European Stars And Stripes (Newspaper) - February 18, 1987, Darmstadt, Hesse                                Wednesday february 18, w37 the stars and stripes Page 3 gis turn to pawnshops for Quick Cash from Page 1 we Don t want them crying they lost their  Husoe said Many americans Pur Chase goods in he Golden Elfant when they have Money including regular panners the Blond medic was looking at a Diamond ring Tor his German girl Friend. Another pawnshop that attracts americans is the Pawn shop Cash in Wiesbaden. The pawnshop next to Lindsey As is one of two pawnshops in Wiesbaden and a Hub of pawning activity by Mili tary personnel. An employee said about half the gis who visit his business need Money to pay Bills. "1 have seen new soldiers come in and say i have a 1,000-Rnark phone Bill and i need Money " the Man said. Lonnie Whipple a customs investigator with the 42nd miliary police a Romp held office at Wiesbaden a is one of Pawn shop Cash in Wiesbaden attracts Many military personnel. Two customs maps who investigated use of Pawn shop Cash by military person Nel. The military got involved after Ger Man officials old them in february 1986 the owner of the pawnshop was fined 30,000 Marks for not paying taxes on the . Goods he carried. Whipple and his partner Learned through pawnshop documents that 56 army and air Force people had pawned or sold goods from february to july 1986. Most were e-5 and below and Over half were air Force Whipple said since in was right outside their  he said he 56 military personnel did t know they were breaking . Customs Laws. Air Force Cape. Ken Mattern. A Legal officer with the 7100th combat support Wing at Lindsey As believes he state or the Dollar is a reason More Junior enlisted people arc pawning their belong Ings. They do it to Mucci their Basic needs he said. Customs rules apply on sole of duty free goods by Wendy Bourland stall writer americans serving overseas under the nato status of forces agreement must follow . Customs rules when Selling duty free goods to pawnshops or local individuals. Service members who fait to follow customs procedures can face court mar tial. Civilians can be prosecuted in local courts. The status of forces agreement Al lows americans assigned overseas to bring duty free goods with them and los or chasm them in . Facilities abroad strict rules cover the Exchange of this merchandise to establishments or per sons not authorized to buy them said staff sgt. Randall Hodnett of the 42nd military police group in Mannheim Germany any item brought from the United Stales or bought at a base or Post Exchange overseas must get customs Clear Ance because it was purchased duty free. Customs clearance also must be obtained on items bought in stores on the local Economy on which americans get the sales lax deducted. The customs clearance Musl be obtained on these items Only when they Are sold to pawnshops. Items retrieved be fore the 30-Day loan limit used by pawnshops arc not illegally sold because ownership does not Transfer to the pawnshop said Lonnie Whipple a Cus Toms investigator with the 42nd military police held office at Wiesbaden a. To sell an item purchased duty free americans in Germany must Complete five copies of ae2074. The customs form authorizes Transfer of property from Usa eur personnel to a person or business not authorized to Purchase the item. Hodnett said procedures and forms differ in other countries. However at bonded pawnshops such As the Golden Elefant in Frankfurt Only . Id cardholders May sell or buy the american goods inside. Therefore Theta incr does t need logo through Cus Toms clearance procedures. The forms available from military customs offices require he name Model. Number and serial number of the item being sold full name Home address an passport number of the buyer and the Price the seller wants for the item. Rein main a and the Bremerhaven port terminal have customs offices that will see military people on a walk i basis and can affix the necessary Cus Toms stamp on the form. Many other military communities have an my office with customs personnel and stamping authority. If a seller in Germany cannot gel the form stamped in his Community it can be mailed to the 42nd military police group Casimos in Mannheim after the form is stamped it must be Laken o German customs officials in the town where the pawnshop is located. If Selling to an individual whippet advises the seller to bring the buyer along to German customs since in is the seller s responsibility to ensure that the customs fee is paid. Customs keeps a copy of the form. If he buyer is a pawnshop the remaining four copies should go with the seller tothe pawnshop. Dollar s fall reviving fears of inflation recession by William Glaberson new York not earlier this month Edward a mar Welps Small factory in mount Kisco n.y., shipped its first forklift truck pans to a japanese manufacturer. He credits ibis Small coup to the Sharp de Cline of the Dollar relative to the yen which made his product More