European Stars and Stripes (Newspaper) - June 11, 1985, Darmstadt, Hesse                                Page 4 it if the stars and stripes tuesday june 11, 1985 Reagan welcomes converts7 into gop Washington up president Reagan welcomed some 100 democrats into the Republican party saying they were part of a National movement that is sweeping the  Reagan with vice president George Bush by his Side told the enthusiastic gathering in the state dining room converts make the Best  i m not going to use this forum to run Down the other party said Reagan. They have enough troubles. Well maybe  the president who once was a Democrat said you be joined the party of the working Man and woman. Let the other party have the entrenched interests and the Power brokers and special interest politics. We Don t have any of that. We just have the  among the More prominent democrats who Are switch ing is former Massachusetts gov. Edward King As Well As 20 members of Congress. Also on hand was former . Ambassador Jeane Kirkpatrick who was described As a switcher when she was introduced. The crowd burst into laughter when Reagan introduced an italian immigrant who become a new York state legis Lator Arnaldo Ferraro. Welcome to the White House Reagan said. Wel come to the Republican party. Welcome to the party. Welcome to the party of the open door. We re Happy to have  Reagan noted that Many of the converts had held Public office and were longtime democrats. He commended them for taking the risk of joining the opposition party. You be also joined the party of the Young he said pointing out that 59 percent of the youth vote went to the gop in 1984. There is a Rumor that the Young people kind of related to the youthfulness of our ticket he said. I not Only heard that Rumor i spread it quipped the 74-year-old president. He reminded guests that the new York times said recently that about the same number of people now identify themselves As republicans As democrats. How Sweet it is said Reagan. New economic forecast puts 88 deficit at $ / 75 b/7.on Washington up budget director David Stockman said monday a new economic projection shows the Feder al deficit at nearly $175 billion in 1988, even if congressional budgets with strict limits arc enacted. Stockman told reporters that the Blue Chip forecast based on a monthly Survey of 50 firms by economist Robert Eggert is much More pessimistic than the Esti mates on which both the House of representatives and the Senate budget plans arc based. The two Chambers will attempt to re solve differences Between their plans this week in a conference committee. The House budget projects a 1988 deficit of $124 billion while the Senate indicates the red Ink in 1988 will be $104.3 billion nearly hitting the president s often stated goal of cutting the deficit to $100 billion in 1988. But Stockman said the new forecast based on an economic expansion rate of about 3 percent would leave higher deficits in each of the three years. The House and Senate plans Are based on an eco nomic growth rate of about 4 percent. Eggert reached in his Arizona office said the Blue Chip forecast was fairly favourable As we look ahead because it projected greater growth than in the past few months. Earlier House budget committee chairman William Gray said he is going into the conference committee tuesday prepared for Compromise but said the House is not Likely to yield on preserving social Security benefits. But Senate Republican leaders who pressured their gop colleagues into cast ing a politically difficult vote to cancel next year s social Security Cost of living raise in the name of deficit reduction will face a difficult situation if they now Back Down. Both the House and Senate have approved budgets for fiscal 1986 that Cut about $56 billion from the anticipated deficit of More than $220 billion. But other than the Bottom line the two differ greatly especially in military spending and social Security and the House Senate conference committee is trying to resolve those discrepancies. Congressman wants voice in currency changes Washington a the chair Man of a House banking committee panel believes the government is on the wrong track in its efforts to find a Way to curb what might be an influx of fake Money printed on a new generation of sophisticated color copiers. To make certain that the government does t change the face of currency without congressional approval rep. Frank Annunzio is pushing legislation that would require Congress to vote on any plan to redesign Bills. Annunzio the chairman of the con Sumer affairs and coinage sub omit the docs not deny that there could be some problems with employees who have Access to precise color copiers run Ning off authentic looking bogus cur Rency from the Money in their wallets. But he disputes a governmental task Force estimate that 20 percent of All people who have Access to a color copier will at some time make illegal copies of paper Money. It is ridiculous said Annunzio. I have More Faith in the american  the Illinois Democrat who plans to quiz the task Force in a hearing scheduled for june 18, also says it has come up with some Wacky ideas to alter the familiar face of paper Money. Curt Prins staff director for the sub committee headed by Annunzio said the task Force has discussed ways to use magnetic threads that would foil at tempts to duplicate greenbacks. It would Cost millions of dollars to Call Back All the . Currency in circulation around the world and to buy new printing equipment that is capable of instilling the magnetic threads in newly issued paper Money Prins said. And eventually with technology changing so rapidly Prins said professional counterfeiters could find a Way to override the magnetic threads. Another plan by the task Force is to conceal special watermarks that could Only