European Stars and Stripes (Newspaper) - July 8, 1990, Darmstadt, Hesse                                Sunday july 8, 1990 the stars and stripes a Page 17 Dollar still lags an improved unemployment picture in the United states for june failed to help the Dollar last week As investors continued to show Confidence in West Germany a blueprint for economic expansion to the East. The american unemployment Fate fell 0.1 percentage Points to a respectable 5.2 percent on the month but the Dollar showed no signs of busting out of its doldrums is. The potent Dutsch Mark. Late Friday the Buck was trading in the neighbourhood of 1.65 Marks on world markets and the military Exchange rate that applies to banking transactions by . Service members in West Germany was set at 1.62 Marks for the weekend a loss of two pfennig on the week. A people Are basically bearish on Randy Mcclain Ian Amstad Quot econ it Mist with Chase investment Bank in London. The Dollar is being held in Check by a combination of forces that include Confidence in West Germany a economic future and an expectation that interest rates in the United states will be lowered by the . Federal Reserve before years end. Amstad said the brighter . Unemployment picture probably Means the fed wont slash interest rates immediately but he predicted that rates will fall before too Long. The fact that president Bush and Congress Are finally making noises about Compromise tax increases and spending cuts to lower the Federal budget deficit is another Factor arguing for lower . Rates Over the Long term Amstad said. A if there is a budget Deal the Federal Reserve will probably Cut rates by at least a Quarter of a percentage Point As a sign of approval and to keep the . Economy from slipping into recession a he said. Lower interest rates in the United states will drive International investors into higher yielding currencies where they can get a better return for their Money. And that Means Britain where interest rates remain in double digits and West Germany could gain at the United states expense Amstad said. Petra Ott an economist with Citibank in Frankfurt West Germany agrees there a Little in the economic cards at present that could boost the Buck. A . Labor department report on Friday showed the . Economy created about 92,000 new private sector jobs in june but that was in line with economists expectations Ott said. It Wasny to enough to help the Dollar. Ott said the numbers might be enough to keep the Buck from falling below 1.65 Marks for the time being but americans in Europe  expect More. Meanwhile in West Germany currency Union Between East and West Germany has proceeded without a hitch so far and Faith in Germany a future is flying High. Amstad said currency Union could Lead to a slightly higher rate of inflation in West Germany As the months unfold but that might Only serve to attract new investors to the Mark. If inflation takes off the Bundesbank will Likely hike Domestic interest rates to fight Back and higher Rales generally lure investors. Amstad does no to see the Greenback falling further than the Low 1.60s against the Mark right now but he also thinks its upside potential is limited. That a Little Comfort to financially strapped service members overseas. A any scares in the soviet Union could perk up the Dollar but it would have to be a very serious development to get the Dollar above 1.70 or 1.72 Marks a he said. Meanwhile in Britain the British Pound remained Strong last week. Late Friday one Pound was Selling for about $1.78, a gain of More than 3 cents from a week earlier. The Start and Stripe a business news. A. Sas l Emmett Lewis or. With the old terminal in the background,.construction is under Way on a new one at Frankfurt International Airport to accommodate an additional 10 million to 12 million passengers annually.$4 billion expansion project by de Reavis staff writer Frankfurt West Germany a the International Airport on the outskirts of Frankfurt is growing like a Hydra with tentacles reaching Ever closer to the City. Thirty years ago a modest Cracker Box building sufficed to handle the fledgling postwar traffic but since the 1960s flying has become the common Mode of travel for Many germans and International visitors. Airport construction has become a fact of life and an investment in West Germany s future. Airport terminal design has moved from bauhaus simplicity to Slick postmodern constructions of Glass steel polished Stone and Marble. And once again the Busy Frankfurt Airport is on the move. The Cornerstone was Laid recently for a new passenger terminal near the Frankfurt Rhein main autobahn Cloverleaf. When completed in 1994, the terminal will accommodate an additional 10 million to 12 million airline passengers a year. The project at a total Cost of $4 billion is considered the largest building site in Europe and includes As Many As 3,000 construction workers 100 firms and subcontractors and 27 cranes. In addition to the new $700 million terminal project plans also Call for a sophisticated passenger Transfer system called a peo ple mover system a baggage handling system and extensions to the concourse of terminal c. A but completion wont mean the end of construction at the Airport. Well never finish adding to this Airport because the number of passengers will always increase Quot said Wolfgang Schwalm a spokesman for the facility. A last year we had More than 27 million passengers come through Frankfurt and the situation is getting tight a he said. Quot we need the new terminal badly to handle the Challenge of the  the design of the new terminal Schwalm said is intended to create the impression of a Large reception h3il for passengers. A we Hope it will have the feeling of the classical Large and airy Railroad station. So there la be lots of Glass used m the construction so passengers can look through the building to the aircraft waiting on the  the terminal is designed to handle As Many As eight wide body jets of the Boeing 747-400 Type with a capability for even larger aircraft. In addition there is room to Park 18 aircraft away from the Gates Schwalm said. Quot of course with passenger traffic increasing Well have a 4,500-car underground parking facility close to the new terminal Quot he said. Should Berlin become the capital of a United Germany Frankfurt officials have no worries about losing their status As the busiest Airport on the continent. Quot even before the War we ran a close second to berlins Airport. We re confident Frankfurt will remain the entranceway to Europe even in a United Germany Quot Schwalm  Bank opens office in East Europe Warsaw Poland apr the world Bank has opened its first permanent office in Eastern Europe and has Given Poland a $250 million loan for development of natural Gas resources and Energy conservation. World Bank vice president will wac Hans lauded the economic stabilization accomplished by Post communist Poland a reforms. But he urged a even More rapid Steps toward creating a Market Economy. The world Bank has Lent Poland a total of $781 million for five projects since january. Officials said about $2 billion More in Loans Are envisioned during the next two fiscal years