Arizona Republic from Phoenix, Arizona • Page 1

SEB The Arizona Republic FRIDAY. JANUARY 10. 1986 0 PHOENIX, ARIZONA A QfiTHVPAO Wn 9QQ Indian jai alai plans derailed by U.S. appointee spent by the Florida investors on the Arizona jai alai project, although no construction has begun, Lewis said. A formal ground-breaking ceremony was held May 6 for the $20 million jai alai complex, which was to seat 5,000 people, but no other construction has taken place at the site, near Chandler at Interstate 10 and Maricopa Road across the freeway from Firebird Raceway.

At the time, it was announced that the facility would to enforce an existing federal restriction on reservation gambling. Cancellation of a lease and development and management agreement between C.A.H.K. Inc. of Miami, and the reservation was disclosed in an undated letter from Ross 0. Swimmer, assistant interior secretary for Indian affairs, received Tuesday by Donald R.

Antone governor of the Gila River Indian Community. In an interview Thursday, tribal attorney Rod Lewis described open in October 198G. Swimmer, who has said he personally is opposed to gambling on reservations, told Antone that he agrees with state Attorney General Bob Corbin that, because betting on jai alai is prohibited in Arizona, it also would violate the federal Assimilative Crimes Act. Federal law, which declares that anything considered criminal in the host state also is illegal in those states' Indian reservations, will serve as a key in deciding what Swimmer's directive as "shocking, extremely irregular, totally unheard of and having broad ramifications that threaten to "darken the whole business climate throughout Indian country." Resides its effect on the jai alai wagering agreement, Lewis said, Swimmer's mandate "places in jeopardy all other leases, contracts, agreements and documents that require federal approval for every Indian tribe in the country." Considerable money has been By ALBERT J. SITTER Arizona Republic Staff The newly appointed head of federal programs for Indians says he has withdrawn government approval given a year ago to conduct pari-mutuel gambling at a proposed $20 million jai alai arena on an Indian reservation south of Phoenix.

Until now, government authorities, sensitive about critics accusing them of violating the sovereignty of Indian reservations, had hesitated types of gambling will be permitted on various reservations, Swimmer said. For example, because New Mexico does not permit pari-mutuel betting on dog races, the governor of Santa Ana Pueblo, near Albuquerque, was notified in August that a proposed dog-racing venture would be not be allowed. One of the first enforcements of the Assimilative Crimes Act was Jai alai, A7 Ml WlMllllMMJIMilMHUIIllll Point-blank killing of Phoenix officer mystifies police Force possible against Libya, Shultz warns U.S. nearing 'end of road' in using economic pressure Republic Wire Services Secretary of State George Shultz, expressing frustration over a lack of allied support for American sanctions against Libya, said Thursday that the United States is near the "end of the road" in applying economic pressure on Moammar Khadafy's regime and may have to take military action. Meanwhile, Khadafy ridiculed President Reagan as a "useless actor" and attacked the United States as "a stinking, rotten crusader" that has jeopardized Mediterranean security.

He warned that continued American hostility toward his nation will lead to mmmhmmmhmmmmh "more cooperation" U.S. 'war' threat, A5. between Libya and By STEVE YOZWIAK Arizona Republic Staff Phoenix police know Officer Robert T. Fike was shot at point-blank range and that is almost all they know about his killer. Fike's death late Wednesday night behind an east-central Phoenix convenience store has raised the specter of the first unsolved homicide involving a Phoenix police officer.

Police have, perhaps, never needed more help than they do on this case. There are no witnesses, no murder weapon and no motive for Fike's shooting. Police say the only evidence of any crime that Fike may have been investigating is a pair of bolt cutters found behind the Circle K. That tool has not been linked conclusively to the shooting. Police have not found Fike's service revolver and do not know whether it was used to fire the slug that entered under his left eye, severed his spinal cord and lodged in his neck.

Because Fike was alone, his death also has raised the issue of whether officers should ride in pairs. Underscoring police frustration was an unprecedented move Thursday by Silent Witness, a private Valley foundation, to offer up to $5,000 for information leading to an arrest. Previously, the foundation had offered up to $1,000 for such information. Officer Mike Petchel, president of the Phoenix police union, said, "Whoever committed this is going to talk to someone. Robert T.

Fike The curious A2. Flag's at half-staff A10. Map depicts scene AIO. 15 have died on duty AIO. the Soviet Union and may lead to the transformation of Libya into a communist nation a Cuba in the Arab world.

Western diplomats said a Soviet patrol vessel arrived Wednesday in the Libyan port of Tripoli in what they described as a "show of support" for Khadafy; They also said Libya has five Soviet-made SA-5 missiles operational and hidden in disguised silos southwest of Benghazi. At a Washington news conference, Shultz announced that he is sending his deputy, John Whitehead, to Europe to try to persuade U.S. allies to support the American campaign to isolate Libya economically. With rising emotion, he suggested that the Europeans should look at photographs of the mayhem at the Rome and Vienna, Austria, airports caused by terrorists who struck Dec. 27 at the check-in counters of El Al, the Israeli airline, and other carriers, killing 19 people, including five Americans.

"Other countries should take a good look, a good hard look," Shultz said. Refusing to give up hope of support from the allies, Shultz said, "People's thinking is moving, it's dynamic." He said Whitehead, a former New York investment banker, would explain the U.S. view and be "as persuasive as he can." Whatever the outcome of Whitehead's mission, Shultz said that he doubts the sanctions "are likely to Shultz, Al 3 That's probably what will give us a break in the case. "Somebody must have seen this murderer a car, someone running away, someone leaving. It may be the more innocuous clue that will lead us to the killer.

