European Stars and Stripes (Newspaper) - July 17, 1991, Darmstadt, Hesse                                Wednesday. July 17, 1991 the stars and stripes Page 5 deficit forecast leaps by nearly $348.3 billion shortfall seen in fiscal 92 Washington up a the administration upped its fiscal 1992 deficit projections by almost 25 percent monday to $348.3 billion a the equivalent of More than one tenth of the outstanding National debt of $3.5 trillion. The office of management and budget said As recently As february that the deficit a the amount of additional Cash owed by the government at the end of the fiscal year would total $280.9 billion at the end of 1992. But the slow Pace of the cleanup of the savings and loan and banking industries along with incremental operation desert storm costs Means that Cash allocated to be spent this year will be earmarked for fiscal 1992 instead. Under the new forecast the deficit will make up about 5 percent of the nations total output of goods and services this year and 5.8 percent of the Gross National product in 1992 a assuming the Economy pulls out of the recession relatively intact. The administration tried to put the Best face on its annual midyear revisions to the deficit figures noting the pattern of Basic structural improvement remains  yet the change is More than simply saving Money this year and spending that Cash the next. Adding the february estimates for 1991 and 1992 leaves a two year deficit of $599 billion. The new forecast Calls for a-$630.5 billion deficit Over the two year period a a net increase of about $31 billion. And that crushing Burden has some economists worried. A it does raise a lot of scepticism about whether or not this deficit can be reduced a said Lynn Reaser a senior economist at first interstate ban corp in los Angeles. Particularly worrying for observers such As Reaser is the possibility that an enormous government deficit will drive interest rates sky High. That happens when government officials decide they must borrow Money to pay off their huge debt a and the enormous demand for Money makes Cash a More valuable commodity. That borrowing would increase interest rates which economists Call the Price of Money. The increase in turn could stifle economic growth. A people would Start to bid interest rates Way up Quot said Doug handler a senior economist at Dun amp Bradstreet in new York. But there a a Bright Side to a Mountain of debt Reaser said. A a it a going to be difficult for Congress to ask for a whole lot of additional spending Quot she  defends envoys comments on Saddam up file april c. Glaspie by the Washington Post Washington a faced with charges of misleading Congress the state department plans to argue that there is no significant discrepancy Between ambassador april c. Glaspie a secret cables about her two hour meeting with iraqi president Saddam Hussein last july and her testimony to a Senate committee. A the traditional Way of writing a diplomatic Cable about an ambassadors meeting with a foreign Leader is to emphasize what the Leader told the ambassador rather than the other Way around a a senior department official said monday. A that was what ambassador Glaspie did and that is Why her cables stress what she was told by Saddam. A later when questions arose about what kind of message she gave Saddam on behalf of the United states she filled in the gaps in her testimony to the foreign relations  he and other state department officials who spoke on condition of anonymity said that is the Gist of the argument that Glaspie and Deputy Secretary of state Lawrence Eagleburger expect to Tell the committee next week. They have agreed to answer criticism from senators that Glaspie a testimony March 20 was a misleading account of whether she had warned Saddam not to attack Kuwait. Committee chairman Claiborne Pell , wrote Secretary of state James a. Baker Iii last week saying Glass ice a cables from Baghdad Iraq about the july 25 meeting do not support her subsequent testimony that she had delivered a Strong warning against violence. Another committee member sen. Alan Cranston d-calif., said last week that a in tone and in substance Glaspie a testimony a is at very great variance with cables she sent her Bosses at the state  the Washington Post reported Friday that the cables show Glaspie took a conciliatory approach toward Saddam in the meeting and afterwards she suggested to Washington that the administration mute its criticism of Saddam. Her comments were contained in two cables. Pell and other critics said the cables _ raise the question of whether Glaspie actually delivered a warning about the consequences of invading Kuwait As she later told the committee or whether she took a less firm even conciliatory ton Carter from Bank Atlanta up a former president Jimmy Carter and Andrew Young the . Representative to the United