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Show Salt Lake City, Utah Yol. 229, No. 72 Rep.Ham Prison Term House Panel Requests Congress Take Action By Robert L. Jackson Los Angeles Times Writer WASHINGTON Rep. George - Hansen, Friday to five to 15 was sentenced months in prison ,and was fined $40,000 for failing to disclose more than $245,000 in loans and $37,475 in profits in the silver futures market from 1979 to 1982. At the same time, the House Ethics Commit-- ; tee released a re- port charging Saturday Morning June lfi, 1981 jennecott Threatens Jobs Of 2 Utah Workers ! By Robert H. Woody Tribune Business Editor Kennecott will cut 2,000 more workers from its Utah Copper Division in July and August, and cut indefiniteproduction by ly unless it can get adjustments in wages, benefits and agreements with its workers. Low copper prices as well as prices and losses present and pending, are the reason for the action, G. Frank Joklik, president, said Friday. About 10 percent of the cuts would be in management ranks, he said. All vacations previously had been suspended. two-thir- cost-of-livi- The reduction would be of indefinite length, he said. It would leave Utah Copper Division with less than a third of the work force of 7,300 it had in early 1981 when it was Utahs largest private employer and the largest single producing copper property in the United States and among the largest in the world. It now employs 4,400. Other Kennecott properties at Ray, Ariz., and at Chino, N.M., where a major $400 million smelter overhaul has at least begun to result in but with no reproduction at cost could also be turn on investment affected, he said. Kennecott had earlier askeditswpj for a meeting on renegotiating present contracts but had been turned down. It is understood, however, that the copper workers, represented principally through a coalition headed by U.S. Steelworkers district director Robert Petris, are to meet Monday at district headquarters in Compton, Calif., to consider the matter. There was no answer at the dis- trict office to a telephone call by The Tribune. The reduction, if put into effect, would cut Utah Copper Division copper production to about 66.000 tons yearly .ompared to the present 200,000 tons, Mr. Joklik said. Qisclosure laws and should be punished by Con-- I gress in addition sen- - tenced to prison. The committee will conduct a hearing Wednesday to determine what punishment to recommend to the full House. It could range from a simple reprimand, which carries little weight, to explusion from the House. But Hansen, a conservative maverick who is running for an eighth term, can serve in the House if he is in November despite any House action before then. He could majoronly be barred if a ity of congressmen vote after his election to expel him. First Convicted Hansen, 53, is the first public official to be convicted of intentionally filing a false public statement under provisions of the 1978 Ethics in Government Act, which requires such disclosures annually from all top government officials. He won the Republican primary election in May despite his April 2 conviction by a federal court jury on four felony counts. The congressman could have received a maximum of 20 years in prison in addition to the $40,000 fine. U.S. District Judge Joyce Hens Green said she tried to base her sentencing decision on deterrence, setting an example, punishment, rehabilitation and justice. Some of the transactions Hansen was charged with concealing involved deals with ccntroversial Texas billionaire Nelson Bunker Hunt, who has invested millions of dollars in the silver market and has helped finance Hansen's political campaigns. Hansen, who could be paroled after five months in prison, told reporters his troubles have arisen from my fight over the politicizing of government agencies. He has repeatedly claimed he was victimized by the Department of Justice for what he said were his populist battles against the federal establishment on behalf of small farmers and ordinary people. Appeal Planned The congressman and his attorney, Nathan Lewin, said the conviction will be appealed. During Hansens trial, prosecutors presented evidence that the congressman sought to conceal $135,000 in loans in 1981 from three Virginia men as well as profits of $87,475 in 1979 on the purchase and sale of silver futures contracts. A $50,000 loan from a Dallas bank was guaranteed by Hunt and a second loan for $61,503 was extended by Hunt personally. The conviction is Hansens second in his 14 years in Congress. In 1974, he was fined $2,000 after pleading guilty to two misdemeanors growing out of erroneous campaign contribution reports he submitted that omitted $2,150 in donations. two-thir- Associated This is projected uniform for a soldier of year 2000 as designed by British firm. Included is a backpack gun that fires gren computer, Sci-co- Tribune Telephone Numbers, Page A-- 3 ades, smoke bombs and bullets, and a helmet packed with the latest technology, including computerized map, reference file and a device to call missile, air support. Wholesale Price Index Holds Steady: Industrial Production Rises 0.4 By Jerome Cahill New York Daily News - WASHINGTON For the second consecutive month, a key measure of inflation at the wholesale price level registered no change in May, while industrial production rose 0.4 percent, its smallest increase in half a year, officials reported yesterday. The White House welcomed the news as support for its view that the nations economy is in the process of making a soft landing from the