European Stars And Stripes (Newspaper) - February 20, 1988, Darmstadt, Hesse                                Page 26 the stars and St Lopes saturday february 20,1988 demos Praise Reagan s budget plan Washington a democratic congressional leaders on Friday praised Republican president Rea Gan s proposed ii i trillion government budget which includes Steps 1o slow Down military spending. The democratic controlled Congress on Friday began its review of inc spending plan for the fiscal Yew Starling next ocl i As the Senate budget committee opened its hearings. Democratic sen. Tawton Chiles committee chair Man said Domestic spending increases proposed by Reagan in programs he has tried cutting in the past showed a while House shift toward congressional priorities. The budget was based on an agreement worked out stolen . Aid Money insured Bank officials say Buenos Aires Argentina a Centra Bank officials said Friday that the $8 million stolen from a . Currency shipment to the Bank was insured and its loss won t Hurt the  Money stolen in Brazil on feb. 4, was part of 152 million inc United states had sent to help Argentina pay foreign Bonds. Argentina a the developing world s third largest debtor after Brazil and  sacks stuffed with $4 million Cash each were in route from Kennedy International Airport in new York to Buenos Aires on Brazil s Carrier Vang when the flight made a Slop in Rio de Janeiro  say to of the sacks were so Olin during the Slop Over. But that the remaining j44 million arrived without problem at Buenos Aires Airport the Cash was being shipped by the Federal Reserve Bank in new York. Constitutional scholar hired by special prosecutor Washington a the Independent counsel investigating the Iran Contra affair has retained noted constitutional scholar Laurence tube to represent his office during an expected supreme court relic Wofle special prosecutor Law. Independent counsel Lawrence a Walsh tin thursday Ai cd the High court for permission to allow to by a Harvard University Law professor to file a Friend of the court Brief to defend the constitutionality of the special prosecutor Law. Another Independent counsel Alexia mom son has asked the court to review last month s decision by the . Circuit court of appeals Here that struck Down the Constitution Lily of judicial appointment of special prosecutors to investigate alleged wrongdoing by High govern ment officials. The court could agree to take the Case As Early As  Morrison Walsh has a parallel appointment from the Justice department to investigate the Iran Contra affair so the appeals court decision does not threaten his pros Culon Al  his office participated As a Fenn of the court in appellate court ans menu last year on the Challenge to the Law. Israel sends More police to Jerusalem s Arab area Jerusalem a Friday moslem Pray ers ended in clashes Between palestinian protes Len and israeli troops in the West Bank and Gaza strip and police began a major new opera Tion to increase Security in Jerusalem s Arab  were no reports of deaths or sinous injuries in the clashes that involved arabs throwing stones and bottle and the army responding with tear  spokesman Avi Zelba said rom Force Meni Are being brought to Arab Jerusalem from All around Israel. He would not provide num Ben but israeli radio said the police reinforce ment will involve 1,500 Elra officers. Police commissioner David Krauss said the operation would help provide greater Security for . Secretary of state George p. Sulu s visit to Israel next week. Late last year Between Congress and the White House to trim spending and increase taxes in an Effort to reduce the government deficit which has been running Well Over Loo billion annually during the Reagan administration. Under that agreement drawn up in the aftermath of the october Stock Market crash Legi Malory and the administration set this budget s Overall spending Ceil Ings for military Domestic and foreign Aid spending. Reagan already has approved 114 billion in new 1989 taxes railed for in the pact with 1988 an election year lawmakers Are unlikely to insist on revisiting those painful subjects. Rep. William Gray chairman of the House budget committee said the budget slowed increases in de sense spending and relaxed restraint on Domestic spending were factors in its favor. The spending plan contains a deficit of is 29.5 fail lion Lea than the $136 billion target required by the Grain Trudman balanced budget Law. The govern ment would spend s1.094 trillion while taking in $965 billion in receipt. If the budget were enacted intact the government would have to collect 11,687 in individual income taxes Tor every person in the country $65 More than would have been required under Reagan s 1988 Bud get. Such an increase however is attributable almost entirely to economic growth. White House predicts Economy will grow despite Market setback Washington up the Reagan administration Friday said the Stock Market collapse and lighter monetary policy by the Federal Reserve Board will slow but not Slop economic growth in 1988. Real Gross National product the inflation adjusted value of goods and services produced by the United Stales will grow by 2.4 coerce no this year according to the economic report of the president