Sxx*. News digest • : ■ , ■ .-i ;; ; ■. ■ .... _ ■ • .-• ■... Clinton begins Cabinet picks with Bentsen for treasury LITTLE ROCK, Ark. — President-elect Clinton began building his new administration Thursday by selecting Texas Sen. Lloyd Benlsen for treasury secretary, and a cadre of other experienced hands from Wall Street and Con gress for remaining top economic jobs. Announcing his first Cabinet selections 37 days after his election, Clinton said to “stay tuned” for more major appointments, with his health, housing and environmental picks among those that could come yet this week. Propelled into office on a pledge to restore the nation’s economic vitality, Clinton prom ised to “work my heart out” with his new economic team. He announced five appoint ments in all, selecting faces familiar to the Washington scene and reassuring to the busi ness community. Besides Bentsen, who chairs the Senate Finance Committee, they are: •Rep. Leon Panetta, chairman of the House New selections are skilled, seasoned, Clinton says Budget Committee, who will be director of Office of Management and Budget. • Robert Rubin, co-chairman of Goldman, Sachs & Co., to be assistant to the president for economic policy and coordinate a new Na tional Economic Council. • Roger Altman, a Wall Street investment banker, who will serve as Bentsen’s top deputy. • Economist Alice Rivlin, former director of the Congressional Budget Office, who will be Panctta’s deputy. The five nominees offer what Clinton hopes will be the right mix of economic philosophy and practical skill to fill in the details of his economic proposals, and get them enacted. Rivlin and Panetta are known as strong advo cates for cutting the federal deficit. “These people arc seasoned, skilled, incred ibly able and ready to work for the American people,” Clinton said of his first appointees, who appeared with him at a news conference in Arkansas’ Old Statehousc.Hc was questioned on other topics as well, and said atone point that he would ask his attorney general to review whether a special prosecutor should be ap pointed to investigate potential criminal wrong doing in the Bush administration’s prosecution of a $5.5 billion loan scheme to Iraq. Clinton’s appointments came on a day that brought yet more encouraging news about the health of the economy. The government re ported that new claims for jobless benefits dropped in November and so did wholesale prices. Clinton continued to caution that the economy may not yet be out of recession and that the nation needs a long-term strategy to correct underlying weaknesses. “We did not get into the situation which has led most Americans to work harder for lower wages than they were making 10 years ago overnight,and we’re notgoing to get out of that overnight,” he said. Bcntsen said the new administration was inheriting “twin deficits. In effect, what we’re talking about is lagging investment and unbal anced budgets, and we’re determined to cut both down to si/e in order to spur this economic growth.” Clinton has settled on University of Wiscon sin Chancellor Donna Shalala to lead the De partment of Health and Human Services and Carol Browner to lead the Environmental Pro tection Agency, sources close to the situation said. Jobless benefit claims decline; inflation steady WASHINGTON — The number of Americans filing new claims for jobless benefits fell to a three-year low in late November while inflation on the wholesale level remained well under control, the government reported Thursday. “It’s a nice little holiday gift/* Robert G. Dcderick, an economist at the Northern Trust Co. in Chicago, said of the reports. The Labor Department said first time applications for unemployment insurance fell 38,000 to 324,000, dur ing the week ended Nov. 28. It was the lowest since 323,000c laim s were filed the week of Sept. 23,1989. The decline was widespread; 41 states and territories reported de creases, and only 12 recorded in creases. A work week shortened by the Thanksgiving holiday may have caused some of the big decline, the government said. The department said wholesale prices, held to moderate gains this year, actually fell 0.2 percent in No vember. It was the first decline since the Producer Price Index fell by a similar amount last January. Excluding the volatile energy and food components, prices inched up a tiny 0.1 percent. For the year so far, wholesale prices have risen at an an nual rate of just 1.4 percent. Despite the effect of the Thanks giving holiday on layoffs, analysts said the overall employment trend continues to improve. It was the 10th straight week that new jobless claims have remained below 400,000, which many analysts interpret to mean the unemployment situation gradually is improving. The department on Friday said the jobless rate fell to 7.2 percent in No vember from 7.4 percent a month earlier and the recent peak of 7.8 percent last June. And 105,000 new jobs were created last month. Troops fire on Somalis, kill 2 MOGADISHU, Somalia — Troops opened fire on a truckload of Somalis who barreled through a French checkpoint Thursday night, killing two and injuring seven in the first bloodshed of the U.S.-led military mission in Somalia. The shooting came nearly two days after American and French soldiers took control of Somalia’s capital to protect food shipments. The two main Somali warlords agreed Thursday to their first meet ing since they began fighting two years ago. The shooting episode foreshad owed the unpredictable situation U.S. troops may face as they de ploy in Somalia’s interior. On Sat urday, Marines are to escort the first land convoy in a month to the strife-tom city of Baidoa, 125 miles to the northwest. CARE International said Thurs day night that its five-member staff in Baidoa had barricaded them selves inside their compound in anticipation of an armed attack by clansmen. The staff were an Ameri can, two Britons and two Austra lians. CARE’s manager in Mogadishu, Rhodri Wynn-Popc, asked Ameri can troops to provide air cover for the town Thursday night. Army troops from Fort Drum, N.Y., were scheduled to begin ar riving over the weekend in Baidoa, then split off and seize three other centers of the starvation zone — Belet Wen, Oddur and Gailassi. Fresh Marines were expected in Mogadishu by Friday. On Nov. 11, a 34-truck relief convoy to Baidoa was ambushed, resulting in heavy casualties, Only one truck made it through. Since then, truck convoys have not ven tured out of Mogadishu. Fifty to 60 deaths arc reported each day in Baidoa. Regular airlifts