Thursday, October 10, 1985 Page 2 Daily Nebraskan Hv The Associated Press "FT" lenrey calls second! se LINCOLN Gov. Bob Kerrey ended weeks of speculation by announcing Wednesday that he will convene a spe cial legislative session to deal with the state's massive revenue shortfall. "It's 100 percent certain we'll have a special session," Kerrey said at a news conference called at the State Office Building to announce a new division in the state Department of Economic Development. "It's not 100 percent certain when." Kerrey said he plans to continue talking through Thursday with key aides about the timing of the session. He said he doesn't know when he will announce the date of the session. He said he expects the session to last at least two weeks and possibly continue for three to four weeks. Kerrey said he's opposed to a retro active one percentage point income tax increase to wipe out a projected revenue shorfall of more than $30 mil lion for fiscal 1985-86. "That's a business-as-usual mental ity," the governor said. "We don't face a business-as-usual problem." Kerrey said he would propose "sub stantial budget action" to combat sluggish tax collections caused prim arily by the state's weak farm economy. In a nneclmlctlp fnivr.TSt. thfi tfOVPf- nor said he expects the state's econ omy to continue to sputter through 1987-88. "Government needs to respond to reality," he said. "Reality is that this is a real downturn In the economy" that requires lawmakers to slash state spending. Kerrey refused to say how much he would request in spending reduction. He already has asked state agencies and governmental subdivisions to voluntarily cut 1.5 percent of their state-supported budgets, which would amount to a total savings of $1 2 million. U.S. outraged over slaying; vows 'maximum punishment' WASHINGTON - The White House expressed sadness and outrage Wed nesday at the "brutal killing" of an American tourist aboard a hijacked Italian cruise ship and demanded that the Egyptian government turn over the pirates for the maximum "appropriate punishment." "From the outset, the United States government made clear to the govern ment of Egypt and the government of Italy our opposition to negotiations with the terrorists and our expectation that the terrorists would be appre hended, prosecuted and punished," White House spokesman Larry Speakes said after confirming that passenger Leon Klinghoffer had been murdered. President Reagan, confronted with conflicting reports about the welfare of Americans aboard the ship held for two days by Palestinian terrorists, dis patched his Egyptian ambassador to inspect the vessel to determine whether one or more of the U.S. citizens aboard had been killed. U.S. Ambassador to Egypt Nicholas Veliotes confirmed from aboard ship that a 69-year-old New Yorker had been killed. Speakes said the Cairo regime, which arranged to take the hijackers off the cruise liner earlier in the day, now bears the responsibility "for handling the resolution of the affair." But he added, "The United States remains determined to see that those responsible for this heinous act be brought to justice and punished to the maximum extent. There must be no asylum for terrorists or terrorism." In an unusual nighttime briefing at the White House, Speakes said the Uni ted States believes the four hijackers "remain in Egyptian custody" but it does not know what the government intends to do with them. The Egyptian foreign ministry had announced earlier they would be leaving Egypt, appar ently with safe passage to freedom. . The four Palestinian hyackers of the Italian cruise ship surrendered Wed nesday, ending two days of terror for more than 500 hostages and in the death of one American passenger. The body of Leon Klinghoffer, 69, of New York City, was thrown overboard by one of the hyackers. Klinghoffer, who was wheelchair-bound, was travel ing with his wife, Marilyn, 58. Capt. Gerardo De Rosa said in a radio conversation with state-run Ital ian television Wednesday night that a terrorist who had blood on his clothing admitted to the murder. The Foreign Ministry said the terror ists surrendered to representatives of the PLO. They were taken to the Port Said Naval Base and were still there seven hours later, at midnight local time or 5 p.m. CDT. "The hyackers, who number four, will leave Egypt," Foreign Minister Esmat Abdel-Meguid said. "There were no demands." He did not say where the hijackers would go. The Palestine Liberation Organiza tion denied involvement in the hijack ing and chairman Yasser Arafat said in an interview Wednesday with French television from Tunis, Tunisia, that the pirates were not PLO members. The hyackers demanded the release of 50 Palestinians imprisoned in Israel after they seized control of the ship, heavily armed with guns and explo sives. They threatened at various times , during the two-day voyage to the Syrian coast and back to kill the people aboard and blow up the liner. They claimed to be from the Pales tine Liberation Front, one of eight guerrilla groups in the PLO that