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Waterloo Courier Cedar Falls (Newspaper) - January 8, 1991, Waterloo, Iowa Wednesday's Cloudy Teens COMBAT CUISINE Better tasting MREs will allow field troops to eat j on the run FOR ATTACK Nagle says congressional consent will be Fed regulators opt for bailout of Bank of New DODGERS Soviet Union vows to crack down on BASKETBALL Northern Iowa bows to Bay by one point Waterloo Courier Cedar Falls home delivery France sticks to insistence on peace conference BONN AP French officials meeting with Secretary of State James A Baker HI today stuck to an independent approach for resolving the gulf crisis by offering Saddam Hussein a Mideast peace conference if Iraq withdraws from Kuwait The city was buzzing with diplo- macy the day before Baker's awaited meeting with the Iraqi for- eign minister Jordan's King Hussein arrived without fanfare for a meeting with Germany's president Richard von Traveling across Europe Baker was working to create a united front within the alliance in advance Wednesday's meeting with Tariq Aziz In the face of U.S opposition to a peace conference French Foreign Minister Roland Dumas stressed his government's independent course while saying France shared in the determination of the United States to have Iraq pull its troops out of Kuwait by next Tuesday You know the position of the United States and Dumas said as Baker craned an ear to an American translation I would remind said France supports an al conference since 1983 situation So it is not a new position Pausing briefly Dumas added for The government of the United States is well aware of this position France's insistence on offering Saddam a conference on the claims against Israel has jarred the coalition against Iraq Its public re-emergence today occurred less than 24 hours before Baker was due to meet in Geneva with Aziz That session in which Baker will deliver a letter from President Bush for Saddam could hold the key to See BAKER A2 AP PHOTO A U.S Air Force A10 Warthog tank aircraft sits on the tarmac while another takes to the skies air base Saudi denies defection report The Associated Press Defense Sultan today denied reports that Iraqi craft crews defected with their planes to Saudi Arabia the official Saudi Press Agency reported A U.S military spokesman in Saudi Arabia refused comment on the Saudi government's denial There was no immediate tion for the contradiction between Sultan's statement and Monday's reports saying six Iraqi helicopter pilots defected with their aircrafts The information Monday came from an official Saudi government release according to the U.S tary spokesman who requested anonymity The Saudi Press Agency said Sultan answering reporters tions at a military graduation mony in Riyadh categorically denied that any Iraqi aircraft took refuge in the Kingdom of Saudi Arabia His highness described the report circulated by a number of media apparatuses as baseless both in its parts and as a whole The agency gave no further details A U.S military spokesman in Washington said Monday that six Iraqi helicopter pilots flew their craft to Saudi Arabia and requested asylum Four of the aircraft landed at an airbase at about 10 miles south of the Kuwaiti border in Saudi Arabia according to U.S Defense Department spokesman See DEFECTIONS A2 Officials reviewing Rath demolition bids By PAT KINNEY Courier Staff Writer City officials generally were pleased with bids received for the first phase of demolition of the former Rath Packing Co property The City Council Monday night delayed awarding a con- tract for the work until bids could be further reviewed Demolition could begin in mid-February if a contract is awarded next week Waterloo Community Development Director Jim Lindsey said Eleven bids were received Of those three apparently are within of the estimated project cost of including an bid alternate for the demolition of the old Rath smokehouse along Sycamore Street Most of the tion work would be on the eastern portion of the Rath site Base bids ranged from almost to more than million Companies from throughout the United States but were mainly from the South and Midwest submitted bids Three bids were from Iowa firms Lindsey noted that more than 50 individuals attended a conference and tour of the site Bids will be reviewed to determine if ail aspects of work were included and whether the firms complied with the city's guidelines for efforts in the hiring of ity subcontractors The demolition work is being financed with some in general obligation bonds repaid with interest residents property taxes and by the Community Development Rath account The city bought the bankrupt site at a 1985 liquidation auction and is hoping to demolish buildings to use the area for redevelopment About million in al funding to aid the demolition has been approved Crystal Distribution Services also has purchased and redeveloped several buildings in the west end of the complex Bids received for the demolition work Demolishing Co of Houston Texas lion for smokehouse demolition Alternate 1 All-American Excavating and Wrecking of Perry Alternate 1 American Demolition Corp of Cedar Rapids Alternate 1 Southwest Abatement Inc of Albuquerque million Alternate 1 U.S Dismantlement Corp of Chicago million Alternate 1 Spirtas