European Stars And Stripes (Newspaper) - June 24, 1988, Darmstadt, Hesse                                Page 2 the stars and stripes Friday. Juno 241988 2 More soviets barred from Canada Ottawa a two More soviet envoys were Cupelle or barred from Canada on thursday in a spy squabble and a soviet embassy spokesman said Bis Side would Lake further retaliation. The talc St action by Canada brings to 19 the number of soviets Cupelle or barred from returning to the country since tuesday. The soviets have expelled or barred five canadians the soviets were accused of seeking Mhilary and Industrial secrets and trying to infiltrate Canada s intelligence  government eternal affairs department said cot. A Nagori a Lipanovich Roublev a miliary attache at the soviet embassy in Ottawa has been expelled effective immediately. A former second Secretary at the embassy. Sergei Mikhailovich Kashtanova was Lold he can never  government also announced it will Cut by three the total number of soviet diplomats assigned to Canada. The reduction in accredited soviet diplomats reduces to 60 the official soviet diplomatic complement in Cana  minutes of the orders issued thursday spokesman Vyacheslav Bogdanov at the soviet embassy said there is no doubt whatsoever that there will be retaliation by Moscow. The most serious rift in Canadian soviet relations in a decade began tuesday when prime minister Brian Mut Roney s government said eight soviet diplomats and officials had been expelled and nine others formerly posted in Canada would not be allowed to return. The soviets retaliated wednesday by expelling two Canadian diplomats and barring re entry for three others alleging espionage. A statement thursday from Canadian foreign min ister Joe Clark said the espionage allegation against the Canadian diplomats in Moscow an totally without Justi  in said the latest expulsions follow soviet espionage activities in Canada which have obliged the Ca Nadian government to expel the soviet  the statement gave no details of the alleged spying by Roublev and Kashtanova but Clark s press Secretary Paul Frazer Lold the associated press that they were involved in unacceptable activities the usual euphemism for spying. Frazer said Roublev has been in Canada since May 1985, while Kashtanova red in Canada from february 1981 to August 1985. He said the soviet ambassador was called in thurs Day and informed of the latest action. Me was also told Chat Canada was willing to put the matter behind us if the soviet Union did likewise Frazer said. The Canadian broadcast co. Reported late wednes Day that the soviet spy ring sought sophisticated warship electronic slated for a new generation of Ca Nadian naval frigates. It said the sonar radar and communications equipment is made by Para Max electronics of Montreal. Toe new York times on thursday quoted unidentified Canadian officials As saying Para Max had Access to classified technology including equipment that controls weapons systems aboard . Navy ships. Spokesman Viatchesla Bogdanov of the soviet embassy in Ottawa termed the expulsions from Canada a provocation these people were not doing anything wrong be said the Csc said one of the soviets expelled was a naval attache at the soviet embassy in Ottawa and was caught red handed in a sting operation. It connected his expulsion to the arrest earlier this month of a Canadian of hungarian descent Stephe Ratkai who was charged with attempting to obtain classified . Military document from Ifie anaemia . Naval base in Newfoundland. The base Monitor soviet submarine movements in the Atlantic. The Csc also said parts for the new Canadian Frig ales were once shipped on a soviet freighter and soviet agents look the Opportunity to examine them. News updates greeks convict Arab Piraeus Greece apr palestinian accused of driving a car containing arms and explosives onto a ferry bound for Israel was convicted wednesday and sentenced to three years in jail. He claimed he was set up. The court in Piraeus the port of Athens found Omar Mohammed Soff Areny a 41-year-old naturalized West German photo technician guilty of illegal Possession and importation of weapons. He also was fined $522. So fare by appealed and was jailed Pend ing a hearing for which no Date was Sci. Soff Areny was arrested monday after port authorities and israeli Security officers found a revolver and liquid explosives hidden in his car on the 3,895-ton ferry Paloma. Novelist charged san Luis Obispo Calif. A novelist and Oscar nominee Jerry Hasford pleaded innocent wednesday to felony charges of theft and Possession of hundreds of stolen books from libraries in the United states and England. Hasford co writer of the screen play for the 1987 movie full Metal jacket was taken into Cus Tody after appearing before Muni Cipal court judge James Ream. Hasford was charged with two counts of grand theft and 10 counts of Possession of stolen property. A preliminary hearing was scheduled for aug. 18. The charges stemmed from the discovery of nearly 10,000 Booksin a storage locker rented to has Ford but involve Only a portion of the volumes. Export Boom drove . Economy to 3.6% growth rate in 1st Quarter Washington a the is. Economy fuelled by an Export driven manufacturing Boom expanded at a robust 3.6 percent Pace in the first three months of this year slightly less than previously thought the government said thursday. The Commerce department said the Gross National product the broadest measure of economic health grew to a seasonally adjusted annual level of13.915 trillion in the january March period a j34.6 billion increase from three months earlier. Strong first Quarter