European Stars And Stripes (Newspaper) - January 30, 1989, Darmstadt, Hesse                                Monday january 30, 1989 the stars and stripes Page 3 teamsters rejects . Offer to Settle suit Washington a teamsters leaders saturday rejected a government proposal to Settle a racketeering suit that alleges mob sponsored corruption in the nation s largest Union and seeks to oust its top officials Union sources said. The decision came at a hastily arranged meeting in Washington called by teamsters president William j. Mccar thy who on Friday summoned the Union s 16 vice presidents to discuss the settlement offer said one source. We said no we rejected it the source who declined to discuss the sub stance of the meeting said. Word of the decision came hours after a teamsters vice president who report edly would have been forced out under the settlement announced his Resig nation. Another Union vice president also reportedly resigned saturday. It is with deep regret that i leave this International Union and especially its membership Robert Holmes vice president of the teamsters said in a statement released by his Union office in Detroit. Holmes in his resignation statement said he wanted to spend More time with his family. He also referred to a rift in the Union leadership that has existed since Mccar thy edged out teamsters Secretary trea surer Weldon Mathis last year in the race to succeed the late Jackie Presser. The Cleveland Plain dealer quoting a Union source reported sunday that John Cleveland of Washington also resigned As a teamsters vice president. Both Holmes and Cleveland were on the losing Side last year when Mccarthy then head of the teamsters in new eng land Defeated Mathis Presser s hand picked successor in a 9-8 vote. The unprecedented racketeering suit brought by the Justice department maintains the 1.6 million member teamsters Union s leadership is Rife with mob sponsored corruption. The Case is scheduled for trial feb. 27, but . Attorney Rudolph Giuliani who is resigning reportedly has pro posed a settlement that Calls for a num ber of internal Union reforms and the resignations of several vice presidents. The Plain dealer quoted a teamsters source As saying Giuliani was hot to Trot to Settle the suit before leaving office. Telephone Calls to teamsters head quarters in Washington on saturday went unanswered. The Plain dealer said the proposal Calls for direct elections of top teamsters officials with an Independent panel named to oversee the process. The officials now Are elected at a convention of delegates a process Law enforcement officials allege has been influenced at times by organized crime leaders. The los Angeles times reported last week that Giuliani As part of a proposed settlement was demanding the Resig nations of five of the 16 International vice presidents. The newspaper identified Holmes As one of the five and said the other four Are Harold Friedman of Cleveland Joseph Trerotola of new York Joseph Morgan of Hallandale fla., and Ted r. Cozza of Pittsburgh. Spokeswoman Deborah Corley said Giuliani s office would neither confirm nor deny reports of a proposed settlement. In an interview published this month in the Union s newsletter the International teamster Mccarthy predicted the Union would win the Case. Every single member of the general executive Board is committed to fighting the insulting accusations and personal attacks that have been levelled against us Mccar thy was quoted As saying. I know we re going to win this because we re right and right will Triumph in the  the suit was filed seven months ago under the racketeer influenced and corrupt organizations act. It asks that the court oust the teamsters leadership and place the Union under court trusteeship. More than two dozen reputed organized crime figures were named As defendants in addition to the Union then president Presser 16 teamsters vice presidents and a former vice president. Two of the vice presidents named in the suit have since resigned. Mccarthy was a vice president when the suit was filed. The suit contends that the alleged mob figures were aided and abetted by team sters officials including Mccarthy in con trolling activities of the Union through racketeering. It lists convictions in team Ster related crimes dating Back More than 25 years to support the allegations. Ten of the reputed mafia leaders were dropped As defendants in october after signing agreements in which they promised to avoid dealings with the teamsters. Citrus Celebration wearing regional costumes two Young girls dance saturday in front of a Model of the parisian cabaret Moulin Rouge built out of Lemons and oranges. It s All part of the 57th International Lemon festival that is being held in the French Riviera City of men ton. Pakistan on Brink of having bomb . Sources say Washington a Pakistan is so close to build ing a nuclear bomb that the United states this year Proba Bly won t be Able to certify the country does t have one administration officials reportedly told members of con Gress before president Reagan left office. That certification is necessary for Pakistan to receive . Economic and military Aid beyond this fiscal year. The Reagan administration had requested $621 million in Aid to Pakistan for fiscal 1990, As part of six year $4.02 billion package. On sunday the Washington Post quoted congressional sources As saying they were told by Reagan administration officials that it had been a very close Call when the administration in november re certified the country As not having a nuclear bomb. According to the Post when the certification was renewed a letter was sent to House speaker Jim Wright d Texas saying the administration was nearing its limits of being Able to continue making the certification. In his letter to Wright the Post reported Reagan said he had made his Best judgment based on information available to the . Government and on the Standard set by Congress regarding the pakistani nuclear program. The Standard he said is whether Pakistan possesses a nuclear explosive device not whether Pakistan is attempting to develop or has developed various relevant  Reagan said in the letter that the United states remained extremely troubled by the continuing risk of a nuclear arms race Between Pakistan and India the Post said. Atwater letter criticizing pay raise disavowed Washington a a Republican fund raising letter signed by party chairman Lee Atwater criticizes a 50 per cent congressional pay raise endorsed by former president Reagan and president Bush but a spokeswoman says it was All a mistake. Atwater is not opposed to the pay raise according to Republican National committee spokeswoman Leslie Good Man who blamed the mistake on Republican National committee staffers. Goodman said the letter was written while Atwater was still heading the Bush transition team and had not yet been formally inaugurated As inc chairman. She said Atwater had ordered changes in the letter including deletion of the two paragraphs of pay raise criticism but staff members failed to follow the directions. The five Page letter was mailed to prospective contributors and found its Way into the hands of the democratic Lead ers. The letter which appeals for donations and attacks democratic liberals went out before president Bush endorsed the raise last Friday calling it Over  but it apparently was written after former president Reagan formally pro posed the Large raise in the budget he submitted to Congress. It also was mailed before the House Republican leadership began negotiations with House democratic leaders last week to allow the raise to become Law feb. 8 without a vote in return for a package of severe restrictions on outside income including a ban on speaking fees. The letter tells prospective contributors there s also a move afoot to let. Congressmen enjoy yet another whopping pay raise. In this kind of atmosphere How can president Bush Hope to keep your taxes Low Cut the budget deficit and keep Prosperity growing across theland the White House press office had no comment and referred a reporter to the Republican National committee rank and file lawmakers would have their salaries raised from $89,500 to $135,000 unless both houses of Congress vote to reject the increase. Federal judges and top executive Branch political appointees also would receive 50 percent raises. Reagan s recommendation to con Gress endorsed the proposal of a presidential commission. Lawmakers especially democrats were surprised that Reagan did not reduce the amount As he could have done under the Law. House speaker Jim Wright a Texas reportedly has been upset that he has taken the Brunt of Public outrage against the size of the raise even after the two Republican presidents endorsed it and the House gop leadership began negotiating with democrats on the financial reforms. Wright spokesman Mark Johnson said a High ranking member of the House democratic leadership whom he would not name complained to White House chief of staff John Sununu about the letter. We were subsequently told that at water was informed of the president s position on this Issue Johnson said. We Don t think any political Effort by the inc is going to go any  the House has taken More heat than the Senate for the raise because House leaders do not plan to allow a vote. The Senate will have a vote probably meaningless that is almost certain to reject the increase