was part of a plan to free 266 prisoners that the Rakhtiar government announced Tue-da- y in the shas's name. Announces Embargo Bakhtiar also told the parliamentary deputies that his govt nunent will shut olf oil supplies to Israel and South Africa, but continue to supply the United States, which gets about 6 percent of it s oil imports from Iran. In Washington, Secretary of State Cyrus Varne Thursday warned the Iranian military it must not try to overthrow the civilian government, scheduled to assume power when the shah leaves the country U.S. , Vance, in the first high-levpolicy statement on Iran since the current turmoil began, also said the problems should be resolved by the Iranian people and not by outside forces. Head of State As for Shah Mohammed Reza Pahlavi, Vance said: The shah has said he plans to leave Iran on vacation. That has been his decision worked out with his Iranian colleagues. The shah remains the constitutional head of state and we continue to work with him in that capacity. Action in Senate Douglas L Parker and Charles J Seldin Tribune Political Writers The Utah House of Representatives sent to the Senate Thursday legislation rescinding the current law that makes it mandatory for government to pay prevailing wage rates on construction projects a provision rural communities feel too constricting The bill, HB12, sponsored by S. Garth Jones, City, received overwhelming support in the House, with a vote of Rep, Jones said the law, as it now stands, imposes false economic conditions on smaller communities, basicalrate is ly because the prevailing determined in the Wasatch Front area, where standards of living and wages are higher. The rate is determined by the State Industrial Commission after conferring with the construction industry, labor ami other interested parties. Expresses Opinion It was wrong to force an arbitrarily high rate on these rural governments, Rep. Jones said "It has caused morale problems among employees." a Rep. D. Leon Reese, leading advocate for labor in the House, argued, however, that if that same reasoning were carried to its logical end, school teachers in those areas should also have different wages. think this is foolishness Make one little inroad and you do untold damage to our way of life, to society Rep. Reese said. Adding to that. Rep. Roger F. a contractor Kawson, said he thought legislators were being inhumane, singling out this one group. We have no right to tinker with the prevailing wage, he said Poses Some Queries As an example, Rep. Rawson asked if House members in the realty business were willing to cut their 6 percent commission rate to 4 percent, if certified public accountants would take rate cuts or if dental and medical costs would also go down to correspond with the decrease in pay for laborers. forces dominated Although the floor time, the bill still passed with ease, albeit not entirely along party lines. Several rural Democratic legislators also voted with the solid block of Republicans to send the issue to the Senate for consideration. The Senate also passed its first bills of the session, sending three measures to the House for its approval. They seek to bar job discrimination of See Page 4, Column By . 52-'- 1 ... ... pro-lab- 1 Associated Press Laserphoto State Vance Secretary voices support for Prime of - five Dave Feldman, chief of litigation in the Maryland attorney generals office, said Mandel can return as governor as soon as he writes a letter revoking a letter he wrote on June 4, 1977, stepping aside as governor. But Feldman said Mandels earlier letter has not, to date, been revoked in writing." Mandel said, 1 feel great, and told radio station WTOP that he would not decide about the governors office until he and his wife, Jeanne, had time to sit down and think about it." Lt. Gov. Blair Lee III has been Minister Shahpour Bakhtiars civilian government in Iran. Surgeon Generals Report New Warning Links Smoking to Illness By Chris Connell Associated Press Writer Fifteen years after the nation was warned about cigarettes and lung cancer, the surgeon general declared on Thursday there is overwhelming evidence linking smoking to heart disease and other fatal and disabling illnesses. WASHINGTON Appeals ()ii rt Reverses Governors Conviction By George W. Wilbur Associated Press Writer RICHMOND, Va. Suspended Maryland Gov. Marvin Mandel's conviction for racketeering and mail fraud was overturned Thursday- by the 4th U S. Circuit Court of Appeals. The court ordered a new trial for Mandel and his t i GOP-eontroll- serving as acting governor in Mandels place. Mandels term ends Wednesday, when Harry R. Hughes, elected Nov 7, is to take over. Lee said Thursday. Frankly, Im very pleased ... 