European Stars and Stripes (Newspaper) - December 20, 1991, Darmstadt, Hesse                                The Sitter log Lpes x Mujaj Irrera i. ».�. Jew Quot. My i. . 50, no. 251 350 Friday december 20,1991 d 8693 a i pm cutbacks pm Here a i Brit look at Gmys restructuring plans for its North american operations. A Plant Cloel nge pm wih dose six vehicle Assembly plants four powertrain plants and 11 component plants during the next few years. A Job cute pm plane to Cut its North american salaried Woik Force to 71,000, about half the level of 1985, by the Mfe-90s. Pm is expected to Cut its hourly workforce to about 250,000, also half the 1985 level by 1995. Pm plans no hiring in 1992 except for special situations. Q products pm wit consolidate vehicle platform design and improve Assembly flexibility to Cut spending. Pm crisis an Omen of new Era in trades amps by the los Angeles times general motors set off big signal flares wednesday when it announced a massive retrenchment that will reduce its Overall work Force by 71,000 employees in the United states and Canada Over the next four years. In the immediate future economists and employment experts said it signalled that the economic downturn could deepen and extend worldwide. A companies in Germany and Japan and every were will see pm s cutback and realize that they have to Cut Back themselves a said Lester Korn founder of Korn ferry International an executive placement company. A sense of profound change characterized Many reactions to pm s announce ment which said the company would close 21 plants and reduce office and managerial staff by 20,000. Gmys restructuring came against a backdrop of announcements from scores of major corporations in recent weeks. International business machines corp. Announced a restructuring last month that May include unprecedented layoffs Xerox try Tenn eco Mcdonnell Douglas and state governments around the nation Are reducing staff. Most of those Job cuts Are permanent a jobs Are being eliminated and employees terminated not merely Laid off pending an upturn in business. Still to be faced Are layoffs and cutbacks by ail the smaller companies that depend on pm and ism for business a suppliers and dealers metals and plastics producers advertising agencies and Media companies. Even though thousands of factory workers will lose their jobs the pm cutback is seen As part of what is called the a White Collar recession because jobs Are being eliminated in service industries and among office staff. The banking Industry for example has lost 25,000 jobs in the last year 300,000 jobs since 1984, with More cuts to come As Banks merge. Most analysts see Gmys cutback As confirmation that the american Standard of living is declining As the United states see pm on Page 2 nato agrees to recognize soviet republics As Sovereign Brussels Belgium a the 16 nato nations will probably recognize the Independence of the soviet republics within weeks Belgium a foreign minister said thursday. Sweden which is not a member of the Western Mili Tail Alliance said it also will recognize the former soviet republics of Russia byelorussian and the Ukraine As Independent nations. Soviet president Mikhail s. Gorbachev and russian federation president Boris Yeltsin have agreed to dissolve the soviet Union by Jan. 1. The three slavic republics have formed a Loose Commonwealth and six other republics Are expected to join on saturday. The republics have at different times declared their intent to seek Independence and countries around the world have responded As the declarations have Arisen. But it is dear states Canada As Sovereign states. Nato made its intentions known thursday at a meeting of die alliances foreign ministers. A listening to my colleagues around the table i think the recognition of the republics in the former soviet Union will not take Long a its More a question of weeks rather than months a belgian foreign minister Mark Eyskens told reporters. A fall see that the republics will be Independent that it is definite so they must be  responded As the declarations Nave Arisen a that Many european nations the United Ada and others will recognize the republics Secretary of state James a. Baker Iii attended the meeting after a five Day visit to the soviet Union. He did not announce the recognition of any of the republics but ukrainian officials said they expected it by the years end. Nato said the republics should comply with guidelines on International relations disarmament and human rights before being Given diplomatic recognition. Eyskens said Baker had asked a not to impose conditions but rather a series of considerations As a prerequisite. In announcing Sweden a intentions prime minister Carl Bildt said a a new Europe is taking form. New states Are revived. But it is not just a question of their being new but that they respect the rules Laid Down in the european family concerning democracy minority rights Ana arms control  the 12 european Community nations agreed monday on similar guidelines to recognize emerging nations in Eastern Europe. They said they would recognize on Jan. 15 the Independence of any yugoslav Republic if it would guarantee the rights of minorities in their territory. Slovenia and Croatia declared Independence in june. That led to a civil War in Croatia Between its militants and serbian irregulars backed by the serb dominated yugoslav army. Thousands of people have been killed in the fighting. Sweden said it also plans to recognize Croatia and  of secrecy lifted Patricia Bowman testifies during William Kennedy Smith s trial to West Palm Beach fla., earlier this month. Bowman who accused Smith of rape and whose identity was withheld by most news organizations has shed her anonymity with her decision to appear on abcs prime time Uve. See stories on Page 4.Trade deficit improves slightly on strength of record exports Washington a americans merchandise Trade deficit improved slightly in october As record Export sales helped Cut the deficit to $6.73 billion the government said thursday. The Commerce department said the october deficit marked a 2.9 percent improvement Over september a revised $6.93 billion imbalance. The decline the first since june reflected a Sharp 3.9 percent jump in Export sales which Rose to an All time High of $36.74 billion. Americans appetite for foreign goods Rose As Well pushing imports to $42.47 billion the second highest level on record. The Trade deficit is the difference Between imports and exports. For the first 10 months of 1991, the Trade deficit is running at an annual see Trade on Page 2germany s Central Bank boosts interest rates from wire reports Frankfurt Germany a the Bundesbank Germany scentral Bank tightened Money policy thursday by raising two key interest rates by a half percentage Point. The move could Strain economic policy in other nations. The United states favors lower interest rates to Spur economic growth and has asked other nations to follow suit. Britain also needs lower rates to help recover from recession. But the higher rates in Germany will entice funds from foreign investors seeking the Best return pulling Down the Exchange value of currencies of countries Ige with lower interest rates. That could put upward pressure on interest rates in see Bank on Page 2