European Stars And Stripes (Newspaper) - January 28, 1989, Darmstadt, Hesse                                Page 28 the stars and stripes saturday january 28,1989 news briefs . Embassy in Kabul dosed on order by Baker by the Washington pos Washington Secretary of state James a. Baker Iii in one of his first acts after Takin the oath of office has ordered the closing of the . Embassy in Kabul and the evacuation of the handful of american diplomats remaining in Afghanistan As the situation there deteriorates administration officials said thursday. Baker made the decision wednesday night after unanimous Senate confirmation and shortly after he was sworn in at 6 15 . As this country s 61 St Secretary of state. His evacuation order was dispatched to the remaining . Diplomats in Kabul who number 11 by one account and less than 10 by another. Czechs follow allies announce military cutback Prague Czechoslovakia a Czecho Slovakia announced Friday it will Cut its armed forces by 12,000 soldiers and reduce its military budget 15 percent in the next two years. The move followed announcements of troop cuts by East Germany and Hungary and defense spending reductions in Poland. All four nations acted after the soviet Union announced dec. 7 it will reduce its forces by 500,000 men by 1991. This will include with drawing 50,000 troops and 5,000 tanks from East Germany Hungary and  Warsaw pact troop cuts have been billed by the Kremlin As a boost to new East West talk opening in March on reducing conventional arms and weapons across  president Mikhail s. Gorbachev has also made Clear that slashing military spending will free More funds for sorely needed modernization of soviet bloc economies. 1 youth arrested another sought in school shootings Washington a police arrested on youth Friday and were searching for another a Day after a gunman opened fire on a crowd out Side a High school and wounded four students. The suspect identified As Rodney Reardon,18, of Washington was charged with four counts of assault with intent to kill in the incident that occurred a few hours after two Young outsiders had argued with students in the cafeteria a Woodrow Wilson High school police said. According to witnesses a gunman stepped out Ofa four wheel drive vehicle As students were leaving for the Day and began to shoot randomly. Three of the victims were shot in the leg an the other in the upper lip. Hostage release reports called Mere speculation Beirut Lebanon a Hopes faded Fri Day for an imminent release of two British hos tages in Lebanon and a radio station said the expected move was Mere  reports in Beirut the last three Days spoke Ofa release by saturday of John Mccarthy a journalist and Brian Keenan a teacher who hold Irish and British citizenship. A British embassy spokesman had said the purpose of ambassador Allan Ramsey s visit thursday to moslem West Beirut was to Check the reports. Most of the hostages Are believed to be held in West Beirut s shiite moslem slums. President endorses raising pay of top Federal officials from Page 1 to let pm go. Give these people their Freedom. They did t do anything  Bush seemed relaxed if a Little hoarse from a cold calling on one reporter with the words you re  he paused at one Point to ask his questioners whether they wanted follow up questions a tradition from president Reagan s news conferences. Bush s first formal meeting with reporters came at 11 . Far from the night time gatherings favored by Reagan. Bush fielded questions after telling reporters Gath ered in the White House briefing room it s been a full week since the inauguration and i just wanted to Stop by and give you an  he cited his first week emphasis on ethics in govern ment and said he hoped to assemble a government that the people of this nation can be proud  he also said he believed he had begun a fresh constructive dialogue with Congress on both sides of the  but he also said he expects a tougher time ahead when he begins grappling with More contentious issues such As the budget. He stepped away from the most controversial item of his first week in office a Sugges Tion to place a Premium on savings accounts to help Rescue the savings and loan Industry. He said the proposal had t yet reached his desk. It does t bother me for a lot of ideas to be debated and considered the president said. Anything i do on savings and Loans. I Don expect it s All going to be sweetness and Harmony and Light he added. At the same time Bush sought to reassure Deposit ors saying the a is Are sound they Are Good Dollar Good nothing is going to change in that  asked about superpower relationships the new president said he did t know where his first major for eign policy initiative would be whether in the Middle East or Central America or elsewhere. I Don t want to play defense i Don t want to look like we re foot drag Ging and letting others set the Agenda he said. As for the pay raise which would give a 50 percent salary increase to members of Congress Federal judges and top level government officials Bush said the raise is overdue there s no question about  Bush noted that Congress is considering abolishing speaking Honorario in Exchange for the controversial raise and he said he favors that too. When asked whether the pay raise was inappropriate since the minimum wage had been Frozen at $3.35 per hour since 1981, Bush said he s never believed that raising the