European Stars and Stripes (Newspaper) - October 6, 1990, Darmstadt, Hesse                                Saturday october 6,1990 top soviet official Saddam talk about peace prospects Page 20 a the stars and stripes news Brief Britain will move Pound into dec Exchange system London up a Britain stunned the world financial Community Friday by saying it will move its Pound Sterling into the european Community s Exchange rate mechanism As of monday Ana drop its prime lending rate 1 percent. It was seen As a significant step toward the creation of a european Central banking system and a single european currency. Chancellor of the exchequer John major noting that the British Economy has slowed said the time has come for the Pound to join the Exchange rate mechanism a currency Grid Locking the relative values of european currencies into narrow ranges. Britain will Peg its currency to the German Mark at a Central Exchange rate of 2,95 Marks to the Pound major said. Significantly the move came just two Days after Germany became one nation. The Bank of England a minimum lending rate will be lowered to 14 percent from 15 percent he said. The London Stock Exchange staged a late rally on the announcements sending the financial times 100 share Index 60 Points higher to 2110. In the new York foreign Exchange Market the Pound immediately surged 2 cents against the Dollar to $1.9450.1,000 in Osaka protest alleged police corruption Osaka Japan api a More than 1,000 peo Filc built barricades Ana set them on fire Friday in front of riot police who were deployed to try to Stop Street fighting Over alleged police corruption in a crime Ridden neighbourhood. At least 106 people including 83 police have been injured in the violence in the Nish Inari District of Osaka that began tuesday police reported forty one people Nave been arrested. The people who live in the District have longstanding grudges against police and accusations made Public tuesday that a local policeman took a bribe from a gangster helped trigger the rioting. About 2,500 riot police with Metal Shields lined main roads in Nish Inari and the District police station Friday night. More than 1,000 people faced off against the police lines. They formed barricades by burning piles of bicycles in streets already littered with burned cars and other debris. Police used water Cannon to douse the crowd which each time scattered and then . African government lifts curfew in Soweto Johannesburg South Africa up the government lifted a controversial nightly curfew Friday in the nations largest Black township of Soweto that was imposed 10 Days ago to restore peace and quell a wave of factional violence police said. The curfew part of a Security Clampdown intended to quash the fighting came into effect in the township of 2 million Ana three other hard hit townships around Johannesburg on sept. 25. The african National Congress a party to the More than six weeks of conflict that killed up to 800 people had strongly criticized the measures. Anc Leader Nelson Mandela said the curfew was Quot a License to kill our  Law enforcement officials however said operation Iron fist had effectively brought the killing to an  from Page 1 begun to grapple with the East a economic problems the labor office released figures thursday that showed the number of jobless in what was East Germany had climbed to 444,825 people a up from 361,286 in August. Some economists predict that the number of unemployed in the Eastern Section could reach 4 million in the next few months As unprofitable enterprises formerly run by the state fold. The soaring Cost of revamping the Eastern Economy is causing unexpectedly Large budget deficits and a Public debate on How to pay for the process. By the associated press Saddam Hussein carried on talks with a top soviet official Friday while his foreign minister accused the United states and its allies of pushing the world a to the Brink of a devastating  the United nations speech prepared by iraqi foreign minister Tariq Aziz came in response to president Bush a demand for Iraq to end its 9-week-old occupation of neighbouring Kuwait. In Washington the state department said about 300 americans and foreign born family members have signed up for an evacuation flight due to leave Kuwait on wednesday. . Officials estimate at least 900 americans remain trapped in Kuwait and Iraq following Saddam a invasion of the Oil Rich emirate aug. 2. Aziz accused America and its allies of a seeking to gain control Over the Oil reserves in the Gulf so As to have a free hand in manipulating the needs of the world and especially the needs of the Peoples of the third world for this important  the speech to be delivered by an iraqi . Representative reiterated Saddam a View that All Middle East problems a a Palestine Lebanon the Gulf and others be considered on the same basis and a on an equal  Bush demanded an unconditional iraqi withdrawal from Kuwait but suggested before the world body Mon Washington up a Iraq can produce a Power Ful propane Gas bomb with a blast effect reaching several Miles similar to a Small nuclear weapon the Pentagon said Friday. The technology dates to world War ii and . Forces used weapons like it in Vietnam. A this is not a new secret weapon a said a Pentagon spokesman air Force capt. Sam Grizzle. There was no indication whether Iraq possesses the weapon which can be produced As bombs missile warheads or artillery shells. Grizzle said iraqi Possession of a fuel air explosive or Fae As the Gas weapon is known formally would not affect the balance of Power Between iraqi and .