European Stars and Stripes (Newspaper) - September 16, 1989, Darmstadt, Hesse                                The stars an inside stripes authorized unofficial publication for the . Ahmed forces vol. 48, no. 152 saturday. September 16. 1989 Good Mohmmad 8693 a d Bush doubles food Aid for Poland Page 2 d capital gains tax Cut by House panel Page 5 o astros Mike Scon posts 20th win sports Page 21 d Salvador rebels agree to talks Back Page inning s Over doffing his baseball Cap former president  Gan exposes his partially shaven head to Well wishers who saw him and the first lady off at the Rochester minn., Airport Friday after Reagan s release from the Mayo clinic. Reagan had successful Skull surgery " we by � remove fluid from his brain. Senate Bill cuts funds for military building , Philippines Washington a the Senate on Friday overwhelmingly approved a $7.7 billion fiscal 1990spending Bill thai makes wholesale cuts in president Bush s budget request for military construction in the Philippines and South Korea. By a vote of 93-1 that came after less than an hour of debate the Senate adopted a spending Bill for the fiscal year beginning oct. I. The Bill is $1.3 billion below this year s level and about $300 million less than Bush s proposal. Specifically the legislation eliminates the $40.8 Mil lion Bush requested for the Philippines and cuts s85.5million from the $86.3 million he sought for South Korea. The Best Way to make our defense Dollar go further is to secure a More equitable Burden sharing from our allies said sen. Jim Sasser d-tcnn., chairman of in Senate appropriations subcommittee on military construction Sasser said the subcommittee decided it was unwise to proceed with new construction in the Philippines because negotiations on a new treaty to replace the military bases agreement were scheduled for later this year. The .-Philippincs pact on Clark a and the Subic Bay naval facilities expires in september 1991. Sasser also noted the current disputes in Congress Over . Troop Levels in South Korea. While cutting Money for overseas projects the sub committee added $250 million to the Bill for the National guard and reserves in the United states. Bush had requested $452.6 million. The subcommittee also Cut $50 million from the president s request of $101.5 million for housing the b 2 bomber at Whitman fab to. Senate and House conferees will meet later this month to fashion a final version of the Bill. The House legislation passed last month is $8.7 billion but also includes $500 million for closing . Bases. The sen ate defense appropriations Bill not the military construction measure includes the Money for base Clos  House in its Bill approved $6.1 billion for military construction in the Philippines and $74.2 Mil lion for construction in South Korea. Sasser in recommending approval of the legislation said the Bill continues the priorities adopted Over the last several years and provides adequately for our most pressing military construction  . Posts sea est Frade Gap since 1984 Washington a the . Trade deficit narrowed for the second straight month in july to $7.58 billion the smallest Gap in nearly five years the government said Friday the Commerce department reported that the july deficit represented a 5,3 percent decrease from a revised june deficit of $8.01 billion. The narrowing Trade Gap came from a 2.5 percent decrease in imports to $38.32 billion and a 1.8 percent decrease in exports to $30.74 billion. The Trade deficit is the difference Between imports and exports. The Overall july deficit of $7.58 Bil lion was the smallest since a $6.79 billion imbalance in december 1984. Economists had been expecting the deficit to Widen As imports fuelled by Oil purchases Rose while the higher Dollar Cut exports by making them More expensive overseas. America s foreign Oil Bill Rose 2.9 per cent to $4.3 billion in july. The amount of imported Oil Rose to 8.14 million barrels a Day from 7.93 million in june and the Price per barrel fell to $17.12 from $17.67 in june. The decrease in exports included such manufactured goods As automobiles machinery and materials while shipments of air planes increased. In addition to Oil increased imports included clothing footwear and general Industrial machinery. Decreases included automobiles trucks and electrical and specialized Industrial machinery. Analysts had been looking for an imbalance of from $8.5 billion to $9 billion in july. Despite the improvement economists Are predicting that the deficits will begin rising in the second half of the year As american exports suffer from the rising value of the Dollar. Analysts also say Oil imports will continue to Rise As . Consumption in creases and Domestic production Falls becoming a major Factor in producing a widening deficit in coming months. For the first half of the year the Defi Cit ran at an annual rate of $108.6 Bil lion Down 8.4 percent from last year s Tola merchandise Trade deficit of a 18.5 billion. Despite the first half improvement Many economists predict deficit growth in the last half of the year will make the total imbalance for 1989 about what it was in 1988. A worsening Trade deficit Means a double dose of bad news for the Bush administration. The administration based its predictions of healthy economic growth partly on a belief that exports would keep expanding. If this docs not occur the Federal budget deficit will be higher because tax revenues will be lower. Additionally higher Trade deficits in crease the pressure for protectionist Trade measures to keep out imports something the administration opposes. In other economic reports Friday the Federal Reserve said output at the nation s factories mines and utilities Rose 0.3 percent in August. It was the biggest increase since a 0.7 percent Rise in april and was credited to a rebound in production at Auto factories and a pickup in Coal mining following a strike. The government said business inventories climbed 0.6 percent in july while business sales fell 0.9 percent. Sex club manager cleared of sex harassment b Joseph Owen Stuttgart Bureau Stuttgart West Germany a former Stutt Gart club system manager has won a yearlong fight to nullify a finding that his repeated marriage proposals to a female army Captain were sexual harassment. Stuttgart s military Community commander maj. Gen. James b. Allen jr., suspended the manager Alvin g. Byrd for three Days last july because Byrd had been giving the Captain gilts and courting her for months in love notes Telephone Calls and personal encounters despite her objections. However . Lee an investigator for the army s civilian appellate review Agency in Heidelberg Over turned Allen s decision and said the Community should reimburse Byrd for the pay and benefits he lost during his suspension and for lawyer fees. Lee concluded in a four Page report that Byrd s be Havior did not meet the army s definition of sexual harassment when Allen issued the suspension. At that time findings of sexual harassment required evidence of sexually oriented behaviour aimed at influencing a person s pay or Job offensive sexual comments or Ges Tures or abusive physical Contact of a sexual nature. He also said Byrd s behaviour Falls Short of a new army definition introduced last year under which unwelcome conduct of a sexual nature can be consid ered harassment if it is considered unreasonably interfering with an individual s work performance or creating an intimidating hostile or offensive work in  the review Agency gave the military Community 15 Days to respond to the recommendation. The time passed without a response so Lee s conclusion became binding. In an aug. 28 letter the Community told an army facility in Michigan to restore the pay and Bene fits to Byrd who now works there. Frankfurt lawyer Robert Giorc who represented see manager on Back Page