Show Reagan Slams Brakes On the Highway Bill By Steven V Roberts New York Times Writer WASHINGTON - President Reagan Friday vetoed an $88 billion highway and mass transit bill that also allowed states to raise the speed limit to 65 mph on rural Interstate highways He thus set the stage for a major confrontation with Congress In rejecting the measure the president denounced it as a "budget busting" example of "pork-barrpolitics" that exceeded his request by $10 billion The veto was also important for its "symbolism" according to a senior White House official who said it would show lawmakers the president was willing to block future spending increases passed by a Congress where Democrats hold majorities in both houses for the first time in six years Calling the measure "an unsound bill" -- President Reagan with Transportation Secretary Elizabeth Dole Sen Robert Dole and Vice President George Bush calls bill unsound and a budget buster the president said It represents a failure to exercise the discipline that is required to constrain federal spending especially " spending pork-barre- the Iran arms scandal started to emerge more than four months ago l The bill will become law if both houses ol Congress vote to override the veto by a margin The tests are likely to come next week The original measure was passed in both chambers by wide margins but with the president applying a "full court press" as one aide put it he stands a reasonable chance of winning at least in the Senate where the Democrats hold a edge two-third- Boh Dole the Senate Republican leader has said that "the stakes are very high (or the president" and as a result he has been urging Republicans to back Reagan in Ins time of need The partisan nature of the fight was highlighted Friday when Dole of fered an amendment on the Senate floor urging committees to draft a new highway bill within a week should the president's veto be sustained 54-4- 6 One reason is that the bill has become a highly political issue with the president's supporters seeing the veto as a test of Reagan's leadership and his ability to recover from the political doldrums that have clouded his administration since details of This rider offered to an unrelated hanking bill was set aside by a vote of that closely followed party' lines Dnlv one Re publican Lowell IV Weicker Jr of Connecti-cu- t voted against the resolution and nnlv two Democrats Howell Heflin of Alabama 2 Column J See 49-1- Greece Turkey Rock Boat With Rumblings of War By Kerin Hope Associated Press Writer Turkey and Greece threatened war as a Turkish oil exploration ship prepared to move into the Aegean Sea with a naval escort but Turkey said Friday night the vessel will stay out of disputed waters if the Greek military does the same Greece blamed Washington for the crisis and said it was closing a US Navy communications base near Athens Prime Minister Turgut Ozal of Turkey said the exploration ship Sismik-- would remain in territorial waters and "wait for them to make the first move If the Greeks intervene against our ship we will intervene in exactly the same way This may be cause of a war which we do not at all want The Navv base in Greece which monitors shipping movements in the Aegean Sea is linked to the U S 6th Energy Imports Fuel Rise in US Inflation By Bob Rast Newhouse News Service WASHINGTON — Higher energy and import prices sent consumer costs sharply higher in February pushing inflation to an annual rate of 5 2 percent and prompting economists to pronounce last year's inflation vacation dead The Labor Department's Consumer Price Index rose 0 4 percent during February The cost of transportation housing food and medical care all rose But the increase was somewhat less than in January when consumer prices overall rose 0 7 percent the department reported Friday ' The February gain in the CPI spells an annual inflation rate of 52 percent and the combined January-Februar- y increase would send prices up 67 percent if extended over 12 months Last year a huge drop in oil prices held inflation to just 11 percent the best showing in 25 years "Inflation is starting off the year on a bad note" said Allen Sinai chief economist for the Shearson-Lehnia- n Brothers brokerage in New York "My concern is there’s a potential for an inflationary spiral: prices go up run ahead of wage increases wage-earnecatch up and you're off and " running "Anybody who thought last year's 11 percent inflation was going tocar-r- y over into this year is wrong” said Bruce Steinberg senior economist for Merrill Lynch Economics in New York But Steinberg said inflation is still under control and remains modest compared with the 12 percent levels hit at the end of the Carter administration in 1979 Most analysts expect inflation for the year at around 4 percent assuming no sudden shocks that drive the dollar sharply lower or oil prices steeply higher "1 think what we saw in February was pretty close to the underlying inflation