European Stars and Stripes (Newspaper) - November 10, 1994, Darmstadt, Hesse                                Thursday november 10, 1994 elections 94 the stars and Stripespage 9 Alabama joins gop Washington a  Shelby of Alabama a Democrat in Congress for 16 years announced wednesday that he was switching to the Republican party saying he saw no place for a conservative within the democratic party. -,.Shelby who had been courted bythe gop for some time immediately was welcomed by Republican Leader Bob Dole of Kan Sas who will be majority Leader in the next con Gress. Shel y s defection expands the Republican Edge in the Senate to 53-47. Shelby Shelby who was not up for re election this year often has voted with republicans during his eight years in the Senate an complained at a news conference wednesday of a Long frustration with trying to work within the democratic party the party grew up with i thought there was room in the democratic party for a conserva Tive Southern Democrat S.C. a myself. But i can Tell you there is not Shelby said at a news con Ference also attended by Dole and Texas sen. Phil Gramm chairman of the Republican senatorial com Mittee and a former , who was elected to the House in 1978 and to the Senate in1986, said that for a Long time there has been no room for Himin the democratic party. On this great Day you Don know How free i feel he declared. There s nothing like being frustrated in being part of a party of no Hope but All  gop business Sorn experts say ". ". S i of. New York a Republican control of the Senate and House should be Good news for financial markets and the Economy Wall Street analysts say. That s because the gop generally favors less government and lower taxes which tends to stimulate business. However analysts worry that a re publican Congress and a democratic administration could end up at Odd Sand create a legislative stalemate. This initially is going to Start the Ball rolling for a Strong rally in the Stock Market said Stan Weinstein publisher of the professional tape Reader Anglo Baltren Alert of Hollywood Fla. Still the effect on stocks Bonds the Dollar and the Economy As a whole should be Only moderately positive analysts said because Many traders an business people already had figured on a gop takeover and because the Stock Market is driven mostly by its own strengths and weaknesses. The initial Market reaction was mixed. A  The Dollar edged up against the yen in Japan and Rose broadly against major currencies in Early european trading wednesday. Stock prices were mixed rising sharply by midday in London after finishing lower overnight in Tokyo reaction to the Republican gains will be dulled somewhat by uncertainty about the gop lawmakers Agenda said Hugh Johnson chief investment officer at first Albany corp., a brokerage firm based in Albany , also there was concern that gop tax Cut initiatives Given a Democrat in the White House would not be met with corresponding spending cuts and might push the deficit higher. A ballooning deficit could Hurt Bond prices. Stocks might then follow Bond prices Down. Nevertheless some in the business Community expect to Benefit from the Republican gains. Small businesses for example weren t Happy with Clinton s health care proposals which they said would Saddle them with higher taxes said Marc Nuttle a lobbyist for the National federation of Independent business. They re looking for men and women who run for office who believe that free Enterprise As a priority is the most important thing for the country and that its health and welfare should be consid ered first Nuttle said. From Pagel priorities and said republicans had Burden to make proposals too and say How the would pay for them. Last night the voters not Only vote for sweeping changes they demanded that a More equally divided Congress work together and with the president Clinton said trying to explain his party s loss of its Senate and House Majori ties. -.,  .,.".,asked if the gop sweep was a repudiation of his policies Clinton repeated that he deserved some of the blame. I am the president he said. He interpreted the results As a desire by voters for a smaller government that gives them More for their Dollarand he lamented that Many of his accomplishments had not had time to change lives for the better regret that some of the people who lost Are people who made this a lot bet Ter country he said in a Farewell to some of the Defeated democrats. Had he been on the ballot he said he would have been a ferocious defender of what we have Donethat appeared an oblique complain about the democrats who deserted him in hordes and were critical of the administration instead of promoting its re Cord. Still Clinton said of the voters their voice was heard. They Are i charge. We All work for them every one of us and we got the message. We have to think about it Analyse it rest up and move onasked about the House top s Campaign platform Clinton said he agreed with its Call for a line item veto which he said would help deficit reduction. And while he opposes other provi Sions Clinton said he would try to work out his differences with the new go leadership. I want to work with them he said adding that tax fairness was another goal he shared with the republicans. The question he said was finding a Way to pay for it making the morning talk show Cir Cuit chief