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New Braunfels Herald Zeitung (Newspaper) - July 31, 1985, New Braunfels, Texas Budget outlook dark WASHINGTON (AP) -Republican senators, complaining that they were “sold down the river” by President Reagan’s refusal to endorse new taxes or delay Social Security increases, say new attempts to craft a package of spending cuts may now be almost meaningless. Senior members of the House and Senate budget committees met into the night Tuesday, exploring places to slice domestic programs. But wary senators said the best they could hope for was “half a loaf” of deficit reduction. “The president’s decision to scuttle yet another responsible budget, sponsored by Senate Republicans and Senate Democrats, may well doom our final opportunity to make significant deficit reductions this year,” said Sen. Slade Gorton. R-Wash. “I regret to say the president has sold us down the river again," Gorton said in a statement. The president raised the hackles of Senate Republicans on Monday when he rejected their deficit-reduction proposals including: a levy on im ported oil; making inflation adjustments in Social Security and other benefit programs every two years instead of annually, and adjusting personal income tax rates to account for inflation every two years instead of annually. Senate Majority leader Robert Dole, R-Kan., said Tuesday the Senate was facing up to the immense threat of annual deficits in the $200 billion range, but said: “I’m not sure that it’s fully understood by some who advise the president.” The top Democrats and Republicans on the House and Senate budget committee met for seven hours Tuesday, working into the late evening hours as they tried to forge an agreement before Congress leaves for its August recess at the end of the week. “We went through almost everything" looking for agreement between the two houses, said Senate Budget Committee Chairman Pete V. Domenici, R-N.M. They planned to meet again today, after both sides checked with their leadership on possible compromises. House Budget Committee Chairman William H. Gray III, D-Pa., said having Social Security and taxes off the bargaining table made the discussions easier, since “we know what the lay of the land is.” “I’m optimistic tonight that we’re on the right track,” Gray said. Gray and Domenici both said they disagreed on levels of defense spending and some domestic programs. Domenici said he was unequivocally opposed to dropping the defense level below the $302.5 billion Senate level. Dole passed up a GOP leadership meeting at the White House Tuesday, saying a power failure in the Capitol and the farm bill had commanded his attention. Other Republicans said it was made clear to the president how frustrated they were with his stance. White House spokesman I^irry Speakes said the president “stressed the need to have a final budget resolution and his desire that they produce it prior to the recess.” Castro wants U.S. debts ignored HAVANA, Cuba (AP) — Latin American radicals, speaking at a conference convened by President Fidel Castro, are closing ranks behind his call for their nations to ignore payments on their aggregate $360 billion foreign debt. At Tuesday night’s opening session of the five-day conference, several speakers said Latin American nations face economic disaster unless they unite in a debtors’ rebellion against Western creditor countries and institutions. Castro opened the gathering, telling more than 500 delegates from Latin American and Caribbean countries that the gathering was “the widest and most pluralistic meeting that has ever been held in this hemisphere.” Castro, who has argued that payments on the debt would require a degree of austerity that few I^atin American governments are strong enough to survive politically, was expected to outline his position later in the conference. He has said the portion of the debt owed to U.S. banks should be absorbed by the U.S. government and financed by defense spending cuts. The conference, which represents Castro’s most ambitious effort yet to win acceptance into the I^atin American family of nations, has attracted political leaders, academicians, economists, union chiefs and church leaders. But most governments indicated they are wary about allowing Castro to assume a role as arbiter of the debt issue, and few sent official emissaries. The highest ranking foreign delegate at the meeting is Nicaragua's vice president, Sergio Ramirez. Also present was Hor-tensia Bussi de Allende, widow of the late Chilean President Salvador Allende, who received enthusiastic applause. All of the Tuesday speakers expressed support for Castro’s view on the debt. Several coupled their comments on the debt issue with denunciations of American policy toward Nicaragua and El Salvador. Bolivia’s planning minister, Freddy Justiciano, said the foreign debts amounted to “economic strangulation.” Attempts to pay off creditor nations, he said, would be “taking bread away from the mouths of those who did not contract the debt.” A Mexican economist, Alonso Aquilar, said he agreed with Castro’s view that the United States should assume the debt repayment. Cuban officials have said that leaders of virtually all leftist parties in the hemisphere are attending, as well as two former presidents — Wolfgang I^arrazabal of Venezuela and Bolivia’s Guevara Arce. A number of former presidents turned down invitations, including Carlos Andres Perez and Rafael Caldera, both of Venezuela, and Luis Echeverria of Mexico.Shultz, Soviet minister to talk about arms control, human rights HELSINKI, Finland (AP) — Secretary of State George Shultz held his first in-depth meeting with new Soviet Foreign Minister Eduard A. Shevardnadze today, with an agenda including arms control, human rights and the November summit between the superpowers. The session was expected to last at least three hours. Arms control and other experts from both sides were also expected to take part Shevardnadze arrived at the suburban residence of U S. Ambassador Keith F Nyborg rn a black Zil limousine flying the Soviet flag. The Soviet minister was greeted outside by Shultz before the two men retired to a room where they were to meet over a green-covered table equipped with two microphones. Shultz was acompanied at the residence by Max Kampelman, the chief American negotiator at Geneva arms talks; Paul Nitze, Shultz’s senior advisor on weapons controls, Rozanne Ridgway, assistant secretary of state for European affairs; Moscow ambassador Arthur A. Hartman and Mark Palmer and Jack Matlock, two U.S. specialists on the Soviet Union. Among those in Shevardnadze’s delegation were Viktor Komplektov, deputy