European Stars and Stripes (Newspaper) - January 15, 1993, Darmstadt, Hesse                                Friday january 15, 1903 . J the stars and stripes Page 7 May affect tax Cut plan first time Sas president elect Clinton talks wednesday to reporters in Little Rock about problems he will soon inherit. Little Rock Ark. Apt president elect Clinton said wednesday that he ii have to reconsider i Campaign proposal for a Middle income tax Cut because the Federal deficit is swelling a i have to put everything Back on the table us Tiffon said in an interview with a group of Arkansas reporters. Although transition officials a and budget director designate Leon Panetta a had suggested that the tax Cut promised by Clinton during his Campaign might have to be put on a Back Burner it was the fir Clinton has said so directly. President Bush said in his final budget last week that the 1997 deficit would be $305 billion instead of the $237 billion his administration had forecast in july. That raised serious doubts about Clinton a vow to halve the deficit in four years and also put his proposal for a Middle income tax Cut in question. A i think i have to revisit it because of the bigger deficit a Clinton said. Clinton said he still favors such a break As a matter of a tax fairness rather than a Way to boost the recovering Economy. But he said a the size and the amount and the timing of it 1 have to consider against the size of the deficit. He said the deficit is now projected As �?o$50 billion bigger five years from now than it was thought to be in August and Over $100 billion bigger than it was thought to be in the Spring when i put together that  he was referring to the Book putting people first which proposes the tax Cut. The Book docs not spell out the size of the tax Cut but said Middle income families would be offered either a modest tax break or higher deductions for children. Clinton earlier said he was surprised by the new deficit figures but suggested on wednesday that the figures were consistent with economic problems in Arkan asked if his decision to Quot revisit the tax Cut proposal was a Nice Way of saying that he had ruled it out Clinton said a a it a a Nice of saying that 1 have to put everything Back on the table. A those decisions have not been made. They can to be made today. But they will i Hope a Clinton said. On other matters the president elect a promised to announce by weeks end a policy to bring about a diplomatic solution to the crisis in Haiti and to help Avert a new mass exodus of refugees who think his policies will be less restrictive than those of president Bush. He said his plan would seek to bring about a a political settlement to a Way for democracy to be re established in  a said he expected to be a working Vicy hard including on the weekends for the foreseeable future Quot in Washington but that he hoped to a come Back on a regular basis to Arkansas. Or Les he knew army spied Washington a Warren Christopher testified wednesday that after reviewing his personal files be still believes he was unaware in 196s of the army so a Covert surveillance of War protesters and civil rights activists. The Secretary of state designate told the Senate foreign relations committee on the opening Day of his confirmation hearing be did t recall a receiving or Reading any of four documents in his files at the Lyndon b. Johnson Library detailing army intelligence gathering on civilians. Republicans said the documents cited by the associated press in a Story sunday raised questions about what Christopher knew about army spying and whether he misled Congress at a 1977 hearing when he denied a knowledge of and army surveillance of civilians or other army Covert Quot programs. Christopher disagreed in a written statement to the Senate committee. In particular he dismissed a july 23, 1968, memo that informed him then a Deputy attorney Genera that army intelligence a a operatives were a primary source of data on potential civil unrest in Washington . A the word a operatives. Is fully consistent with my 1977 testimony indicating my awareness that the army had engaged in no Covert intelligence efforts a Christopher wrote. A i stand by that testimony and 1 will not tolerate any such improper activities at the state department or elsewhere if 1 see it in the government a Christopher said in his testimony before the committee. The army conducted widespread spying on civilians in the late 1960s, a practice stopped in 1970 and later criticized in Congress As unconstitutional. Christopher and other Johnson administration officials have maintained for two decades they did not know about the activities. Sen Joseph r. Biden jr., d-dcl., a committee member said the surveillance Issue raised a legitimate questions a but a i Don t have any concerns about Christophers explanation. Republicans did not question Christopher about the matter wednesday. They were waiting to search for additional evidence with the arrival of 67 classified documents from Christopher s civil disturbance files that were not open to pub lie inspection at the Johnson Library in Austin Texas. The hearing was expected to continue thursday. A Warren Christopher stands by testimony in Little Rock Ark., president elect Clinton said he has spoken to Christopher since the reports this week raised questions surrounding Christophers knowledge of army spying on civilians in the 1960s. He said that he did not want to speak for Christopher and that Christopher will speak for himself on the Issue and draw a distinction Between what he really knew and what the reports suggest he knew. Nominee Baird reportedly hired illegal aliens Washington a attorney general designate Zoe Baird hired a South american couple who were illegally in the United states when she was unable to recruit a . Citizen to care for her child government sources say. Baird told  Clinton transition officials that in 1990 she hired the couple because no one had responded to want ads she placed for a Nanny said the sources who spoke on condition of anonymity. _ a Baird volunteered the information on an Fri background questionnaire and discussed the situation with sen. Joseph r. Biden jr., d-pel., chairman of the Senate fwd Kiriy committee a committee source said. The sources confirmed a report published thursday in the new York times. The newspaper reported that the couple was from Peru and that the husband worked As a part time Driver for Baird. The husband quit last March but his wife continued working for Baird until last fall the committee source said. The disclosure was a potential source of embarrassment for Baird who would oversee the immigration and naturalization service and its enforcement of immigration Laws if confirmed As attorney general. Ins a component of the Justice department is charged with enforcing the 1986 immigration Reform and control act which bars americans from knowingly hiring illegal aliens. Baird and her husband Yale univer sity Law professor Paul Gwirtz hired the couple to take care of their Young son in 1990 after Baird was hired As general counsel of Aetna life and casualty co., said the committee source Baird told Biden that she hired the couple on the advice of a Connecticut lawyer who instructed her to notify both the ins and the labor department the source said. Baird reported that she filed labor certification papers with both agencies. The lawyer also advised that because the couple were not Legal immigrants Baird and her husband did not have to pay social Security payroll tax. Baird and her husband recently paid the government a Lump sum for Back taxes on the advice of a Washington immigration lawyer the committee source said. To Ati Dallas up two lesbians who have shared a Home in Dallas for 21 years will ride a float dedicated to american families in president elect Clinton s inaugural Parade next week. Louise Young and Vivienne Armstrong will be among 80 people Riding a float called the family of America which is intended to represent a Cross Section of families. Single parents As Well As lesbian and Gay couples will be included. In an interview with the Dallas morning news Young applauded the inclusion of lesbians and Gays in the Parade but conceded that some people a won t be too thrilled. Among those blasting the decision to include homosexuals in the Parade was the Rev. Lou Sheldon head of the tradition values coalition which boasts a membership of 25,000 churches nationwide. A homosexuals should never be compared to people who Are Black or hispanic or asian or handicapped or jewish Quot Sheldon said. �?o1 he Freedom train to Selma never stopped at Sodom or  Parade spokeswoman Sally Aman said Gays and lesbians will ride the float because a Gay people Are part of this country and they should be a part of the family of  she said the float will feature an american Flag. Young and Armstrong both 45, met in 1971 at the University of Colorado at Boulder where they helped form the local Gay liberation front. After College the couple moved to Oklahoma where Young lost her teaching Job because of her sexual preference. In 1976, the couple moved to Dallas where both women have been Active in local politics and Gay causes