European Stars And Stripes (Newspaper) - April 30, 1989, Darmstadt, Hesse                                Page 18 the stars and stripes Titeff Ess news sunday april 30,1989 i w. German vote May def Ermine do liar s course if you re looking for a Way to predict the direction of the Dollar is. The Mark Over the next few weeks it might be Wise to focus your attention on the Rheinland Pfalz slate elections june 18. That s because Many economists in West Ger Many arc convinced the current weakness of the Mark and strength of the Dollar have a lot More to do with politics than fiscal fundamentals. The troublesome drop in the popularity of Chancellor Helmut Kohls having a negative Impact on the Mark and a losing Outing by the Chancellor s Christian democrats in Kohls Home state of Rheinland Pfalz could really Send the Mark reeling. Some analysts in West Germany Are even speculating that a loss by the Christian Cmor crafts in Rheinland Pfalz will be enough for the party 10 push for Kohl s resignation in Advance of inc 1990 National  with Kohl out of the picture the think ing goes could the Christian democrats Hope to retain control of the government in the face of what is sex peeled to be a stiff Challenge from the United social democrats and greens. Kohl of course is not going Down with out a fight in recently Randy Mcclaln. Vol "6" Days he has reshuffled his Cabinet and issued a Call for broader disarmament talks with the soviets onshore Range nuclear missiles. The latter move in particular is viewed As political muscle flexing by Kohl designed to win Domestic Points even if it comes Al the expense of smooth relations with the United Stales and other nato allies in financial circles much of Kohl s Man Euver ing is seen As too Little too late the Chancellor is scoring Low Marks in the statesmanship game. The German population thinks the. Chan cellar s recent decisions come not so much from leadership but from weakness said one Frank Furt banker who spoke on the condition that Hent be named. And weakness never plays very or in the words of Hans Jochyn Vogl Leader of the social democrats this is not an orderly Retreat. It s a  Vogl spoke to the press thursday following a major speech by Kohl to the West German parliament of course the problems of the Christia democrats traditionally viewed in Wisl Ger Many As the party of business have been a Boon for the Dollar. At fundamentally speaking there is no real reason to Sec the Dollar As High As it is right now said Roland Scharff treasurer of the hcs Siche lands Bank in Frankfurt. In my eyes the Only thing be Hind the Mark s weakness is political weakness Scharff and others Point to recent signs that the . Economy is Cooling off As reason enough for the Dollar to fall in value. Consumer spending is up but Only slightly 0.2 percent in March big ticket durable goods orders not counting the Purchase of transportation equipment fell in March by 2.8 per cent and there is growing evidence that the Federal Reserve won t be increasing us. Interest rates again any time soon.  With those kinds of statistics piling up the Buck should beheaded Down toward inc 1 Iso Mark level Shartt said. Wilh the political turmoil building in Bonn though there s a Good  Dollar Wui hit i 90 Marks Heskitt any move higher than that Likely would be met with fierce resistance by the world s Central Banks which arc pledged to uphold exchanger instability. ,. Late Friday the Dollar stood just shy of 1.88 Marks the military Exchange rate for Community Hank outlets in West Germany was set at 1.85marks for a Dollar based on a Price fixing at midday Friday. That rate will hold at least through tuesday in West Germany because of the labor Day holi Day on monday. Thai Means the Buck increased by a full three pfennig on the week _ thank Helmut Kohl he needs All the kind words he can  bbikhjfcgggffisjg�eaijg3gbhgagagffi3fcflaviews sought on Bill to add Delegate for citizens abroad b Randy Mcclain financial writer unless americans living overseas display More enthusiasm for a proposal to elect a non voting Delegate to Congress the Bill could die a quiet death before coming to a vote that dire prognosis comes from a top aide to rep Bill Alexander d.-ark., who earlier this year introduced three Bills aimed at improving the lot of Ameri cans on foreign soil. Or. Alexander would like to see some More vocal visible support. So far we be gotten a few letters and a few phone Calls but 1 can t say we pc been deluged with mail spokesman Lee Powell said in a Telephone interview from Washington. Americans living overseas arc going to have to get behind this and push real  the Bills for which the Democrat Hopes to Garner support include legislation to exempt americans Over seas from All . Income taxes and another that would make it easier for the children of . Citizen and foreign National couples to get automatic Ameri can citizenship. However the lax legislation would not spare civilian employees of the government and .  