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Newspaper
Ottawa Herald
Location
Ottawa, Kansas, United States of America
Date
May 01, 1982
Page
6
State Attorney General Bob Stephan files suit to recover state funds lost to bid rigging. OHS girls and Blue Valley boys dominate the third annual Cyclone Track Carnival, page 10.
President Reagan accused House Speaker Thomas P. O Neill of blocking budget progress as Republicans regroup to press for a 1983 plan. Treasury Secretary Regan signaled starting over on talks with tax hikes and defense cuts still on the table, while Sen. Dole suggested Reagan would likely stick with the final proposals. A separate note from Knoxville previewed the World’s Fair opening weekend with Reagan’s public call to end runaway taxes and debt.
Sen. Nancy Kassebaum criticized Reagan's televised call for a balanced budget amendment as unhelpful to solving the fiscal dilemma. She said the speech failed to explain the 1983 budget complexities and warned the issue is becoming highly political. She noted deficits of 182 billion dollars for fiscal year 1983 and urged a clear balanced plan by 1985.
The Commerce Department reports the Index of Leading Indicators dropped 0.5 percent in March, the 11th straight monthly decline, with a weaker average workweek and higher initial unemployment claims signaling a slower recovery. Wall Street rallied modestly as Reagan urged deficit cuts, while economists debated the timing and strength of any rebound amid high interest rates and looming deficits.
The United States imposes military and economic sanctions on Argentina as Britain expands its Falklands blockade. Washington aids Britain with military supplies while Argentina reels from the move, with Buenos Aires calling Haig’s stance stupefying and UN talks possible under sovereignty conditions. London cites a new alignment and plans high‑level talks in Washington and New York. County forecast notes partly cloudy Saturday with highs in the upper 60s and Sunday in the mid 70s.
The Federal Reserve reported a $1.9 billion rise in the money supply for the week ending April 21, with M1 climbing to a seasonally adjusted $454.5 billion. Analysts expect a month-end drop but warn that failure to ease could prompt new Fed action to curb inflation, potentially lifting interest rates.
Monsignor Andres Cordero Lanza said a Vatican diplomat sees a possible settlement as four leftist gunmen hold 25 hostages aboard a hijacked Honduran Air Service plane. The negotiator spoke after two hostages were released, with the ransom fixed at 100000 dollars.
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