European Stars And Stripes (Newspaper) - June 12, 1980, Darmstadt, Hesse                                Poge 2 the stars and stripes thursday. June 12. 1980 open Price boosts May hike . Gas 1 -2 cents a gallon new York a a decision by the organization of Petroleum exporting countries to allow an increase in the Price of its crude Oil by As much As $4 a barrel could boost . Gasoline and heating Oil prices by an average of i to 2 cents a gallon Industry analysts said tuesday. Some companies particularly dependent on open Oil might raise prices a few cents a gallon More than the average said one economist. Some economists said the action could hamper the fight against inflation just As a deepening recession is pushing unemployment higher. The open move was announced at a two Day meeting of the Cartel s Oil ministers in Algiers Algeria. The decision allows the 13-nation Cartel to raise its base Price the charge on Light crude Oil from saudi Arabia from $28 to$32 per 42-gallon barrel. The Cartel also set a Selling Price of $37 a barrel a Price exceeded now Only by Algeria which charges $38.21. The saudi arabian Oil minister Sheik Ahmed Zaki Onmani told reporters in Al Giers i will not raise my Price from $28, its level since the saudis announced a $2-a barrel hike in May. But several other open producers were said to be planning j2-a-Barrcl increases. According to iranian Oil minister Aliakbar Moi far open agreed to allow its members to voluntarily reduce Oil production. Open has Cut its output by More than 2 million barrels a Day since late 1979 and now produces 27.s million to 28 million barrels a Day. No production cutbacks new production cutbacks could help open resist Price cuts in the face of a projected drop in world Oil demand of As much As 3 percent this year. But no reductions were disclosed at the Algiers meet ing. Open prices have risen by More than 100 percent since the revolution in Iran and a seven week cutoff of its Oil exports late in 1978 and Early in 1979 sparked worldwide Supply crunch. In the United states which imports about a fourth of its Oil from open aver age gasoline prices have jumped by about 33 cents to $1.23 a gallon in the last year according to Dan Lundberg whose los Angl is based Lundberg letter covers Petroleum marketing. Under the Oil Industry s Rule of thumb a la barrel increase in average open prices raises . Gasoline prices by about 1.5 cents a gallon. The past years Price increases have been widely credited with causing an 8 percent drop in . Gasoline consumption Over last year. The open decision came As Oil inventories in consuming countries have swelled to a record three month Supply. Analysts say the buildup has been caused by conserva Tion spurred by recent Price hikes by slow ing Western economics and by nervousness in Japan and elsewhere Over possible new interruptions of exports. Cost cutting measure Safe unit some army by de  sift writer Schwet Zingen. Germany is an estimated 4 million pounds of mail bound for Usa eur Apos will be routed through the Safe mail distribution Center at Frankfurt Airport this year in a move to Cut some of the Cost of mail service in Europe according to military postal  million pounds of mail is about one twelfth of All the mail handed the Mil itary postal system in Europe in 1979. According to capt. Linda Brown chief of the of handle Apo mail Price War gets warmer As airlines scramble for shares of Domestic routes by Floyd Norris a business writer the airline Price War on coast to coast flights heated up tuesday and a new round of Price cuts on new York Florida routes began As airlines fought for shares of major markets. World airways Cut its fare to $88 until the end of june on flights Between new Ark n.j., and both los Angeles and Oak land calif., and on flights from los an Geles to Baltimore. In addition trans world airlines slashed from $99 to $79 its one Way fare Between new York and Miami effective june 16. It said the reduction will continue through july 31. World s move undercuts the $99 fares announced last week by Eastern airlines and matched by United trans world and american airlines. At first those fares applied to night coach flights Only but now Nave been extended to All new York Cali fornia flights. Continuation Uncertain All the transcontinental fares apply Only until the end of june and it was not Clear whether the discounts will be continued after that Date. Twa and Eastern said they will not match the $88 world fare and other air lines were expected to make similar Deci Sions. The other airlines serving the new York Florida Market could not be reached for comment after Twa s announcement tuesday evening. The Price cuts prompted by the efforts of world and Eastern to break into the coast to coast markets Are sure to produce losses according to Industry analysts and Many of the airlines. But that in t seen As  if we lose a jillion dollars this summer we have to protect that Market said David Frailey a vice president of american airlines. We have been flying these routes for Many years and will not be driven  Are seven carriers flying the new York California routes. Pan american world airways on monday dropped one of its two new York los Angeles flights and analysts think some