European Stars And Stripes (Newspaper) - December 30, 1987, Darmstadt, Hesse Wednesday. December 30. 19b7vol. 46. No 2 d 8693 a inside stripes d gunman goes on rampage in Russellville Ark Page 5 d Tass says . Adviser killed in Afghanistan Page 8 d patriots whip Miami in nil action Page 21 Dod held own in budget fight by Chuck Bureau Washington when personnel and aim pc Silion off Kitiss in the in Leann and the military scr tech Clow inc Hook on w7. The epilogue May Well read la could be been after steady defense tji cow in throughout the decade spending was reined in lists sear after Congress and he administration finally agreed m address the . Budget deficit to avoid the Spicl it of automatic Gramm Kudman cuts. Fortunately fur scr ii a members Reagan agreed to spare military personnel accounts from the a. Still there were few personnel victories for the Pentagon in 1987. We held our on and avoided inc worst but that s about it one official said. The main concern pay suf i Ercil under Llic economic agreement Between Congress and the administration. The Pentagon hoped its request for a 4 percent raise in the fiscal 1u8k budget Suboni died Hist january would Mikic up ground in the fight so keep military pay Ironi lagging further behind tin private sector. The i Anta gon estimates the Gap to be nearly 10 percent. But the pay raise is always an attractive target in Congress because cutting it offers immediate savings unlike cuts in Long term procurement accounts. This year the pay raise went through several phases. The House and Senate armed sen ices committees agreed to a 3 percent raise and to a quarters allowance increase of up to 6 percent. But when the economic Summit began participants seriously considered cutting the quarters increase and the raise to 2 percent. There was even talk of free ing pay completely that idea never got far officials said. In the end. The Senate acting under guidelines trim Hie economic Summit allowed Only enough Money for a 2 percent raise on i dec. 17, the i i cute agreed to follow suit. In the other major personnel Story of i jn7. The Pentagon fought to stave off fun Emils in officer is re nigh mandated by the Fisca i i 87 i a fens a u icon at inn Art. The provision. The brainchild of sen. John Glenn a Nizio chairman Oft Lic Senate armed sen ices Man Power and personnel subcommittee called for cams of 1 percent in fiscal 1sjk7, 2 percent in fiscal i9sx and percent next fiscal believes tic officer corps has become Loo lop heavy compared to enlisted strength. He wants the Pentagon to justify the ii percent increase in officer strength since 1980. The House armed services committee however. Favored a one year delay in the 2 percent and 3 percent see 000 on Page 28 record Low Dollar has fallen enough White House says los Angeles a the Buck s fall should Stop Here the Reagan administration says. The while House departing from it s Normal practice of withholding comment on Dollar fluctuations announced Mon Day that any further decline in the Dollar could be counterproductive chief spokesman Marlin Fitz Walcer accompanying the president on a California vacation was asked about the Dollar s drop to a record Tow in Tokyo and its plunge to near record Levels in Europe. The United states wants to Sec stability in inc he said. We feel strongly that any further decline or excessive fluctuation could be asked what the United states plans to do about the situation. Fitzwalter said this is our position. There Are any number of consultations that go on continually in the financial world but we Don t discuss specific declined to speculate on causes for the Dollar s fall or an accompanying decline in inc . Stock Market saying it s Loo hard d explain what motivates Market Stock Market Roundup Dollar conversion Chart on Page 27. The Dollar is Worth roughly half of its 1985 value against the West German Mark and the japanese yen. The Dollar Slid to record lows against major foreign currencies despite what Deal Cre said was substantial intervention by major Central Banks. Intervention is direct government buy ing of a currency in foreign Exchange mar Dollar hit record lows against the japanese yen West German Mark Swiss franc and dutch Guilder. It also hit a five year Low against the British Pound French franc and italian lira. The West German Bundesbank bought about $200 million Over the course of the Day. Other european Central Banks bought a similar volume. Late in the Day the new York Federal Reserve also enl Rcd the markets but the interventions had Little effect. Before the Start of the european Day the Bank of Japan intervened buying $200 million to s3dq million. European traders said the thinness of the Holiday Market is exaggerating the Dollar s weakness which stems from . Budget problems and disappointment Over an International Accord aimed at halting the Dol Lar s slide that is regarded As weak. The Market was very thin so it s hard to say exactly Why it is happening said a trader in Frankfurt. But it is evident that the coordinated Central Bank intervention was insufficient to do More than temporarily prevent the Dollar from in Tokyo where trading ends before Europe s business Day begins the Dollar fell to its ninth record Low closing in 14 Days tumbling to 123.5s japanese yen from Fri Day s record Low of 125.20 yen. Later in London me Dollar was quoted lower at 123.10 yen. Other european Dollar rates 1.59-10 West German Marks. I.2s8s Swiss francs. 5 4145 French francs 1,7950 dutch Guild ers 1,182.025 italian tire. The British Pound was quoted at $1.8610.a weaker Dollar makes foreign goods More expensive to americans at the same Lime it increases the competitiveness of u a products abroad. This can help ease the . Trade deficit but too Steep a fall in the Dollar could Trig Ger inflation and Dave foreign investors away from try usury Bills and other Dollar denominated securities. 49ers rce fops Apall pro Grid team sports Page 23 motown Snow a Man calmly units Tot bus in downtown Detroit us Snow continues to full. Meaty Snow and freezing rain Nore moving from the Rockies across the Plains through the Alid Echt and into new England. Winter sni � watches mid Lintel Adt Bories were posted in Many area. Some airlines cancelled flight. Slur on of e is
