European Stars And Stripes (Newspaper) - December 30, 1986, Darmstadt, Hesse                                Page 26 the stars and stripes tuesday december 30,1986 no1, s Brief s Kim ii Sung re elected president of North Korea Tokyo a Kim 11 Sung who has led communist North Korea since its division from South Korea in 1945, was re elected president monday North Korea announced. A new pre Mier and planning chief were also named. The supreme people s Assembly the nominal parliament which again chose Kim ii Sung was also presented with a new seven year economic plan that pledges to solve the country s food housing and clothing shortages and proudly rank North Korea among the world s advanced nations the reports  655-Mcmber parliament ratified Deci Sions made at a meeting saturday by the Central committee of the workers party according Toradio Pyongyang and the official North korean Central news Agency reports monitored in Tokyo. I Yunmo a former machine Industry min ister and vice Premier was named Premier re placing Kane song san who was Given an Undis closed portfolio on the Central committee secretarial. Pak Nam i a party Secretary was named chief of the National planning commis Sion replacing Hong song Nam who was made a first vice Premier italians step up Security after terrorist threats Rome not Security forces Are on Alertas Leonardo a Vinci Airport and other Poten tial terrorist targets around  added precautions Are a response to re cent terrorist threats against Italy officials said  measures were stepped up for the Christmas holidays and after the crash of a iraqi airways plane in saudi Arabia during a Hijack attempt thursday officials said. A message delivered in Beirut to an italian news Agency wednesday from the armed revolutionary cells threatened to blow up a City Hall somewhere in Italy if certain unnamed political prisoners a re not released. Other threats demand the release of Josephine Abdo Sarkis and Abdallah Mansouri. In jail for smuggling explosives into Italy in 1984. The Yare suspected accomplices of Georges Ibrahim Abdallah the presumed Leader of the lebanese armed revolutionary factions whose release from a French jail was demanded in a bombing Campaign in Paris in september. People express Texas air merger wins approval Newark . A shareholders of financially troubled people express inc. Monday narrowly approved a is 15 million merger wit Texas air corp., people express chairman Don Ald Burr  vote by stockholders about a third of ilium employees was the final hurdle in Texas air s bid to Lake control of the pioneering Cut Rale airline  Deal was approved by 53 percent of the hold of common Slock barely making the 50 percent needed for approval said Texas air spokesman Rick  merger was approved by 75.6 percent of the holders of preferred series a Stock just lop Ping the necessary 75 percent. The Deal also was approved by 95 percent of the holders of preferred series b Stock from whom two thirds approval was required Scott said. Morning quake shakes san Francisco Bay area san Francisco a a minor Earth quake Shook the san Francisco Bay area Mon Day but there were no reports of damage or  quake struck at 7 28 . And was Felt Over a wide area thai included Salinas and Mon Terey to the South and san Rafael in the  stale office of emergency services said the preliminary estimate of the quake s Magni tude was 3.5 on the Richter scale. The quake was entered about 5 Miles East of Milpitas about 45 Miles Southeast of san Francisco according to emergency services spokesman Lloyd barring ton. U.s., Iran working on Deal to Transfer Frozen Money the Hague. Netherlands Dpi . And Ira Nian officials held talks monday concerning a lawsuit by Tehran seeking the release of j 500 million in Irani an funds Frozen in the United slates a . Embassy spokesman said. An iranian embassy spokesman said he was encouraged that a Deal could be worked out and help Lead to the release of . Hostages held in Lebanon. We feel optimistic. The americans have agreed to return the bulk of the funds. There arc some Small technical mailers to be resolved but we believe they arc going to Deposit the Money for us he said. Asked whether a Deal would help free american hostages he replied that is a very delicate Matler. But the speaker of the iranian parliament All Akbar Hashemi a Sfanjani has mentioned that if the Ameri cans do what they have to do it can positively affect the feelings of those people holding the hostages he said Iran expected an agreement to be reached in one or two Days. The . Embassy spokesman said Washington is negotiating in Good Faith bul declined to predict the outcome. The funds were Frozen after 52 . Diplomats were taken hostage at the embassy in Tehran in 1979. They include in Crest owed to Iran on Money held in . Bank accounts and on payments for arms ordered by the late Shah but never delivered. Report from Page t Tion of anonymity acknowledge that the $12.2 million charged the Cia for the missiles was too Little even allowing for the fact that the weapons were old Basic models that Are no longer produced. Congressional sources say that fee is especially suspicious because it conveniently allowed the administration to avoid a $ 14 million threshold for reporting foreign arms sales while creating great leeway for generating a pro  attorney general Edwin a Csc 111 has said