split into three factions during a 1983 revolt against Arafat. In Israel, the Jerusalem Post report ed Wednesday that the guerrillas who hijacked the ship may have intended to commandeer a Norwegian ship carry ing President Reagan's daughter Maureen. The English-language newspaper, quoting an unidentified maritime source, said the hyackers may have been scared off by tight security sur rounding the Norwegian Royal Viking Sky, which carried Reagan, and then decided instead to seize the Achille Lauro. In Washington, White House spo kesman Speakes refused to discuss the Post report or the whereabouts of Rea gan, who travels with U.S. Secret Ser vice bodyguards. Congress OK'd aid to rebels, sources say WASHINGTON Congress has secretly approved about $250 million in further covert military aid to rebels fighting the Soviet-backed regime in Afghanistan, Senate sources said Wednesday. One source, who with the others asked not to be identified by name, said the money will be spent to buy large quantities of ammunition, small arms, grenade launchers, and anti helicopter air defense weapons. "It will enable them to replenish their stocks," he said. "It's a one-time replenishment. There is nothing being introduced that is brand new or espe cially esoteric. It's the kind of thing easily available anywhere in the world." The issues of the long Soviet occupa tion of Afghanistan, and covert aid by several nations to the Afghan resistance, are virtually certain to be raised in the summit meeting in Geneva next month between President Reagan and Soviet leader Mikhail Gorbachev. There was some annoyance in Con gress about the latest aid request, because the Reagan administation asked for the funds late last month, imme diately before the end of the 1985 fiscal year, the source said. And he said there was some concern over the size of the request. "We're reaching a position where a lot of us think there should be more debate on this program," the source said. "There is a lot of money involved." The funds will be funneled to the Afghan rebels through the Central Intelligence Agency, the source said. He said the House and Senate intelligence committees approved the transfer of the money last month from secret CIA accounts appropriated for the 1985 fis cal year. By reprogramming CIA money that had been appropriated for a previous fiscal year, the Reagan administration made the funds available for the 1986 Newsmakers and 1987 fiscal years. The committee actions did not require votes by the full House and Senate because the money had already been approved by Congress. One source said the CIA had asked Sens. David Durenberger, R-Minn., and Patrick Leahy, D-Vt., the chairman and ranking minority member of the Senate Intelligence Committee to approve the reprogramming on their own authority without consulting other members of the panel. "They refused," the source said, adding that the decision was made by the full committee. The Soviet Union invaded Afghanis tan in December 1979, saying it was responding to a request for aid from the Marxist Afghan government in Kabul. It has been engaged ever since in a bitter guerrilla war with anti-Marxist rebels using bombing raids and heli copter attacks in an attempt to solidify control of the country. A roundup of the day's happenings Betty Friedan, the first president of the National Organization for Women says the women's movement is almost paralyzed because it is "out of spc with the problems of the younger generation." Friedan told about 100 women at Yale University that the women's movement has lost its momentum in the same way it did after women won the right to vote in 1920. There is a lack of concern over the "gutting" of law guaranteeing women affirmative action, equal rights and the right to have an abortion, she said. Hundreds of works by Mexican artist Diego Rivera escaped harm in the recent earthquakes that devastated Mexico City and will be displayed next year at the Detroit Institute of Arts as planned. The exhibit, scheduled for Feb. 12, 1986, to April 1, 1986, will include 115 paintings, 120 photographs and 130 other works by Rivera, a radical painter who chronicled Mexico's struggles for inde pendence. Peggy Lee, 65, the Grammy-Award-winning singer songwriter, was described as being in stable condition after undergoing four hours of double-bypass heart surgery. A former bank teller has pleaded guilty to embez zlement and larceny charges, saying she stole more than $200,000 in Brookline parking meter receipts because she had a low opinion of herself. "I need money to satisfy my low self-esteem, said Carol E. Young, 34, of Brockton, Mass. She was sentenced to two years in prison. Senate votes for balanced budget; U.S. takes $5 billion emergency loan WASHINGTON The Seaat voted 75-21 Wednesday to force the F-vernrnt to balance its annua! buJ-r.t to i yc; a tut the vote failed to end an impasse ever legislation to extend the revetment's exhausted borrowing power. . The balanced budget amendment, v c! tv$ bipartisan sup port, came as the Senate worked cnaracretD nl: I the current debt ceiling to more than 12 trillion However, the Senate did not finish its wcis ca las mml bill and efforts to approve a short-term extension cfihs debt limit collapsed late Wednesday. TheTreasury Deportment held an emergency auction, however, at which ' it borrowed an additional 13 billion, a sum c;cial3 isl J would keep the government afloat for another week. Senators were to try again today to ccmplctewerk m the debt limit bill. The House already has voted to increase the debt limit but without a balanced budget amendment. The differences will ultimately have to be negotiated in a House-Senate conference committee. 