European Stars And Stripes (Newspaper) - February 18, 1989, Darmstadt, Hesse                                The stars and stripes authorized unofficial publication for the . Armed forces Good morning vol. 47, no. 304 saturday february 18, 1989 256 daily and sunday d 8693 a North trial set to reopen on tuesday Page 4 Trade Gap narrowed in 88 Washington a the .Trade deficit shrank to $137.34 billion in 1988, the first annual decline since 1980,As a surge in exports offset a relentless climb in imports the government said  Commerce department said exports shot up to an All time High of $322.22 billion last year a dramatic 26.8percent above the 1987 level led by a Boom in sales of american manufactured products and farm goods. The huge gain in exports was enough to offset an 8.3 percent increase in imports which also Rose to a record level of$459.56 billion. For december the Trade deficits rank slightly to $11.9 billion Down from a revised november figure of $ 12.2billion. However november and december represented the highest imbalances be tween what the United states imported and what it sold abroad since August. Analysts Are worried that the improvement in America s trading performance has stalled  Trade deficit along with the re lated Federal budget deficit represent the twin towers of debt that president Bush inherited from former president Reagan. Many analysts say the budget deficit has played a major role in the worsening Trade performance of the 1980s by Mak ing America More dependent on foreign investment. The $137.3 billion deficit for All of1988 was Down 19.4 percent from the All time High of $170.3 billion set in1987. It was the first year that the Trade deficit has shown any improvement since it fell 12.5 percent to $31.4 billion in 1980, the last year of the Carter administration. During the Reagan years the deficit soared above the $100 billion Mark a americans appetite for foreign goods proved insatiable. In 1985, then Treasury Secretary James Baker engineered coordinated Effort with major . Allies to devalue the Dollar on foreign currency markets in an Effort to make american goods More competitive and imports More  strategy has helped boost exports but has had much less of an Impact in curbing  economists believe the Dollar will have to fall further to see More improvements in Trade. Other analysts however worry that steeper declines could scare off the foreign investors the United states has come to depend on to see Trade on Back Page 28 More cities put on blacklist for air pollution Washington a the nation suffered the worst pollution of the decade last summer with High Ozone Levels and 28 cities were added to the list of Urban areas where air Quality violated Federal stand Ards according to preliminary findings released thurs Day. The findings by the environmental Protection Agency were expected to be the focus of Sharp questioning at a congressional hearing this month on the effective Ness of Federal air pollution Laws. Rep. Henry Waxman d-calif., chairman of Ahouse subcommittee on health and environment said the Epa data released by his office Are expected to give a Strong boost to efforts in Congress to tighten pollution control requirements. According to the Epa findings two thirds of the Agency s 323 monitoring Sites reported higher Ozone pollution Levels last summer than in any other summer this decade. The findings showed that where a comparison could be made the average Ozone pollution last summer was see blacklist on Back Page probes focus on Tower actions during arms talks Washington a the person Al conduct of defense Secretary designate John Tower has overtaken his Pentagon business dealings As a focus of investigators attention As lawmakers prepare to take up his nomination. Of particular concern is Tower s 16 month stint in Geneva As head of the american delegation that met with the soviets to discuss Mutual cuts in Long Range nuclear missiles. The former Texas senator was there from january 1985 to april 1986.according to a report in Friday s Washington times details on Tower sexual activities in Geneva would come out in a closed hearing of a House sub committee investigating allegations of Security violations by another member of the delegation. The newspaper reported that an invest see Tower on Back Page tracked Down Mike and Terry Harris from front to Back and Glenn Reed All of new Haven ky., stroll along a Section of Railroad track that was washed out by floodwaters fro the rain soaked Kentucky River. Story Page 4. Apology from author May lift death threat iranian says London a Iran s president panic verses apologized Iran s Offu Prihna Rii Imph the a off Rino of a to 9 Mil. Tel Amir Rani Uhlir Mpwo to Purv Aih John Tower Friday praised the offering of a $5.2 Mil lion Bounty for Salman Rushdie s Mur Der but said the death threat might be revoked if the author apologizes to mos lems for his novel the satanic  at least 75 people were injured i India on Friday when moslem Funda mentalists clashed with police in protest against the Book which some say Slan Ders moslem. Related Story Page 7. Spain on Friday joined the list of nations condemning the Ayatollah Ruhl Lah Khomeini s Call for moslem to kill Rushdie a British citizen who was born into a moslem family in India. Rushdie 41, and his wife american novelist Marianne Wiggins remained under police guard at an undisclosed site in Britain. In Tehran Iran president a Khame Nei thanked leaders for offering the Bounty but also said the death threat might be withdrawn if the author of a Tani official islamic Republic news Agency said. He May repent and say i made Blunder and apologize to moslem and to the Imam Khomeini. Then it is pos sible that the people May Pardon him Irna quoted Khamenei As saying. But Khamenei also said this wretched Man Rushdie has no Choice but to die be cause he has confronted himself with a billion moslem and with the  the report monitored in Nicosia Cyprus said tens of thousands of High school students marched through the enter of Tehran Friday shouting anti British slogans to protest the Book. Another protest was held in Dhaka Bangladesh where 1,000 islamic Funda mentalists marched through the Cit chanting set fire to the . Mission and hang Salman Rushdie moslem fundamentalists in Srinagar India fought Street Battles with police see author on Back Page