European Stars and Stripes (Newspaper) - May 20, 1990, Darmstadt, Hesse                                Page 18 the stars and Stripe business new exports put Bounce Back in the Buck ans when it looked As if the Dollar was Down for the count last week it bounced off the Canvas to Statte a slight rally avoiding a record postwar Low. The Dollar s resiliency a it was trading in the neighbor Hood of 1.65 Marks on european markets 1 tiday afternoon a was Welcome news to  service Mem hers who had seen the military Exchange rate in West Germany fall near its Al time Low of 1,58 Marks a week earlier. A relatively Strong report on the . Trade deficit for March helped the Buck Bounce  weekend the military Exchange rate at Community Bank facilities in West Germany stands at 1.62 Marks a gain Bollar watch Randy Mcclain of two pfennig on the week. The . Commerce department reported i thursday that the american Trade deficit in March was $8.45 billion an increase of More than $2 billion compared with february a data. Hut there was an accompanying Silver lining behind that dark Cloud.  exports set a record in March reaching $35.28 billion. Foreign Exchange dealers took the news As an encouraging sign that . Manufacturers May finally he developing some International muscle. Expanding exports arc considered particularly important now in Light of signs that americans Domestic Economy is sagging. . Retail sales for example dropped 0.6 percent in april the worst performance in six months. Most currency traders though done to think the latest Trade report is enough to give the Dollar a lasting boost. "1 think in general the forecast is that the Dollar will drop further although we May be close to the end Quot said Gunter Tucich a foreign currency analyst with the Bank of Bostons Frankfurt office. I Epieh said there Are confusing signals in financial markets at present. On one hand . Exports Are looking stronger but the Trade deficit still grew in March because of a surprising 10 percent increase in imported goods purchased by americans. I lie Bank of Boston expert said he believes a lasting improvement in the . Trade deficit is possible but Only in the Dollar weakens a bit More. A weaker Dollar will drive up the Cost of imported goods and eventually Cut into americans appetite for them he said. Interest rates Are another Factor to watch i Epieh said. An Overall weak Domestic Economy will probably Lead the Federal Reserve to drive Down interest rates in the states within two or three months and that should work against the Buck. Investors Are already putting their Money into other countries where Overall investment yields Are higher than in the United states and declining interest rates should Spur on that trend. Some analysts think weak investment returns stateside Are the no. 1 Factor keeping a lid on the Buck. One report in the Wall Street journal showed Why after allowing for inflation the report said investors with Money in the states can Hope for no More than a 3.6 percent annual return on their funds even though Long term interest rates Are near 9 percent. By comparison real returns in Japan Are roughly 4.5 percent. In West Germany and France real returns Are above 6 percent. I he Only positive Side to declining interest Rales in the slates is that such a development will make it easier for industries interested in expanding operations to borrow Money Teich said. A lower interest rates and the opening of new markets in Eastern Europe could mean More exports for . Companies. That might eventually help the Dollar Quot he said. The Star and Stripe new Agency planned to run All services commissary system n w w p r a Raa to. By Chuck Vinch Washington Bureau Washington a a huge new commissary system should be in operation some time next year replacing the army Navy and air Force programs. Deputy defense Secretary Donald Atwood decided last week to go ahead with a new Agency rather than consolidating operations under one of the existing military frameworks. Next a search for an Agency director will begin and a transition team will be appointed to design the consolidation process said a Pentagon official who asked not to be identified. The Agency director will report to Colin Mcmillan assistant Secretary of defense for production and logistics Atwood said. The Agency will be governed by an advisory Board made up of Mcmillan representatives from the services Gen. Colin Powell chairman of the joint chiefs of staff and Christopher Jehn the Pentagon manpower chief. Atwoods decision to go with a new Agency was based in recommendations from the services and Mcmillan. A the perception among the services was that this would be the fairest Way to Deal with the current work Force and get the Best and brightest employees from across the spectrum of the services commissary systems a the Pentagon official said. Atwood