2 killed on S. African prayer day JOHANNESBURG, South Africa Tena cf thousands cf South Africans of all races attended prayer services Wednesday to "repent for the national sin of apartheid," while blacks around the country stayed home from work in droves. Police headquarters in Pretoria said mobs killed two blacks early Wednesday in black townships outside Pert Klamath to eastern Cape Province, Both were victims cf bcnssSc black neb vielence against people who may be seen 3 collaborators with th3v;h:te p;cmmer.t Tires were placed wound their necks, they wens teed, v.'Uh gasoline and burned to dei-h. After telephoned bcrab threats, ?x:Mzza li:7 Ecsscsi Tutu and about 103 other worshipers abashed their p:r ;::3 If.Sj to a downtown Johannesburg cathedral, crse cf hundreds cfchu:t-h series conducted it up to 14 r. r.:!,: cftlccJy rioting that across trie country. Tcwnshirs that have b een cc left mere than 759 people dead appeared restively calm during the nationwide display cf support for peaceful charts to the national system cf Institutionalized racial separation. . :. The "prayaway" was arranged last month by about 403 church leaders for Reconciliation. Merger of deaf, blind schools studied LINCOLN A panel studying the peslt'e merger of Nebraska's schools for the deaf and the blind faces a dlGcuIt trk fraught with - emotion and politics, the group's leader said Wednesday. The 22-member committee opened its first meeting vowing to keep an cpen mind and emphasize the welfare of pupils at the School for the Deaf in Omaha and the School for Visually Handicapped in Nebraska City. State Education Commissioner Joe Lutjcharms, who was unable to attend the meeting, has said declining enrollment and ever-tightening budget constraints could force consideration cf desire merging or rede fining the schools' roles. In opening remarks, a couple of panel members said consolidation could weaken the educational quality of the schools. A state Education Department official said the committee should amass piles of information about the schools to enable lawmakers to make an informed decision if they deal with the sensitive issue. Acquisition could expand air service LINCOLN The possible acquisition of Frontier Airlines by People Express Inc. undoubtedly will affect Lincoln travelers, people close to commercial aviation in Lincoln said Wednesday. People Express has announced an agreement with Frontier Holdings Inc. to pay $24 a share for 12.5 million shares cf Frontier stock. Hours earlier, Texas Air Corp. submitted a bid for $22 a share. Frontier employees had bid $17 a share. While some are optimistic the acquisition cf Frontier by the no-frills airline could offer Lincoln residents expanded service into wider areas, -: others wonder if a medium-size city like Lincoln will benefit from People Express, which has served mostly larger metropolitan areas en the East em Seaboard. The financially strapped Frontier is one of the elder carriers serving Lincoln. It has four arrivals and four departures a day at the Lincoln Municipal Airport with flights to Omaha cr.d Denver. San Diego mayor convicted in scheme SAN DIEGO Mayor Roger Hedgecock, S3, was convicted Wednesday of 13 charges including conspiracy and perjury in a scheme to illegally finance his 1883 mayoral campaign. The verdict means he must forfeit his job as head of the nation's eighth-largest city. The Superior Court jury returned the verdict midway through the : seventh day of its deliberations in the mayor's retrial No date was immediately set for sentencing, which could iecluda a prison term. Hedgecock was found guilty of 13 cf the 16 charges against him, including the conspiracy count accusing him cf plotting with political backers to funnel corporate money into his campaiin. City laws prohibit individual campaign donations in excess cf 1250 and prohibit campaign contributions from corporations. ' Victims mourned at mass funeral PONCE, Puerto Eico Gov. F:f,, 1 : C ! or mourners in the city coiheiKi We ! -f ran the 68 known victims cf this v. . : k's T. !: ir: i'. " as many m 500 more ere f; ,:W I ooDDinganawaihrnl.::- li the 25 bodies pulled Lcn 1" n :l r i shantytewn, where a II:r.d v r r ! deluge destroyed 4C0 hemes. Hernandez Colon said, '"i: i j r -'in its history. It fills me " 1 - - fff 8 t.! ijl-.cd hundreds ;Lr.::alcfr.anypf :.i.jicJ:ciilsaid -c:'kciscf23of : .byMameyes. , j 1 a trcpical cr island - r