rate" said John Hagens chief U S forecaster for Chase Econometrics Inc of Bala Cynwvd Pa "The low inflation we had in 1986 is over We re somewhere close to a 4 percent inflation range" Analysts said much of the new inflation pressure came from higher prices for imported goods resulting from the continuing devaluation of the dollar against foreign currencies A weaker dollar nukes imports more expensive and U S products more competitive overseas The dollar has fallen between 20 percent and 40 percent against other currencies over last two years Chuckle Today's That s someone who Lawyer knows a good thing when they sue it S Reagan Imposes Penalty on Japan Products By Tom Raum AP Economics Writer WASHINGTO- N- President Reagan contending Japan has reneged on a major trade agreement on com Fleet and bases in Italy and Spain Greece apparently wants to shut it down for fear of information leaks through its connection with a facility near Izmir on the Aegean coast of Turkey which like Greece is a NATO member Prime Minister Andreas Papandreou threatened earlier Friday to close al! four US military bases in Greece if war broke out and said he might not wait that long He said the United States and the Western alliance were responsible for the Aegean crisis through their support for Turkey's "military might" A government spokesman said Greece decided to suspend operations at the Nea Makri base on the eastern coast of the Attica peninsula 20 miles from Athens after meeting between US Ambassador Robert V Keeley and Foreign Undersecretary Yiannis Kapsis “The Greek representative at the Nea Makri base is See Column I — Associated P'ess Lasurohotn Turkey says this research ship Sismik-- will steer clear of disputed Aegean waters if the Greek military does the same 1 A-- 2 Marines Accused of Giving Soviets Access To Secret Areas Equipment at Embassy By Bill McAllister And David B Ottaway Washington Post Writers The two Marine Corps guards accused of espionage gave Soviet agents access to the U S WASHINGTON - Embassy's most sensitive areas and cryptographic equipment in Mos- cow military prosecutors said day The disclosures contained in five additional charges p&SgZ filed against one of the two service-me- n suggest the Arnold Bracy United States may have suffered one of its worst security breaches in recent years One Capitol Hill source said the action would once again devastate US intelligence operations in Moscow which were said to have been crippled after the defection of a Central in 1985 Intelligence Agency The two Marine guards who allegedly were sexually involved with two Soviet women who worked at the US Embassy committed the espionage between January and March of 1986 according to military prosecutors "You got to start from ground zero whole new people and a whole new system all over again" the Capitol Hill source said According to the new allegations Marine Sgt Clayton J Lonetree and Cpl Arnold Bracy conspired to allow “unauthorized personnel from the USSR" into the embassy for periods of one to four hours and then lied to superiors about alarms the Soviets set off as they apparently prowled around the supposedly secure communications Spaces The two Marines let the Soviets "peruse” the building’s communications processing unit — where messages are encoded and decoded and transmitted and received — the defense attache office “and other sensitive intelligence spaces" The new charges said that Lone-tre- e who already faced 19 counts of top-secr- espionage-relate- d from guard duty at acts stemming US embassies in Moscow and Vienna escorted the Soviets into the embassy areas while Bracy served as a lookout Lonetree 25 from St Paul Minn was accused of paying Bracy" 21 from Queens N Y about $1000 for his help Lonetree also was accused of givthe Soviets names addresses and telephone numbers of “covert US agents" classified documents blueprints of the Moscow embassy office assignments at the Moscow and Vienna embassies as well as the contents of the Moscow embassy’s "burn bags” which presumably were filled with classified documents A defense lawyer for Lonetree said the latest five charges were based on statements by Bracy which he said the serviceman has since recanted Rracy taken into custody earlier this week in California initially made the statement in an effort to see that Lonetree is convicted said attorney Michael Stuhff of Las Vegas A Marine Corps spokesman declined to comment on the lawyer's statement ing Troops Seize Last Libyan Stronghold and Chance for Peace Chad Proclaims ‘End of Gadhafi’ With Battlefield Win N'DJAMENA Chad (UPI) — Chadian troops took control of Libyan leader Moammar Gadhafi's last remaining stronghold in northern Chad FriRadio Chad said raising the prosday state-rupect of peace in Chad for the first time in more n than 20 years “It's the end of Gadhafi" the radio said in announcing the taking of Faya Largeau 500 miles north of N'Djamena the capital The Chadian victory at Faya