European Stars And Stripes (Newspaper) - June 12, 1988, Darmstadt, Hesse                                Page 2b the stars  stripes sunday june 12.1953 Trade Outlook improving official says by Dave Walxzak education writer Kaiserslautern a member of the Federal Reserve Board said saturday that limited . Export capacity will hamper efforts to drastically reduce the nation s International Trade deficit in the near future. Manuel Johnson vice chairman of the Board of governors of the Federal re serve system made the Stai Emont in an interview before delivering the commencement address for graduates of Troy state University european Region. Johnson said that the Trade deficit will fall but Only gradually. For those people who want a com plete balance overnight it s not possible. Our Export Industry is capable of in creasing exports but it has to be at a Pace that is not too  Johnson a graduate of Troy state University at Troy ala., said a further news briefs fall of the Dollar will not Benefit the International Trade picture. ". Industry is taking in about As Many orders As it can handle for Export expansion he said. So there is some risk hat a further depreciation of the Dollar would simply generate higher prices rather than an increased volume of  in addition Johnson argued thai a lower Dollar would reduce the growth potential of our trading partners  reduce their demand for our  Johnson said he met with German Bundesbank president Karl Otto Pfuhl on Friday but a Bundesbank spokeswoman said Friday that no formal meetings were scheduled Between the two. We generally talk about coordination of International monetary policy he said. We seek a stable environment for inflation  Exchange rates. I can t get much More specific than  the former assistant Secretary of the Treasury said he planned to meet Sun Day in Basel Switzerland with Central Bank representatives of 10 countries. The Dollar Rose slightly on International Exchange markets last week after the Federal Reserve Board chairman Alan Greenspan said a falling Dollar would not improve the . Trade picture. The Reagan administration has Pur sued a policy of driving Down the Dollar in an attempt to reduce the Trade deficit which has reached s160 billion annually. Although refusing o predict future Exchange rates Johnson said the United states  other nations Are taking Steps contributing to a More stable  the major Trade surplus countries Japan  West Germany Are Ori enting their policies More toward Simu latin the Domestic demand rather than just increasing  he said . Policies aimed at modest growth  Low inflation also will help stabilize the Greenback. Johnson downplayed the importance of . Trade figures for april due out tuesday which Many financial experts use to gauge the current health of the Dollar. "1 Don l think one month s number is meaningful he said. What s important is the trend. And clearly there is a trend Ofa declining Trade deficit in his commencement address before about 140 graduates Johnson said tech Nical factor1" contribute to a seme whal faulty picture of the  Trade deficit since rising import prices precede in creased exports. Johnson who joined the Federal re serve in 1986, said in the speech that a combined program of More . Savings. Coupled with investment  increased Domestic growth by Japan  West Ger Many would be needed to solve the Trade problem in the Long term. Panama hints it May match . Ban on officials trips Panama City Panama a Panama shrugged off Washington s move to ban from the United slates panamanian officials supporting Gen. Manuel Antonio Noriega  suggested that Panama could bar . Officials  ban announced Friday in Washington was the latest in a series of Steps the United states has taken in recent months to show Dis pleasure with Panama s Leader. Boris Moreno director of Panama s National information service responded to the order Fri Day by saying we could not care less about an lists made up by the Reagan administration. The United Stales is free to make As many1 Isle As it wants of panamanians it does not want to admit there just As we can make our lists of , citizens we do not want in  Frankfurt tour bus Driver takes filipinos to robbers Frankfurt a Twenty six members of a filipino Lour group who thought they were being Given a tour of the City were kidnapped  robbed after a bus Driver drove them to a secluded area where two armed men were Wail ing police said Friday police said the incident began Early Friday when the group of 19 men  seven women decided to take a late night tour of the City. Near Frankfurt s main railway station the group found a bus Driver who offered to give the group a tour of the City police said. After driving around the City  stopping several times to make Telephone Calls the Driver pulled the bus into a Remote parking lot where two masked men armed with pistols were wait ing authorities  of the group were Ihnn robbed of their Cash jewelry  airline tickets  were herded off the bus police  bus Driver then drove away with the two accomplices officials said. According to police reports the group had just arrived from a visit to Yugoslavia. The group was Given temporary lodging by the German red Cross after the robbery. A. Firm chosen to build two nuclear attack