By The
Associated Press
Edited by Kristine Long
NEWS DIGEST
NetDraskan
Monday, April 11,1994
NATO launches air strike on Gorazde
SARAJEVO, Bosnia-Herzcgovina
— Two U.S. war jets dropped bombs
on the Muslim enclave of Gorazdc
Sundayaftcr Bosnian Serb forces over
ran government defenses to reach the
outskirts of town.
Maj. Dacrc Holloway, a U.N. mili
tary spokesman in Sarajevo, said
pi anes struck i n t he Gorazdc “pocket,”
but he did not say what was hit.
NATO headquarters in Naples,
Italy, released a statement identifying
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the planes as U.S. F-16Cs based in
Aviano, Italy. NATO also did not
specify the target.
It was the first time NATO has
launched an air strike. In late Febru
ary, NATO war jets downed four Serb
planes violating the “no fly zone” over
Bosnia. However, that decision did
not require previous U.N. approval.
Gorazdc, about 35 miles south of
Sarajevo, is one of the six “safe areas”
for Bosnian Muslims that the United
Nations established last year. But af
ter that designation, Serbs continued
to besiege the city— as they have for
most of the two-year war — defying
the U.N.’s intent.
The U.N. commander in Bosnia,
Lt. Gen. Sir Michael Rose, in brief
comments to reporters in Split,
Croatia, had suggested air strikes may
be in the offing if the Serb attack
persisted.
Esad Ohranovic, a Gorazde city
official, speaking with reporters in
Sarajevo via a ham radio linkup, said
earlier Sunday that Bosnian Serb
troops were at the southeastern edges
of town.
A U.N. source in Belgrade, speak
ing on condition of anonymity, said
there had been two strikes in the pocket
and that Bosnian Serbs responded with
anti-aircraft fire.
Shortly before U.N. bombing an
nouncement, Charles Redman, the
U.S. special envoy on former Yugo
slavia, told reporters in Sarajevo,“this
is serious and we all agree on that,”
but he would not elaborate on what
action the United Nations might take.
“The developments since this af
ternoon did that. That’s what has
changed the situation,” Redman said
after meeting with members of
Bosnia's Muslim-led government.
“The situation is very serious because
of the Serb advances.”
Fighting slows in Rwanda
KIGALI, Rwanda— Fires burned
on Ihe outskirts of the devastated capi
tal of Rwanda, and hundreds looted
aid warehouses Sunday as fighting
abated after three days of savage chaos.
At a hospital in Kigali, doctors
claimed, soldiers slaughtered patients
in their beds.
Rclicfofncialscstimatc as many as
10,000 people have been killed in
Kigali alone. The fighting — the rc
sul t of a decades-old struggle between
the Hutu and Tutsi ethnic groups —
has forced hundreds ofEuropcans and
Americans to flee the country, many
for neighboring Burundi.
Foreigners were leaving by air from
Kigali airport or by convoy to
Bujumbura, Burundi’s capital.
Secretary ofState Warren Christo
pher said Sundayon NBC’s“Meet the
Press” that most Americans had left
and “as far as we know, there are no
Americans who arc unsafe.” About
250 Americans, mostly missionaries
and aid workers, were in Rwanda.
In Kigali, Eric Bcrtin, a coordina
tor for the French Doctors Without
Borders, said when he and colleagues
arrived at a hospital Sunday, they
found patients they had treated the
day before had been killed by soldiers
overnight.
Many were in beds in tents set up
around the hospital, he said.
“We have decided it is no use to
work here anymore,” Bertin said. “It
is useless to cure someone who is
Cereal prices indicate low inflation
NEW YORK — Those little tan
O’s floating in your breakfast bowl
may seem like ordmaryChecrios. But
to some economists they’re leading
indicators of low inflation.