ordered Pentagon comptroller Sean of Keefe to Transfer $3 million in appropriated funds to Mcmillan a production and logistics spending accounts by monday to use As Start up Money for the transition. Mcmillan must draw up an Agency charter by july 16, but there is no firm target Date for the transition the Pentagon official said. A of course we want to make it happen As soon As possible but it will probably be some time next year before the Agency is up and running a he said. Consolidation was recommended by the Jones commission named for it. Gen. Donald Jones Deputy assistant Secretary of defense for military manpower and personnel policy. Defense Secretary Dick Cheney has said the move will increase efficiency and service while cutting costs. Saving Money is the guiding principle in a recent de. A amps or the new commissary system is expected to save the Pentagon an estimated $133 million a year. Sense management report that outlines ways to streamline Pentagon operations. The Pentagon could save $133 million a year in operations and maintenance funds through consolidation without affecting prices Jones said in the commission report. The Pentagon will also realize a one time savings of $300 million to $400 million by streamlining Purchase procedures he said. The 417 military commissaries generate More than $5 billion a year in sales. Fla. Real estate firm spends millions to fight customers Miami up a general development corp., Flor Tda a largest real estate development firm spent More than $20 million in Legal fees to defend against charges of fraud rather than Settle customer complaints the Miami Herald reported last week. The Herald said that even As a grand jury was indicting the firm in March the Board of gds approved spending $22.58 million to fight its Legal Battles and set aside $800,000 each in salaries bonuses and Severance payments to two former executives who later pleaded guilty to fraud. A incredible. Just incredible a said new York investor Attilio f. Petrocelli go cd a largest shareholder. A a we re not Happy about  a ooh my god a said Miami lawyer Douglas s. Lyons who represents dissatisfied gds customers. That $22 million could have gone a Long Way toward settling the cases. Then it would have gone to clients instead  a the disclosures were obtained by the Herald from financial statements filed by gds in . Bankruptcy court in Miami. Charles j. Simons who has been gds chairman for two months defended the boards actions. Gds Board members include former Florida gov. Reubin Askew and Shearson Lehman Hutton chairman Howard l. Clarkjr. The bonuses paid to David f. Brown former gds chairman and Robert f. Ehrling former president rewarded them for their performances last year Simons said both men have since resigned. The company pleaded guilty m Federal court in Miami to conspiracy to commit mail fraud in connection with a scheme in Sefi overpriced real estate in eight Florida counties. I he firm was also Active in Europe Selling residential lots to service members. Simons said he negotiated the Severance payments Brown and Ehrling were each seeking More than $ 1.6 million from the company in return for Stock warrants. Simons said he persuaded them to accept $550,000 each. A i would have paid a half million to get rid of them too a Lyons said. The Board fired Brown and Ehrling March 9. The two men and the company pleaded guilty March 22 to Federal felony charges that they conspired to defraud thousands of gds Home buyers. On april 6, the company filed for chapter 11 bankruptcy Protection. A is. District judge Lenore Nesbitt was to decide Friday whether to delay sentencing which is scheduled Tor tuesday. That would allow a restitution plan in the criminal cases to be coordinated with a reorganization plan in the bankruptcy Case. Part of the $22 million in Legal fees gds incurred Between april 1989 and april 1990 was spent on bankruptcy lawyers Simons said. The company is also a defendant in 243 other lawsuits financial statements filed in the bankruptcy proceedings show. Gds Brown and Ehrling were charged in a Federal indictment March 14 of bilking customers out of at least $100 million by inflating prices by 25 percent or More Over rates available from other developers. The High prices were backed up by phony appraisals arranged for by gds. The company and former executives were charged with seven counts of mail fraud seven counts of interstate transportation of people to commit fraud and two counts of conspiracy to commit mail fraud. General development pleaded guilty to one count of conspiracy agreed to a $500,000 Fine and to plans to make restitution i of More than $100 million to defrauded homeowners Over the next 25 years. Ehrling and Brown each pleaded guilty to a single conspiracy charge and each faces a maximum penalty of five years in prison and a $250,000 Fine