Wrecking Co Inc of St Louis nate 1 Anderson Excavating and Wrecking Co of Omaha Alternate 1 Griffin Wrecking Co Inc of Greensboro Alternate 1 Cyclone Steeple Jacks Inc of Nevada Iowa and son Contractors Inc of Reinbeck combined Alternate 1 Carl Bolander and Sons Inc of St Paul Minn lion Alternate 1 Courier photo by GREG BROWN Horsing around Tom Hoffman and horse Chelsea along with Pat Gardener and horse Hawk ride by timberline off of Gilbert Road in Evansdale Stealth bomber program canceled By MOLLY MOORE Post WASHINGTON Defense Richard B Cheney Monday killed the Navy's craft program the stealth bomber in what officials said was the largest weapons contract lation ever by the Pentagon Cheney said he ordered the Navy to terminate the billion program for research development and ed production of the jet because contractors and Navy could not project how much it would cost to correct major lems This program cannot be sustained unless I ask Congress for more money and bail the contractors Cheney said in a statement ing the extraordinary action Monday But I have made the decision will not do that No one can tell me exactly how much more it will to keep this program going If we cannot the taxpayers wisely we will not spend it Cheney's decision made hours of meetings with senior officials on Saturday is the tion of weeks of controversy that contributed to the resignation of the Pentagon's senior procurement and led the Navy to fire two and a captain for mismanaging the program The Justice Department is conducting a criminal investigation of contract payments to General Dynamics Corp and McDonnell Douglas Corp the contracting team that was building the See STEALTH A2 New figures show recession adding billion to deficit By STEVEN The Washington Post WASHINGTON The recession will add about billion to the eral budget deficit for the current cal year bringing the gap between tax revenue and spending to between billion and billion according to the latest administration figures That figure excludes as much as billion in additional money that will probably be needed to pay for American troops in the Persian Gulf even without the huge costs of a war In addition the deficit would be billion greater but for this year's plus in the Social Security program Taking these figures into account the government's operating deficit could exceed billion That would be the biggest deficit in U.S history overwhelming the politically painful measures Congress and the administration adopted in last year's contentious battle to the deficit It is going to face Congress with very difficult situation with American people who will be en in their faith in Robert Reischauer director of Congressional Budget Office Congress just enacted the largest deficit reduction package in the 1 nation's history and now we will be treated to the largest deficit in the nation's history Other economists said the massive deficit also could complicate the eral efforts to stimulate the economy The weakening economy puts pressure on the Fed to cut inter- est rates but the central bank must keep rates high enough to attract the foreign investment needed to help See DEFICIT Pan Am files for federal bankruptcy protection INSIDE NEW YORK AP Pan Am Corp today filed for federal bankruptcy protection citing huge losses and the recent sharp runup in jet fuel prices The troubled airline said in a statement that it would maintain full flight schedules and customer services worldwide while it reorganizes under Chapter 11 of the laws The filing in federal court in the New York Southern District protects Pan Am from its creditors while allowing it to continue tions Pan Am becomes the second airline in as many months to file for Chapter 11 protection partly because of higher fuel prices since Iraq invaded Kuwait in August Airlines sought protection Dec 3 Pan Am spokeswoman Pamela Hanlon said ther of the filing would be discussed at a news conference to be scheduled for later today In a telephone interview she said the carrier turned bankruptcy court because of its con- to losses and the sharp rise in oil prices It the filing provides us an to restructure at a time when recent years of losses including recent fuel price hikes as a result of the Persian Gulf crisis have had a devastating effect on the Ms Hanlon said In its latest quarterly earnings report Pan Am said it lost million or 19 cents a share in the three months ended Sept 30 The airline lost million or 12 cents a share in the same period a year ago Ms Hanlon said she had no comment on how today's filing might affect merger talks with Mount Kisco Trans World lines TWA Chairman Carl Icahn said he would be willing to acquire Pan Am for million in cash and million in debt securities But negotiations between the two airlines have been stalled by a number of issues Icahn was understood to want Pan Am to file for Chapter 11 protection in order to receive a loan that would tide the airline over white a merger with TWA was consummated However Pan Am stated last month that it would not agree to a bankruptcy court filing as a condition to an agreement with Icahn Bridge Celebrity Cipher Classified Comics Crossword Daily Record Horoscopes Iowa Lifestyles Iowa Obituaries A7 Opinion Sports Theaters C6
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