i Thursday, October 29,1998 page 2 economists concerned i despite budget surplus WASHINGTON (AP) - Even as President Clinton triumphantly con firmed die first budget surplus in 29 years on Wednesday, economists began warning the ever-better news will fade along with the economy and the stock market “Today we learn, after decades of deficit that this past year we had a surplus»of exactly $70 billion,” Clinton said at die White House. It’s the first surplus since 1969 and represents a remarkable turn around from die record $290 billion deficit in 1992 and even from 1997’s $22 billion in red ink. A booming stock market flood ed the government with a 12 percent increase in income-tax receipts, which caused the greater-than-pre dicted surplus. And strong job growth incr eased payroll-tax revenue and reduced the government’s spending on welfare and unemployment ben efits. But now world financial turmoil is expected to cut in half the rate of U.S. economic growth to a lacklus ter 2 percent most of this year and next. And the stock market, after ^dunging from midsmmnerJiighs, doesn’t appear likely to return to double-digit percentage gains any time soon. Britain, Argentina at peace over disputed Falklands LONDON (AP) - With a hand shake symbolizing reconciliation and the simple laying of a wreath, \ Britain and Argentina began Wednesday to heal the wounds left f by their 1982 war over the still-dis ■ puted Falkland Islands. Carlos Menem, the first Argentine president to visit Britain officially since the war, placed the wreath of blue and white flowers — the color of the Argentine flag - before a plaque at St. Paul’s Cathedral listing the 255 British soldiers slain in the 74-day conflict He then clasped hands on the cathedral’s steps with Prince Andrew, the son of Queen Elizabeth II Who flew combat missions as a helicopter pilot during the war over m me windswept soum Atlantic arcru pelago. Menem’s six-day visit has been billed by both governments as one for reconciliation, not recrimina tions, with the focus on booming trade and generally good relations with Argentina’s democratically elected government “We can agree to disagree,” Argentine Foreign Minister Guido Di Telia said before the wreath-lay ing ceremony, referring to the Falklands, which Argentina calls the Malvinas. “This idea of agreeing to disagree is a very British idea.” The ceremony was intended to deflect from the dispute over the Falklands, whose 2,200 populace is of British descent. The Argentine president had lunch with the queen Wednesday and was scheduled to meet Thursday with Prime Minister Tony Blair. Hurricane Mitch lingers in Honduras, killing 32 LA CEIBA, Honduras (AP) - TT-? ___I • li._1 iilAllviUlv 1TUIVU 111 11D wmil through the western Caribbean on Wednesday to punish Honduras with 120 mph winds, sweeping away bridges ^-flooding neighbor- * hoods and killing at least 32 people, p Mitch was drifting west at only 2 mph over the Bay Islands, a Honduras tourist area popular with American scuba divers and beach combers. The storm was only 30 miles off the coast, and hurricane-force winds stretched 105 miles from the storm’s center. That meant the Honduran coast and a good portion of the interior was under hurricane conditions for more than a day. “The hurricane has destroyed almost everything,” said Mike Brown, a resident of Guanaja Island who was within miles of the eye of the hurricane. “Few houses have remained standing.’* At its peak Tuesday, Mitch was classified as the fourth-strongest Caribbean hurricane this century with 180 mph winds. By Wednes day afternoon, the 350-mife-wide storm still packed a punch-Jjutits sustained winds were down to 120 mph. uQuestions? Comments? wnwn tim VJ1D80Q mrmmnrl^n mdlnn --««* * A-saaisiE ^ssz T^^s800 Associate News Editor: Brad Davis Of S-mM