European Stars And Stripes (Newspaper) - December 4, 1987, Darmstadt, Hesse Inside stapes n Coal War May affect Usa eur heating plants Page 3 g a names All America football squad sports Page 21 g Christmas colouring contest no. 5 Page 27 the St ars and stripes auth talled unofficial publication Fod the 1hmed Rocci vol. 46. No. 230 Friday december 4, 19b7 mtr d 8693 a is it a 2% or 3% pay hike lower figure Likely but higher figure a possibility by Cihock Vinci Washington Bureau Washington the sic of the Ever changing military pay raise for Fis Cal 198s is finally willed maybe. The Senate appropriations defense subcommittee approved a $285.4 billion defense funding Hill thai provides for a 2 percent increase effective Jan. I. The House appropriation committee in its Bill allowed enough funds for a 3 per that and other differences in the two Hills will have to be resolved in conference Bui a House staffer said the lower figure is a virtual certainly because of the recently concluded economic Summit Between Law makers and administration officials. However staffers said defense officials St la May be Able to swing a 3 per cent raise if Congress lets the Pentagon fund the extra percentage Point with Money from other military accounts. The Price tag for that percentage Point would be about $750 million and Penta gon officials were Uncertain about whether the Money would be readily available if Congress gave them the authority logo ahead with the shift. The economic Summit convened to find ways to pm i lie Federal deficit concluded nov. 20. Participants agreed to a package tint reduces the deficit by $30 billion in fiscal 1 ass and another $45 billion in fiscal i9s9. House and Senate armed services committee staffers As Well As Pentagon officials claim that the Summit was Virgue on the Issue Ofa military pay raise. Bui the House appropriations commit tee staffer said that was one of the few Clear item to come out of Fth meeting. The Summit is giving the approx Ria sea pay on Page 23 playing up the arms control image Jay Koch left seems tense As he Arm wrestles with Ronald v. Knapp at u Mack Summit in los Angeles. The Ronald roman and Mikhail Gorbachev look alike Drew startled stares when they Sal Dawn to r Knapp Hopes to capitalize on his close resemblance to Gorbachev in conjunction with the soviet Leader s upcoming visit to he United states for talks with president Reagan. Reagan says shifting Radi violated tra6ty Washington a in a pro Mai flare up president Reagan accused the Sovic Nion of flouting a 1972 arms control treaty by song two radar installations to the Vicinity of a foot and Kiev an probably carry ing out illegal anti missile tests. A report submitted to a digress just five Day before the arrival of soviet re Mikhail s. Gorba Chev for a Summit meeting Al treaty signing made serious new charges that Tonj Kremlin violated the anti ballistic missile treaty m the report said that i addition to shifting the two radar installations the Jovits had improved a challenged radar at Kras Norsk and May be preparing an anti ballistic missile in Scot the country in violation of the treaty. M i am Cotini Denome Congress fully shares my con Cern about Sovi Ejon compliance Reagan said in a Tetter accompany org the report. Earlier in the float reporters asked Reagan How he could ask the Miale to ratify a new treaty at the same Lime he is a sing the russians of violating an old one. F i d say Fenain amount of inconsistency n Justi fied Rani said. Pc sew explain what he meant by thai he added on the Al of us who arc talking to each other whip Lousy chief of staff Howard Baker appear ing Califon the Public broadcasting sen ice s Mac Neil Lam scr news hour explained the Inco Simen by Sayin pc look Forward to sign ing a treaty a historic Irea the the soviet Union. But in sats Clear that when the or suspect violations of listing treaties we will test at to say Vilc House spokesman Marlin Fil Waier. When see Reatah on Page 28 Bundesbank discount rate Cut May boost Dollar Frankfurt a l t the policy making Council of the West German Cen trial Bank thursday lowered the country s leading discount rate by half a Point to 2.5 percent an All time Low and a bullish signal for the . Dollar the Bundesbank Council announced the move after meeting for about four hours mind rampant speculation in financial markets on whether the Diw uni would be Cut and Bim much. The Cut takes effect Friday. Throne half Point discount Cut would tend to Brake the relentless Rise of the Deutsche Mark Agama the Dollar by making the yield on Mark denominated investments relatively less attractive. The discount Cut one half a Point to 3 percent last january is the interest the chiral Bank charges for making Avail Able to Banks Short term funds again government Bills As collateral. A 2.5 per cent discount is the lowest level for this Rale which has not dipped under .1 per cent since in the Hund Cslank Council last month slashed us other leading Rale the Lom Bard by one half Point to 4.5 percent in response to the collapse of securities markets starting oct. In. Black Unile thank also has been supplying the wounded markets with massive liquidity while intervening regularly on the foreign Exchange in prop up the sagging Dollar. West German Industry fears the de Clining Dollar will Hiarm its Sast Export . But some currency Market participants theorized the United slates May want a further decline in the Dollar because . Monetary authorities did not appear to he actively supporting the Market in recent Days. Sales of Germao Marks to . Personnel for personal use will he at the Rale of i,mp.jn\. Said in a Bonilin Muir kit report released thursday thai the neat Ness of the Dollar is generating stronger interest in fold which n stir Crittl prut a at or in or .1 fue year High. To
