European Stars And Stripes (Newspaper) - November 27, 1988, Darmstadt, Hesse                                Page 18 the stars and stripes business news sunday november 27,1988 Bank of Japan helps bolster falling Buck the Dollar which had drilled lower for most of last week showed a bit of spunk Friday with a big assist from he Bank of Japan. Buoyed by some $200 million Worth of Dollar purchases by the japanese Central Bank the Buck ended inc week showing modest improvement against several major currencies. Against the Mark the Dollar was trading late Friday in Frankfurt at 1.7 52 Marks up slightly from thanksgiving Day s close of 1.71 so. Against the French franc the Buck was up i Europe rising from 5.8585 francs to inc Dollar on i Nur Day to 5.8715 in London Friday morn ing. The Dollar also was up against the italian lire going from 1,273.75 tire on thursday to 1.276.2s at week Send. Currency traders in Frankfurt however said the in by Rudy Mcclain prove ments do not signal a real turnaround for the Buck. Foreign Exchange markets continue to be concerned about president elect George Bush s vow not to raise . Taxes next year. And traders Are sep tical about whether the new president Wilt be Able to put a Dent in the . Budget and Trade deficits without More Tat Revenue. The next six weeks before Bush is inaugurated Promise to be a Stormy time for the Dollar. Some traders in Frankfurt arc predicting the Buck will fall to six month lows against the Markas soon As this week. It s certainly possible that we will go belowj.70 Marks in the week ahead said Gunter Teich a foreign Exchange specialist with the Bank of Boston. The last Lime the Dollar close below 1.70 against the Mark was May 19, when it fell to 1.6993. The military Exchange rate which is set daily bated on the i . Frankfurt Price fixing of the Mark is. The Dollar was last below 1.70 on May 26, when a Dollar was Worth 1.69 Marks at Community banking  Friday the military Exchange rate was 1.70 Marks and that rate will remain in effect through at least monday. There seems to be Little help on the Way forthe Dollar. Last week even a marked increase in the consumer Price Index for october did t attract investors to the Buck. The consume Price Index increased by 0.4 percent for the month and economists in inc United Stales began talking about renewed fears of inflation. But currency traders who had expected Only a0.3 percent increase in the Index for october still were not impressed. Talk of inflation and rising consumer Price usually drive the Dollar higher. Inflation Means higher interest rates and higher interest rates in inc United Stales tend to attract europeans an others to Dollar denominated investments. This time though the consumer Price num Bers were viewed As inconclusive. Teich said currency traders want to see More numbers heading in the same direction before they la be Lieve the Federal Reserve Bank will be forced to hike interest rates to slow the . Economy. One development that could have a positive Impact on the Dollar s value in the next Tew Days is the possibility that open will reach and the stick to Oil production limits. An agreement to limit production to 18.s Mil lion barrels a Day for at least the first six months of 1989 was in the works this weekend in Vienna Austria. If qpecv13 members could Stickle such a quota it Likely would drive up the. Price of gasoline at the pump and fuel inflationary pressure in the United slates. While such a development would hit . Motorists in the pocketbook it would also move the Dollar higher on foreign Exchange Market the flip Side of that Coin is that any last min uie Snag in an open agreement could help 10 provoke a Dollar decline in the next few Days. Stay tuned. My my How congressman thinks panel will of Garmisch hotel plan  Bonne although still not official the construction of a 450 room hotel and recreation Center in Garmisch West Germany has received tacit approval from the chair Man of the congressional subcommittee that holds the purse . Marvin Leath a Texas said during a mid no vember visit to the proposed construction site at Sheri Dan Cavern that it is a Safe Assumption the House armed services morale welfare and recreation sub committee will give ill approval. Leath is chairman of the  Leath had received numerous briefings on the planned s6s million hotel and on major renovation project at armed Force recreation Center facilities at Chie Sec and in Berchtesgaden be never had taken a firsthand look at any of the Sites. He got to Sec All three during this trip. We Feit like before any decisions were acl rally Chis eled in Stone that we needed to come Here and make sure that we could justify these decisions Leath said during an interview in Berchtesgaden. The Texas congressman said he could not speak Fornall members of the subcommittee but he believes the Garmisch project will be approved soon. Knowing the feelings of the panel generally and the response to the hearings thai we be had that s a Safe Assumption be  key Factor in granting approval to break ground on inc hotel is arcs record since a change in management this year Lealh said. I think the committee is very impressed with what has happened Leath said. It s vastly improved very efficiently operated very responsive to the customers