dizzying expansion of the first quarter of the year to a period of more moderate growth without inflation. Presidential spokesman Larry Speakes said the performance of the Labor Departments Producer Price Index and the data on industrial production from the Federal Reserve Board provide a double shot of confidence that the economy is not overheating. He said the reports should convince the financial markets that the By Barry Schweid Associated Press Writeqr Page WYE PLANTATION, D-- n, economy is on a steady and sustainable course. An unusually sharp decline of 1.2 percent in foods ready for sale at retail canceled out hikes in energy and other consumer items to deliver a zero increase in the index for finished goods, the same as April. This compared to an average 0.5 percent increase in the first three months of the year. Over the past 12 months, the finished goods index has risen 2.6 percent to 291.5, which means that $291.50 was needed last month to purchase at wholesale goods that sold for $100 in the base year 1967. Food products rose 3.7 percent over the period, but wholesale energy prices actually fell 0.3 percent, re- - Chuckle Todays think If you're broad-mindeit's probably just your conscience stretching. you fleeting the worldwide oil glut and reduced demand. Two other price gauges, measuring prices of goods used at intermediate processing levels and raw materials, were up 3.6 percent and 3.9 pepercent over the same riod, and capital equipment items like cars and computers rose 2.7 percent. The industrial production figures for May were down sharply from the 1.1 percent increase in April. Output of home goods rose 0.3 percent but new cars rolled off assembly lines at a 7.6 million-uni- t annual rate, down from slightly April, and nondurable consumer goods were little changed. Overall, industrial output has increased 13 percent from its level a year ago, with business equipment (up 18.8 percent), construction supplies (15.8 percent) and defense and space production (13.8 percent) leading the way. Consumer goods turned e in performances. nine-memb- er See Page 2, Column 1 l B-4- D-- 4 A-1- 2 A-7- ,8 A-2- D-- 2 3 9 B-- 5 0 A-- 4 U.S.-Sovi- Reagan-Chernenk- Today's Forecast Salt Lake City and vicinity Cloudy with a chance of showers. Highs around 85. Details, Page B-- Md. - Al- though President Reagan has eased his terms, chances of a summit meeting this year with Soviet President Konstantin U. Chernenko are extremely slim because the two superpowers are operating at crosspurposes around the world. Administration officials attending an arms control seminar here give three main reasons the presidents conciliatory gesture is unlikely to pay off: There are no impending major agreements to nail down o at a summit. The Soviets are not interested in holding one and show no inclination to improve their relations with Washington. Uncertainty about the fate of Soviet dissident Andrei Sakharov, a Nobel Peace Prize winner, and allegations linking Moscow to the attempted assassination of Pope John Paul II make it difficult politically for Reagan to invite Chernenko to the United States. Willing to Clear Air At his news conference Thursday night, the president said he was willing to get together with Chernenko to clear the air. Reagan did not insist on a breakthrough in the stalemated nuclear arms controls talks as a precondition. It was known that Reagan believed the preconditions he has sought since the beginning of his presidency, that a summit be carefully prepared and have a reasonable chance for success, had taken on an interpretation that he was stonewalling the issue. Reagans new statement, that he G. Frank Joklik Cites Losses, Low Prices nations wanted to reach agreement on, was intended to signal new flexibility, although it represented only the most subtle change in policy. But U.S. and Soviet policies around the world have not changed. News Analysis The superpowers seek different outcomes from the revolutions in Cen- tral America. Neither wants to give ground by arranging a compromise for Reagan and Chernenko to seal. Middle East Problem In the Middle East, the administration is still trying to rally governments into a makeshift alliance against Soviet and radical penetration. The Soviets have a foothold in Angers Hispanics Sellout Charges Hit Both Parties By Margaret Shapiro Washington Post Writer - WASHINGTON Angry Hispanic activists Friday threw in the tow el on the massive immigration bill under debate in the House and ac- cused Republican and Democratic lawmakers alike of having sold out the Hispanic community to business and agricultural interests. This is the worst, most nativist, most racist piece of legislation since the 1798 Alien and Sedition Act," said Bert Corona, head of a Los Angeles grass-root- s Hispanic group, If this Congress were presented with the Bill of Rights . they would probably wipe it out." The House, meanwhile, worn out by a week of emotional debate and intense, conflicting lobbying by dozens of groups, picked over a handful of technical amendments for a few hours Friday and then went home for the weekend. It will take up the measure again Tuesday and was expected to begin a debate over when and how to grant amnesty to the millions of illegal aliens residing in the United States. Amnesty Top Issue Before adjournment, House leaders predicted the legislation would pass if the amnesty provision survived. At least one amendment was expected to be offered next week to kill amnesty and several to modify it, including one the Reagan administration is pushing. Democrats