1 called Governor Mandel, who apparently only minutes before had been told ... the outcome of the appeal, and who was positively-bubblinwith excitement, the like of which Ive never heard in him before. The appeals court's order was based largely on what it called technical errors in the trial in a Baltimore federal court. It said the jury was not properly instructed about bribery- law in connection with the mail fraud charges. The failure, the court said. leads us to the conclusion that the jury may easily have been misled." Joseph Kaufman, a Baltimore law partner to Arnold Weiner, Mandels See Page 8, Column 3 - Rut the report offered no breakthroughs in medical evidence and researchers said they still have not found an easy way for people to quit smoking. Surgeon General Julius B. Richmond declared that the report, based on a review and reappraisal of 30,000 studies on smoking, "clearly illustrates that cigarette smoking is far more dangerous to health than we believed in 1964 " In that carefully worded statement read to a news conference at the Stale Deportment. Vance was emphasizing that the United States did not force the shah out, but concurs in his decision to leave and sees his future goverment role as ceremonial. He said the military must give the civilian government of Prime Minister-designat- e Shahpour Bakhtiar a chance, and made a statement obliquely addressed to widespread Iranian fears of an imminent military coup Peaceful Political Solution' "We believe that the new government should be given every chance to reconcile the differences in Iran and find a peaceful political solution." Vance said. Irans armed forces remain essential to the security and independence of Iran and as a necessary complement to We a legitimate civilian government The new report came on the 15th have urged that everything be done to anniversary of the famous surgeon ensure their integrity and their support generals report that linked cigarettes by the people of Iran to lung cancer in men and led to The Shiraz residents, contacted warnings on cigarettes. from Tehran, said between Health, Education and Welfare Sec10,000 and 20,000 gathered at a retary Joseph A. Califano Jr said the latest report confirms that smoking can cause lung cancer in women, cancers of the mouth, esophagus and bladder, and virtually every- kind of heart Tribune Telephone which is the No killer in our disease nation " A-- Inside Thu Tribune 1 Numbers, Page Califano predicted the retort would "spawn a new look at the warning label That would on cigarette packages. require action by Congress The report offered no suggestions or specific for rewriting the recommendations the surgeon current warning that general has determined that cigarette smoking is dangerous to your health. 2 Richmond sounded special warnings to women, whose lung cancer rates have tripled since 1964. Califano said that in the next year, we intend to reach every expectant mother in the nation with a medical warning about See Page 2, Column 1 Friday's Forecast Salt Lake City and vicinity - Occasional rain possibly mixed with snow by night. Weather details on Page C 4. Food, Gas Lead Wholesale Price Increase By William J. Eaton Los Angeles Times Writer year, Van I). Ooms, chief economist for the Office of Management and Budget, told a reporter. Food prices just killed us. With higher costs WASHINGTON for food and gasoline leading the way, wholesale prices rose by 0.8 percent in Decembers 0.8 percent increase was December, ending the year at a the same as in November and about double-digi- t' inflationary pace, Departaverage for the past four months. If ment of Labor reported Thursday. projected over an entire year, the rate For all of 1978, wholesale prices would be 10 percent. jumped by 9.1 percent, the biggest Administration officials now believe increase in five years and well above that inflation will continue unchecked of 6.6 percent. the 1977 advance for at least the first half of 1979 before Rising costs of food, along with measures devised by President Carter gasoline and machinery, kept the can start to tame it inflationary momentum going last month, crushing earlier hopes of the Reflecting the serious nature of the Carter administration for a taperingaiff problem, the Senate Banking Commitin the price spiral in late 1978. tee Thursday issued an extraordinary call for another year of tight money Bad News Very policy to help curb rising prices and The wholesale price figure defend the dollar abroad. to measuring the changes in prices paid d and producers for crude, is an important finished goods barometer of inflation since it often signals higher retail prices for consumThe boss put a sign on the bulletin ers in the future. board: 1 thrive on criticism. Write "We had very bad price news last yours here: 0." semi-finishe- Todays Chuckle The principal objective of monetary policy during 1979 should be the slow ing the down of inflation, committee said in a report with only two members Sens. Harrison A and Paul S Williams, Jr., Sarbannes, dissenting. Normally, members of the Senate panel are opposed to strict restraint by the Federal Reserve on the growth of the money supply on the grounds that it would reduce the rate of economic expansion. The committee-majority- , however, said "strong measures arc needed now in order to lay the groundwork for an orderly and steady expansion in production in the years ahead. The panel said the restraint should continue for the next 12 months until major progress has been achieved in of inflation. reversing the 1978 speed-u1 Gasoline Leap Percent The Department of Labors report showed that wholesale food prices rose by 0,9 percent last month while refinery-priceof gasoline jumped by 4 percent ., p Wholesale prices for beef and veal, poultry, fruits and vegetables, and candy went up, while prices for pork. eggs, refined sugar and tobacco products declined. Substantia! increases were posted for home heating oil, machine tools, motor trucks and office furniture. Over the year, wholesale prices for grocery store products rose by 11,9 percent, with prices for crude materials increasing 17,1 percent. The