European Stars and Stripes (Newspaper) - February 6, 1991, Darmstadt, Hesse                                Page 10 a a a the stars and stripes  february 6,1991 a a r a 1 a a. A a 1 1 a. From Page 1 America to establish branches competing with local institutions. It would prune a Thicket of Independent regulatory agencies and in the process give the administration me control of financial regulation. The new recommendations focus on Long term changes whose full effects would not be Felt for years. Specific proposals for curing banking a most pressing Short term problem the weakness of the Federal Deposit insurance corp. Fund insuring Bank deposits have been Post the fund has been depicted by More than 600 failures Over the past four years and banking Trade groups Are discussing ways to replenish it without turning to the taxpayers. A a advocates of the Bush plan say it is Long overdue. Innovations in the delivery of financial services have Cut Banks off from some of their Best customers forcing them to make riskier Loans. Wealthy depositors open Money Market accounts with brokerage houses. Large companies Issue their own commercial paper rather than borrowing from  however say it could Lead to a dangerous concentration of financial Power depriving local communities of control of their financial institutions. They also fear conflicts of interest As commercial and financial firms merge. And they say retail customers May confuse uninsured securities offered by Banks with insured deposits. Changes in the Deposit insurance sys Tern Are potentially the most fsr reaching although they Are crafted to minimize disruption to average  we can and should place prudent limits on taxpayer exposure by returning the scope of Deposit insurance to its historical purpose a protecting Small unsophisticated savers a said the study a modernizing the financial system recommendations for safer More competitive  r _ at the last minute the Treasury department backed away from a proposal that would have limited depositors to $100,000 in insurance no matter How Many accounts or Banks they used. Instead the administration advocated a Milder version limiting insurance after two years to $200,000 per institution $100,000 for retirement accounts and $100,000 for other accounts. Depositors could obtain virtually limitless insurance by splitting their Money among several Banks. Still it s somewhat More restrictive than current rules permitting a couple with one child to insure up to $1.2 million at a single institution. More significantly the proposal will attempt to discourage regulators practice of bailing out even uninsured depositors in most failed institutions. By giving Large depositors a reason to scrutinize Banks the idea is to prod Banks into avoiding the risky investments that have gotten so Many into trouble. The Wydic would lose its discretion to reimburse uninsured depositors. In the rare instant Hen protecting All depositors is crucial to Confidence in the financial system the Treasury department and the Federal Reserve could authorize such a bailout. A. In that Case the Federal Reserve would contribute the extra amount required with later reimbursement to come from the Industry funded Odic potentially this could affect general taxpayers if the Bank insurance fund were too weak to repay the fed. A loss by the Central Bank Means it would have fewer profits to Forward to the Treasury. V As part of the reshuffling of the bureaucracy the Federal Reserve would take Over the of Dick a responsibilities for regulating state chartered Banks leaving the Odic largely an insurance . Paul Miller takes Helm of Atlantic Fleet Norfolk a. A adm. Paul d. Miller who had been director of naval warfare has assumed command of the Atlantic Fleet. Miller took his new position in a ceremony aboard the amphibious assault ship Wasp at the Norfolk naval base in Virginia. The change of command comes under unusual circumstances at the huge base. Instead of the usually Busy piers Only a few ships Are still in Hampton roads because of the persian Gulf War. More than three dozen Norfolk based warships have been deployed to the Middle East. A Miller has been a member of the service since december 1964. He served on a number of ships before becoming commander of the 7th Fleet in the Pacific. He also was a former executive assistant to the Secretary of the Navy. He succeeds adm. Powell f. Carter jr., who has commanded the Atlantic Fleet since november 1988. Carter a 1955 naval Academy graduate is retiring with More than 35 years of  agent receives 20 years for giving secrets to soviets los Angeles up1 a the Only Fri agent Ever convicted of spying was sentenced monday to 20 years in prison for passing secret documents to his soviet Lover in 1984 for Gold and Cash. The judge however blamed the Fri for allowing him Access to sensitive information when it was obvious a the was out of control.�?�. A in sentencing 54-Ycar-old Richard w. Miller . District court judge Robert Takasugi criticized the Fri for exposing Miller to sensitive intelligence information when it was apparent the counter espionage agent had a susceptible qualities and was untrustworthy. The judge disputed the prosecutions contentions that Miller ranked among the most damaging spies in . History. But Takasugi also said the defense was wrong in portraying Miller As a bumbling a Teddy bears who at worst committed an insignificant  from Pagel ing of Iraq on Jan. 17. The two men went there earlier before the desert shield deployment became the desert storm War. Bush reiterated that there would be no Allied concessions to prompt such a withdrawal. He declined to forecast when the War would end but said it would a not be Long and drawn  while he said that . War Aims have not wavered from the objective of liberating Kuwait the president added that a it would be a lot easier to see a successful conclusion were Saddam ousted or killed. V a i done to believe anybody other than Saddam Hussein is going to want to subject his army to the pounding they re taking