and their needs and at very reasonable  has had its troubles for much of its recent history. An Independent study four years ago ripped arc listing More than 600 recommendations for improving the efficiency and Cost effectiveness of its resorts and suggesting construction of a 650-room hotel in Gar Misch to replace aging facilities Many of which were not originally built As no lets. Not Long after the report inc Dollar began its nose dive against foreign currencies and Congress began a push to make morale support operations More Businesslike. The Reagan administration also gradually withdrew appropriated fund support for Many mar activities. Those factors combined to quickly push arc s Hooks into the red. Operating expenses an personnel costs nearly doubled. More recently other army sponsored studies showed that consolidation in some morale support operations could save Money. In february Cath s pane directed that management be combined for the army s hotel properties at arc in Hawaii and South  was centralized at the army s Community and family support Center with cutting in expenditures and saving through economics of scale lopping the Lisl of efforts aimed at stemming the flow of red Ink. I or. A. Lealh said a recent redesign of the Garmisch hotel to reduce its Cost also has helped boost his mar sub committee s Confidence in the project the design of the new hotel significantly downscale from what was first envisioned is a much More viable package he said plans initially called for a 650-room hotel but thai would have Cost $110 million in Light of inc Dollar s decline Over the past year or so. Now that arc officials have Cut 200 rooms off their design Cost figures Are Back within what Congress apparently views As unacceptable $65 million. Those reductions taken before Congress insisted on them will go far in winning final approval Leath said. That s what lends More credibility from our Point of View. We can envision that same Lype of astute professional management will operate the  no additional design changes arc expected on the hotel but there could be a last minute change on it financing. In the past arc has been an All army show but lest s panel has quizzed the air Force about making a fair share contribution toward the hotel s construction. Air Force service members make up about 15 per cent of arc s clientele and that figure could Rise significantly since arc recently extended its free bus program to include air Force units in West Germany we think thai an air Force contribution to important Lealh said. Asked what the air Force thinks of the idea the congressman said the air Force has taken it under  Saad bars canned Afa Afes eateries of save space time Munich West Germany is salad bars arc on their Way out of Burger Kings and other food establishments opera cd by the army and air Force Exchange service in an Effort to Speed service and relieve overcrowding. The eateries instead will offer four Lyp i of prepackaged salads said Hank Geylin chief of marketing for cafes food Branch. Geylin said the new salad strategy will allow a Many As 26 additional seats to be installed in the space now taken up by salad bars in some restaurants. The switch will begin at the Vogel Weh Burger King in kaisers Lautem by thursday and will be phased in at All facilities by March Exchange spokesman master sgt Dayton Strickland said. Phasing out the salad bars is a question of economics and keeping Pace with Industry trends in the United Stales Geylin said. In Exchange food facilities i Europe salad bars account for Only Aboul 4 percent of sales.  prepackaged salads also Are the current trend in the United states in fast food establishments Geylin  from the space Issue the prepackaged concept allows for faster service and helps ensure freshness he said " under the hew concept Burger Kings and other Exchange food facilities will offer salads ranging in Price from i  to 12.80. During december however prices will be slashed 10 percent As an introductory offer. The salads include Side salad Garden chef and Hunky Chicken. The salads also will be available Al Burger King drive up windows. Visa expects charged up Holiday san Mateo Calif up visa the nation largest credit card organization expects cardholders to charge a record is 3.8 billion or $319,474 a minute to their visa cards Between thanksgiving. And Chrisine eve. " a. The estimate is up nearly a third compared to the $10.5 billion charged by Consumers to their visa card during the holidays last year. Such volume would remit in visa s biggest Holiday shopping season Ever according to inc san match company which has 10 million cardholders in in years past Consumers have increased the use of their cards by 26 percent during the thanksgiving Christmas period Over the previous year. Volume on visa s electronic transaction authorization service has surged 40 percent during past Holiday periods this year visa expects to boost the use of its cards even More during the holidays by rolling bul three major programs and a new National advertising Cam -. Even though consumer Are expected to spend More they la Likely pay off about half of anal they charge by new year s Day before interest charges begin to accrue v " ".-., people have Christmas pretty much cleaned up by the time new year s