European Stars And Stripes (Newspaper) - November 25, 1987, Darmstadt, Hesse                                Page 28 a Civ briefs the stars and stripes tuesday november 2? 1987 another earthquake jolts California desert area Westmorland Calif. A a second powerful earthquake in 12 hours Shook the Southern California desert Early tuesday causing at least three injuries knocking trailers off foundations and causing a crack in a major irrigation canal. The Wall of at least one building collapsed on cars Power was knocked out to Many areas fires were reported in a mexican Border town and the Border crossing was closed. The latest quake at 5 16 a.m., was Given a preliminary Reading of 6.3 on the Richter scale said Russ Needham geophysicist with the National earthquake info nation service at Golden Colo. The epicentre was put Al 14 Miles West of the City of Westmorland Aboul 90 Miles no head of san Diego. Fiscal year 88 starts with $30 billion deficit Washington a the Federal govern ment started its 1988 fiscal year with a $30.7 billion deficit in october the largest monthly imbalance since May the Treasury department said monday. The Treasury department report showed that the government look in revenues of $63.4 billion in october while spending $94.1 billion. The resulting $30.7 billion deficit contrasted with a surplus of $15.3 billion in september when government receipts were bolstered by quarterly tax payments. At least 16 die 5 Hurt in Alaska plane  Homer Alaska a a twin engine com Muter plane crashed and skidded through a Fence while trying to land killing 16 people and injuring the five others aboard authorities said tuesday. The Ryan air Beechraft 1900 crashed Mon Day night in Clear skies and came to a halt 200 Yards from the runway at Homer Airport. The flight originated in Kodiak and after a Stop in Homer was to continue to Kenai and Anchorage 150 Miles North of Here. Purcell said the injured some unconscious were taken to South Peninsula Hospital in Homer. Several were in critical condition he said and were flown to hospitals in Anchorage. Missile from Page 1 be Able to do. We Are very  Shevardnadze speaking in russian said we have completed some very important work. I think what we have done is in the interest of All the nations on this planet. And we have no Douht the Summit meeting we will have in Washington will be  he called the outcome of his talks with Shultz which culminated 2 i years of negotiations  Shultz and Shevardnadze provided no details of How they overcame the last obstacles to the Accord. The two met for about 10 hours Over the two Days dealing at length with Summit arrangements while a team of  experts appointed monday grappled with the remaining obstacles to the treaty. The team was headed by Paul h. Nitze and marshal Sergei Fakhr Omeyer chief of the soviet armed forces. It met with the two leaders tuesday afternoon. Earlier tuesday Shultz and Shevardnadze arriving separately for their final meeting both smiled and said they were near agreement. We Are gelling there Shultz said. Arriving 30 min utes later Shevardnadze said probably Well finish it  a morning meeting Between Shultz and Shevardnadze lasted More than three hours followed by a working lunch and then the afternoon meeting. Both sides on monday characterized the talks As constructive state department spokesman Charles red Man said then. But a . Official speaking on condition of anonymity earlier tuesday said we Haven t got it a treaty nailed Down  Redman said Shultz and Shevardnadze met twice for a total of 6v hours monday. The bulk of the discussion focused on Summit planning such As the schedule Tim ing and organization of the events he said. Central Banks Cut interest rates Bonn api Central Banks in West Germany France and the Netherlands lowered interest rates tuesday in an orchestrated Effort to stimulate the West european Economy and Stop the erosion of the Dollar s value. The coordinated move a longstanding . Request came four Days after Washington announced a budget deficit reduction pact that had been eagerly awaited of its foreign trading partners. Tuesday s action boosted the Dollar sharply on for eign Exchange markets and helped fuel rallies in the . And european Stock markets still scarred by the crash a month ago. Conversion rates on Page 27. Several analysts said the step appeared to be part of an International Effort to boost economic growth and restore Faith in the Dollar following the oct. 19 crash. West Germany s Central Bank said it Cut its Rale for Security repurchase agreements from 3.50 percent to 3.25 percent the second drop since the crash. The rate is an important influence Over other West German interest rates. The Bank of France Cut its Money Market intervention rate by 0.25 percentage Point to 8 percent while the dutch Central Bank Cut its discount rate by 0.2s percentage Point to 4 percent. Market analysis said the moves could portend fur ther european interest rate cuts particularly a drop in the important West German discount rate. West Germany with one of the world s mightiest Export economics has faced intense pressure from abroad to stimulate Domestic growth especially follow ing the . Budget cutting agreement reached in Washington last Friday. Domestic critics have also begun calling for expansionary measures aimed at stimulating the West Ger Man Economy. This would boost demand for goods from other countries and help Case he huge . Trade dentil. Cubans year tue from Page 1 determine whether they would be jailed. One Georgia official said he was told by an Fri agent that there Are 75 or 76 hostages being held in various pans of the Atlanta Penitentiary by various factions of inmates. All but a handful of the 1,500 prisoners held in Atlanta arc cubans facing possible deportation. Fires