European Stars And Stripes (Newspaper) - April 27, 1989, Darmstadt, Hesse                                Paga 4 the stars and stripes thursday. April 37,1989 Economy up 5.5% Washington  , surpassing the $5 trillion Mark for inc first Lime expanded no a robust annual rate of 5.5 percent in the first three months of 19s9, the fastest Pace Indore than a year the government reported wednesday. The Commerce department said Al most hair of the increase in the Gross National product came from a statistical catch up from last year s drought. But even discounting this bookkeeping Factor in Gnu representing the country s total output of goods and serv ices advanced at a 3.percent annual Rale Down Only slightly from a 3.5 percent non farm growth rate in the final three months of 1988. Most analysts believe the  econ omy will slow substantially this year under inc weight of higher interest rates. For the past year the Federal Reserve has been pushing rates higher in an Effort to fight rising inflationary pressures. However the report contained information that inflation is rising. A in Price Index which measures a lined mar Ket Basket of goods and services Rose atan annual rate of 5 percent in the first Quarter up from a fourth Quarter rate of 4.2 percent. Half of the increase came from a pay raise for Federal employees with rising food and Home costs accounting for much of the rest of the increase. Playing in polluted Waters the frolicking sea Otter an the Luht shows dark evidence of Contact Willitha Oil hat has polluted the water Al the boat Harbor at Valdez Alaska. But the  one on the right is untainted. The two Are playing inthe area fouled by the March 24 spill of More Ihnn 10 million Gallons atoll from the Exxon Valdvin lung tar. Otters Are among creatures endangered by the spill. Becaas they have Little Fatto serve As insulation a Coaling of Oil on their fur can Aasc their bodies Tolose heat quickly and they can freeze to death. Senators Laud Cheney for defense package Washington a the chair Man and ranking Republican on the sen ate armed services committee gave de sense Secretary Dick Cheney High Mark wednesday for crafting cuts in the. Pentagon budget but expressed concerns about some of the specific reductions. Sens. Sam Nunn d-ga., and Joh Warner Rva commented a Day after Cheney had outlined planned reductions,.delays and cuts dealing Sio billion be fore the House armed services commit tee the savings were  in order to meet the fiscal 1990 budget level of $295.6 billion for the defense depart ment and agreed upon by the White House and Congress. I think defense Secretary Cheney and president Bush stepped up to the plate and a narc some Tough decisions Here under very rough circumstances Nunn said on Abc s Good morning  Bui he said he is very concerned about the decision to scrap the Marine corps v-22osprcy, a Battlefield aircraft designed to take off like a helicopter but. Fly like an air plane. That has very Strong implications for future commercial aviation As Well Asfor the military Nunn said. The Pentagon had hoped to spend. $25.9 billion on 663 ospreys including. $t.3 billion in 1990. Cheney called the decision to drop it his most difficult. Warner interviewed with Nunn gave Cheney very High Marks and added think we re going to follow the bus i Cheney plan very  however. Warner a former Secretary of the Navy said he is concerned about heavy cuts fal Ling on that service. I m concerned about our deploy ments beyond the United states where our. Young men in Many instances and now women aboard ship have to be gone for six and seven months and the stress that puts on families he said. If the strategic assessment Bush has promised to Send Congress the first week in May tells us we can Cut Back on som of i Host deployments abroad and the Lime then i think the Impact is some what less severe Warner said Navy cuts outlined by Cheney included retiring the Coral sea one of inc last. Of two world War a Cra aircraft carriers transferring 10 frigates to the reserves retiring seven destroyers cancelling production of the f-14d tighter and scrub Bing the Purchase of in class los Angeles class nuclear attack  of Cheney s proposals was a reduction for the army Navy and air Force in Active duty strength of More than 2,1 million by 16,800 men and women. The. Defense Secretary left intact proposed 3.6 percent pay hike for those in the military. " ". Cheney said the process for the ultimate Republican Hawk was extremely difficult but he knew of no other Way Toul the budget. Pizza Palace pans paparazzi West Hollywood Calif. A spas obis entered paparazzi who linger like the smell of owner chef. Wou Guta puck s designer pizza to keep Oft he pretes and Lent the Sun alone the trendy eatery who regulars include Joan Collum and my Hall cube has even banned two. Photographers for lift. Pack has hired two  Murdi to Keeth paparazzi off the property ending  Hollywood ritual in which the photographers creep Ever Clour from the mildew to to Nap the Patrou. In. Pock wild be will also build tack Entrance for Oun Enrby patrons. /., All Oil came after a ibo ring Natch two months ago Between puck s Tau and Pho Logn Phera Jim Smeal. And Ralph Dominguez. Who. Were Brydle to get a shot of coldly Ham and her Boyfriend,kurtruudl.,., i. .".". I Hope the  Doat came tall memo ret pock Laid. If it we no to me they could All so to Rural Nikky by lev i cringe s remarks on rift irk . Washington a the United states on tuesday criticized a suggestion by prime minister David Lange of new zealand that his country May pull out of a Security Alliance with the United state because of his nation s anti nuclear policies. That is new zealand s prerogative said state. Department spokeswoman Margaret Tutwiler. But she added we take exception to the prime min ister s assertions that such action is justified by the United slates refusal to consult with new Zoa. Land in accordance with terms of the anus pact. Anus created in 1951. As a defense Alliance Between the United slates Australia and new Zoa land. Has been crippled since the United slates sus Pended guarantees for  s defense in 1986, after the Pacific nation banned ships carrying nuclear weapons. . Policy is to neither confirm nor deny the existence of nuclear weapons aboard  "."". Even if new zealand does pull out Anu would continue to exist As the foundation of our important and Active Security relationship wit Australia a stale department statement said. We continue to Hope that new zealand will re assess in anti nuclear policies which would enable it to return to full participation in anus the statement continued. The United states stopped sharing intelligence information with new zealand and cooled its Diplo Matic relations because of the Rifle. Speaking at Yale University on monday Lange said his country s Security relationship with the United Stales is a dead letter.". But the stale department disputed that View saying thai the . Continues to maintain a Secu Rity relationship with new zealand albeit much diminished from the close military and intelligence tics existing prior to the current dispute. Despite Lange s outspoken comments at Yate observers have noted in several. Interviews to has Given since arriving for a six Day visit that he has also emphasized that Overall relations Between the two countries Are Good. Lange has stressed thai ,.trade and tourism have grown / responding to that tone the stale department said that the  and new zealand no enjoy a constructive relationship on a Range of is dues in which we share common goals and object. Lives. We regret however that the prime minister s. Remarks did not More constructively address our difference of opinion on issues raised by new zealand s anti nuclear policies it said. Lange said monday he would not come  in ton because the . Administration had made i Clear he was not Welcome until his government re-., nominee Dit Anil nuclear policies. _