be seen by holding the Bill up to Light and which Are not reproduced by color duplicators said Prins. Can t you see it now two minutes to Post time people Are Rushing up to place their bets and the Teller is holding up each Bill to a Light bulb to see if there s a Watermark said Prins. Prins said the task Force which consists of representatives from the Treasury department secret service Federal Reserve and the Bureau of engraving and printing also at one time or another talked about printing Money in pastel shades which Are Tricky to duplicate or using holograms. Holograms display different pictures depending on How they Are turned. It s one thing putting holograms on plastic cards Prins told reporters. But it s another thing when they Are put on paper that s washed in pants pockets folded and  at the hearing later this month an Nunzio intends to question the task Force about the Wisdom of awarding contracts of up to $6 million to private companies to study ways to imbed Holo Grams in future Money. One of the ideas the congressional panel itself is reviewing came to the attention of Prins when he had to cancel an air plane reservation. The airline sent a refund Check to Prins and when he photocopied it for committee records the word void appeared on the copy. The void was not visible on the original Check. Putting such a hidden designation on new Money to Stop any attempts to photocopy it might be the most inexpensive solution said Prins. In related action sen. Paula Haw Kins r-fla., has introduced legislation that would order Treasury to Issue a newly designed $100 Bill a move aimed at the laundering of Money by drug smugglers. Drug paddlers often Deal in Large currencies. The Hawkins proposal would make the current $100 Bill illegal tender three months after enactment. People turning in the obsolete Money any time after the deadline would still be Able to get new Bills in Exchange but that would would serve As a tip to Banks and Law enforcement authorities. White House reportedly advised Contra fund raisers Washington a the White House gave advice at least initially to individuals involved in private fund raising for nicaraguan rebels despite a Public stance that it does t encourage or discourage those efforts according to sources. The government and private sources who spoke on condition they not be identified also said the White House did not discourage offers from several Friendly govern ments to funnel Aid to the rebels. But according to these sources the Reagan administration has adopted an arms length relationship with the fund raising efforts since last fall when Congress passed a ban on . Aid that would have the effect of supporting directly or indirectly military or paramilitary operations in Nicaragua that language the most recent of a series of nicaraguan restrictions sponsored by rep. Edward p. Boland d-mass., is principal target of current administration proposals in Congress to resume Cia Aid tothe contras. One source familiar with the administration handling of private Contra Aid said White House efforts to encourage and coordinate that support began in Early 1984 As Congress turned increasingly hostile to the Cia s backing of the rebels. The source said that beginning last july at least three countries approached the White House and volunteered to provide Aid to the contras. He refused to identify any of them. They came to the . To make sure we had no objection to it the source said adding that the White House welcomed the offers and estimated that outside support would total about $11 million this year and thus agreed to scale Back its 1985 request to Congress to $14 million. The source said the National Security Council staff handled contacts with private groups including the world anti communist league a conservative organization headed by retired maj. Gen. John k. Sing Laub who said the league s International network and other fund sources raise about $500,000 a month. In recent interviews with the associated press Singlaub said that amount was enough for the rebels to continue surviving but pre vented them from becoming a greater threat to the nicaraguan government. He said that a year ago when he started his fund raising Effort he would receive advice on the contras military needs and an occasional briefing from the Csc staff. The former general said his chief Contact was it. Col. Oliver l. North an Csc Dep Uty director for political military affairs. But now Singlaub said North has been pretty much immobilized by this idiotic amendment prohibiting even indirect help for the contras. But Singlaub said he still informs North about the league s fund raising efforts and asks for indirect guidance on whether the plans fit with administration policy. The Cia spent about $80 million train ing and organizing the estimated 15,000 rebels from 1981 until a year ago when Congress Cut off the Aid. Last week the Republican controlled Senate voted to let the Cia Send $38 million in non lethal Aid to the rebels and the House is to consider a similar plan this week. White House officials refused to discuss the alleged Csc role in the fund raising although state department spokesman Joseph reap reiterated the administration s position that we neither encourage nor Dis courage such activities As Long As they fall within applicable  in a 1981 report the anti defamation league of b Nai b Rith described the world anti communist league As a gathering place for extremists racists and  Singlaub confirmed that the league s latin american chapter was terribly anti semitic and that one european chapter contained former nazi is troops but he added that those extremist elements have been purged. Singlaub said ail arms purchases for the contras have been arranged outside the United states to avoid the possibility of violating Federal Laws