Largeau came afof humiliating military defeats in Chad for Gadhafi whose forces had occupied the north ter a series ern half of the landlocked central African country since 1983 Chadian troops moved into Faya Largeau the hometown of President Hissene Habre after most of the 2500 to 3000 Libyan troops abandoned the large oasis blowing up fuel and ammunition dumps behind them the radio said It was not immediately known if the government forces met with any resistance when they took control of Faya Largeau but government-ru- n Radio Chad said the troops "are in the process 6f checking for any pockets of resistance" Announcement of the victory was met by celebrations in N’Djamena weary of an civil war with rebels and in the last four years with Gadhafi "There is an explosion of joy in the city The whole city is celebrating" the radio said Libya entered northern Chad in 1983 to aid the rebel forces of former President Weddeye France sent in 3500 troops to block Libyan and rebel advances from the north and drew the "Red Line” dividing the country between the north and government-held south n Gou-kou- pro-Liby- Libyan-controlle- d School Mourns 5 Coeds Killed In Crash at a Walk-a-Tho- n OXFORD Miss (AP) — More than 3000 students crowded into the University of Mississippi basketball arena Friday for a memorial service for five sorority sisters who died after a truck-ca- r accident ended their charity —Associated Press laserpnoto Sorority sisters at the University of Mississippi try to come to grips with five deaths during a memorial service on Friday j V walk-a-tho- n Two students died at the side of a state highway Thursday afternoon a third died at a Memphis Tenn hospital Thursday night and two more died Friday morning All were members of the Chi Omega Sorority whicn claims two Miss Americas among its alumnae Nine students remained hospitalized Friday two of them in intensive care officials said During the ceremony students sang three hymns and listened to remarks from several clergymen Gov Bill Allain attended the service but didn't speak puter chips announced plans Friday to impose stiff penalty duties on a wide array of Japanese produets including television sets and pocket calculators Reagan said in a statement timt the' action - the most sweeping trade retaliation the United States has taken against Japan since the end of World War II - would cover as much as $300 million in Japanese exports to the United States US Trade Representative Clayton Yeutter told reporters "This action should come as no surprise to the government of Japan" Penalties on selected Japanese products will be as much as 100 percent or equal to the current prices of the products themselves potentially doubling the cost of those items to consumers However Yeutter and Commerce Secretary Malcolm Baldrige said they didn't expect the action to result in major price increases to U S con sumers They said they doubted Japanese companies would risk such tug increases in the face of competition from elsewhere Products selected for targeting are only those which are also widely manuavailable from facturers However other officials said that some price increases seemed inevitable and that in any event Americans might have to switch away from popular Japanese brands for less cost v alternatives The move was praised by the nation's semiconductor makers who claim they are losing $1 billion in sales a year to Japanese computer chips sold at bargain-baserm'ii- t prices "These sanctions should provide reasonable incentives for the Japanese government and industry to comply with the agreement" said Andrew A Procassini president ol the Semiconductor Industry Assnni I tion But the move was criticized by th" Japanese government which called for emergency consultations with the U S government "The government of Japan does not believe there has been any inadequacy of implementation of the U S Japanese semiconductor agreement Therefore Japan finds it deeply regretable that the United States has now announced unlateral measures against Japan" said Yoshiji Nogami See Column i A-- 2 Inside Thu Tribune Tribune Telephone Numbers on A-- 3 Many students friends and advist ers kept an vigil Thursday at t the Chi Omega house on the campus Ole Miss Chancellor Gerald Turner said classes were suspended at midday Friday a blood drive had been started for the injured and four informal sessions are planned Sunday to help students cope with their grief 9045-studen- r A pickup truck pulling a slammed into a small foreign car that was trailing 20 walkers on the shoulder of the four-lan- e roadway Thursday afternoon flipping it into the group said Lt Steve McClure of the state Highway Patrol hay-bale- The sorority sisters were walking from Batesville about 25 miles away to their house on campus to raise money for the Mississippi Kidney Foundation b Tmla’s I'nrecasi - Salt Lake City and vicinity Con tinued cold and cloudy Highs m the 40s Lows in the 20s Details R t |