growth has prompted the Reagan administration to boost its 1988 projection for Gnu growth to 3.5 percent. At the Start of the year the administration had predicted the Economy would grow 2.9 percent in 1988. The same rate of growth  1986 and 1987. At die time Many private economists were More pessimistic but they have since scrambled to increase their predictions. Our Rosy forecast was t _ Rosy enough said Beryl Spring act chairman of the presidential Council of economic advisers. The Economy is doing better than even we  the latest first Quarter numbers were a modest downward revision of a pre Vious estimate of Gnu growth in the first Quarter. A month ago the govern ment put Gnu growth at 3.9 percent however in Panl the initial estimate was a much lower 2.3 percent Many analysts were expecting the slight Retreat. Thursday s revisions show that non military spending by the Federal govern ment was 13.8 billion less than previously thought most of that was accounted or by a dip in purchases of surplus farm commodities. Consumer spending although up a moderately Strong 3.8 percent was weaker than the previously estimated 4.3 per cent growth. Much of that was due to somewhat less automobile buying than first thought. Immediately after the october Slock Market crash Many economists feared the Shock to consumer Confidence would topple the country into a recession. Consumer spending did Post a rare 2.5 percent decline in the fourth Quarter but it has come Back in the first three months of this year. The engines driving the 6-year-old eco nomic expansion now even More than consumer spending Are rising Export sales spurred by the cheaper Dollar and the con sequent surge in modernization and expansion spending by businesses. Exports of goods and services were up a Strong 22.8 percent in the first Quarter. Business investment in capital equip ment shot up 33.1 percent the fastest Rise since the first year of the recovery from the 1981-82 recession. The growth has buried fears of another recession but now financial Market shave become concerned thai the econ omy is expanding so rapidly thai it will rekindle inflation. First Quarter growth was occurring with Little pickup in inflation however. A Price Index tied to the Gnu Rose at a annual rate of 1.4 percent slightly lower than the previously estimated 1.7 per cent and Well below the 2.7 percent Pace of the fourth Quarter. But some analysis say inflationary pressures have begun to surface in the Quarter ending this month. In a second report the Commerce department said us corporations fur to profits fell 1 percent in the first Quarter the poorest showing since profits dipped 3.7percent in the first Quarter of 1987. Last month the government in a preliminary estimate said profits cased up a slight 0.5 percent in the january March period. Profits were up a moderate 2.6 percent in the fourth Quarter. Economists say lagging profits could put pressure on businesses to raise prices. The Gnu in the fourth Quarter of1987 was even stronger growing at a 4.8 percent annual Rale. However much of that production went into a rapid build up in inventories of goods held on shelves and Back lots. The mix of growth in the january March period is considered better but the worry now is that too much demand from american Consumers As Well Ai from overseas buyers will Strain factory capacity causing shortages and driving up prices. 2 escape serious injury in copter crash Soldier electrocuted in toaster Accident  West Germany is a 3rd inf div Soldier died thursday when be was electrocuted while trying to unplug a dining facility toaster on Larson Barracks. The Soldier whose identity is being withheld until his family is notified was pronounced dead at the scene shortly after 7 . And was taken to the army Hospital in Wurzburg a 3rd inf div spokeswoman said. Military authorities Are investigating the Accident. Hohenfels West Germany two army warrant officers escaped serious injury wednesday night when their us 60 Black Hawk medical evacuation Heli copter crashed during Takeoff at the Hohenfels training area. Chief warrant officer Robert Klase flight instructor from the 63rd medical Del at Lan Stuhl was hospitalized at the army Hospital in Nimberg for Obser vation said Dave Stewart a spokesman for 7th medical come. He was reported in Good condition yesterday. The Pilot chief warrant officer Gary Russel of the 15th medical det in Gra fun Wuhr was treated and released from Hie Hohenfels dispensary. The aircraft assigned to the 15th medical det was beginning a routine training flight and crashed during Takeoff about 10 30 p.m., Stewart said Stewart said the extent of the dam age to the helicopter was being evaluated. The cause of the crash is under investigation by army aviation safety authorities from fort Rucker Ala. Police seeking clues in rape at Sembach Sembach a West Germany is military police Are seeking a 6-foot Buck Man in connection with the rape of the wife of a Sembach airman who was assaulted at knife Point Early wednesday morning while out jogging near the base gym. The victim whom Sembach officials declined to identify was treated at the Lan Stuhl army regional medical Cen Ter officials offered no information on her condition. She told police her assailant wore Mili tary camouflage Panu a Green to shirt boots and a ski mask said it. Les car Roll a Sembach spokesman. The incident occurred shortly after s am Carroll said and is under investigation by base Security police and the air Force office of special investigations. Of agents Are asking anyone who was in the base gym or running the track area at inc time to Contact them immediately