or his people to the pounding they re taking a Bush said. A the president declined to say what specific weapons the United states might use in retaliation if Iraq resorted to use of chemical weapons but said Saddam a bought to think very carefully about doing that a very very  he said he wanted to leave the options for . Retaliation  he said Cheney and Powell will meet with Gen. Norman Schwarzkopf the commander of Allied forces. Bush did not spell out any other assignments. Neither the president nor the Pentagon gave a precise timetable for the trip. Bush said he will make the decision on the timing of any ground Campaign and the allies will not be lured to Battle by Iraq. A. Quot a a Saddam Hussein will not set the timing for what comes n ext a the president said. A we will do  on other War issues Bush said a he does not intend to seek an income surtax to help finance the War. He said the $15 billion outlined in his budget plus $51 billion pledged by allies a should be sufficient to pay for operation desert storm. A a a have absolutely no intention of reinstating the  he said the All Volunteer army is a totally capable of getting this Job done.�?�. A on monday iranian president Hashemi a Sfanjani offered to meet Saddam for talks on ending the persian Gulf War. A Sfanjani also said he was willing to resume official Contact with Washington in the interests of peace. A Bush said he Hasni to heard from Iran directly and knows of no new peace proposals from Tehran. That comment led him into the hard line description of what it will take to end the War a withdrawal from Kuwait. A i done to think there is an iranian proposal. I have not seen it. If that were the Case it would seem to me then Iran would have conveyed such a proposal to the United  Bush was asked if he was concerned about the casualties among iraqi troops under non Stop Allied air bombardments. A what concerns me is the lives of our troops the lives of the coalition forces a he said. A my first worries Are about  when he was asked if it was possible that Saddam could survive in Power Bush responded a the War will not end with Saddam Hussein standing with his View that he will not withdraw from  a on monday administration figures said there Isno a drop dead Date by which it must begin a ground offensive against Iraq and that . Military chiefs have not recommended a timetable to Bush. Will await  Cheney said Bush wants to take a maximum advantage of the devastating effects of Allied Aerial bombardments on iraqis offensive military capabilities before starting a land War to liberate Kuwait. Also on monday the administration defended Allied bombing raids that Jordan says have injured and killed jordanian truck Drivers on iraqis Highway from Baghdad to Amman. . Secretary general Javier Perez de Cuellar condemned the attacks saying a Jordan is an innocent victim of what is  state department spokeswoman Margaret Tutwiler said that the trucks were travelling through a War zone a and specifically through an area that has been the source of scud missile attacks against neighbouring  a moreover we have credible information that War Materiel including some related to scud missiles has been transported in Convoy with civilian Oil trucks a she said. A such Materiel contributes to iraqis occupation of Kuwait and is a legitimate military  from Page 1 a a. And said residential areas were among those hit. Baghdad radio also said heating Oil gasoline cooking Gas and other fuels were no longer being sold to civilians. A a a a. A. A the halt in heating Oil sales this week apparently allowed residents no Chance to stockpile fuel to combat overnight temperatures that hover around freezing Marine maj. Gen. Robert b. Johnston told reporters in Riyadh the saudi capital that 10 More iraqi planes a mostly combat aircraft a fled to Iran within the past 24 hours. Tehran television said four More iraqi planes landed in Iran on monday and tuesday. A saudi military spokesman said 25 iraqi soldiers defected to saudi forces near Khanji raising the total to 237. Another 605 have been captured he said. Johnston denied that Allied planes we re targeting Cikrit Saddam a Home Village. However he said there were several military installations around the Village. Group capt. Nail Irving of the Royal air Force said one third of the key Bridges in Iraq have been destroyed by Allied air raids and Many More have been damaged. He showed videotape of an attack that knocked out a Bridge Over the euphrates River in Southern Iraq. A a also tuesday a saudi military spokesman said syrian and iraqi troops exchanged fire along the saudi Border a the first reported combat for syrian forces in the Gulf War. A a a a a a col. Ahmed Al Zobayan said the engagement occurred after about 30 iraqi soldiers fired rocket propelled grenades at the syrian forces. The iraqis were driven Back by syrian artillery fire he said. Riyadh radio tuesday cited Interior ministry sources As saying an undisclosed number of resident foreigners had been arrested in connection with a sniper shooting sunday night in the port City of Jidida that slightly injured two . Service personnel. Johnston said six suspects were detained. He said the suspects Are not iraqis. The official saudi press Agency had quoted the Interior minister Prince Nayef As saying islamic Law would apply to anyone using the kingdom As a staging ground for terrorist attacks. He said anyone undermining saudi Security would have a hand and a leg Cut off or be executed. . Warplanes took aim again tuesday at tanks armoured vehicles bunkers and entrenched positions of Iraq s elite Republican guard said air Force col. Hal Hornburg the top officer at the largest . Air base in saudi Arabia. A . Military source in saudi Arabia acknowledged tuesday that . Warplanes Are attacking fuel trucks on highways in Iraq on the Assumption that even civilian vehicles May be carrying military cargoes. The source who insisted on anonymity said it was impossible to distinguish Between military and civilian vehicles especially at night