As much As s30 million in profit from the weapons sales May have been diverted to the contras. All of the sources agree however that More than month after the operation was revealed there is no evidence Weinberger knew what the iranians were being charged or that Money was being diverted. It really docs appear As if Weinberger and his peo ple either deliberately muzzled their curiosity or else were deliberately kept in the dark after the missiles went to the Cia says a congressional aide. And he was certainly on the right Side of the Altai with his advice to Reagan the source added noting thai Weinberger advised the president against Selling arms to Iran. That advice according to Pentagon sources began with the defense Secretary s receipt of the Cia report last year. Produced in May 1985. The report concluded that there was evidence of a developing Power struggle in Side Iran and reason to believe the soviet Union was ahead of the United states in preparing for the death or downfall of the Ayalo Ilah Ruhollah Khomeini according to informed sources. The report prompted a draft National Security direct Ive from the White House proposing Hal . Allies Reed to cultivate Trade with Iran including Mill Weinberger the sources say reacted  wrote a note to assistant defense Secretary Richard Armitage outlining the recommendation he wanted to Send to the White House this is almost too absurd for comment. It s based on assumptions there s about to be a major change in Iran and that Pecan Deal with that rationally. It s like inviting libyan Leader Moa mar a Hanafy Over for a cozy  january however Reagan had decided to Autho Rize direct . Arms shipments to Iran. The defens Secretary has said he was informed of the decision by the president and told to assist the Cia by providing weapons for the  to defense department sources there were at least five men within the Pentagon who knew arms were being transferred to the Cia Weinberger his former military aide it. Gen. Colin Powell who now commands v corps Wein Beijer s current aide vice . Donald s. Jones Armitage the assistant be urge i tary equipment. The arms were destined for Iran in line Wius a decision by in president because the Normal procedures for secret trans fers of weapons to the Cia were not being followed a v corps Public affairs spokesman in Frankfurt told the stars and stripes monday that Powell declined to comment on reports of his involvement in the arms Transfer. He said the general would Reserve comment to All but an investigating committee. Powell is scheduled to leave v corps this week Loas sume duties As Deputy National Security adviser in Washington . If those procedures had been followed the sources explained officials such As undersecretary of defens Efred a Ikle Armitage s Boss and the no. 3 Man at the Pentagon and . William j. Crowe chairman of the joint chiefs of staff almost assuredly would have been informed and it does t appear that they  source added he was convinced the army itself had no idea the weapons were destined for Iran an instead merely followed orders from the lop to arrange the physical Transfer of weapons to the Cia. Explosion from Page 1 male. However one police officer who asked thai his name not be used said the damage to the hotel was thought to be around s5 million. Police said there would be a memorial service at a local Church tuesday evening for the seven people killed. They also released the names of the victims All Ger mans. Sin were hotel guests and one was an employee. The dead were Gudrun Bauer 20, of Freiburg Rudolf did Mann 46, and Erich Spall 59, of Mannheim Inge Kroll 47, and her daughter Andrea 23, of hat Lingen Eckart Bialas 46, of Bonn and 21-year-old Eva Rendl of Garmisch Parten Kirchen a hotel employee. Koegl said officials of the technical inspection service the nation s safely watchdog Agency bad checked the hold s Gas tanks Only a week before the explosion. But the pipe itself was not examined Koegl  15 hotels and inns in the Garmisch Parten Kirchen Region have made room for the More than 250uninjured Riess Ersee guests. Garmisch Panen Kirchen. A town of 27,300 people lies 59 Miles Southwest of Munich and is at the base of the 9,777-foot Zug Spitze West Germany s highest dissidents from Page 1 peace campaigning also is being freed it said Stevens Aid his sources Are normally authoritative and appear to be talking with official Sanction the reporter said there is widespread and open debate among soviet intellectuals and scientists. The two groups of the soviet elite who most favor a relaxation Over human rights that Gorbachev intends to launch the most dramatic reforms since the Days of Nikita Khrushchev the former Soviel Leader who launched reforms after the death of Joseph  said thai in the past Western experts on the Soviel Union argued that there could be no rapid an fundamental change because any move Loward some thing approaching free speech would threaten the Basic concept of centralized Rule by a party backed by the Kab however he Cwm on soviet sources insist urn the Kab will do Asil is told and that Gorbachev understands Well How to handle the Security agencies. Pressures on the Soviel Economy also make such liberalization  the report quoted its sources As saying that hundreds of prisoners jailed for economic crimes such As corruption also will be released soon