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Nevada Evening Gazette (Newspaper) - May 14, 1977, Reno, Nevada Research Head Slams State Limitations 'Repressive' Claim Surprises University Regents A fjMkfof iltewtpafw talc journal Final .Saturday Morning. May It's Fair and Exposition Time along the main streets of "1876 Reno" just prior to the opening at 6 p.m. of the ByPATO'DRISCOLL The State of Nevada's "repressive" restrictions on the University Nevada's Desert Research Institute have trapped the institute in "a difficult, if not fatal, institute president Lloyd Smith- charged Friday. In a surprise written statement presented at the university regents'" Reno meeting, Smith further accused the state, through recent legislative action, of "gradually usurping the board of regents' constitutional rights." Smith's written statement said DRI must be freed from state restric- tions under which a research operation in private industry and business could never exist. He also said Friday he isn't advocating that DRI not be accountable to the state. But his statement said the institute is penalized by restrictions and time delays in matter-of-course actions such as budget transfers, hiring and firing, borrowing money and setting salaries to attract good personnel. The object of Smith's written wrath is what he termed the state's "arbitraryproposal" to transfer the DRI's business operations to one of two central business offices for all university and community college, financial functions. The Nevada Legislature recently included such a measure in its bill approving the university system's budget, thereby mandating establish- ment of the central offices before the university gets next year's budget money July l. Smith claimed such action "violates a fundamental principle of business organization" and makes it impossible for him to perform his duties as the DRI official responsible for financial management. He added the legislature's action "even usurps the constitutional respon- sibility of the board of regents to control the university system." His statement which was delivered Friday morning but not (See STATE, Page 2, Col. 1) OPEC Nations Abandon Oil Price Increase Festive By BOB LEWIS The cowboy stood a shade over three feet tali in his cowboy boots as be strolled over Lake's Crossing Friday night and down the streets of 1876 Reno. He wandered past shops selling everything from puppets to wire animals, dolls, leatber belts, embroidered shirts, jewelry, water color paintings, even coke and cotton candy. He gripped and twisted a hot dog with both hands. No matter, how hard he tried, he couldn't seem to fit the thing in his mouth. Mustard and ketchup soon were plastered all over his cheeks and chin. He moseyed past the stage. The jazz band was playing "Boogie Mary Had a Little Lamb." With wide eyes he watched all the and just plain moving up and down the Everyone seemed to be getting wrapped up in the spirit of tilings. He glanced at the barmaids and the other ladies in bonnets and long red. skirts smiling and dancing to the music. Finally he turned away and beaded back for his mother. The hot dog had gotten the best of this three-year-old cowboy. And it will all happen again as the "1876 Fair and Exposition" continues fourth-annual Reno Service League 1876 Fair and Exposition at the Washoe County Fairgrounds. The three-day fair will continue through Sunday night. (Journal Photo by Marilyn today from 11 a.m. to 11 p.m. and Sunday from 11 a.m. to 6 p.m. at the Wasboe County Fairgrounds. The fund-raising event is sponsored by Reno Service The "streets" are cement, "1876 Reno" has walls and a roof made of steel and lined with insulation, and each shop sports the ever-present Master Charge sign. "Lake's Crossing Bridgets actually some plywood boards across a handful of stones. But the modern day distractions dida't seem to bother anyone. "The idea of the fair is to have said Fine, chairman; "The fair is very popular with the people in the community because it's something different. It involves our heritage and offers something for youngsters, teen-agers, older people." The Fair includes live continuous entertainment on stage, dozens of shops offering everything from "Christmas in May" toys to a "Mad Hatter's" shop, and an auction of among other wings a covered wagon trip to Wyoming. Today's activities will include a barbecue and dance, a football throwing contest and "Kid's Day" events. (See SOMETHING, Page 2, Col. 3) NICOSIA, Cyprus (AP) Eleven members of the Organization of Petroleum Exporting Countries have abandoned a scheduled 5 per cent increase in oil prices in a move that could save the world's oil consuming nations ,92 billion, the Middle East Economic Survey said Friday. However, U.S. oil industry sources indicated mere would be very little savings at the gas pump. If translated directly, each dollar increase in the crude oil price boosts