Show ianbarii-feamtServing Weber 99th Year No er North Davis Morgan and Box Elder counties 109 April 19 25C Saturday 1986 Fed cuts rate retraete threat Khadafy to 65 percent Closer ties Assoc with USSR threatened Chicago The Federal Reserve Board cut its discount rate on Friday to the lowest level in eight years taking the action for the second time in just over a month and dramati- f cally signaling its intention to push interest rates lower The Fed's cut in the discount rate — the interest it charges on loans to commercial banks — to 65 percent from 7 percent pushed the dollar to a postwar low against the Japanese yen as traders anticipated further drops in US interest rates Separately the Commerce Department reported that personal income and consumer spending in the United States grew only but econoslightly during March mists said there was evidence that future growth could be stron- frihuno ' TRIPOLI Libya — Col Moammar Khadafy has withdrawn his threat to attack American military bases in the Mediterranean in retaliation for this week’s US air strike the Libyan leader’s deputy said Friday night But Maj Abdal Sallam Ahmad Jalloud who runs Libya’s powerful Revolutionary Guards said the American attack had forced his government to seek closer contacts with the Warsaw Pact Britons point finger — 9A MIA talks canceled — 9A Power debated — 6A — 2A ‘The US protested — 2A a news conference marked tone he by its conciliatory warned that this nation of fewer than 4 million people might be forced to allow the Soviet Union to set up a military base in Libya if the United States launches another raid “What can you expect from a small country facing the power of NATO?” he said But he added quickly “We have not made a decision on this yet” The briefing for foreign correspondents appeared to be intended to defuse tensions between Libya and the United States in the wake of Tuesday's nighttime bombing of Tripoli and Benghazi After the attack which Jalloud said had killed 37 people and injured 93 Tripoli’s leadership released statements calling for retaliation against American targets worldwide and singled out US military installations in His comthe Mediterranean ments Friday night appeared to be a retreat from that position “We have not declared war on America and we do not want a war with America” he said adding “We have withdrawn our decision to attack American bases in the Mediterranean We did not reply (to Tuesday’s raid) in full and we limited our action to a symbolic one” He was referring to an incident hours after the American planes had headed home when a Libyan vessel fired missiles at a US Coast Guard telecommunications station on the island of Lampedusa off the coast of Sicily The missiles fell short Jalloud said that as far as he was concerned the matter was finished and “the Americans should be ashamed that their norant and foolish president commits such immoral crimes” “This barbaric terrorist attack" he added "has shown who is a terrorist and who should be condemned” It was not clear whether his statement represented a retreat from the blanket call to hit the Americans throughout world or applied simply to the bases around the Mediterra- ger A cut in the discount rate is the most dramatic signal the Fed can send that it intends to see interest rates lower Mortgage rates and other interest rates already have lows fallen to roughly and the latest cut was expected to push them lower still The Fed had cut the discount rate to 7 percent from 75 percent on March 7 in the wake of sharp drops in open market interest rates stemming from falling oil prices and an easier monetary policy by the Fed That cut prompted the nation’s largest banks to cut their prime lending rate to 9 percent from 95 percent the lowest level for that benchmark rate since Another discount rate cut had been rumored for some time and optimism the cut would be made late this week had sparked rallies in the stock and bond markets on Wednesday At nean Persona! income Personal income seasonally adjusted in trillions of US dollars 34 AM 1985 Mar ’85 326 Source US J JASONO JFM 1986 Feb '86 Mar '86 341 340 Commeice Department graphic The stock market on Friday halted its wceklong advance but trading there had ended more than 45 minutes before the Fed’s announcement In the credit markets bond prices were mixed and some showed slight improvement on the discount rate news Analysts said the impact of the cut was diminished by the fact that it had been so widely anticipated The Commerce Department report indicated that Americans' personal income rose a tiny 02 percent in March half of the February rate partly because of a big decline in government subsidy payments to farmers See RATE on 2A Rocket with secret payload explodes Associated Libyan crowds carry coffins Friday of people who they say were killed in Press the US attack Bomb plant suspect arrested Associated Press LONDON (AP) — Scotland Yard said Friday it had arrested a man sought for trying to plant a bomb on an El A1 jumbo jetliner bound for Israel The owner of the hotel where the man was found said the fugitive’s brother had talked him into giving up without a fight Naim Oran owner of the London Visitors Hotel where the man was taken into custody said he had recognized him as Nczar Hindawi 35 a Palestinian whom police believe had sent his pregnant Irish girlfriend to board the Boeing 747 with a bomb in her hand luggage Hindawi had promised to join the woman Murphy 32 in Israel and marry her today But he had not been seen since he took her to Heathrow Airport on Thursday morning where she was arrested after an El A1 security agent found the bomb Scotland Yard said otficcrs continued to believe that Murphy didn’t know she was being used in a plot to blow up an Israeli airliner Police say the bomb would have gone off in the Tel likely killairplane in and 8 crew ing her and the other 369 passengers Police sources speaking on condition of anonymity also said they believe the attempted bombing was aimed at Israel