competitive. But if the Dollar keeps sliding Marwyll might Well find his company Curtis instruments inc., a loser in the Long run along with much of America. Increasingly currency specialists and economists Are worrying about the Reagan administration s policy of trying to repair the country s huge Trade imbalance by idling the Dollar Drift Down against other major currencies. Some fear the government s approach is highly risky and could bring Back unpleasant doses of the United Stales twin economic phobias inflation and recession. The experts arc especially concerned that foreign investors would Cut off billions of dollars in american investments if they become convinced further devaluations of the Dollar will eat up profits expected from interest. That in turn could Lead to recession. Foreign investment is critical to the United Stales the economists say. Of the $2 trillion National debt the Treasury estimates foreign investors now hold $256.3 billion Worth of securities. Historically devaluations of the Dollar have pre ceded new bursts of inflation according to Robert j. Hodrick a currency expert a the Kellogg graduate school of management at Northwestern univ easily. In the Lale 1970s, Todriek noted the Carter administration permitted the Dollar to Drift Down significantly. A punishing inflation followed in 1978 and 1979, followed not Loo soon after by a recession. No one knows what the magic number of dollars to yen or dollars to Marks might be. Many experts say however they arc beginning to see evidence that the Dollar s value has reached a critical stage for foreign investors. I for one think it s gelling very close to the Point where those funds arc not going to be coming into the .," said Robert Aubey a business professor at the University of Wisconsin and an expert in International monetary mailers. In addition to setting off inflation an exodus of foreign funds could stall the . Economy. American do not have enough savings to lend the gave Meni the billions in needs to fund the National debt and at the same time provide enough investment dollars to fuel substantial growth in american business. The Federal Reserve Board s chairman Paul a. Volcker lately has been warning thai the slipping Dollar could Start interest rates climbing again. Last week. Treasury Secretary James Baker Iii seemed to indicate that he Loo is beginning to consider attempt to Stop the Dollar s two year downward Drift. In an appearance before the House ways and Means committee he said at some Point in become counterproductive to talk in terms of further Exchange rate changes if people abroad begin to worry about a rapid devaluation alone could cause one. As they bailed out the slide could accelerate As people around the world began to fear the Dollar would be Worth less in their own currencies. The danger is thai Here can be an abrupt change in the attitudes of the holders of this massive1 amount of . Dollar securities and that could create a free fall said Alan Greenspan a Farmer chairman of the coun cil of economic advisers. Others say that even a further gradual decline after the last two years of Siwady downward move Man would shake the Economy severely. Economists suy recent moves by the Federal Reserve indicate in is beginning to encourage modes interest Rale increases i keep foreign investment in the United Stales. New inflation or recession could quickly have an Impact across the country Money would Cost More to borrow for expansion and Domestic sales might lag. Government monetary policy can forestall expected inflation but declines in the Dollar s value often fore Shadow interest rate increases hat quickly become necessary to attract new incs Lenl dollars. Until the last two weeks the Treasury seemed in concerned Wilh the risks of a fall. That has put Baker in the spotlight More for whal he did nol say than Tor whal he said. Currency experts interpreted his unwillingness to cite the dangers of a falling Dollar a mean that he was talking Down the Dollar. Even if the administration succeeds in driving Down . Demand for German and japanese goods some experts said the effect could ultimately be negative for the . Economy. Those economics could be Scal into a Uil spin by a further decline in the Dollar said William r. Cline senior fellow at the Institute for International economics in Washington. Recessions in Germany and Japan would haunt american growth prospects in a variety of ways. For example slackening demand in Europe for products from third world debtor nations such As Mexico and Brazil would have an effect in the United states. Their economies would weaken and make in difficult for them to meet payments due to . Banks. Progress on the Trade deficit will Only come Al a Cost said Rimm Croc vacs chief International economist at Morgan guarantee Trust. The world is confronted with an imbalance which is economically politically and financially unacceptable he said. One Way or another we have to accept somewhat higher inflation. Forme that is