gasoline prices by about cents a gallon. The Economic Survey, a reliable oil journal, quoted OPEC sources as saying the decision would be an- nounced formally May 20. The decision would be a victory for Saudi Arabia, the world's largest exporter and a major source of llT supplies. Saudi Arabia and the United Arab Emirates refused to go along with a two-stage, per cent oil price hike agreed upon by the other 11 OPEC members in a meeting last December in Doha, Qatar. The 11-member majority initiated a 10 per cent hike Jan. 1 from the then a barrel and had scheduled a further 5 per cent hike for July 1. Saudi Arabia and the UAE opteeeed for a 5 per cent boost for the whole year. Without the second-stage increase, the marker price for crude from the 11 member countries will remain at a barrel instead of rising to They produce about 20 million Shockwave U.S. Proposes Cutting Funds to OAS Capsules WASHINGTON (UPI) The Carter administration Friday sent financial Shockwaves through the Organization of American States when it proposed a 25 per cent cut in its yearly million contribution to the hemispheric group. The proposal was made by Deputy U.S. delegate Robert White who said the United States has no intention of abandoning the OAS but some of its aspects have been questioned by an economy-minded Congress as well as by the executive. "The United States does not dominate this organization. It only seems that way and the moment has arrived in which appearances have to give way to White said. "The reality of the American continent has changed, out not so the OAS we have no intention of abandoning the OAS and the Carter administration wants a better relationship with Latin America." White's proposal, which was im- mediately rejected by some delegations and half-heartedly ac- cepted by others, would cut the U.S. contribution from the current 66 per cent of the total to 49 per cent. Currently, the OAS' 25 active members pay about million an- nually in contributions. The U.S. share of that is about million and White's proposal if accepted would reduce it to nearly million. The difference would have to be made up by the other members and this could become a political raather than a purely financial problem. The matter will be consideied by the next OAS General Assembly, which meets next month. "We have to be realistic about said Mexican delegate Rafael de la Colina. "The United States, for domestic reasons, has decided to pay less and if the General Assembly insist in the present quota system, the United States will leave the OAS and that will be the end of the organization." Panama's Nander Pitty Velazquez, speaking for those rejecting the U.S. proposal, said, "While Latin America's ability to pay has diminished, that of the United States has increased because of its favorable balance of payment. We can only change the system through a vote and not simply because one member wants it." New Agency Proposed Indian Bureau Abolition Urged WASHINGTON (AP) A congressional commission Friday sharply criticized the Bureau of Indian Affairs aud recommended creation of a cabinet-level depart- ment or an independent agency to take over all govern- ment programs affecting Indians. The American Indian Policy Review Commission nearing completion of a report recommending greater self-government for Indian tribes, approved a section saying the bureau suffers from "a notable absence of managerial and organization capacity." "Employment classification is in a chaotic the report said. "Users of bureau reports must dig through piles of paper to locate problems... managers can do little to control people or programs... many employes spend excessive time generating or reacting to rumors." "Tne bureau is totally said Rep. Sidney R. Yates, D-IU., a member of the commission. Tbe cciamission recommended that President Carter submit a reorganization (dan creating a Department of Indian Affairs or an independent agency which would take over functions of the Bureau of Indian Affairs, the IndUn Health Service and agencies of the Justice Department which deal with IndSns. The session was marked by a clash between Sen. James Abourezk, D-S.D., chairman of the commission and Rep. Lloyd Meeds, D-Wash., vice chairman who has publicly criticized many of the commission's recom- mendations. Meeds objected when staff members were unable to produce copies of proposed recommendations on social services and Abourezk suggested the commission vote on the basis of an oral explanation. "That's the trouble with the way this commission has operated all said Meeds. "We're just rubber stampingwhattbestaffisdoing." "I resent the fact you say that's the way the com- mission has been operating all said Abourezk. "It's an unfair attack on the staff and the commission." A vote on the social services section was put off until Monday. Meeds filed a dissent calling the report "the product of one-bided advocacy in favor of