European Stars And Stripes (Newspaper) - July 3, 1986, Darmstadt, Hesse                                Inside stripes d sex gis with debts to . May be forced by irs to pay Page 2 n Pearl Bailey offers a message of love Page 13 d american tourists Are returning to Europe pages 14-15  unofficial Puilla to vol. 45, no. 77 thursday july 3, 1986 . A to 0 6693 a of exchanges plan to Washington is most army and air Force Exchange service stores overseas will begin accepting visa and Mastercard credit cards this month an cafes spokeswoman announced tuesday. Exchanges in Europe Turkey and saudi Arabia will begin accepting the cards july 24, Cap Neri said. The cards will be  15 in the Philippines july2n4ipan, july 22 on Okinawa and aug. 6 in Kuja the cards rna a sad at main stores garages Auto Sarto most military clothing sales stores pc  As furniture or four seasons stores and retirement Bill signed by Reagan Washington a president Reagan signed into Law tuesday a major overhaul of the military pension system that will reduce retirement benefits for people sworn into the armed forces afar aug. I. The measure designed to reduce Long term retire ment costs by about 18 percent does not affect checks being sent to the 1,4 million people now drawing Mili tary pensions or potential benefits available to the 2,1 million people now in uniform and eligible for pen Sions after 20 years. Under current Taw military retirees receive a pen Sion of 50 percent of Basic pay after 20 Yean of service ind 75 percent after 30 years. Under the new laypeople retiring after 20 Yean will receive 40 percent of their Basic pay instead of so  20 years of service the annuity would in crease 3.5 percent each additional year to a maximum of 75 percent at 30 Yean. In addition the new Law cuts the annual Cost of Liv ing Benefit increase for future retirees. Retirees now receive payments pegged to the full increase in the consumer Price Index. The new Law specifics that for people joining the services after , the increase would amount to the Chi figure minus i percentage  Secretary Caspar Weinberger and the joint chiefs of staff had strongly opposed the changes arguing that cutting pensions would Hurt efforts to attract and retain recruits for the nation s Alt Volunteer Mili tary Force. And in oort he said. The brants or Heaters for aundry or for some will not be a personal service Asoli _ will continue to offer the oven Ferrod payment plan and the uniform clothing deferred payment plan she said. Prices will not be raised to cover credit card proc Essing costs Neri said. Cafes officials believe in creased sales resulting from credit card acceptance will offset the costs. Neri said that under its overseas contract cafes will pay Citicorp credit services inc. 1.79 percent of net credit card sales after returns. Exchanges do not Issue credit cards or approve credit applications. That is done by financial instill hat offer credit cards to the Public. L Mastercard and visa because the Yare the  eld by american Consumers she said. Othen fed ii cards May be accepted in the future. Since january exchanges have by Tanh risk the cards in the United Stales Panama Green the azores and for mail Catalon orders. Read Ness in Europe Hurt by budget cuts Kemp says by Mary Hladk staff writer Heidelberg congressional budget cuts Are hurling american military readiness in Europe rep. Jack Kemp said tuesday. Kemp r-n.y., considered one of the leading con lenders for the Republican presidential nomination in 1988, is touring Germany and Belgium this week to discuss defense and world monetary issues with Ger Man government and other nato officials. We re beginning to see the Impact in reduction of training hours setting aside of training hours stretching of  Kemp said in an inter View with the stars and stripes i favor prudent spending restraint but i am concerned. I m worried the budget cuts will delay needed equipment and put off needed training he said. I Don t want to see cuts or freezes in military  for this reason Kemp said he voted against the $ trillion fiscal 1987 budget passed by Congress last week. The military portion or that budget gaffs at least121 billion blow president Reagan s request it is too big a Cut for defense Kemp said. Twill have an Adverse effect on readiness and mod , one of the architects of Reagan s economic policy and a member of the House appropriations and budget committees said reaganomics is  president has t failed. Reaganomics has t failed Kemp said. Former budget director David Stockman another critics of Reagan s economic policy Are ignoring gains made in the Economy and deficit reduction Kemp said. He described Stockman s criticism of reaganomics As the equivalent of writing the history of world War ii from a Bunker in , who supports the strategic defense Initia Tive said Congress must maintain full funding for Star wars research. I think this is the most promising new technology we be seen in decades and the technology needs 10 be exploited he said. Kemp was to meet with Gen. Bernard Rogers supreme Allied commander Europe wednesday. On thurs Day he will meet with Ger Man Chancellor Helmut Kohland German air Force units. Kemp hosted an International monetary conference last weekend in Zurich Switz Erland where economic Lead ers from several nations Dis cussed problems such As the floating Exchange Rale  said that system has _ _. Failed and economic officials it spare trying to design a new system. Kemp said he supported the april us. Bombing of Libya but would not comment on whether the United Stales should repeat such an action if terrorists strike again. Although widely discussed As a leading Republican contender for the presidential nomination in 1988. Kemp said he has not yet decided if he will run for president. Assad promises Good news on fios Fages Washington up rep. Robert Doraan. R.-calif., just Back from a private trip to help free Ameri can held hostage in Lebanon said tuesday Syria president Hafez Assad promised to have some Good fits very won on the plight of the captives. Speaking to reporters after briefing vice president George Bush on his visit to Damascus Doraan said he sensed no imminent turning Point in the hostage crisis but was assured that Assad would work seriously to free the americans. All in All i feel that maybe the american people have a right to put some Trust into movement on this Issue soon said Doman Damascus radio quoted Assad As saying Syria will continue exerting efforts to free the american hostages held in Lebanon and will Deal with the matter regardless of our policy with the United  Doman said the syrian president told him that he would have for the world press and the american peo ple some Good news very  however be said "1do not want to give any false Hopes to the family Mem  White House spokesman Larry Speakes said the administration has no Independent information to Sug Gest an imminent change in the hostage situation. The five americans Are believed to be held by pro iranian moslem fundamentalists in Lebanon. For More than a year . Officials Nave regarded Assad As a key to winning their release because of the syrian influence in Lebanon. La recent months however some have questioned whether Assad was bringing that influence to Bear on the captors. The american hostages missing in Lebanon arc David Jacobsen 55, director of the american University of Beirut medical Center. The Rev Lawrence Jenco 50, head of rom Catholic Relief services. Terry Anderson 37, the associated press Middle cast Bureau chief. Thomas Sutherland 55, the american University of Beirut Dean of agriculture. William Buckley 56. A . Diplomat