European Stars And Stripes (Newspaper) - June 24, 1987, Darmstadt, Hesse                                Wednesday june 24, 1987 the stars and stripes Page 9 Gao says 780 stealth secret papers missing Washington a the Northrop corp. Is unable to account Tor 780 classified documents from it see Jtb bomber program according to a draft congressional study that generally commends the company for improving its procedures. Out of More thin 2,7 million classified documents kept to Northrop s Plant in pro Rivera calif., where it is developing the stealth bomber 1,822 were missing and have been investigated since 1983,and of those 780 Are still unaccounted for the Gen eral accounting office said in a report obtained monday by the associated press congest total investigators who spoke on condition of anonymity said they were concerned because a Wishrop employee Thomas Cavenagh was arrested in december 1984, for attempting to sell stealth technology apparently smuggled out of the Pico Rivera plan to the soviet Kab. The stealth or advanced technology bomber one of the most closely guarded . Defense pro Grama uses new designs and materials to hide from enemy radar. Cavanagh 42, telephoned soviet Dipio Mau 10offer to Seu the technology far $25,000, but his Calls were monitored by Fri agents who lured the North Rop employee to a meeting and to relied him. Cavana a pleaded guilty and was sentenced to life imprison. The january Issue of the Pentagon Security awareness program called the Cavanagh affair the defense contractor Case with the greatest  although the Security Booklet said no serious Compromise actually occurred it quoted Cia director William Webster As saying that Cavanagh was trying to leu he soviets the Core of he stealth technology which had Cost this country Over is million an hour to develop.1 a Northrop spokesman in Washington John to horror said the company cannot comment on the at program particularly on Security  the Oao report found that Northrop has tight ened its Security system. It said Many of the missing documents some bearing lock combinations May have been destroyed without proper record keeping. Oao investigators said the Security chief at the Pico Riv a Plant was replaced in september 1936,the month after the investigation began and Many of be defective procedures were improved. Saudis tentatively agree to Pilot a acs Over Gulf a acs airborne warning and control system consists d a jamming resistant radar. Combined with com Marne control and communication equipment installed in a Boeing 707 Airframe. Azacs Are capable of tracking Low flying targets at ranges of 200 Miles or More and farther or High flying targets. In.  not 325,000530 Mph Ove Iraq Iran area proposed for . Azacs patrol Oman up Washington a saudi Ara Bia has tentatively approved a . Re quest for expanded surveillance of he tense persian Gulf Region the state department announced monday. The Azacs airborne warning and control system planes sold to the King dam by the United suites in 1981, would have a saudi Pilot a the controls wit americans forming the rest of the Crew a department official said. They Are ust getting used to the planes so americans will have to do the technical work said the official who demanded anonymity. He said a saudi can Uolar will assist in the  saudis own five Azacs aircraft. Earlier spokeswoman Phyllis Oakley said she did not know if american Crews would be aboard when the saudis Fly the plane Over International Waters in the Southern Gulf. The saudis have participated in Aeria surveillance of the Northern Gulf con ducted by american Crews aboard the radar planes we Are continuing to work out the modalities Oakley said. Asked if the saudi were willing aim to allow a Jet Highlen to land on their territory to refuel she said "1 Don t have anything on thai  the Reagan administration is committed in protecting Oil shipments in the Gulf against iranian missile attack.  and captains Are to be put aboard ii kuwaiti tankers next month while the Navy has expanded its operations in the area. Defense Secretary Caspar w. Wein Berger met earlier this month in Nice France with Prince Sultan the saudi de sense minister to solicit the monarchy support for . Military moves in the saudi Arabia and Kuwait support iraqi itt War with Iran. The administration has declared its neutrality on the out. Come although sen. Sam Nunn d-oa., chairman of the Senate armed service committee has accused it of lilting to Ward Iraq. Other members of Congre shave voiced concern chit the United states has risked being drawn into the War. House majority Leader torn Foley d-wash., said monday that democratic leaders in the House and Senate will meet later this week to discuss what m Lions Congress can take regarding Gulf policy. But when Foley was asked what con Gress could do in practical terms he an swered there s not very Rii Uch. Realistically when you look at it if the administration is determined to go ahead there s Lille we can  still he said i Don t think the administration bits established a persuasive Case for their policy in the persian Golf and i think that s reflected in the sent men in Congress on the diplomatic front Oakley Laid the United slain is holding informal consultations with the soviet , France and Britain on whether to impose an arms embargo against Iran or Iraq if an agreement ii not reached on cease fire in the 6%-year-old War. The five countries Are the permanent members of the uj4. Security Council . Far ahead of Brazil As largest debtor nation Washington a the United states owed the red of the world 1243.6 billion at the end of 1986,More than double the 1985 total As the country length ened its Lead Over Brazil As the world s largest debtor ratios the government reported tuesday. The Commerce department said the new debt Bur Den Wii 13s percent above a revised $111.9 billion in debt to foreigners that the United states was carrying at Utt end of 1985. That year marked the first time since 1914 that America was classified As a debtor nation. That mean foreigners now own More in . Investments than America in own in foreign investments. For 1986, foreign investment in the United states shot up 26 percent to 11,331 trillion. That swamped 13 percent increase in . Investment overseas which totalled s1.068 trillion at the end of last year. The new figures confirmed How rapid the coun try s plunge into debt has been. In 1982, the unite states was the world s largest creditor nation with an investment Cushion of 1136.2 billion. But a string of record foreign Trade deficits has wiped out that surplus Al americans have transferred billions of dollars into the hands of foreign in by buying imported cars television sets and other products. The country s plunge into the stains of a debtor country is directly linked to the merchandise Trade deficits. The Only Way the United Stales will be Able to pay off its foreign debt is by running surpluses in its merchandise Trade accounts something economists Don t see happening for a Long time. Because of this View economists Are predicting thai total . Foreign debt could hit $1 trillion by the Early 1990s. President Reagan has sought to downplay the change in the country s position saying it just proves How attractive America is to foreign investors. But the driving Force behind the country s rapid slide into the status of a net debtor has been its huge Trade deficits. Foreigners have been More than will ing to Lake american dollars in Exchange for sales of their products in this country. While economists believe there will be a slight improvement in the Trade deficit this year it will Only alow Down the country s big buildup of foreign debt the huge increase in 1986 puts the United slates far ahead of Brazil lie previous debt Leader with $108 billion owed to foreigners. Foreign holdings of Treasury securities climbedsi2.3 billion in 1986 to total �96 billion. Foreign Over Menis including Japan and Germany have Long complained that the High Federal budget deficit is robbing those countries of investment income and is a primary source of sluggishness in the world Economy. David Hale chief economist of Kemper Finan Cial services predicted the total . Debt will swell to More than is trillion by the Early 1990s while Japan which has supplanted the United states As the world largest creditor will see its surplus exceed $500 billion during the same time period. Other economists have estimated that a debt Bur Den of this magnitude will mean the United state swill have to make interest payments of 150 billion or More annually. Such High debt service costs will reduce americans Standard of living As More of the country s wealth is transferred into the hands of foreigners economists say. Transfer of such Large amounts of Money to for Eigners raises concerns that the United states econ omy could become captive to the whims of foreign investors. Some economists noting the turmoil . Financial markets earlier this year Over the Sharp drop in the value of the Dollar said the change is already under Way. Central Banks of the United slates Japan Ger Many and other countries were forced to spend $40billion buying up . Currency this year to keep the Dollar s value from plunging so far that it Wouldhave threatened further foreign investment