foreign minister; Vladimir Lomeiko, the Soviet Foreign Ministry’s press spokesman, and veteran Washington ambassador Anatoly F Dobrynin. Officials accompanying the two men declined to make any substantive comment about the meeting, although some noted that the two had exchanged greetings Tuesday at the opening of a 35-country meeting here marking the 10th anniversary of the Helsinki Accords. In speeches to the conference Tuesday, they accused each other of breaking the promises made at Helsinki in 1975. Shultz, 64. and Shevardnadze, 57, were the most widely watched figures at the three-day Helsinki conference, which ends Thursday. One of the main topics of their discussions was the November summit meeting in Switzerland between President Reagan and Soviet leader Mikhail S. Gorbachev. Shevardnadze is the Soviet Union’s first new foreign minister in nearly three decades and was named only July 2 as the unexpected successor to foreign affairs veteran Andrei Gromyko after Gromyko became the Soviet president. Previously the Communist Party leader in the Soviet republic of Georgia, Shevardnadze has little foreign policy experience, and his appointment was widely interpreted as a move by Gorbachev to put his own stamp on Soviet foreign affairs. The white-haired Soviet official made his international debut Tuesday at the Helsinki conference, reading steadily through a speech accusing the United States of undoing arms control efforts and meddling in the Soviet Union’s internal affairs. His speech was regarded by veteran Kremlin-wateliers as moderate, despite its accusations, and he included in it a call for increased cooperation between East and West. “If it proves possible by joint effort to dispel thunderclouds here, the sun shines brighter for everyone,” he said of efforts to defuse problems in Europe. Shultz spoke later from the same podium and accused the Soviet Union of wholesale violations of its 1975 Helsinki promises to respect human rights. “Pious declarations are cheap,” Shultz said. “Real progress can only be seen in its effect on human beings.” The 1975 Helsinki agreements wrapped up the two-year Conference on Security and Cooperation rn Europe. The United States, Canada and all European countries except Albania participated. Pledges and promises in the agreements covered human rights protection, European borders, security arrangements and many other topics.Indian legislator on hit list is slain in New Delhi NEW DEI JU. India »AP > Unidentified gunmen shot and killed a young legislator of the ruling Congress Party, his politician-wife and a party worker at the lawmaker’s home in the Indian capital today and then escaped Witnesses said the two gunmen opened fire with British-made Sten automatic guns as legislator Lalit Maken, 34. and his wife. Gitanjali, stepped out of their New Delhi residence to drive to Parliament Maken, hit in the stomach, and his wife ran into the house but the gunmen chased them inside and kept firing, said the lawmaker s sister-in-law . Santosh Human After they gunned down the legislator, the) fired at Mrs Maken and Balknshan Khanna, a Congress party member, she said The lawmaker’s driver. Suresh Malik, also was wounded in the shootings He was listed in stable condition in Ixihia Hospital. City Police Commissioner Ved Marwah said the assassins escaped on a stolen scooter The motive for the killings was not know n, but police said they appeared to be the work of professional killers. Maken, 34. was involved in bitter trade union rivalry’ ui the capital, where he headed federations of federal government employees and city bus workers. He also reportedly was on the "hit list" of Sikh terrorists for his alleged role in the anti-Sikh carnage following the (Xt 31 slaying of Prime Minister Indira Gandhi. Maken and his wife, the then president of the National Students Union of India, the Congress party’s student wing, were regarded as strong supporters of the late Sanjay Korean leader under arrest Gandhi. Mrs Gandhi’s younger son and heir-apparent. Authorities sealed the capital’s borders with neighboring states and launched an extensive hunt for the slayers. Police began a search of the city airport and railroad stations. Marwah announced a 100,000 rupees ($6,3351 reward fur information leading to the arrest of the two men. Indian President Zail Singh. Prime Minister Rajiv Gandhi and senior government officials rushed to New Delhi’s government-run Ram Manohar l>ohia Hospital to see Maken after the shooting Both houses of Parliament were adjourned until Thursday after the government announced Maken’s death. Speaking earlier in the ruling lower house, Gandhi voiced alarm at what he called the cult of violence * springing up around us.”FRIDAY, AUGUST 2 SATURDAY, AUGUST 3 9 AM Two Days Only All Sales Final- Cash & Cmirv Tables of Savings at 50% Off, 25% 50% Off, and Even at 60% OffShop Our Biggest Once-A-Year Clearance Ever!173 S. Seguin    New    Braunfels    at    Landmark    Square SEOUL, South Korea (AP) — Several hundred policemen surrounded the house of dissident leader Him Dae-jung early Wednesday and a police official informed Him that he was ordered to remain inside his residence, a spokesman for Him said The police action was taken on the eve of a national convention of the opposition New Korea Democratic Party, which denounced the moves against Him. Visitors were allowed to enter the house, the spokesman said. An estimated 500 policemen were stationed around the residence rn western Seoul The former opposition presidential candidate had been allowed to move around freely since March 6, wlien the government of President Chun Doo-hwan lifted a political blacklist for him and 13 other political figures. Although Him regularly attended meetings of the dissident Council for the Promotion of Democracy, he was technically still barred from engaging in political activities because of his 20-year pnson term on a sedition conviction. The sentence was suspended in 1982 w hen he w as allowed to leave the country for medical treatment in the United States. Him returned home in February after more than two years of selfexile in the United States. The government allowed him to remain free with a warning that he should not engage in politics A police officer who visited Rim on Wednesday told him he was being placed under “surveillance for the time being" because of the suspended sentence, the spokesman said. For months, the ruling and opposition parties conducted talks on an opposition-proposed pardon for Him and other former political prisoners so they could resume political activities, but they made little headway. 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