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V f T iiUM tlvlia Mia KVfcHiusMw 'i,. .;' National and international news from the Reuter News Report Killing, arson may Imrt economy, leadero warn NEW DELHI, India The arson and killing unleashed against India's Sikh minority after the murder of Prime Minister Indira Gandhi is likely to cut deep into the country's economy, Sikh leaders warned Sunday. Sikhs control broad areas of industry, commerce and trans port. But leaders of the Sikh community said the riots could force many to pull back to Punjab state, home of most Sikhs. The violence has left about 900 people dead, mostly Sikhs. The looting and burning has hit Sikh transport enterprises as well as factories and stores. One unofficial estimate puts the number of vehicles destroyed nationwide at more than 3,000. Transport is almost at a standstill over much of the country, including movement of goods to and from ports as Sikhs wait to see how the situation develops before taking their trucks and taxis back on the streets. With commodities In short supply because of the transport disruption, prices especially of food are rising. An independent Sikh member of parliament, Khushwant Singh, said small businessmen and transport operators would find it difficult to start again because many of them had lost everything in the rampage. "It is unlikely that insurance companies will be able to com pensate the losses," he said. They might therefore want to return to Punjab and resume traditional agricultural opera tions." A Sikh businessman agreed. "If we are not accepted here, we don't want to stay. We don't want to be like the Jews in Germany," Charanjit Singh, one of India's major Industrialists, told Reuters. His three steel plants In New Delhi were among the many Sikh businesses burned down by rioters. Singh said the Indian government promosed hirn protection, but ione came from my factories." Iranians protect near embassy TEHRAN, Iran Several thousand people demonstrated Sunday outside the former U.S. Embassy here on the fifth anniversary of its seizure by radical Iranian students, and officials gave no indication that U.S.-Iranian relations might cease. Witnesses said the crowd was smaller than in past years. Instead, much attention was given to another anniversary that of Ayatollah Ruhoilah Khomeini's expulsion to Turkey by the former Shah of Iran 20 years ago Sunday. President Ali Khamenei said in a newspaper interview the door for the United States to return to Iran was shut and would remain so for a long while. The VS. Embassy is now used as a headquarters for the Islamic Revolutionary Guard Corps. Reagan: Nic&raguan elections falce ROCHESTER, Minn. President Reagan, two days before the U.S. presidential election, Sunday ridiculed the presiden tial elections being held in Nicaragua. "I have just one thing to say it's a phoney," Reagan told a reporter who asked his impression of Sunday's election in Nicaragua. Victory by the Sandinistas in Nicaragua's elections for presi dent, vice president and the 90-member nat ional assembly was a foregone conclusion Sunday. The White House has com plained the balloting is a "Soviet-style sham." Public opinion polls released Sunday showed Reagan headed for a landslide against Democratic challenger Walter Mondale and indicated he could conceivably win all 50 states. U.S., Egypt begin war gameo CAIRO, Egypt Egypt and the United States begin three days of military exercises Monday to test the Egyptian armed forces ability to repel air and naval attacks, Egyptian and American officials said Sunday. In the war games, code-named "Ssa Winds," ships and fighter planes from the U.S. Sixth Fleet in the Mediterranean Sea will play the "attackers." U.S. Embassy officials declined to give any details of the maneuvers. A similar news blackout was clamped on last year's exercises code named "Brightstar." Western diplomats said Egypt preferred to see little publicity around joint exercises with the United States at a time when it hope for improved ties with the rest of the Arab world. Egypt was ostracized by most Arab states for signing a peace treaty with Israel in 1979. Egyptian Defense minister bdel Halim Abu Ghazala said last week Egyptian navy, air force and air defense units would take part in the exercises in coordination with the United States. The location of Sixth Fleet ships taking part was not given. Traeiio block Capitol entrance WASHINGTON Heavyweight trucks were used to block entrances to the U.S. Capitol this weekend, but administration cuicials said they were not responding to a specie threat. The officials i iaid the trucks were placed around the Capitol, which was hit by a bomb attack last November, on a trial basis as part of the administration's ongoing effort to improve safety pre cautions against terrorist attacks. They said the trucks would be removed by tomorrow morning.