from paying taxes on their salaries. The internal Revenue service has made collection of that Revenue a High priority in recent months. Most important according 10 Powell is the election of a non voting Delegate to Congress citizens Over seas need to have a voice in Washington . They need someone who can devote All their energies to the Job the spokesman said. Under Alexander s proposal civilians and military personnel alike would be allowed to Vole either for a overseas non voting representative to Congress or for a congressman from their District Back Home. The Over seas Delegate would serve in much the same capacity As those who represent the . Virgin islands american Samba and Guam in Washington. The american chamber of Commerce in Europe has passed a Resolution favouring election of the non voting Delegate but Powell said he wants to hear fron the average citizen abroad. We want to encourage every american to speak up he said Call your con Gressman. Write letters one american who is speaking up loudly is Andre Sundberg a Navy Veteran who serves As director of american citizens abroad an 11-year-old Organiza Tion that lobbies for the rights of americans abroad. In fact it is Sundburg s group that started the Campaign to elect a non voting congressman to speak for inc 3 million . Citizens overseas i m not displeased with our Progress Sundburg said. These legislative initiatives arc working their Way through. We had been fighting a Lille Bil alone before this year. At least How we re picking up a Little More support.", Alexander introduced the Samc three Bills in con Gress last year and they went nowhere. Sundburg though thinks it s just a matter of Lime before citizens abroad get a Square Deal. It s just the sort of thing you have to work quietly on and slowly build support for he said., Sundburg who runs an International economic consulting company in Geneva Switzerland said he favors each of Alexander s proposals. Making it easier for the offspring of americans and foreigners to get . Citizenship when their parents live abroad does t affect a lot of people hut it can Lead to some  problems in certain cases Sundburg said. Under current Law an american citizen who has a child with a foreigner must have resided in inc United states for five years at least two of those after i Cage of 4 ii in order for the child to automatically . Citizenship Alexander s Bill would Grant . Citizenship without any residency requirements. Sundburg said Alexander s overseas income lax legislation is also important because its passage would encourage Small businessmen to Export their know How and set up businesses abroad. That would shrink the us. Trade deficit he said. Current tax Law allows Many civilians overseas except those who work for the . Government Loe scape . Taxes on salaries up to $70,000 via the foreign earned income exclusion. But Sundburg and Powell said that s no Good enough. What we re trying to do basically is prevent a Guy from paying taxes to two countries said Powell. Meanwhile the Iris ii Sel by evidence that one of every three . Taxpayers overseas docs t even file a return is waging War on what it views As tax evaders. Rep. Bill Alexander several Hundred audits arc under Way in Europe in connection with alleged misuse of the foreign earned income credit by full time government employees and contract workers. In those two areas alone irs pm vials said millions of dollars in lax Revenue is at stake. Sundburg said the . Government should be More sensitive to the economic development ramifications  tax policy. He said Small businessmen overseas often get hit with a double lax Bill from the irs an from the country in which icy operate and Alexan Der s Bill would Correct that problem Sundburg does t condone the latter strategy but he said the government should treat its citizens abroad in a Kinder gentler Way. It s More difficult for americans to live and work abroad than it is for the citizens of almost any other country he said. The government should no have such a negative attitude toward its citizens. Two new funds Are scoring big new York a two of the biggest names in the Mutual fund Industry have created  Market funds boasting yields that Beal All their older competitors. They arc getting an enthusiastic response from Sav ers and investors scrambling after the High returns  Short term Money Market investments but experts on Mutual fund investing urge Ihal you look beyond the current yield figures these funds sport before you decide whether they suit your purposes. In figures compiled in Early april by Donoghue s Money letter the Dreyfus worldwide Dollar Money Market fund and the Fidelity spartan Money Market fund ran neck and neck for he no. 1 spot with seven Day yields of i 0.4 percent. The average yield of s42 taxable Money funds by contrast was 9-08 percent. How can Dreyfus and Fidelity do this Well for one. Ihms their Liming was fortuitous. Since the new funds were organized in a period when interest rates were climbing they were Able to Stock their portfolios with the latest High yielding securities inc marketplace had to offer older funds by contrast could accumulate new higher yielding securities Only gradually As i hair assets increased and existing investments in incur portfolios  More to the Point however is a marketing strata Gem that has been used Many times before when a newfound is introduced Dreyfus and Fidelity Are temporarily paying the funds expenses and waiving their management tech