American Indian tribes." He said the commission erred in attributing "inherent sovereignty" to tribes. Abourezk said the report made clear that Indian sovereignty is subject to congressional action. Some Good News There was good for American coffee drinkers Friday. Two more of the nation's biggest roasters cut wholesale prices on ground coffee. General Foods Corp., the nation's largest roaster, announced it was rolling back wholesale prices on ground coffee by 25 cents a pound and 35 cents a pound on decaffeinated ground. The Coca-Cola Co. confirmed its food division had slashed ground coffee prices by 45 cents, to a pound, effective May 9. On Thursday Folger Coffee Co., the No. 2 roaster, lowered prices on ground coffee by 25 cents, to a pound. The Folger action nullified its last price rise of 25 cents, which went into effect March 30 but still had not hit grocery shelves. Interest Rotes Hiked NEW YORK (AP) Many of the nation's largest com- mercial banks hiked their prime lending rate Vpoint to 6% per cent Friday, reflecting the higher prices the institutions are paying for the money they are lending out. The prime rate had been at per cent since January, and Friday's move was expected. The prime rate is a bank's charge on loans to its most credit- worthy corporate customers. While it's not linked directly to consumer or mortgage loans, its movement can signal the direction of interest rates in general. "As the cost of short-term money goes up, the price goes up. It's a short-term supply and demand said R. Gene Conaster, senior economist of the San Francisco-based Bank of America, which waited until 1 p.m. EDT to boost the rate. Quake Jolts Peking HONG KONG (AP) An earthquake jolted Peking Thursday evening but caused no significant damage, foreign residents in the city reported. The residents, contacted by telephone Friday from Hong Kong, said the quake was mild and lasted less than a minute starting at about p.m. a.m., Foreign accounts placed the focal point of the earthquake in the area where a devastating earthquake hit last July 28, killing hundreds of thousands, about 100 miles east of Peking. barrels a day, so the savings to oil would be more than billion. Some savings could be eaten up if Saudi Arabia decides on a moderate boost above the 5 per cent level as a gesture of unity. A spokesman for MAEMobil Oil Corp. said "If the report in MEES is accurate, it is certainly good news for consumers around the world.'" John Lichtblau, executive director of the oil-company supported Petroleum Industry Research Foundation in New York, said: "If Saudi Arabia stays at 5 per cent, the reduction is going to have a small but positive effect on U.S. oil costs." He said 40 per cent of U.S. oil is imported and only 20 per cent of the imports come from Saudi Arabia and the UAE. Hie United States, which consumed about 17.6 million barrels a day in April, imports about 8.3 million barrels a day. "Hie other 11 countries account for 75 per cent of he said. "I wouldn't belittle it, but by the time it gets to the gasoline price, it's going to be very small." Exxon Corp., the largest U.S. oil company, and some other firms declined comment because the report was unofficial. A Shell Oil Co. spokesman said the decision not to increase prices means "if we didn't have to pay as muclfas expected for crude, either we wouldn't have to increase the prices much or the price increases would come about at less frequent in- A spokesman for another large oil company who asked not to be named, said, "Since it seems there will be no price increase by the OPEC mem- bers, it will net have any effect on the price of gasoline." He said such factors as competition among retailers and the supply situation will continue to influence the prices of gasoline, now averaging 60 to 65 cents gallon nation wide. A spokesman for Standard Oil Co. of California said, "we certainly think it is a wise decision" not to raise oil prices. "Such a move conceivably would have a dampening effect on the in- dustrialized world's recovery from the recession, and an even more serious impact on those developing nations which already are hard pressed to pay for their oil he said. The 11 higher-price advocates apparently abandoned their second increase in the face of mounting Saudi oil production an increase of about 15 per cent since the beginning of the year to meet increased demand for its cheaper crude. Industry sources said, Iran's production dropped sharply in April to 5.4 million barrels a day from 6.3 million in March. Eugene Nowak, senior oil analyst for a New York brokerage house, said the reported decision did not come as a surprise Index 2 Sections, 34 Pages Amusements 15 Church 5 Classified 23-33 Comics 12 Crossword 29 Deaths 17 Editorials 4 Horoscope 30 Health Column 10 Markets 16 Seek Find 12 Sports 19-22 State News 6 12 Wals 17 Weather 'APERf
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