News Digest Edited by Roger Price
Recession’s impact shows in many sectors
Limited buying
reduces amount
of trade deficit
WASHINGTON — America’s
trade deficit improved dramatically
in 1991, falling below $100 billion
for the first time in eight years as
exports hit a record high and the re
cession held down imports, the gov
ernment reported Thursday.
While the 35-pcrccnt drop in the
deficit to S66.2
billion represented
America’s best
trade performance
since 1983, analysts
saw plenty of prob
lems ahead.
America sacn
cit with Japan actually rose during
1991, climbing by 5.7 percent to $43.44
billion, representing two-thirds of the
total imbalance.
The deficit with Japan has become
a target for President Bush’s political
opponents, who.contcnd that the two
nations have erected unfair trade
barriers that arc blocking the sale of
American goods.
However, many private economists
contend that trade barriers reflect only
a small portion of the deficit and the
bigger problem is that Americans have
a seemingly insatiable appetite for
foreign goods.
The overall deficit worsened con
siderably in December, rising by 42
percent to $5.94 billion as U.S. ex
ports fell for a second straight month
and imports climbed 2.3 percent.
Analysts have forecast that the trade
gap will w iden considerably this year
as export growth falters because of
The $66.2 billion in 1991 marks the lowest
inbalance since $52.4 billion in 1983.
^10° I BHIions of dollars
0
I
1983 m ■
^100 ..\vn
1987
-$152.1
-$200 M----———■■ I.f —I—
1970 ’72 74 76 78 80 '82 ’84 ’86 '88 ^
weakness in many of America’s ma
jor overseas markets.
That would represent a setback for
the Bush administration, which is
counting on continued healthy export
gains to help lift the stagnant U.S.
economy.
The Labor Department reported
Thursday that the number of newly
laid-off workers filing claims for
unemployment benefits rose to 452,(XX)
in the first week in February, an in
crease of 18.000 over the previous
week.
Analysts viewed the increase as
AP
further evidence of a weak labor market
beset by continuing layoffs in autos,
electronics and other manufacturing
industries.
The analysts think the rate could
worsen in coming months, possibly
topping 7.5 percent by mid-year be
fore the economy makes enough of a
rebound from the recession to rally
new hiring.
The Bush administration hailed the
sharp improvement in the 1991 trade
deficit as proof that American indus
tries are competitive once more inter
nationally.
Business failures set record
NEW YORK — Business failures
hit record levels in 1991, up 43.7
percent, and insurance, finance and
real estate compa
nies look the brunt
of the hit, a survey
released Thursday
said.
Falling real es
tate prices, debt
_ _ burdcncbusincsscs,
stingy banks and bankruptcies from
failed leveraged buyouts contributed
to the demise of 87,266 businesses in
1991, The Dun & Bradstrcct Corpo
ration said. That was up from 60,746
in 1990.
Unpaid debts of defunct businesses
totaled S108.8 billion last year, a gain
of 95.9 percent from 1990.
New England had the nation’s
highest percentage increase in busi
ness failures. The survey reported 5,590
regional businesses failed in 1991, up
81.1 percent from the year-earlier total
of 3,087. More than half of those
failures occurred in Massachusetts.
Other reg ions on the East and Wcst
coasts also were hard hit, while re
sults were mixed in the interior stales
and Southwest.
Joseph W. Duncan, chief econo
mist and vice president at Dun &
Bradstrccl, cautioned that the pros
pect for slow growth could keep fail
ures up in the early stages of 1992.
“Business has to pick up before
that stress is taken off the balance
sheet,” Duncan said.
Unemployed flock to libraries
to find jobs and entertainment
CHICAGO — Libraries are see
ing a surge in business as they be
come havens for the unemployed.
“In hard economic limes, library
f, use always goes
aiiiiJ up,” observed Pa
I ilrfl lnaa Glass Schu
| III man, president of
I II the Chicago-based
1 um American Library
i Association.
__ ___ I “We’ve heard
this from libraries across the coun
try,” she added in a telephone inter
view from her New York office.
“People arc using libraries to look for
jobs. It’s also a form of entertain
ment. When they can’t afford to go to
movies, they go to a library and gel a
video or a book.”
Libraries say jobless patrons arc
emptying shelves of career-guide books
and raiding newspaper bins for help
wanted ads.
It couldn’t have happened at a
worse time for libraries, which arc
facing an economic crisis of their
own.
According to an ALA report re
leased in November, a recent survey
by the Association of Research Li
braries found that most member li
braries were working w ith budget cuts
of 1 percent to 5 percent in 1991 and
were expecting 5 percent to 10 per
cent cuts in 1992.
i—-1
Panel recommends only limited use of implants
BETHESDA, Md. — A panel of
experts recommended unanimously
Thursday that the government allow
silicone gel breast implants only for
experiments and for women needing
breast reconstruction.
That advice, if followed by the
Food and Drug Administration, means
implants would no longer be per
formed just for cosmetic reasons.
Women wanting to have their
breasts enlarged represent SO percent
of the million who now carry the
implants in their bodies. The rest have
implants because their breasts had
been deformed or were removed
because of cancer.
Nancy Dublcr, a lawyer and one of
nine voting members of the 24-per
son panel, said the recommendation
of restrictions “responds to science
on the one hand and compassion on
the other.”
Initially, five of the nine voted for
the proposed restriction. The other
four did not vote. The committee then
discovered that six votes were needed
for passage.
