European Stars And Stripes (Newspaper) - May 13, 1986, Darmstadt, Hesse                                The stars and stripes Page 3 Treasury Secretary James Baker shove and Senate majority Lead Robert Dole right. Tax Reform Bill will pass this year observers say Washington a democratic and Republican leaders predict Congress will piss a lax Reform Bill this year but other observers say americans should t count their lax savings yet. Some officials said sunday the tax Over haul measure endorsed by a Senate com Mittee last week would boost revenues at least the first year. Treasury Secretary James Baker said the administration believes the Senate Bill is Revenue Neutral Over the entire budget period meaning it would neither increase nor decrease revenues although the effect will be an increase in the first year. President Reagan who on saturday endorsed the Senate version of the Bill has vowed to veto any tax increase. Scale majority Leader Robert Dole r kan., said we Are All against tax in crease. Bui you can t Tell precisely Over a five year period whether it s Raven tie Neutral. Some years you might have a Little bulge i link surplus. Over the period it s  Dole and Baker appearing on Abc s meet the press echoed Reagan s enthusiasm for the Senate version. A House Senate conference committee would work Oul the differences Between a House Bill passed last december and one that was unanimously endorsed last week by the Senate finance commilt9c and is expected to pass the full Senate. Bolh Bills would reduce lax Rales for most americans while eliminating most lax shelters and raising business taxes. Rep. Dan Rostenkowski d-iii., the main author of the House tax Reform measure said reaching agreement with the Senate won t be easy Bui there is an agreement among Mem Bers that tax Reform is going to pass and that people will be investing their dollars based on Good business practices As opposed to hiding them Frum the  Rostenkowski said on Abc s this week with David  the no. 2 official at the Treasury department Richard Darman predicted that inc Senate Bill could boost government revenues by stimulating economic growth. The president s Council of economic advisers preliminary estimate suggest that this is going 10 have a very favourable effect on economic growth. As the president said in his radio talk saturday the coun cil estimates it would be about a 10 per cent increase in the growth Rale Durman said on Abc. Deaver involved in replacing envoy paper says Washington a former White House aide Michael a Caver was in Strumental in selecting a new . Ambas Sador to Canada before he started a Multi million Dollar lobbying company that numbered the Ottawa government among us clients according to a published report. The Washington times quoting current and former administration officials in Mon Day s editions said Deaver worked with state department officials 10 replace ambassador Paul h. Robinson jr., a Reagan appointee with someone More acceptable to the Canadian government. In the Spring of 1985, a Caver who currently is under investigation for possible conflict of interest violations including his lobbying efforts on behalf of Canada helped persuade Reagan to sign off on the nomination of Thomas , Niles to replace Robinson the newspaper said. Miles a 24-year stale department Veter an had been serving As Deputy to Richard r. Burl then assistant Secretary of slate for european and Canadian affairs. Burl had recommended Niles for the Post according to the newspaper. From 1983 to May 1985, when he left inc White House a Caver headed a three Man committee that selected ambassadorial nominees some Canadian officials disliked Robin son s pro Reagan stand and his criticisms of Canada for spending too Little on defense and for support Osnato. The Deaver Case was to be the subject of a House hearing in  general accounting office planned on detailing its recommendation that the Justice department investigate Deaver for possible conflict of interest Law violations. James Hinchman the Oao s associate general counsel was to give written Testi Mony of the Agency s Deaver investigation before the House Energy and cum Murec subcommittee on oversight and investigations Cao spokeswoman Patricia Moran said. Prosecutors re eco charges Kohl lied to committee. _. Of i a  11u. L1__nirtc Iii noun thin int Hishta  rial Bonn a prosecutors have decided not to for Mally investigate Chancellor Helmut Kohl in connection with charges he lied to a parliamentary committee a Ger Man newspaper said monday. The Bonn prosecutor found the charges not tenable and decided to drop the Case without beginning a formal investigation the daily die Well said. The newspaper said the Bonn prosecutor relayed his decision to the chief North Rhine Westphalia stale prosecutor s office More than a week ago. The chief stale prosecutor had asked the Bonn prosecutor to undertake the probe in mid March. Johannes Wilhelm chief prosecutor in the Bonn office said monday he had no comment on the newspaper report. The weekly Magazine Der Spiegel also reported during the weekend that the Bonn prosecutor had decided to scrap the probe. The Bonn inquiry was based on a criminal complaint filed by a Green party Deputy that charging Kohl lied in november 1984 testimony before a parliamentary com Mittee investigating the flick corporate bribery scandal. The greens Deputy Otto Scilly accused Kohl Christian Democrat of lying when he told the committee he did not receive two donations totalling $27,500, from the flick firm. Scilly Early this year also filed a complaint charging that Kohl in 1984 gave false statements 10 a Rhineland palatinate state committee looking into charges of illegal party laundering of political donations to avoid taxes. The allegations involve the methods of political contributions made while Kohl was inc stale s governor from 1969101976. In response to the complain the Koblenz prosecutor s office started an inquiry in february an official in the Koblenz office said the probe was still going  but declined to elaborate. Kohl has dismissed Schily s allegations As a Campaign of political slander saying he expected prosecutors to drop the inquiries for Lack of evidence. Although the probes were not formal criminal investigations their existence has embarrassed Kohl As the Campaign for the february 1987 National election gets under Way