European Stars and Stripes (Newspaper) - January 19, 1993, Darmstadt, Hesse                                Tuesday january 19, 1993 . The stars and stripes Page 52 of generals accused in financial scandal by the los Angeles times the Pentagon inspector general has called for disciplinary action against two air Force generals and the services former procurement chief for secretly bailing out Mcdonnell Douglas. A 100-Page report says that in 1990 air Force officials advanced payments of nearly $500 million to the financially troubled company. The charges which focus on the company a troubled c-17 cargo Jet program Are Likely to Lead to a criminal investigation a Pentagon official said. The report recommends disciplinary action against among others it. Gen. Edward p. Barryjr. Barry is a former program executive officer for the c-17 and currently the commander of the air Force space division in los Angeles. U also named maj. Gen Michael j. Butchko jr., a former c-17 program manager and John Welch jr., a former assistant Secretary of the air Force. Air Force Secretary Donald b. Rice said sunday that he was initiating an Independent review to a provide a factual basis to act on the reports recommendations. Rice leaves office wednesday with the rest of the Bush administration but he is expected to appoint an investigatory panel before then. A Mcdonnell spokesman Pete Sloan said the company had not seen the report. But a from what we Nave heard it Only raises old issues a Sloan said. In the past Mcconnell Douglas the nations largest defense company has denied any bailout occurred. Sources familiar with the report said that in the closing months of 1990, the service undertook Broad efforts to funnel Money to Mcdonnell a c-17 program by shifting contracting funds and accepting incomplete aircraft and other technical contracting actions. The report concludes that air Force officials created an elaborate cover up of the bailout including relaying false information and Overly optimistic reports about the c-17�?Ts Progress to other Pentagon officials. The air Force officials Funn eted payments to Mcdonnell that circumvented Pentagon procurement regulations it found. The report will not be released until Mcdonnell reviews it for any potential proprietary information but details of the report became known sunday. Rice acknowledged that it called for disciplinary action against a several  an air Force spokesman said he could not go beyond ricers statement. The c-17 has been among the air forces most controversial projects. Mcdonnell has overrun its c-17 contracts by More than $1 billion saddling the company with heavy losses. It has been dogged by criticism of its management and concern that the Jet will not meet specifications. The report comes As the company is preparing to submit a la billion claim to the air Force asserting that the government caused the overruns by disrupting work. Sloan said the company so position has been and continues to be that Mcdonnell performed the work under the contract submitted the Bills for the work under the department of defense accounting rules then in effect and we were paid Only for work  the company said it a would not be appropriate Quot to comment on whether air Force officials May have violated their own rules in the Way they handled the company a payment  the stars and stripes 10 year Sago Jan. 19,1983 a soviet foreign minister Andrei Gromyko at a Berlin news conference rejected the american Zero option proposal for limiting intermediate Range nuclear missiles in Europe. 20 year Sago Jan. 19,1973 the White House and Hanoi announced that top level Paris peace talks would resume in four Days a for the purpose of completing the text of an  30 year Sago Jan. 19,1963 a most of Europe s capitals endured near Zero temperatures As severe cold clogged vital Road and water arteries and heightened the continent s fuel crisis. 40 year Sago Jan. 19,1953 a prayers for world peace in More than 500 churches in the nation s capital marked the beginning of the official program for the inauguration of Dwight d. Eisenhower As president. 50 year Sago Jan. 19,1943 Raf bombers transformed a Large area of Berlin into a particularly hot Corner of a hell on Earth according to an american reporter who Rode on one of the planes. World War ii 50 years ago today j Jan. 19 1�94�3 . Warships bombard japanese positions on Attu Island in Alaska s Aleutian Chain in the South Pacific the japanese commander at san Ananda on new Guinea orders his troops to slip through Allied lines in the Jungle and move Westward along the coast Britain s 8th army captures tar Una out flanking the German defense line in Western Libya Stu flu. 219-1  of War w h  publishers inc would Ahn Mic Book of world War ii Liaison Rooks copied i a girl s prison in Hunt for evidence Bay Shore . A a Jack Hammer and Power saws screamed into the Chilly air sunday As police began dismantling a Carport above the subterranean Concrete Bunker where 10-year-old Katie Beers was held captive. Shortly after Sunrise workers started tearing away the roof and wooden Walls of the Carport chopping up the Concrete Carport floor arid digging up dirt surrounding it creating a 6-foot-tall Mound. A a we re just cutting and sawing a said a police sergeant who asked not to be identified. He said he expected the work to be finished by Friday. A the demolition focuses on the area around the Carport which was attached to the converted garage where Beers family acquaintance John Esposito lived. Police planned to tear apart some of Esposito Shortie but the sergeant said it would be left standing. They want to leave no clue unearthed in the bizarre Case that ballooned from a missing persons report to a sordid tale of child abduction and Captivity. Suffolk county police detective i. Dominick Varrono said authorities Hope to remove intact As much of the Bunker where Katie was kept As they can. She was rescued wednesday from the Bunker beneath the converted garage. Police said she was imprisoned there for 16 Days. Authorities said Esposito forced Katie into a coffin sized Box in the Bunker after she resisted his sexual advances. She survived on Bologna sandwiches sodas and junk food As she watched a television placed in the Box with her. At times she was chained around the neck police said. Esposito remained jailed sunday on a second degree kidnapping charge with bail set at $500,000, officials use heavy equipment sunday to break up a slab of Concrete that covers the Bunker in Bay Shore  where 10-Ycar-old Katie Beers was held for 16 Days. His attorney Andrew Siben said he met with Esposito for two hours sunday before coming out to watch the  a he a under a great Deal of stress a he said. A the is under constant watch by the sheriffs department. He a very distraught. He looks very  Siben said Esposito is spending 23 hours a Day in his cell. �?o1 told him Katie is doing Well. He was certainly Happy to hear that a he said Katie was found after Esposito who reported her missing admitted he knew where she was. The child is in the custody of county child welfare officials and is awaiting the outcome of family court proceedings to determine whether she May be returned to her Mother. On saturday Marilyn deers assailed critics who said she was an unfit Mother who spent utile time with Katie. She said the child a took a flying leap into her arms when they were reunited for a half hour Friday night and said she  wait to return Home. A custody hearing is scheduled for thursday. People from around the country have offered to adopt Katie As Well As offered presents Money and parties for her since her ordeal became Public. Suffolk county child welfare officials have promised to deliver presents and Money but have told would be Foster parents that Katie in t up for adoption. Bacterial illness hits 40 in state Seattle apr More than 40 people in Western Washington most of them children have fallen victim to a bacterial illness commonly linked to undercooked beef the state department of health said sunday ten children were admitted to children a Hospital in Seattle Over the past week after being infected with the bacterium e. Coli. Four remained in intensive care sunday Hospital spokesman Dean Forbes said. The children ranged in age from 13 months to 12. The bacterium causes bloody diarrhoea and abdominal pain. In severe cases it can Lead to kidney problems and excessive bleeding. Symptoms usually come three to four Days after eating contaminated food. A kids were writhing in pain seriously. Their stomach cramps were very bad. Their diarrhoea was very bloody a health department spokesman Dean Gwen said. A this is not your typical diarrhoea that comes with the flu. This is very  Owen said health officials Haven to traced the source of the outbreak. The majority of the cases were in King county the states largest county. Cases were also reported in Snohomish Pierce Thurston and whatcom counties. The last major outbreak of the e. Coli bacterium in Washington was in the mid-1980s and was traced to a Walla Walla fast food Chain. Owen said several people died in that outbreak