of staff Leon Panetta con ceded that Clinton had been stung bythe magnitude of the gop sweep that by no Means did we expect to lose the number of seats we did in both the sen ate and the Househe s Ridden through these Waves be fore he knows what goes up comes Down and what s Down goes up. R focusing on areas of possible com Promise Tanetta said apolitical re terms have to be implemented. Wel fare Reform and some portion of health care Reform. We be got to keep the economic re covery moving in the right direction. We do have to keep deficit reduction mov ing downward. These Are areas where at least everybody has said the same Thingswith the magnitude of Republican gains in Congress evident Clinton sent press Secretary Dee Dee Myers onto the White House Lawn just before mid night tuesday to say i think the presi Dent will certainly want to heal the wounds and close the Gap Between the parties As quickly As possible because it s the future of the country and the american people that s at Stakechanges from Page outline unveiled by rep. Newt Gingrich r-ga., boots decision on defense spending to an Independent com Mission which would t even weigh in for two years lot of this is posturing said retired Navy capt. James Bush an analyst at the Center for defense in formation a Washington think tank. To increase de sense spending you either have to raise taxes or Cut entitlements and both of those proposals Are politically crippling right  from the Overall level of spending analysts say any shifts in priorities within the defense budget Are Likely to be relatively benign As Well. I Don t see much dramatic change said Larry Korb an analyst with the Brookings institution another Washington think tank. There in t much room for dramatic change and there Aren t Many big ticket weapons pro Grams in the pipeline to spark the kind of partisan Mone Battles that have been routine in the Pastweapons procurement has been Cut dramatically an May decline even further As the Pentagon scrambles to close a multimillion Dollar Gap in projected spending Over the next four years. At the same time other operational issues have surge to the forefront S.C. As contingency missions and Quaty of life concerns including military pay  have a few weapons issues on the table the c 17 cargo plane is controversial and there s an ongoing debate Over the b-2 bomber Lessure said but the arguments Are different now. The big fights in Congress now revolve around How we should use the troops going into Haiti or Bosnia those kinds of Thingswhat s More Lessure said not All republicans a Ebent on boosting defense spending. One of the most ardent deficit reduction Hawks in Congress is rep. John Kasich a Ohio who is in line to become chairman of the House budget committee. That panel sets Broad Federal i he big fights in Congress no revolve around How we should use the troops going into Haiti or Bosnia those kinds of things Carol Lessure legislative analyst for the defense budget project j spending Levels. Kasich was one of the architects of a draconian deficit reduction proposal including cuts in defense spending that was Only narrowly voted Down two years ago. He s plugged in with Gingrich yet he s a fiscal conservative Lessure said. Those conflicting pressures will put him in an interesting position with some of the coalitions he s Formedin terms of the other personality shifts on the armed services committees and defense appropriations subcommittees analysts expect Little upheaval. In the Senate Republican Stalwart Strom Thurmond of South Carolina is in line to take Over the armed services committee from sen. Sam Nunn a a. But analysts said there s Little doubt that Nunn a relatively conservative Democrat whose views on defense Are widely respected will remain the intellectual Force on that  was the Power when John Warner was the chairman said Korb of Brookings. He was referring tothe Virginia Republican who headed the committee when the gop briefly controlled the Senate in the 1980s.one important player to watch on the Senate armed services committee could be sen. John Mccain  s very supportive of the military but he s also been been one of the loudest voices against pork barrel politics and wasteful spending in the defense budget said Bush. The leadership change on the House armed service committee is starker with rep. Floyd Spence r-s.c., in line to takeover from rep. Ron Dellums a Calif. Del Luis is an avowed Liberal who has been one of the few Law makers to Call consistently for deeper defense  s a big change but More theoretical than practical Bush said. In the time he s been chairman Dellum Shawn t been Able to implement Many of his Long held beliefs Spence has been one of the strongest opponents of president Clinton s efforts to hold Down military pay raises. The Ascendancy of S.C. a forceful advocate to the House armed services committee chairmanship should be Good news for services erasers Bush said. On the two defense appropriations subcommittees rep. Joseph Mcdade r-pa., is expected to take Over the House panel from John Murtha a Democrat from his downstate while sen. Ted Stevens a Alaska would replace Hawaii Democrat Daniel  four lawmakers Are generally pro defense although Stevens has criticized wasteful military  Bottom line seems to be that Republican talk of boosting the defense budget probably is just that talk