Do eember index for crude goods, those at the first stage of production, rose by a moderate 0.4 percent, but experts said il was too soon to say if this could be the start of a trend. dairy-product- Were certainly not getting any signs as yet of moderation in the rate of inflation," said Lyle E. Gramley, a member of the presidents Council of Economic Advisers. "And we should he looking for had news on the food price front in the first quarter (of 1979V No one can predict with any accuracy when the turn will come," Gramley added city square for an anti shah rally, then inarched to the U.S. consulate. U S. sources said the American and Iranian stall at the consulate left the budding as they saw the crowd np- ( il Shortage V- -1 .i ivligious leaders had promised to maintain order when he lifted martial i Shiraz three days ago and added that t iiihlemakers would face severe government action. Bakhtiar said there were injuries in Shiraz, but mentioned no deaths. In Tehran, the Majlis, or lower house of Parliament, burst into applause as Bakhtiar reaffirmed he would dissolve SAVAK and said 08 political prisoners sentenced to life imprisonment had been freed er proaching but police rt mained to guard the complex The crowd threw a few at the building but did no rocks damage, the sources said. The demonstrators tore down the U S. flag and burned it in the streets, demolished three statues of the shah, and then attacked the secret police r riot. headquarters during the Bakhtiar told the state radio that four-hou- Some of the prisoners leaving jails dene lied their hands above their heads in a sign of victory, and waved portraits if the Ayatullah Khomaini, the exiled spiritual leader of the Shiite Moslems Associated Masomeh Shadamany throws hands up in joy at sight of carnations in Tehran. She has been freed from Ghasr prison. Cambodia Official Flees Advance of Viet Troops By Denis D. Gray Associated Press Writer EANGKOK. Thailand Cambodian Deputy Premier Ieng Sary was rescued from his conquered country by a Thai helicopter Thursday, escaping capture by victorius Vietnamese units that closed in on the border. Ieng Sarv, the No. 2 man in the Phnom Penh regime toppled last Sunday by Vietnanese troops and their Cambodian rebel proteges, flew to Bangkok and Hong Kong He. his wife and daughter, and 11 others were driven across the border into China Friday morning, it was assumed they would be flown from Canton to Peking. The Vietnamese, possibly operating with Cambodian units, reportedly seized Siem Reap, 140 miles northwest of Phnom Penh, and the nearby ancient temples of Angkor on Thursday. Sources said Vietnamese planes attacked Battamhang, 20 miles farther northwest, probably the last major area still in the hands of the toppled government. Predict Total Victory The sources, who appear to have accurately predicted the three-wee- k Vietnamese blitz across Cambodia, said they believed the entire country would be in Vietnamese or Cambodian rebel hands within two days. There were no reports on the fate of other ousted Cambodian leaders, including President Khieu Samphan or Premier Pol Pot. But reliable Thai and Western sources said (he defeated Cambodians had asked Thailand to allow the transit to China of about 500 people. They were said to be near Poipet, the Cambodian border town where two Thai helicopters landed to scoop up Ieng Sary and others w ith him, possibly including his family Killed During Invasion? Some sources said Pol Pot might have been killed during the Vietnamese invasion. But are doing the fighting. Thailand said earlier it would grant g officials of the transit to toppled regime, but no one else. The sources said Vietnamese troops and tanks were moving along a major highway less than 60 miles from the Thai frontier. Ieng Sary, branded by many as high-rankin- I .N. Action. Page A2 partly responsible for mass repression and death in his country, arrived in Hong Kong Thursday night. A govern ment official said he would spend the night before flying to Peking, the only ally of the toppled Phnom Penh regime. As the Vietnamese troops moved closer to Thailand, Thai military forces were reinforced at some points along the 1,280-mil- e border, apparently in fear that the fighting would spill over into Thailand and that defeated troops might try to enter the CountryAssociated Press photographer Jell-reRobbins visited a Thai fire base on the border with Cambodia south of the Poipet area Thursday. The defenses were newly dug and the guns, including those on two armored personnel car riers, were pointed in the direction of Cambodia, he reported. The intelligence sources reported some fighting in eastern Cambodia but said it appeared to be mopping up operations by the Vietnamese and their allies. The rebels have established a new government in Phnom Penh. Prince Norodom Sihanouk the former Cambodian chief of state, told reporters in New York Wednesday that Pol Pot was in the jungle and in daily radio contact with Peking. About 20 tanks and an unknown number of soldiers of the new Cambodian government were sighted to the south of PoiM't before the rescue helicopters landed The tanks bore markings of the rebel Kampuchean (Cambodian) United Front that the Vietnamese army led into Phnom Penh last Sunday. But there was speculation they wen Vietnamese tanks in disguise, since Hanoi claims Cambodian insurgents and not Vietnamese troops Ieng Sary En Route to China |