European Stars And Stripes (Newspaper) - December 16, 1987, Darmstadt, Hesse                                Inside stripes d satellite to system to improve an service Page 2 d gis talk Soldier to Soldier with army chief of staff Page 8 n san Francisco whips Chicago 41-0 in pro , Page 21 vol. 46. No. 2 12 d 8693 a Navy defies Carlucci order Calls budget unacceptable by Rich Washington not the Secre tary of the Navy James Webb has de fied Secretary of defense Frank c. Car Lucci by submitting spending cuts that fail to meet the target Carlucci set for next year. Defense department officials said monday. They said the Gap is nearly $1 billion. The Navy had been ordered to Cut its proposed fiscal in budget of si08.7 billion by is  billion. Webb submitted $10.7 billion in cuts asserting that fur ther cuts in wild make the risks unacceptable the officials said Webb s action came in response to Carlucci s order that the military serv ices slice a total of about $33 billion from next year s spending a reduction of about 0 percent. The Pentagon s budget culling Effort is a consequence of an agreement be tween the White House and the Congress to Cut military spending As part of the Overall government Effort to reduce the Federal deficit in fiscal year 1989, which Siart oct. 1,1985. Under that agreement the Deputy Sec Clary of defense William Howard Taft set specific budget Cuis for the depart ments of the army. Navy and air Force with their recommendations delivered to him late last week. The Budge for the Marine corps which is part of the Navy department was included in that department s budget. Among the reductions to which Webb agreed was 10 hold personnel strength level thus foregoing an increase of 10.0 10 sailors to a Lota of 603,000, by the end of fiscal i9flofficials said. Naval officers have Long complained that personnel strength was not keeping up with shipbuilding As the Navy grew to a Fleet of 600 ships. The army also seeking to preserve ils personnel strength has chosen to stretch out tie production of Many weapons the officials said. That would also go against Carlucci s instructions he has said he preferred to end some programs because see Navy on Page 28 Christmas greetings from Home Trine Lance Cpl. Michael k. Bowie left mid Cpl. The amphibious assault ship Okinawa in the persian Cut l. Nofs read a Riant Christmas card aboard Gulf. The so foot Gristing was sent by str vice wives. Ski could spoil better relations says Gorbachev Moscow a Mikhail s. Gorbachev said monday thai differences Over Hrc Sidon Reagan s Star wars missile defense system could spoil the improving Rel Lions Between the  a nationwide television address Gorbachev appeared to take Issue with Reagan s assessment that the missile system known formally As the strategic defense initiative would no longer Block Progress on negotiations tout both sides Long Range nuclear missiles by 50 percent. The communist party general Secretary spoke for 20 minutes at he beginning of the nightly news program " a Cmya on the results of his three Day Summit meet ing with Reagan last week in which tie iwo leaders signed an agreement lol liminal their Shorter and medium Range nuclear missiles. Gorbachev said the talks were More  than in the past but it still was Loo Early to talk about a fundamental improvement in superpower relations. Soviet Leader s delivery was serious measured an direct with few gestures and he appeared positive. Before the Summit the soviet line had a similar positive tone but was More narrowly focused on arms control  Gorbachev added monday after ins visit to Washington was that americans support the treaty and that . Leaders Are changing their views of the soviet Union and arc sincerely interested in Gorba Chev s  did not mention differences Over such Imus As human rights or Afghanistan where the Kremlin intervened militarily in december 1979 and now has an estimated 115,000 soldiers fighting moslem rebels. Gorbachev made Only one general reference to his talks with Reagan on regional issues. Before and during the Summit the soviets med see ski on Page 28 world Oil prices fall in reaction to open pact Vienna Austria a world Oil prices fell sharply monday in reaction to a makeshift open agreement that analysts said would be a major setback for the bitterly divided Cartel. On european markets the Price of Britain s Brent crude for january delivery tumbled 83 cents a barrel loll 7. I. On the new York mercantile in change january contracts for the most widely traded . Crude. West Texas intermediate dropped 87 tents a barrel to $ 17.44. Prices fell As soon As trading began reflecting a widely held View that the agreement among the organization of 1 e troneum exporting coun incs would do Little or Noth ing to reduce a global oversupply. The six month agreement had been described on saturday and the Cartel announced that it had been formally adopted late monday the sith Day of the tumultuous open conference. The Cartel said the pact was approved by a 12-to-l majority. Iraq which was refused its demand for an Oil production quota equal to Iran a was the Lone holdout algerian Oil minister Bel Kacom Nabi said As the Oil chiefs emerged from a final meeting. The Deal retains open s official Oil Price of $ 18 a barrel As Well As its present system of production controls based on a collective ceiling of 15.06 million barrels a Day for ii members said libyan Oil minister Fawzi Sha Shuki. Rill Gnu Lukman president of the organization of Petroleum exporting coun tries told a news conference that the Accord. Designed to last fur Sii months starting Jan. I should help swahili a Oil prices we expect prices to Rise to around the s18 level if not higher he said in reference to free Maricl Oil prices. Lukman said if the panel determined Here had been a significant change in the free Market Price level an emergency open meeting would be convened to con Sider production adjustments to protect the official Price. Oil traders were disappointed by the terms of the agreement and prices reflected that senti mint