which destroyed three buildings at the 85- old Atlanta Penitentiary on monday flared again 1 Day morning. Petrovsky confirmed that one inmate was killed in Atlanta but denied reports that the death toll is As High As six. Hospitals reported that eight inmates and three prison employees were treated for injuries including five inmates who suffered gunshot wounds. One of the guards who escaped said inmates grabbed guards and took hostages with hand made knives that he compared to bayonets. He said the riot followed two work stoppages by inmates in the prison industries sea from Page 1 pose of withholding for social Security and medicare which together make up the Federal insurance contribution act or fica. Under the old civil service retirement system the withholding Rale is 1.45 percent for medicare. Under the new Federal employees retirement system the rate is 8.3 percent 1.3 percent for medicare and 7 percent for social Security. Employees Are not covered for social Security under the cars which is Why they have the lower withholding rate. Navy officials claim they were acting in accordance with the new social Security Laws. After a number of civilian employees complained the Navy decided to ask the internal Revenue service for clarification. In March 1986, the irs issued an opinion stating that the withholding on quarters allowances was proper. In october 1986, the Pentagon general counsel directed the other services to follow suit. The air Force began in january 1987. The  will begin with the last pay period in december. Him maintains there is no indication in the new social Security Laws that overseas allowances should now be considered wages for fica withholding. A clerk in the Navy comptroller s office dreamed this up he said. When they got complaints they went to the irs and the irs came Back and said yeah sure go ahead and do it what would you expect them to say they want More  defense department officials said they Are using the irs clarification As the basis for the allowance with holding. The Law is the Law one official said. But him said the irs letter is not the Law. It was an opinion issued by some Flunky he said. It is not an irs regulation and it is not even a Revenue ruling. It s just an opinion that in t binding in any Way and no one is obligated to follow it. The Pentagon can t item to understand  a spokeswoman for the irs said the intent when the social Security Laws changed was that unless a specific exclusion is granted by Law All income including in come derived from allowances is subject to fica withholding. The reason military personnel Don t have such withholding on their allowances is that there is a specific exclusion for that she said. That just simply in i the Case said him. The current Law covering the Issue is the overseas differentials and allowances act of i960, which states that Only salary is taxable for fica. The Senate report to that Bill clearly states in no Uncertain terms that reimbursements for expenses which includes quarters allowance Are not subject to fica  there is nothing in the new social Security Laws that supersedes that him said. Dod officials could not say whether word of the quarters allowance withholding is routinely included in the information Given to civilian applicants for overseas positions. We Haven t put out any guidance on that said a Dod civilian personnel policy official. All the serv ices do their own advertising and recruiting. They commonly refer to overseas housing allowances tax free but they mean free from Federal income tax. I Don t see a problem with the services telling applicants that they will receive a tax free housing  civilian personnel officials for the services were also not sure what applicants Are told. Navy and air Force officials said it is generally left up to the regional com mands and local civilian personnel offices to decide what to Tell applicants. An  official said he would be sending a Mes Sage to pos overseas reminding them of the fact thai the  will begin withholding next month and advising them to make Job applicants aware of he new policy. The Dod comptroller civilian personnel policy and general counsel s offices have been reluctant of com ment on the quarters allowance withholding. Officials deferred All inquiries to the individual military serv ices claiming that each does its own civilian personnel policy making and payroll programming. While the services Are complying with the Dod order to do the fica withholding on quarters allow ances officials Are not comfortable with the policy. We fought for a Long time against it said the air Force civilian personnel policy official. We re opposed because if we pay someone $100 a month for housing that s for costs incurred and we just Don t think it s fair to withhold for fica from that. We re not at All sure that was the original intent of the social Security changes she said. Dod has directed us to do ibis so we re doing it. But i would say it could definitely be called an erosion of an entitle  him said meanwhile Dod is paying out All this Money that has t been budgeted for because As the employer Dod has to match whatever contribution its employees make to  and when it is reversed which it will be because we Are going to win Dod will have an administrative Nightmare because everything employees have paid in withholding on their allowances will have to be re funded he said. Him is sending a letter to the Dod comptroller this week stating that it s ridiculous to go any further with this policy until the court Case is resolved he said. The Justice department representing the govern ment in the suit has been Given until mid january to respond to an sea motion for summary judgment which would allow the judge in the Case to make an immediate decision