which was presented to Congress. Fortunately said Seibyl Sprinkel chairman of the while House Council of economic advisers the Market system suffered minimal damage when the Dow Jones Industrial average plunged Job Points on ocl. 19, known As Black  Sprinkel applauded the fed s decision to pump Money into the nation s banking system after the Stock Market collapse As a Means of propping up Panicky financial markets and the Economy. But clearly the fed could not flood the Economy with that kind of liquidity indefinitely he said. Late in 1987 and in Early 1988, the fed moved toward ending the relaxation of credit. We strongly supported their movement to a less expansionary policy Sprinkel said in it news briefing for reporters adding none of us wants to move Back to the miserable inflation rates of the 1970s. There is a general consensus among private economists that the inflation adjusted Gross National product in 1988 will expand around 2 percent possibly at Little As 1.8" percent. Neither government nor private fore casters expect a recession this year. Inflation is expected to remain moderate in 1938, according to the report which followed by one Day the release or the Reagan administration budget proposal for the 19s9 spending year. The economic assumptions in the budget matched the forecast contained in the president s economic re port the 374-Page economic report which Sprinkel pre pared takes Issue with some private economists who expect unemployment to Rise from the current level of 5.7 percent. The report foresees much stronger improvement in reducing the nation s Trade deficit which hit record $171 billion last year. Sprinkel also said the . Trade picture should continue to improve Over the Long term due to the free Trade agreement negotiated with Canada last year and through efforts within the Uruguay round of the Gen eral agreement on tariffs and Trade negotiations to eliminate agricultural subsidies and Trade barriers Sprinkel warned against protectionist legislation pending in  Reagan opposes provisions mat would remove judgment and presidential discretion from the Protection granting process Sprinkel said. Waldheim sees chaos if he quits Vienna Austria a president Kurt Wald Heim Friday was quoted As saying he will not step Down because his resignation would throw his country into  but protests against the controversial head of state continued. Meanwhile Helmut Kukacka the Secretary general of the conservative people s party reportedly threat ened to resign if his party leadership does not Back away from its unqualified support of Waldheim. After a conservative National leadership caucus thursday people s party party chairman Alois mock Waldheim s main defender in Public said the presi Dent s decision to remain in office must be respected. While mock tried to give the impression the party was United in backing Waldheim the conservative daily  Nash Richter Friday said segment of his party Are crumbling away Over Waldheim. To quoted Kukacka As exclaiming at one Point during thursday meeting i won t go along with that unlimited support of Waldheim a Pany source con firmed the comment to the associated press. Socialist Chancellor Franz Vranisky and other senior officials in the socialist party senior partner in the government coalition with the conservatives have refrained from openly calling on Waldheim to Hep Down. But they have made Clear they see this As the Best solution to inc current political a Nils. In an interview to be published in the saturday Issue of the West German conservative newspaper die Well Waldheim said " my resignation from the office would throw the country into  according to an Advance test made available to news Media Waldheim said his resignation would give the impression that not austrian voters but foreign Media and groups decide who May be austrian head of  continuing Public prot Esli against Waldheim employees of the social affairs ministry Friday attached a Banner to the top of a government building saying Waldheim is unacceptable for the  according to recent opinion polls a majority of austrian would no longer Vole for Waldheim if he were up for election now. Buck stabilizing fed official says  Tokyo the no. 2 Man ill the Federal Reserve Bank thursday said the Dollar appeared to have entered a new period of stability due to a number of structural changes in the world Economy. He also gave indications that . Interest rates Are Likely to remain stable far the near term. Manuel h. Johnson vice chairman of the fed s Board of governors has been visiting Japan to meet with officials at the Bank of Japan and the japanese ministry of finance. The fundamentals have been improving for Dollar stability and that s finally All coming together John son said. Among the shifts he cited were a decline in the . Trade deficit Progress on the reduction of the . Budget deficit an increased appetite for import among Export oriented nations such a Japan and West Germany and a reduction in interest rates by those two countries. Having dipped to a Pom War Low of 120 yen last month Ite dour Hai slowly edged Back up and has hovered near the 130 yen Mark this week. Johnson said the Dollar s new stability Hai rekindled japanese investors interest in financing . Debt