nations under Carter have been linked financially with a failed International Bank accused of massive fraud a published report said monday. Both Young and a spokeswoman for Carter denied any improprieties. Bank of credit and Commerce International has been seized by regulators in seven countries and the Bank of England has accused it of engaging in extensive fraud. The Bank also pleaded guilty in Florida last year to charges of Money laundering for drug activities. The new York times reported that global 2000, a charitable organization received $8 million linked to fraud drugs created by Carter to help improve health and agriculture in developing countries received $8 million in contributions Over several years from Bocci. An additional $500,000 was donated toward construction of the Carter Center in Atlanta. Carrie Harmon speaking for Carter confirmed the contributions but said a fall of our contributions Are straight no strings attached  she said none of the Money went to Carter. The report said a Washington based company owned by Young the now defunct Andrew Young associates had a $50,000 annual consulting arrangement with the Bank and As part of the Deal. Young introduced the Bank to third world leaders. Stoney Cooks a longtime Young associate said the consulting retainer was never drawn on however. The arrangement with Bocci a never bothered me because 1 never got any of the Money per see Young said. He said he saw the Bank As a free Market oriented third world institution. Young has had a longtime personal relationship with Bank founder Aga Hassan Abedi a one time pakistani financier. He said he was convinced of Abedin a personal honesty. Quot every Good idea that Carter or i had Abedi was willing to finance a Young said. Quot he was never really giving us Cash but he was encouraging the local Banks he controlled to seed our projects. So i am reluctant to see Bocci As this sinister operation that everybody is making it out to  . Accuses canadians of illegal fishing Juneau Alaska a the coast guard seized a Canadian fishing boat on charges that its Crew illegally fished for Salmon in . Waters off Southeastern Alaska. The 38-foot trailer Barbarella was spotted saturday about 800 Yards North of the Canadian claimed Boundary inside Dixon Entrance said Kathy Yonce a coast guard spokeswoman in Juneau. Authorities on the Cutter Anacaya boarded the Barbarella on sunday morning and found about 5,500 pounds of Salmon. The boat based at port Alberni British Columbia was escorted to Ketchikan where it was turned Over to . Marshals. The three Crew members were turned Over to immigration officials and the Case will be referred to the . Attorney in Anchorage. A the coast guard seized two Canadian fishing vessels in the same area in july 1989. . And Canadian governments dispute the borderline at Dixon Entrance a waterway that separates Canadas Queen Charlotte islands and Southeastern Alaska. That May have led Saddam to believe he could invade without . Retaliation. The administration s argument in its next round with the committee was signalled by president Bush a National Security adviser Brent scowcroft in an interview saturday with Cable news network. He said the . Approach to Saddam before the August invasion was a to make this Guy a reasonably responsible member of the International Community Quot and that policy had been reflected in what Glaspie said during the july 25 meeting. A i have great Faith in ambassador Glaspie and what she said a scowcroft added. A you have to remember she was with Saddam Hussein by herself. She came Back and jotted Down what she recalls of what he said. They re not like conversations where there is a rapporteur there. One can to expect that it s a Complete transcript of what  when a questioner said Congress would expect to at scowcroft replied a Well maybe they do. But i would defy a congressman to write Down word for word what happened in a conversation an hour or two afterwards when there was no one else in the  in the stars and a trials 10years ago july 17,1981 a the Navy notified the coast guard after searching in vain for a live missile with a High explosive warhead that was accidentally fired from a . Destroyer near St. Croix in the . Virgin islands. 20years ago july 17,1971 a president Nixon announced that he would travel to China before next May to visit China s Premier Chou in Lai and a White House source said Nixon was expected to have a face to face session with Mao tse Tung chairman of China a communist party. 30years ago july 17, 1961 a nearly $2 million Worth of paintings including masterpieces by Matisse Utrillo and Dufy a were stolen from the Annonciade museum of modern Art in Saint Tropez France. 40years ago july 17, 1951 a the iranian government clamped martial Law on Tehran following riots in majlis Square that killed 15 people and injured 353