other carriers Possi Bly including Capitol airways will drop out by the end of the  and its competitors believe world must charge lower fares to draw customers because the airline is not As Well known and flies from Newark and Oak land rather than the More popular Kennedy and san Francisco airports. Fight pledged we will fight to remain the lowest fare Carrier in the Traas Continental Market said Edward j. Daley world s president. We do not intend to let the other carriers undercut the Low fares we  although Eastern says it Hopes to make Money at $99, other carriers say they expect to lose Money. Chuck Novak a United spokesman said the airline gets about 3vi cents a mile from each passenger at the $99 fare compared to 8 or 9 cents on most flights. So far fares have not come Down nearly As much on other transcontinental flights and for travellers from Boston or washing ton with time to spare it is less costly to take a bus or Tram to new York before flying to California. Fear trouble in new hebrides mail processing and transportation Divi Sion of Safe s 7025th air postal so. According to Ernie Smith Deputy chief of operations for the army postal group Europe Page using the Frankfurt facility will eliminate most of the expense of running a separate distribution Center for the army in Offenbach Germany and Cut transportation costs for the eight mile trip Between Offenbach and the Frankfurt Cen Ter by $17,500 in 1980. The Offenbach Center will not be closed because of the consolidation at Frankfurt. Smith said army mail which is not routed through the four centers still must be trucked to Offenbach for sorting. He added there Are plans to Transfer All Usa eur mail distribution to Frankfurt in the future and convert Offenbach into a postal support Center. Conveyor Belt using the Frankfurt Center s automated conveyor Belt system will Cut the amount of manual labor Usa eur troops use to move the mail from planes to trucks. How Ever the consolidation will not reduce the number of army or air Force personnel needed to move the mail said it. Col. Charles Turner Deputy commander of the  said the consolidation will have Little effect on How fast soldiers in Europe receive their mail. Safe and usar eur decided to share the Frankfurt distribution Center to Cut mail transportation costs. The army and air Force have been looking for ways to consolidate postal facilities. In january the general account ing office Gao published a report to Congress on the military postal system. The report criticized the individual serv ices for running separate postal systems saying it was an inefficient and expensive Way to operate. Reorganization proposed Gao recommended the separate postal systems be scrapped and reorganized under the department of defense. Now mail destined for Usa eur s four major subordinate distribution Cen ters Stuttgart Nuernberg Kaiserslautern and Heidelberg Wilf receive mail off planes arriving from the vs., without routing it through the Offenbach Center said it. Col. Robert Earlewine commander of Safe s 7025th air postal so. Locations which still receive their mail through the Offenbach Center include Frankfurt Mannheim Gissen Bonn Bremerhaven and Wuerzburg. Fire empties British liner Charlotte amalie Virgin Island som 650 passengers aboard British liner the Cunard countess were evacuated after fire broke out in the ship s laundry room the coast guard said. No injuries were reported. Britain France Send troops of Pacific port Vila new hebrides a British and French military forces Are on their Way to the new hebrides following the death of an opposition politician in a wild shootout on the Island of Tanna. Barak Sope Secretary to chief minister Walter Lim. Said 100 paramilitary troops would Fly in from Noumea capital of the French Possession of new Caledonia. In London foreign office minister of state Peter Blaker said in the House of commons that Britain will tend a company of crack Royal marines. Blaker said the decision by Britain and France which have ruled the islands jointly for 74 years Fol lows a grave deterioration in the Security situation in the Pacific archipelago in the last 24 hours. Sope said the troops were coming to pro it the government which feared trouble acc in the capital of port Vila following the death of opposition politician Alexis Yolo Early wednesday. Turkish blast kills two Istanbul a two persons were killed and at least 10 others injured when an explosion ripped through a liquid Gas tank at a slate owned refinery in Batman. Yolo was killed in a shootout on the Island of Tanna where an abortive revolt look place last month at the same time a rebels seized Espiritu Santo. Espiritu Santo is biggest Island on the the lolling transformed what had been Delv f8"ded As an almost comical Rew Ion 6y 800 natives and French Rolon Sinto a serious political crisis. L h 39 to is 91 60 is 9 59 41 k 3s 17 so 61 sb8 is 88ii to 58 temperatures Albany aunut rim Amarl to  atlatl Allan la   Botlo but Chinn Chicago  a Gas.  jacket Viii l h 57 it 71 10 59 it to 71 60 79 63 90 10 is 40 57s3 8888 71 im44 59 is w 14n n 55 n 50 ton 51 1641 7 u 19si n Kansas Cit Las Vega Wiik Rock lot and ten    naw York Cit Omaha   rapid of  Saub Sla. Mart Saarm Spokane Ulm Washington