The panel recommended that more
studies be done on the implants and
on the possible effects of the silicone
gel on living tissue.
While the recommendations arc
not binding on the FDA, the agency
usually follows the recommendations
of such committees. The FDA plans
to issue its final decision within 60
days.
Dr. Jules Harris, a voting member,
said the evidence he has seen this
week did not “provide the basis to
conclude that silicone gel breast
implants are safe anil effective.”
“I do not find this evidence con
vincing but it is disturbing,” Harris
said.
Earlier, the group’s chairman said
members did not have the evidence to
conclude that leaks from the implants
arc linked to health problems such as
cancer and autoimmune disease.
“We have a possible association,
and we need more research,” said Dr.
Elizabeth Connell, the chairman and
a medical schix>l professor.
Nebraskan
Editor Jana Pedersen
472-1766
t Managing Editor Kara Wells
Assoc News Editors Chris Hopfensperger
Kris Karnopp
Opinion Page Editor Alan Phelps
Wire Editor Roger Price
Copy Desk Editor Wendy Navratll
Sports Editor Nick Hytrek
Assistant Sports Editor Tom Clouse
Arts & Entertain
ment Editor Stacey McKenzie
Diversions Editor Dionne Searcey
Photo Chief Michelle Paulman
Night News Editors Adeana Leftln
John Adkisson
Wendy Mott
Tom Kunz
Art Director Scott Maurer
General Manager Dan Shattll
Production Manager Katherine Policky
Advertising Manager Todd Sears
Sales Manager Eric Krlngel
Classified Ad Manager Annette Sueper
Publications Board
Chairman Bill Vobejda
472- 2588
Professional Adviser Don Walton
473- 7301
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ALL MATERIAL COPYRIGHT
1992 DAILY NEBRASKAN
South African president announces vote
for whites only that could end apartheid
CAPE TOWN, South Alrica —
President F.W. dc Klerk stunned the
nation Thursday by announcing a
whites-only referendum on ending
apartheid, and he promised to resign
if defeated.
The move came a day alter his
ruling National Parly lost its second
special parliamentary election to the
Conservative Parly, which wants to
reinstate apartheid and create a sepa
rate homeland for whiles.
The vote had been seen as a lest of
white support for political reforms
that have been moving the country
toward multiracial democracy.
Now dc Klerk will put the issue of
apartheid to a whites-only vote.
“If I lose that referendum, I will
resign,’ clearing the way forawhites
only general election, dc Klerk told
Parliament.
“It’s a question of honor,” he said
at a later news conference.
Dc Klerk did not set a specific date
for the referendum, but he indicated it
could lake place by the end of March.
His action was seen as an attempt
to outmaneuver pro-apartheid forces
while he still retains w hite support.
Polls say he is supported by a
majority of whiles. But the govern
ment’s power base has been crum
bling rapidly because of white unease
over the rapid pace of political change
and ending apartheid, the policy of
racial separation in a country of 5
million w hites and 30 million blacks.
If de Klerk w'ere forced to step
down, his departure would throw
political reform into chaos. He has
been the driving force in dismantling
apartheid and negotiating a non-ra
cial constitution to give the vote and
other political rights to the black
majority.
The African National Congress,
the main black opposition group, and
iLs allies denounced the referendum
plan.
“A whitcs-only referendum is not
only the hallmark of racism but also
has the effect of delaying movement
toward peace and justice for all our
people,” an ANC statement said.
Party counting on petition for candidate
COLUMBUS County clerks the ballot for the form the party and allow Secretary of
across the state are validating signa- primary election in State Allen Beermann to pul Marrou
lures on a petition turned in to the May, said Deputy on the ballot for the presidential pri
Nebraska Secretary of Stale s Olficc Secretary of State mary.
by the Libertarian Party earlier this R .lnh Fnalon
month. P g The number of signatures repre
Hc said there sents about 1 percent ofthc number of
Party members should know by must be at least votes cast for governor in the 1990
next week if their presidential candi- 5,865 valid petition election,
date, Andre Marrou, can be placed on signatures from across the state to
Israeli tanks
smash into
south Lebanon
TYRE, Lebanon — Israeli
troops and tanks breached U.N.
barricades in south Lebanon
Thursday, going after Shiite
Muslim guerrillas who have been
rocketing Israel.
Prune Minister Yil/huk
Shamir said Israeli would keep
up the attacks “until we quiet
them.”
The Israeli incursion drew a
sharp protest from U.N. Secre
tary-General Boutros Boutros
Ghali. who called for an imme
diate pullout. The Bush admini
stration expressed “deep con
cern.”
U.N. sources said u was the
first time since 1985 that the
Israelis had crossed the security
zone and taken up positions.
Before smashing the U.N. bar
ricades with a bulldozer, the
Israeli troops got in fislfights
with the peacekeepers, a U.N.
spokesman said.
Despite fears that escalating
violence would derail the next
round of peace negotiations, the
Slate Department said all par
lies had indicated they would be
on hand for talks beginning
Monday in Washington.
Syria’s military chief, Gen.
Hckmal Shehabi, said Thurs
day his country would help
defend Lebanon against Israeli
“trespassing.”
In the Israeli thrust into the
villages ofYatcrand Kalla, two
Israeli soldiers and four Shiite
guerillas were killed; 33 people
were wounded, including three
Israeli soldiers, four Fijian U.N.
peacekeepers, fivcciviliansand
21 Shiite guerrillas, security
sources said.
