European Stars And Stripes (Newspaper) - February 12, 1987, Darmstadt, Hesse                                Inside stripes q army developing new rating system for cos Page 2 d adm. Crowe mum on possible military action Page 5 o a guide to Europe s restaurant and store hours. Daily Magazine the stars and gripes hath Obilee unofficial publication for vol. 45, no. 298 thursday february 12, 1987 Ahmed fohce1 0 8693 a Dollar Down enough Baker hints says Frade deficit appears to be leveling of  Treasury Secretary James  told con Gress tuesday that the u appears id be leveling off v from a declining Dollar and in thai further Falls m the Dollar against japanese yen May not be desirable. Noting that the yen had strengthened 47 percent against the Dollar in the last two years Baker told the panel at some Point. It becomes rather counterproductive o talk about further Exchange Rale  although baiter did not say directly thai the Dollar should fall no further his Flat men is one of hit strongest Public comments yet suggesting that the administration is not seeking a further decline in the Dollar against the yen. A weaker Dollar makes imported products More expensive at Home and  goods less costly abroad and should Thi locally help to ease the Trade deficit hit a record $ 169.8 billion last year Zajf Baker appearing Betony Shouse ways and Means Comis Fiji also said thai president  strongly re Sist Trade icgislai0aifmi ing his flexibility or  retaliation against Trade partners. Wiliie Trade proposals we have i the Hill conflict significantly Pine administration s free Trade and App Anlu Treasury Secretary James a. Baker Iii left shores a laugh with mouse ways and Means committee chairman Dan to Slonkowski after Trade deficit discussions. Objectives Baker r. Ker reiterated the administration Contention that Exchange rate changes must be complemented by stronger growth abroad and  to Jiddus the structures of our  there can he Little question that More needs to be done 10 promote More rapid growth abroad Baker told the commit ice. He predicted an improvement on the order of about i i percent in he Trade deficit in 1987. The committee chairman. Rep. Dan to Slonkowski. Dell. Vowed 10 seek a bipartisan Trade Bill and he called on the administration to be flexible and accept compromises. Our internal divisions Are a sign of weakness to our trading partners Rosic Nowiki told Baker. We should Cleave the Shoreline United. There is a possibility this will happen this and . Trade representative clan Buller told the panel that the  opposed to a key Trade Bill  House and Senate. Legislation calling for of huh by retaliation against foreign erect unfair barriers to see Baker on Page hostage release Deal pending reports say Beirut. Lebanon not Arab diplomats and local radio stations said tuesday thai behind the scenes contacts were under Way to work out a Deal that would involve the release of four Kidnap Ped professors and an israeli air Force navigator in Exchange for 400 Arab prisoners held by Israel. The reports said the Deal proposed by Nabih Bern whose amal militia is hold ing the israeli airman would satisfy a demand made by islamic holy War for the liberation of Palestine which on monday night extended until further notice a deadline for killing the four foreign professors including three americans whom it has been homing hostage. To Jerusalem israeli officials said they had not been approached by the United states regarding the Deal. In Washington the White House spokesman Marlin fit water said "1 reiterate once again that we will not Ransom hostages nor will we encourage other countries to do  two Beirut radio stations the Chris Tian controlled voice of Lebanon and the moslem controlled voice of the nation said secret talks with Israel were in Progress and hat the reprieve issued Ai the last minute by the moslem group for its four captives was part of negotiations on an Exchange. Arab diplomats said to islamic holy War for the liberation of Palestine had prepared a list of about 400 lebanese Shine and palestinian prisoners held in israeli prisons and at a detention Camp in the Village of Ai Hiyam inside is Rael s so called Security zone in South Ern Lebanon. They said the list was forwarded to the Beirut office of the International com Mittee of the red Cross. Red Cross officials declined comment on the subject. The Arab diplomats said the islamic holy War list included 310 lebanese and 90 palestinians. Most of the lebanese were said to he held Ai at Hiyam while the palestinians Are serving jail terms at Atli prison in Northern Israel. Political analysis in Beirut said they see hostage on Page 28 sinking Dollar taking German exports Down with it  so of writer Man Robert Germany s Export i Jac dry of Black Forest crafts litmus paper for Republic is in rpm air not Lar times in the months to con  rocked by inc Dollar s Steep decline against the Mark Herr has watched exports of his clocks slump by As much As 60 percent in the past year. Before we were a Cluj 1,800 cuckoos America the 6& Lutold native of . Now Willi thaw liar at its present ah7sonie months we Are Appy to sell Only 200 to 300." Herr of one. As is the Case with american Servi ctn Jar sonnet stationed in Europe manufacturers of such traditional German exports As toys and jewelry Are now worrying about How Low the Dollar will go. And much larger German concerns including such Stalwart performers As chemicals and machine manufacturing face an increasingly Tough struggle to retain their . Market shares As the sinking c goes Ribeir products More expensive to.  50 percent in the last two Himler accompanied by grow Otis and its trading Fie Center of  amen r9gering Trade deficit which i t69.s billion last year. To combat its Trade imbalance the United state has urged Japan and the 12-nation european eco nomic Community to encourage Domestic growth hoping thai increased spending abroad will mean fewer foreign goods in american markets. The Reagan administration has singled out Ger Many which is enjoying deflation and a fourth straight year of economic growth As the country in the Best position to act As inc locomotive needed to pull european economies into such increase growth. But the conservative Gocr cullor Helmut Kohl has Shawyu Ftp Msten Spur ring the go j jf0pmwpccially at the risk of fug a Cring Over this stale Malc is i growing Call by Congress for Trade barriers a threat that to Dale has not softened the european stance that the United states must take More responsibility for its economic woes. European finance ministers increasingly vocal in the last few months Over inc Dollar s loss in value have accused Treasury Secretary James Baker Iii of Down the Dollar through a series of will punch mints. Cry sensitive to talk a German banker cup Rhth Beta slalom cols by or. Baker that the Dollar is  serve to Force the Dollar lower As investors Seconi Blound in other  such a strategy the europeans charge amounts to continued on Page 3