subs Washington up the Navy selected Newport news shipbuilding Over another company to build two nuclear powered attack submarines  awarded the Newport news va., company a $612 million to Complete work by August 1993. A bid by the division of Tenn eco inc. Was chosen Over that of the electric boat division of general dynamics in grown conn., to build the los Angeles class submarines the Navy said. A spokesman said the Navy is currently negotiating with electric boat to build the third los Angeles class submarine authorized by Congress for 1988. Crews work around clock to fix quake damaged pumping Plant los Angeles Cap workers toiled around the clock saturday to repair earthquake damage at a pumping Plant that shut Down the California Aqueduct  is Supply of water to the Southern half of the stale officials said. The damage to circuit Breakers at the . Edmonston pumping Plant which pumps water Over the Tehachapi mountains Northwest of los Angeles was the most significant damage from Friday s quake. There was no water shortage because of sufficient supplies in storage lakes according to state depart ment of water resources dispatcher Harry said in Sacramento. The Aqueduct itself. Is intact with no damage he said  the Plant was expected to begin pumping again on a limited basis on sunday. The Only injuries blamed on the quake fell in Cen trial  Southern areas of the state were in Hillier East of los Angeles where a tree fell about the Lime of the temblor. A woman  two men were treated for injuries said fire capt. Harold Fullbright. The quake also tumbled rocks onto interstate 5 close to the quake s Center but raffle was not blocked. The quake was also Strong enough to Knock goods off shelves at a Wheeler Ridge Ruck Slop. The temblor at 4 06 . Friday measured 5.2 on the Richter scale. It was entered on the Warlock fault,11 Miles North Northeast Orgorman in the Tehachapi Northwest of los Angeles according to seismologists at the California Institute of technology in Pasadena. It was followed by a series of aftershocks the largest measuring 4.0.the 200 mile Long Warlock fault is the second larg est fault in California. The largest is the 600 mile Long san Andreas fault. The California Aqueduct runs 440 Miles from Tracy near the Sacramento River Delta taking water that has flowed to the Delta from riven in Northern California South to Perns in Riverside county. It pro Vides half of Southern California s water. Kennedy from Page 1 1 was the Only one there Dole said. But Massachusetts democrats were exultant about the political strength their Home state candidate was showing in the Public opinion polls some of which have Dukakis leading Bush by As Many As is percent age Points. President Dukakis it has a Nice ring does t it Kennedy said in his speech to the state convention. Some people say Don l count your chickens before they re hatched Kennedy said. Well i say the re publicans have already hatched their Chicken in this Campaign  George Bush is a dead  but Dukakis who has been criticized for a Lack of experience in foreign policy was taking heal saturday for his suggestion earlier in the week thai the United states should move its embassy in Israel from Tel Aviv to Jerusalem Israel declared its capital to be Jerusalem after Seiz ing the Eastern part of the City from Jordan in the 1967 Middle East War but the United states  most other nations continue to keep heir embassies in Tel Aviv iranian boats attack Tanker in Gulf Manama Bahrain a iranian gunboats sat urday attacked  set ablaze a British flagged Tanker off saudi Arabia  fired rocket propelled grenades Al an american chartered freighter in the Strait of Hor Muz sources said. The raid on the freighter left one crewman dead  two injured. The British nagged Tanker the 258,979-Lon Esso Demelia was set ablaze at 6 05 . Southeast of the saudi Oil port of Ras Tanura according to persian Gulf based shipping executives. Four hours earlier two iranian gunboats attacked the 11,744-ton West German vessel a Baumagin 300 Miles to the South As it sailed into the Strait of Hor Muz the waterway connecting the persian Gulf  the Gulf of Oman. The freighter was manned by a Crew of five Ger mans  14 filipinos the sources said. Students riot police Battle in Seoul Seoul South Korea a Radical students hurling firebombs stormed a major government Buiu ing saturday  grappled with Riol police after Security forces blocked a reunification March to the North korean Border. Police said 26 students forced their Way past guards at the huge combined Central government Complex in the Center of Seoul which houses the prime min ister s office the foreign ministry  other major government offices. Students smashed windows  damaged a police Post  a waiting room in the Complex with fire bombs police said. The comp Len is across a main Road from the .  injuries were reported. Police said is students were  students have accused president Rob tac woo of repressive  undemocratic tactics aimed at keep ing South Korea separate from communist North Korea  Allied with the United slates. The students launched the raid after the government on Friday blocked their plans to March to the North korean Border for talks with Northern student delegates on reuniting North  South Korea