and was not connected with the US air raids on Libya early Tuesday But in Ankara Turkey Friday police arrested two foreigners carrying a bag of explosives outside a US military officers’ club and after interrogating them arrested two more foreigners a news agency reported Anatolia news agency quoted The Ankara police Chief Ali Akan as saying police had thwarted an attack on the club in the Gaziosman-pasdistrict near downtown Ankara VANDENBERG AIR FORCE BASE Calif (AP) — A Titan rocket believed carrying a secret spy satellite exploded in a huge orange cloud seconds after launch Friday the second such incident in eight months people were treated for skin and eye irritation The feared loss of the spy satellite would hamper America's ability to monitor Soviet activities with only one other such satellite in orbit experts said A number of fires around the launch site were being battled more than five hours after the explosion said base commander Maj Gen Jack L Watkins Air Force officials would not say exactly what the cloud was But school children were told to stay inside and about 120 oil workers were evacuated from two drilling platforms in the Santa Barbara Channel The National Park Service ordered the evacuation of rangers campers and tourists from the offshore Channel Islands National Park Of the 58 people treated at the base hospital three were admitted the Air Force said in a statement Officials would not say if any civilians were treated “This will create major prob lems in the photographic reconin our naissance program confidence in monitoring Soviet military activities at a critical time” said Paul Stares a military space expert at the Brookings Institution in Washington The rocket a Titan 34D exploded after launch from the Western Space and Missile Center said Maj Ken St John “Damage was confined to the immediate launch area” he said “A great puff of smoke came up” said Victor A Sanchez who was working nearby “It shook the whole ground" St John would not speculate about the booster's payload An Air Force statement released in Washington said the payload was classified But it was almost certain the rocket was carrying a refurbished model of the KH-photographic reconnaissance satellite or a previously unknown satellite said Stares and Jeffrey Riehelson a military reconnaissance expert at American University in Washington The believed aboard was intended to be a test model but was refurbished after another Titan blew up after launch at Vandenberg on Aug 28 South Africa to stop enforcing hated pass laws South Africa JOHANNESBURG The government said Friday it stop enforcing pass laws the hated cornerstones of apartheid that keep ‘blacks out of white areas and will release people jailed for violating them President PW Botha told Parliament arrests will a moratorium on begin Wednesday when he proposes a new law providing common identity documents for all races He said anyone offenses would be in jail for freed and all pending charges would be dropped The laws formally called “influx control" are one of the sorest points in the official race policy with which South Africa's 5 million whites maintain suprem — (P) will Index BusmessStocks12A 1C Classifieds Comics10-1- A acy over the 24 million voteless blacks More than 25 million blacks have been arrested in the past decade for being outside tribal homelands without the right stamp in their passes Critics of apartheid applauded the suspension of enforcement but said they feared Botha might produce an alternative form of control Desmond Tutu the black Anglican bishop who has just been elected archbishop of Cape Town said the moratoriHowever I um "can only be welcomed hope there is not a sting in the tail One has to be very careful that they are not going to find another way of harassing blacks” Muntu Mycza spokesman for the mil HoroscopoIIA Relig'onChurch Local Metro1-12Movies8-9- Sports1-6- ObituariesC Optnion4-5- TV10A Utah3A Weather2A New itant Azaman People's Organization said it was "about time” but added: "The removal of one area of repression — the pass laws — comes too late the establishWhat we want now is ment of a fully democratic and just society" Another cautious assessment came from Sheena Duncan a white leader of the Black Sash women’s group that helps blacks with pass problems: “All of a sudden to be able to be free to live and work where you want if it really happens would be of great significance You’d have a tremendous explosion in growth and excitement and job creation "But we do not understand why he has not simply repealed (the laws) It cpoc!cd deluged this returns 1C te week Ogden IRS with about Or'er was 2 m' on ta and allow blacks to be sent back to homelands if they remain unemployed in white areas for more than three months and thus are “idle and undesirable" Pass laws have been especially harsh million black mifor the more than grant workers who must sign contracts to work in white areas and leave their families behind in the homelands Arrests for pass law violations have From a high of 262000 been decreasing in 1983 they fell to 163000 in 19X4 and 132000 last year Some white employers have been charged for hiring rural blanks without passes fews Islam defended Flood money Buried alive As can only take this long if he’s drafting something to take its place" Two laws adopted in 1952 form the backbone of “influx control" which restricts blacks without permits to 10 tribal homelands that cover 13 percent country's territory About 13 million blacks live in the homelands arhd 11 million occupy black townships in white areas One law bars blacks from staying in white South Africa including the cities for longer than 72 hours without permission 1 he other requires blacks to carry passes with the required permit Other laws restricting black movement including those that impose cur couij pc a year or more before an none is snt to Utah to help sofie the G'cat Sat Lake problem 3A eder S"1 Wh ja’ng members of Utah S Isu" Church News Eq e unfair cemmiinit said |