have done little for the hundreds of thousands of people encamped around the town because the bat tling clans and looters have pre vented agencies from distributing food and medicine. Even worse is Bardcra, about 50 miles south of Baidoa, Unlike Baidoa, Bardcra has neither camps nor sanitation. Heavy seasonal rains have limited food flights into Bardera’s muddy airstrip. Relief officials reported Thurs day that a large convoy of Somali “technicals” was spotted headed west from the Baidoa area toward the Ethiopian border. Alarmed by sporadic gunfire near the U.S. Embassy compound in Mogadishu, Marines on Thurs day raided several buildings in pur suit of snipers. With Cobra attack helicopters hovering, Marines burst into a villa a half mile from the embassy and seized two anti-aircraft guns, two surface-to-air missiles and 10,000 rounds of rifle ammunition, ac cording to an NBC reporter. At the Pentagon, Ll. Gen. Mar tin Brandtner said the truck that plowed through the roadblock manned by French Legionnaires had been a “technical” mounted with a gun, but there was no further word on who was in it. The injured Somalis were air- J lifted to the USS Tripoli for treat- I ment, Brandtner said. Two of the Somalis suffered bullet wounds and five were hurt when the vehicle slammed into a cement wall after it was shot. Parents fight Queens school official over gay lessons NEW YORK — The chief of the nation’s largest school system is locked in a bitter dispute with some parents over whether first-graders should be taught to respect gay people. Schools Chancellor Joseph Fernandez suspended a neighborhood school board last week for refusing to accept the “Children of the Rainbow” curriculum, which contains a section on how to leach respect for homo sexual parents. The city’s Board of Education dealt him a setback Wednesday night by voting to reinstate the nine-member elected board in District 24, a largely Roman Catholic section in Queens. It affirmed Fernandez’s authority to supersede the board if the two sides cannot come to terms on an alterna tive curriculum. Teaching respect for homosexual parents at center of dispute about new curriculum Fernandez set a Friday evening deadline for the school board to meet with him and his staff. If the board doesn’t respond, he will appoint three trustees to assume all responsibilities for the development of a multicultural curriculum. What has particularly angered some parents in the district arc two books on a suggested reading list for teachers—“Daddy’s Room mate” and “Heather Has Two Mommies.” Thousands of letters have been mailed to parents warning that the curriculum meant first-graders would be taught about the “homosexual lifestyle, including oral and anal sex.” “I’ll be the first one to pull my kids out of the school” if the curriculum is enforced, said Anna Saez, who heads a parent association at Public School 89. “I wish it wasn’t in the school at all,” said another parent, Betty LoCiccro. “If it’s going to to have to be, let it be in the junior high school.” It’s the latest controversy involv ing Fernandez, whose name has sur faced as a potential education secre tary in President-elect Clinton’s ad ministration. As education chief in New York, Fernandez hasn’t shied from contro versy. He was a leader in paving the way for AIDS education nationally and forcondom distribution in schools. The curriculum fight is his worst crisis so far — parents have come close to blows and security was tight ened around the schools chief after two death threats were delivered. The city’s 32 school districts were given the option of accepting the cur riculum or coming up with an alterna tive. The alternative had to include tenets of a multicultural curriculum policy adopted by the Board of Edu cation in 1989. The “Rainbow” cur riculum is designed to introduce chil dren to positive images of women, blacks, Hispanics and other groups. NATO eyes intervention in hungry Sarajevo SARAJEVO, Bosnia-Hercegovina — The hungry hung on the gates of Sarajevo’s last functioning bakery Thursday, but bread supplies were running out nine days after the hu manitarian airlift was suspended be cause of fighting. U.N. officials said their emergency food stocks were almost gone. In Brussels, diplomats said several NATO nations were on the verge of intervening militarily to stop the eth nic war over Bosnia’s secession from Yugoslavia. Dutch Prime Minister Ruud Lub bers made an impassioned plea Thurs day for outside intervention. “I don’t give a damn who takes the lead,” he told his parliament. “I think it’s downright scandalous that there’s intervention in Somalia, but not in Yugoslavia.” Lubbers said his government would “do our absolute utmost” to ensure -44 I don’t give a damn who takes the lead. I think it’s downright scandalous that there’s intervention in Somalia, but not in Yugoslavia. — Lubbers Dutch prime minister --99 “ that Bosnia was high on the agenda of the European Community summitthat begins Friday. “The basic food now is bread,” said Huscin Ahmovic, assistant man ager at the bakery. “Without it, it’s starvation.” Amira Pinjic, a typist, said she had been living on bread and tea for 10 days. She got her last U.N. aid pack agcon Nov.21.Itcontained twosmall cans of meal, two of fish, 61/2 pounds of flour, some hot chocolate and four U.S. military combat meals. “I feel very weak,” she said. Sarajevo suffered through a fourth straight wintry day without electricity and water because fighting prevented repairs to power lines. Dwindling bread production has heightened tensions at the bakery’s gates, where people collect a daily ration of a 6-inch chunk of bread. One man who felt his slice was too small Wednesday battered a bakery employee’s head with an umbrella, Ahmovic said. Larry Hollingworth, the head of the U.N. aid office in Sarajevo, said there were no stocks of food left in U.N. warehouses. “Everything I’ve got, they’ve got. It goes within minutes,” he said. In Zagreb, Croatia’s capital, U.N. spokesman Peter Kessler said relief flights likely would not resume be fore Tuesday. They were halted on Dec. 1 after a U.S. plane was hit be gunfire. Fighting and Serb roadblocks also have hindered truck convoys. One U.N. convoy of 19 trucks with 221 tons of supplies reached Sarajevo on Thursday. A tire of one truck was hit by a sniper’s bullet on the way, Kessler reported. Diplomats said the defense minis ters of NATO’s 16 nations discussed the possibility of military interven tion under U.N. auspices. 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