Last week General Mills lowered
the price of the oat-based cereal by 12
percent. Despite rampant anxiety in
the financial markets about rising in
flation, some forecasters insist the
opposite may now Ik true: Consumer
prices are actually falling in some
parts of the economy. While rolling
back Checrios prices. General Mills
Inc., the nation’s No. 2 cereal maker
behind KelloggCo.. made sun i lar cuts
in the prices of Wheatics and other
popular cereals.
“That to me was a very telling
statement,” said Bruce Steinberg, an
economist at Merrill Lynch & Co.
“In a few selected parts of the
economy, relating mainly to autos or
steel, there are some pricing pressures
that have shown up. But in much
broader pans of the economy, there’s
pretty in tense disinflationary pressure
under way.”
Attention to signals of inflation
has contributed to a powerful sell-of]
m the financial markets in the last
month. Investors abhor inflation,
partly because it eats the value of
investments such as bonds, which pay
fixed interest rates.
Not all economists think investor
fears are overblown. Because market
players tend to invest m financial
instruments for the long haul, they
must lix>k beyond current inflation
trends and try to anticipate consumer
prices over the next year and beyond.
“If people are worried over the
long-term that their dollars are worth
less, they start taking action immedi
ately to ensure" they don’t lose money,
said Scott Lummcr, an investment
expert at Ibbotson Associates in Chi
cago. an investment consulting firm.
But to everyday Americans whose
paychecks stretch virtually as far as
they did one year ago, evidence of
inflation is spotty at best.
Oil prices are at five-year Ions
Many ItxxJ items cost less. Growth in
health-care costs, a major cause of
past inflation, has slowed. Car price
increases are subdued. Workers are
hesitant to ask for salary increases
with all the recent layolTs.
A sustained financial market de
cline also could help keep a lid on
inflation, according to William
Sullivan, director of money market
research at Dean Witter, Discover &
Co.
Thafsbecau.se weakened stock and
bond markets could dampen consumer
confidence and push up interest rates.
High interest rates cut into new home
sales, which arc a fulcrum of con
sumer demand for all sorts of goods
and services. High demand for goods
in limited supply is a cause of infla
tion.
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We have decided it is no use to work here
anymore. It is useless to cure someone who is
going to be killed anyway. They were just lying
in their tents dead.
—Berten,
coordinator for Doctors Without Borders
-1* -
going to be killed anyway. They were
just lying in their tents dead.”
11 was not immediately known how
many were killed at the hospital.
Elsewhere in the city, bodies were
strewn in the streets. Fighting had
raged since the presidents of Rwanda
and Burundi, Juvenal Habyarimana
and Cyprian Ntaryamira, died in a
suspicious plane crash Wednesday.
They were returning from a confer
ence in Tanzania aimed at ending
ethnic strife in their countries.
The Rwandangovemmcnlsaid the
plane was shot down by unidentified
attackers. U.N. officials were pre
vented from going to the crash site.
In the rampage that followed, resi
dents were dragged from their homes
and shot to death or hacked to pieces.
The acting prime minister was slain
as she sought refuge. Aid workers,
priests and nuns were targeted in the
massacres.
Outside the capital, fighting has
pitted the Hutu-dominated army and
the mostly Tutsi Rwandan Patriotic
Front. The two sides reportedly agreed
to a cease-fire on Sunday, but its effec
tiveness was in doubt.
“Both parties reached an agree
ment on a cease-fire and apart from
some sporadic gunfire, it seems to be
respected,” Col. Luc Marchal of the
Belgian U.N. contingent in Kigali
told Belgian television network RTBF.
But just hours later, France-2 tele
vision broadcast comments from RPF
leader Thcogcne Rudasingwa, who
said “We have little option” but to
continue advancing toward Kigali.
Foreigners continued leaving the
capital Sunday, carrying whatever they
could gather. One man toted a tennis
racket, another held a thermos bottle.
Four Belgian planes and 250 para
troopers arrived in the capital to assist
in the evacuation, and about 330 U.S.
Marines were in Burundi. The Ameri
cans t(X)k evacuees to Nairobi. Kenya,
aboard four C-130s and two C-I4I
transports.
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