have been deeply divided over the bill and a solid bloc of Republicans provided the margins all week to take up the bill and then to pass or hold off amendments. Corona and several other major Hispanic leaders held a press conference Friday to respond to a . weeklong legislative battering. Sunday Marathon For Pianists A Life Doesn't Slow Physician The Top Of the World ows." bclow-averag- would be willing to hold a summit if there was an agenda of issues both Aliens Bill They said there was little chance anything could be salvaged from the bill and blamed the Democrats and Republicans, saying they will demonstrate at both parties presidential nominating conventions this summer. What it shows is the Republicans don't care about Hispanics and Democrats continue to take us for granted. said Helen Gonzales of the Mexican American Legal Defense and Educational Fund. Left With Dilemma She said Hispanics were left with the dilemma of possibly wanting the House to scuttle the bill, even though the measure would bring thousands of illegal aliens out of the shadAt this point, anywhere we go is down," she said. The Hispanic groups and most members of the congressional His- Prospects Slim for Superpower Summit On The Inside Business Classified Church Comics Crossword Editorials Entertainment Foreign Lifestyle National Obituaries Public Forum Sports Star Gazer Television Washington Press Laserphoto This Soldiers Really Dressed to Kill LONDON cost-of-livi- infl- that Hansen had iolated financial to being Since July of last year. Kennecott and its unions have been operating contract agreed under a three-yea- r to the previous March, which maintained wages with no increases over present levels, but with the (COLA) measures intact. Assumed a Recovery It was assumed then there might be a recovery in the copper market and prices. Recently, however, copper has been selling in the range, well under the 90 cents calculated to represent average production costs for the industry. COLA, won by the unions in the early 1970s and which accounted for by far the largest component of their wage increases during that ation-ridden decade, had been considered "sacred and inviolable by the unions. Kennecott, he said, lost $45 million in the first quarter. Thirty million of that loss was in the Utah Copper Division, Kennecotts highest-cost producing unit. He said the company expects to lose $20 million in the second quarter, despite improved weather conditions. The first quarter was hampered in part by severe winter storms and cold. And while the company has become leaner and more efficient, efforts and sacrifice by our employees have been overshadowed by the constant deterioration of market conditions. The companys continued ability to compete internationally has been seriously impaired." Projects in Jeopardy He said unless losses are drastically cut or eliminated, a billion-dol-la- r modernization of the Bingham Canyon mine and construction of a new concentrator could be in jeopardy. He said the fundamental problem is one of oversupply. The result has been growing inventories of refined copper, deteriorating prices, and severe production curtailments in the domestic copper industry. World oversupply has been aggravated by subsidized foreign producers who have maintained or increased production in face of operating losses, he said. The industry has been fighting to force international lending agencies and their principal U.S. banking supporters to suspend loans to copper projects in other countries where those countries are subsidizing production at less than cost of production, he noted, since the effect has been to impose a burden on U.S. taxpayers, on unsubsidized U.S. producers and their workers. On Thursday, the International Trading Commission, a body appointed to staggered terms by the president, found that the U.S. industry had been hurt by imports. It has yet to determine remedies tariffs or quotas. The fallout of any cut in the Ken- - Syria and along the periphery of the region. No U.S. policymaker is about to boost Moscow's stock by making the Soviets partners in a plan to settle the Arab-Israe- li conflict, or to otherwise shape the areas future. In Europe, the two powers are building up the defenses of their rival military alliances while discouraccommodaaging an East-Wetion. Detente has been sidetracked, as U.S. policy, and with it the idea of resolving differences through trade and political conciliation. And in Asia, the Reagan administration is strengthening ties with China and encouraging a defense buildup in Japan in an amb.tious regional program that does not leave much room for a meeting of the minds at a summit. On the other hand, there is one Sec Page 3, Column 1 panic caucus lobbied hard all year to kill the immigration bill or change it. But the changes approved this week by the House, Hispanic lawmakers and activists said, have only made a bad bill worse. Thursday night the House voted to make it easier for U S. farmers to bring temporary foreign workers here. Business groups and agricultural interests had supported the change; Hispanics and labor unions had opposed it. In addition, the House agreed to start a system of civil fines for those who hire illegal aliens. Hispanics opposed any employer sanctions, saying they would only make growers leery of hiring people with Spanish surnames or appearance. The House also agreed to exempt employers of three or fewer people from the immigration bill, which means that illegal immigrants could still be hired to do household work, for instance. 228-17- 2 |