minimum wage is the key to Prosperity for poor people. But he said he wants to maintain a certain flexibility on that question and will discuss proposals for an increase with labor Secretary Elizabeth Dole. Bus said he would want any minimum wage increase to be tied to a training wage. On one key Campaign pledge Bush said he would push for his proposed Cut in capital gains taxes. The president also said he would briefly visit South Korea at the Tail end of an asian trip that includes a Stop in Japan to attend the funeral of emperor Hirohito and a subsequent visit to China. Bush spent More than a year As the . Envoy Sochina in the 1970s and said he and his wife Barbara were looking Forward to their return. He said his visit was not designed to go one up Onur. Gorbachev in terms of superpower relationships. Asked if he was trying to Send a signal by Visitin China before meeting with the soviet Leader Bush said he was not one to play one superpower off against another. Hike from Page 1 shopping Center near Vogel Weh. I feel they ought to take a pay Cut instead of a pay hike Arthur Seguin of Sembach a said after signing the petition thursday. I Don t think they la really pass it now said Ralphe. Northcutt of Kaiserslautern who also signed the petition. They think too Many people Are paying to much attention to it now. I mean a 50 percent pay raise come on  Brouhard believes the Money used to fund the pay increases would be better spent on food and medical care for America s poor and elderly and on debt assist Ance for the nation s Farmers. Look at the shape our Economy s in the Colorado native said. I think government officials need to have earned that  but to Brouhard s dismay she has found that Man people Aren t aware of the proposed pay raise. To in form the uninformed she shows them a few newspaper clippings she carries with her that explain the Situa Tion. To me they re just As handicapped As illiterate people in America she said. I m so shocked. I know we Don t live in America but there s to and the  some who refuse to sign question whether Brouhard has Ever experienced the High Cost of living in Washington and others criticize her for questioning Law makers decisions. I love my country and i love the government Brouhard said. I m just saying hey Guys you need to do what s right if this pay raise goes through personally Hope All americans will fight Back when it s time to re elect them and get them out of  Issue from Page 1 about the tighter . Defense budget and the need for europeans to do More for their own defense. West German defense minister Rupert Scholz will address the conference saturday to discuss european reaction to the recent soviet moves. Scholz Likely Wil Call for a realistic assessment of the soviet Union that is neither cynical nor Overly optimistic according to sources familiar with the speech. Like Tower Scholz also is expected to address Bur Den sharing and nuclear Force modernization. The modernization Issue remains particularly Sensi Tive in West Germany where a television network quoting sources in the West German defense ministry said the government wanted to reduce nuclear weapons to the absolute minimum  other speakers at the conference include italia minister of defense Valeric Zanone and Egon Bahr a defense expert and member of the West German parliament. Economy from Page 1 not last into the new year. Ortner said there were several positive economic developments during 1988. We made significant Progress in reducing the Trade deficit the unemployment rate dropped to a 14-year Low an the Stock Market began a sustained re covery from its plunge in late 1987," he said. The 3.8 percent Gnu increase for 1988 followed a 3.4 percent Rise in 1987 and was the Best showing since a 6.8 per cent Rise in 1984. Higher inflation accompanied the in crease in growth. An inflation Index tied to the Gnu Rose by 4.2 percent in 1988, the fastest Rise in prices since 1982. The jump in inflation up from a 1987 Price increase of 3.6 percent has set off alarm Bells at the Federal Reserve Board which has been driving interest rates higher in an Effort to Dampen demand and keep inflationary pressures in Check. Bush complained this week that the fed should not grow so concerned about fighting inflation that it risks slowing economic growth but Many analysts be Lieve the Board s inflation fighting efforts will continue and push interest rat seven higher. The 3.8 percent Gnu increase in 1988was a far cry from what Many analysts had forecast when the year began. The most pessimistic of them had predicted the Economy would be in a recession be fore year s end brought on by a cutback in consumer spending As a result of fear triggered by the october 1987 Stock mar Ket crash. Instead Consumers kept right on spending with personal consumption purchases rising by 2.8 percent during the whole year. Almost half of All growth in 1988 came from two related factors a big improvement in the country s trading performance and the biggest Rise in business investment spending since 1984.for the year . Export sales Rose a Sharp 17.7 percent offsetting an 8.3 per cent increase in imports As the weaker Dollar made american made goods competitive on overseas markets. Responding to this increased demand american businesses boosted spending on new plants and equipment by 9.5 per cent a Sharp acceleration from a 2.8 per cent Rise the previous year