European Stars and Stripes (Newspaper) - September 21, 1985, Darmstadt, Hesse                                Page 4 the stars and stripes saturday september 21, 1985 Economy s growth during the summer far below estimate Washington a the Economy grew at a modest 2.8 percent annual rate Dur ing the summer far below the Strong pickup predicted earlier by the Reagan administration the government indicated Friday. The Commerce department s initial Flash calculation of growth during the unfinished june september period showed Only a flight gain from the 1.9 percent Pace turned in from april to june. Friday s preliminary estimate for growth in the Gross National product for the current Quarter would appear to doom administration Hopes for 3 percent growth for the entire year. Instead if the current estimate of growth holds through the final three months of the year the . Economy will record a 2 per cent growth Rale this year. Such a sluggish performance would fit Many economists definition of a growth recession a period when the Economy expands so slowly that it can t keep unemployment from rising. The administration has already been forced to scale Back its initial estimate of growth from a 4 percent projection. The Gnu grew at a barely perceptible oi3 percent rate from january through March before picking up to a 1.9 percent rate in the second Quarter. This figure rep resented a slight downward revision from last month s estimate which put second Quarter growth at 2 percent. The sluggish growth has been blamed on the country s poor International trading performance. Despite the fact that the Trade Hemor rage has shown no signs of abating the administration predicted a rebound in activity in the second half to a healthy 5 per cent annual Pace. Now that the rebound did not occur in the third Quarter it would take a phenomenal growth rate of 7.1 percent in the final three months of the year to reach the administration s goal of 3 percent growth for the entire year. Friday s report showed that inflation is remaining Well under control. A measure of inflation tied to the Gnu Rose at an annual rate of just 2.9 percent in the third Quarter the Best performance since a 2.8 percent rate in the second Quarter of 1972. The report on the Flash estimate for a Quarter which has not yet ended is based on a combination of Complete data and Esti mates. It is often revised substantially sometimes More than once As further information comes in. In recent Days the government has re ported a string of reports showing that the Economy did indeed pick up in August. Civilian unemployment after showing no improvement for six straight months dropped to 7 percent while personal con Sumer spending and housing construction both showed Strong gains. Although the administration hailed these statistics As proof that the Long awaited re bound had finally started private economists remained unconvinced. The estimated 2.8 per cent third Quarter growth Rale was close to what Many analysts had been expecting. Many economists believe that instead of the Strong rebound expected by the administration the Economy will perform Only some what better than the 1.1 percent growth turned in during the first six months of the year. Laugh Batman laugh Kevin Maguire of Newport r.i., is apprehensive As Clown Debbie Verein paints him is Batman. And his smile is still Little hesitant As he sees Bis new face in a Mirror. Kevin s makeup session came during festivities an which competitors sought to win the title of the great est chowder maker in new England. Rhode Island teachers reach agreement to end strike by United press International a tentative agreement was reached Early Friday to end the teachers strike in Pawtucket r.i., and s3 teachers sent to jail and fined $500 a Day for defying a court s Back to work order were released. In Seattle site of the nation s largest teachers strike teachers and school Board members met face to face thursday for 3w hours but the negotiations broke off without a settlement. Teachers remained on strike in four states affecting 64,900 students 4.1,500 in Washington 18,000 in Pennsylvania 2,000 in Ohio and 1,400 in Illinois. Terms of the tentative agreement in Pawtucket were not released out the con tract was for three years. Teachers were to meet Friday afternoon for a ratification  s a fair Deal for both sides Paw Tucket mayor Henry Kin Cha said of the  president Mary Ann Kaveny said she was relieved and had no regrets about the strike. The 53 teachers sent to jail on contempt of court charges were All to be released within one hour of the tentative agreement. No decision was announced about the fines levied against the teachers and the 600-Mcmbcr Pawtucket teachers Alli Ance which had been ordered to pay $10,000 a Day. The Union agreed to drop an unfair labor complaint they had registered with the state s labor relations Board. Seventeen teachers were fined and sent to jail thursday bringing to 53 the num Ber jailed in three Days of hearings before Superior court judge Corinne Grande. Even if the strike were to be settled you would still owe the state that amount Grande told a Union member. Classes for an estimated 8,500 students at the District s 15 schools have been can celeb since sept. 4, when the Union struck the District. In Seattle John Cahill a teachers Union spokesman said thursday s meet ing was a very productive discussion Exchange of ideas feelings interests but not of  Cahill said state mediator Marvin Schurck asked both sides to return to the bargaining table Friday for another round of negotiations. Rick Oglesby executive director of the Seattle teachers association said both sides exchanged views and listened intently to one  about 3.700 teachers aides substitute and secretaries went on strike in Seattle sept. 3, affecting 43.500 students. The major issues in the dispute Are seniority and a financial package for the teachers. The teachers Are seeking a j9.2 million increase in a one year package. The District has offered a two year contract Worth an additional $7.2 million. Most officials not eligible for free rides Gao says Washington a the general accounting office saying too Many government officials arc using cars and limousines at taxpayers expense without authorization is supporting a Reagan administration Bill that would increase the number of Federal employees who Are Eligi ble for the free  Gao the watchdog Arm of con Gress says that during the first half of 1985,60 percent of the officials commuting in government vehicles were not entitled to them under the terms of a 1946 Law. That statute generally bans free Home to office transportation for Federal employees but exempts people such As the president who mostly walks to work Cabinet level department Heads and top drawer Diplo  its latest report on the taxpayer funded fringe Benefit the Gao said that of 128 officials with government vehicles some with chauffeurs 79 had no Legal basis for the transportation. The Gao also said that among 17 spouses of officials receiving such rides mainly to official functions five were not. Entitled to the service at All and another five occasionally used it without Legal author  Gao said it did count the number of chauffeured vehicles and that its Survey did not include data on White House staff can because the White House did not respond to its questionnaires. Milton Socolar. Acting head of the Agency estimated the annual Cost per vehicle at from $1,000 to $9.465, de pending on the Type of vehicle provide to an official. After citing the statistics Socolar told the government operations National Security subcommittee thursday that the Gao supports a Reagan administration Bill that would raise the number of officials legally entitled to free rides from 49 to 62. Among other things the Bill would make Deputy Cabinet Heads eligible for free transportation. Also supporting the expansion was Michael j. Horowitz general counsel of the White House office of management and budget. Horowitz noted that Bene fits such As free cars Are hot topics among taxpayers. The political sensitivity of the Issue u obvious Horowitz said. All persons in Public life know the Public reaction to newspaper articles stating that government officials Are being chauffeured around Washington in  testifying at the same hearing. Sen. Wil Liam Proxmire d-wis., a longtime foe of free commuting claimed that providing an official with a chauffeured limousine Colts taxpayers $35,000 a year. Most agencies told the Gao that despite the Legal restrictions commuting was Nec Essary to provide Security to officials re Spond to emergencies Foster More efficient use of time or More ease of travel to Field offices