European Stars And Stripes (Newspaper) - January 6, 1989, Darmstadt, Hesse                                Page 4 the stars and stripes Friday january 6,1989 threat from unpaid foreign Loans eases Washington a . Bankson longer Are threatened with failing be cause of uncollected third world debts the nation s top banking regulators said thursday. Most of the regional Banks have put the Lac less developed countries situation behind them l. William Seid Man chairman of the Federal Deposit insurance corp., told the House banking committee. While Large Lac exposure by som major Banks will be with us for years to come at this time we cannot foresee an Bank failures resulting from Lac expo sure  Manuel h. Johnson vice chairman of the Federal Reserve Board said . Bank Loans to the 15 major third world debtors declined by $8.6 billion betwee july 1987 and the same month last year to $76 billion. A disproportionate share of this reduction was accounted for by Large regional Banks As distinct from the largest multinational Banks Johnson , the top nine Banks reduced their total exposure Over the Yearby $2.6 billion to $53 billion he said Small and regional Banks have largely abandoned further International lending in developing countries and have reduced what exposure they had by sell ing or swapping the Loans at discounts on secondary markets. The larger Banks have not been Willingto discount their Loans to the third world countries As much he said. Seidman said the nine major . Money Center Banks have reduced their outstanding Loans to 31 less developed countries from $61 billion in december 1982 to roughly $55 billion in 1988. During the same period they have raised their aggregate primary capital from $32 billion to $65 billion he said. Meanwhile the debt servicing capacity of the six largest borrowers Argentina Brazil Chile Mexico the Philippines and Venezuela Well exceeds the 40percent value the secondary Market is putting on the Loans Seidman said. President elect George Bush Promise last month to take a whole new look at third world debt estimated at $1.32trillion, including Loans from other coun tries and multinational institutions such As the world  Treasury Secretary James a. Baker Iii Bush s nominee to be the new Secretary of state and Treasury Secretary Nicholas Brady declined invitations to testify thursday. The committee s new chairman  b. Gonzalez a Texas said wednesday that he was disappointed but added that he expects the administration to develop a policy quickly on what recalled a growing  Seidman and Johnson declined to characterize the situation As a crisis say ing there has been great Progress since1982, when Mexico suddenly stopped paying interest on its debt because of plummeting Oil prices. At the time some feared that the whole International banking system could collapse. Defendants arguing . At War with Nicaragua fort Lauderdale Fla. A six men accused of funnelling Mercena Ries and supplies to the Contra rebel argued before a judge thursday they Are innocent of neutrality act charges be cause the United states was waging War with Nicaragua. . District judge Norman Roettger who also heard testimony on the so called at peace Issue dec. 2 As part of defense motion to dismiss the indict ment said he expected to decide the matter within Days. In the first half of the continuing pretrial hearing last month the defendants argued that the neutrality act applies Only to nations with which the United states is at peace. They contend the Reagan administration was running a de Facto War against Nicaragua s sandinista government at the time of their activities. Thursday s first defense witness was former top Cia analyst David Macmichael who testified that during his 1981-83 tenure the Agency organized and directed the contras against Nicaragua leftist sandinista government. Assistant . Attorney Eric Dubelier argued that no declared War existed. The Miami group was indicted in june after charges of Reagan administration foot dragging during the highly publicized investigation which at one Point became the local Point of congressional hearings. The Miami indictment accuses the group of violating the neutrality act by launching operations against the Sandi nista government from . Soil from october 1984 to March 1985. The seven original defendants were Thomas Posey head of the Alabama based civilian Materiel assistance group Mario Calero a former Supply manager for the rebels Joe Adams Adolfo Calero s former bodyguard Jack Ter Rell a former mercenary who turned against the Effort and went to authorities Maco Stewart a wealthy former Texas businessman and state official who no lives in France Jose Coutin a Miami cuban and former Cha Liaison in Flor Ida and Alex Martinez a conservative cuban american stockbroker. Adams pleaded guilty and Roettger fined him $50 and sentenced him to a Day of probation. The other six defendants continue to fight the charges which could re sult in Federal prison sentences of up tonight years on neutrality act violations. Olds joins the new a workers Load an Oldsmobile Silhouette onto its the new minivans entering the Market. The Olds Van stand wednesday at the North american internal like its Pontiac and Chevrolet counterparts makes tonal Auto show in Detroit after a press preview of extensive use of plastic for the first time. Chrysler to pay $5.1 million on age Bias suit Detroit a Chrysler corp. Has agreed to pay$5.1 million to about 150 former employees in a settlement of an age discrimination lawsuit filed in 1981by a Federal Agency. The equal employment Opportunity commission claimed in its suit against Chrysler motors corp., the automaker s manufacturing Arm that the salaried work ers were forced to retire because of age discrimination. The Case had been scheduled for trial tuesday. But Chrysler agreed dec. 30 to the settlement under which it admitted no liability or wrongdoing. The automaker reached a $2.9 million settlement earlier last month with 82 other former salaried workers. An important Factor is that at the time this was happening the company was fighting for survival Chrysler spokeswoman Karen Stewart said. It was time when the White Collar staff was being significantly  the Leoc was to determine How the Money would be distributed. The Case originally sought compensation for More than 1,600 employees allegedly forced to retire be tween 1978 and 1981, when Chrysler was near bankruptcy said Tom keen Baum a Detroit attorney rep resenting the sex workers. Lieu Enaif disobeyed orders Marine tells hearing Camp Lejeune . A a Marine office disobeyed orders during a military exercise aug. 30 in which another Marine was left behind in the Californi desert where he died of exposure a Corporal testified. The testimony came wednesday at an article 32 hear ing for 1st it. Allen Lawson who is charged with disobey ing a logistics officer in assigning Road guides during the exercise. The hearing the equivalent to a civilian grand jury hearing was recessed afterwards. The presiding officer it. Col. Michael Reardon will determine whether Lawson will face court martial or administrative action or whether charges will be  probably will make a recommendation next week said maj. Stuart Wagner Camp Lejeune spokesman. Lance Cpl. Jason Rother 19, died after being left behind at the Twenty nine Palms calif., Marine base. Lance Cpl. Donald key testified that instead of assign ing Road guides in pairs As ordered Lawson split them and posted Rother about 300 Yards from a checkpoint. Key said he and a third Road guide protested the split posting but Lawson told them Don t worry about that. I know what i m  key said he had been at the Mojave desert checkpoint for about five hours when the last truck in the Convoy he had been guiding picked him up around Midnight. He said he told the Driver that Rother was still out in the desert but the Driver told him to get on or get  Rother who had Little water and no map or Compass was not reported missing for two Days. He died while trying to walk out of the desert where daytime tempera Tures reached More than 120 degrees. Lawson did not testify wednesday. Two other marines face courts martial in the Case sgt. Christopher p. Clyde Rother s platoon ser Geant and sgt. Thomas b. Turnell Rother s squad Leader. Clyde who faces court martial tuesday is charge with dereliction of duty and disobeying an order in granting Turnell a three Day pass. Because Turnell went on leave the Day the exercise ended Rother s absence was not noticed for More than a Day. Turn lets court martial on charges of dereliction of duty and unauthorized absence will begin Jan. 24