-led forces facing each other in the deserts of Kuwait and saudi Arabia. Grizzle responded to an article in the los Angeles times that said Iraq has developed a a new Type of High explosive weapon. A a it a not a new technology a he said. A a it a been around since world War ii. We used a Type of fuel air explosive bomb in Vietnam. The blast effect could be similar to that of a Small nuclear  the times quoting Pentagon officials said that unlike chemical and biological weapons also found in iraqi president Saddam Hussein a Arsenal there is no ready defense against the new weapon known As a fuel air explosive. The bomb is particularly effective against air bases Oil Fields and unsheltered troops. A a it a not your Garden variety weapon a said Henry budget from Page 1 package of tax increases and spending cuts by a 254-179 vote House speaker Thomas s. Foley said lawmakers would try to piece together another package that would get the support of a majority of democrats and republicans who deserted the plan despite appeals from leaders of both parties. Budget director Richard g. Darman sent a memo to All government department and Agency Heads at midday Friday telling them to prepare for the Golemme twide shutdown a beginning saturday morning the head of each Agency must be prepared to implement his or her existing plan for closing Down operations a Darman said. Only those services needed to a protect life and property Quot will be permitted to continue beyond saturday in the absence of a budget agreement Darman said. Fitzwater said Darman Treasury Secretary Nicholas Brady and White House chief of staff John Sununu planned to meet with Foley and also to keep involved in Day that there could be a a opportunities later to promote negotiations on Israel s occupation of the Ami Bank and Gaza strip. Est Britain and France have made similar suggestions which could allow Saddam a face saving exit from Kuwait.1 in Baghdad Saddam met with an aide to Mikhail s Gorbachev and accepted a message from the soviet president the official iraqi news Agency did not disclose the contents of the message. The news Agency said Saddam and the soviet envoy Yevgeny Primakow discussed the Gulf crisis and stressed a the desire for  soviet diplomatic sources reported that Primakow urged Saddam to cooperate with . Resolutions demanding the iraqi pullout. It was not Clear if they discussed the plight of 5,000 soviets unable to leave Iraq. About 4,500 of the soviets in Iraq Are key Oil Industry workers. Most Are employed in new Oil Fields being developed by Iraq. A the iraqis ate now dependent on these Oil people a a source in Baghdad said on condition of anonymity. A of they go no one else will come in to operate these  other soviets in Iraq Are military advisers who had been training iraqi soldiers in the use of soviet made weaponry and other equipment. Moscow was iraqis largest weapons supplier before aug. 2, but Cut Trade after the invasion. Sokolski of the Pentagon a International Security affairs office. A these Are blast effect weapons and what you can to see can kill  fuel air explosives or Fae Are a Type of Gas bomb based on a principle similar to filling a room with natural Gas and igniting it when the bomb or missile warhead is launched an initial explosion disperses a fuel a usually propane or ethylene oxide a into the air a second time delayed explosion triggers the mixture of fuel and air creating a massive fireball and invisible Shock wave similar to that produced by a tactical nuclear weapon and capable of flattening buildings destroying aircraft and Oil rigs and killing troops Over a wide area. At Peak efficiency Faes Are 10 times As destructive As conventional explosives of the same size and even at lowest efficiency have double the explosive yield of conventional weapons Pentagon experts estimated. Faes can be launched either in bombs from air planes or in missile warheads which would be much More difficult to defend against. While Western analysts believe Iraq does not now possess accurate Long Range missiles to deliver Faes they said the weapons far teaching Power could compensate for the presumed inaccuracy of iraqi missiles. Iraq military officials in 1989 displayed at an arms show in Baghdad one of three types of Faes they said Iraq had developed. European news reports also recently said Iraq a has perfected the weapon for air delivery. Budget negotiations through the Day. A we thought it was the Best agreement we could get but it did no to pass so now we Al have to make some changes and see if it is acceptable a Fitzwater said. A we never said it would be easy and its been a hard fight. But its just the first skirmish a he added. In the House vote lawmakers rebelled at proposed increases in medicare costs for retirees and consumer tax increases a on gasoline tobacco and alcohol a that would require Middle income families to carry a proportionately larger share of the Burden. A this is a sad night for die House for our political system and for America a rep. Dan Rostenkowski d-111., chairman of the ways Ana Means committee said after the vote. A your president has asked us to pull together. Too Many of my colleagues have Given him the Back of their  t Only 71 republicans supported the agreement while 105 voted no. Democrats gave it 108 votes and 149 voted no. Leaders pleaded that it be approved promising that Over the next two weeks committees of die House and Senate would moderate some of the most objectionable provisions. Pentagon says Iraq s bomb not new or secret technology