That's why it's important that people call in with any information." "It's a real shocker," Police Chief Ruben Ortega said. "It's not the first time we've had an officer killed, but each time, it seems to be worse." There was no sign of a struggle, Ortega said. The officer's uniform Slaying, A10 nnnMMMMHM Sean Brady Republic substation of the Phoenix Police Department. He was talking about Fike's death. Officer Billy D.

Holloway takes a moment to compose himself at the Squaw Peak Thatcher aide quits over U.S. firm's role gji Today Halley's proves a theory Halley's comet observations confirm a theory that comets contain a large amount of ordinary water. Now is prime time for viewing Halley's. B1. Associated Press LONDON Defense Secretary Michael Heseltine resigned Thursday in a dramatic break with Prime Minister Margaret Thatcher after accusing her of trying to muzzle his campaign against an American-led takeover of a British helicopter company.

Heseltine, 52, stalked out of a Cabinet meeting, leaving behind shocked colleagues who had just agreed that any statement on the financially ailing Westland PLC helicopter company had to be cleared by the Cabinet. Heseltine wanted a British-Euro pean consortium to buy Westland rather than the Sikorsky firm of the United States, which has backing from Italy's Fiat automobile manufacturer. It was the most spectacular resignation from a top government post in Thatcher's 6 Vi years as prime minister. Heseltine whose nickname "Tarzan" reflects his colorful style later delivered a 22-minute statement at a news conference in which he said honor 1 forced him to leave the Cabinet. "I had no choice but to accept or to resign.

I left the Cabinet," Thatcher, A4 Montini A2 Movies C13 Obits E7, F24 CHUCKLE By the time he whispers, "We were made for each other," she is already making alterations. PRAYER Thank you, Lord, for helping to turn defeats from our trials into joys of victory. Grant that we may be more sensitive and helpful to others. Amen. WEATHER Sunny and slightly warmer.

High in low 70s, low in mid-40s. Thursday's high 71, low 45. Humidity: high 51, low 18. A16. Weatherline 957-8700 Astrology F1 Bridge C13 Comics F2, F3 Crossword 1 DearAbby F1 Economy El Editorials A14 Fashion D13 Kelly F1 Leisure C1 F1 D1 D9 B1 C15 F24 F1 Scrabble Sports Sun Living Thurber TVRadio Vitals Want Ads Michael Heseltine "This is not an approach for which I can share responsibility." IRS to nab refunds of defaulters United Press International WASHINGTON The Internal Revenue Service has the names of 750,000 Americans who have defaulted on $1.6 billion in student and other government loans and plans to deduct the money from their 1985 tax refunds, the administration said Thursday night.

The Office of Management and Budget said the nearly 750,000 people ignored several notices of the past-due loans before the information was forwarded to the IRS by five federal agencies. Most of the people involved 657,894 have defaulted on student loans that, with interest, totaled $1.3 billion, a budget office spokeswoman said. Other loans came from the Small Business Administration, the Department of Housing and Urban Development, the Agriculture Department and the Veterans Administration, she added. The spokeswoman noted that the five federal agencies involved completed forwarding the data to the IRS on Thursday. The IRS plans to deduct as much as it can from the taxpayers' refund, when that is possible, she said.

However, she noted that about 41,000 other people who were sent final notices have paid about $14 million in overdue loans in the past few months. "Scofflaw defaulters who think they've outwitted and outrun the Refunds, A2 A campaign of full disclosure Globe principal's firing spurs parental boycott United Press International HOBOKEN, N.J. Evelyn Arroyo has given a new twist to the old political dirty trick of publishing pictures of an opponent in a compromising position: She's published one of herself. Arroyo, the 1982 Miss Puerto Rican New Jersey, is running for a spat on the Hoboken school board. She placed an advertisement in a weekly newspaper with a photo of herself wearing a clinging, off-the-shoulder silk negligee.

"The politicians aren't supporting me, so I figured the only way I could win was to use my assets," said Arroyo, 21, who appears in a coy pose with her arms wrapped around her drawn-up knees. Arroyo described herself as an issues-oriented candidate who wants to improve Hoboken's schools, but she said she cannot get her ideas across unless Disclosure, All the buses got through and that no injuries occur," said Globe Schools Superintendent O.K. Nutting, who had recommended that David Dean's contract not be renewed for the 1986-87 school year and that he be removed as principal for the remainder of his contract, which runs through June. At Wednesday night's meeting the Globe school board voted 3-0, with two members abstaining, to follow Nutting's recommendation. Dean was ordered to remove his personal effects from his office by noon Thursday.

Assistant Superintendent Carlos Principal, A2 By PHYLLIS GILLESPIE Arizona Republic Staff Parents of 161 pupils at the Copper Rim Elementary School in Globe took their children out of class Thursday in protest of the sudden removal of the school's principal Wednesday night. Thirty of the school's 34 teachers also had considered boycotting classes to support Dean but decided to go to work, according to Becky Farester, a second-grade teacher. As news of Dean's removal spread, more and more parents went to the school Thursday to remove their children. "I told the sheriff to make sure Evelyn Arroyo shows a copy of her ad. Arroyo says her first task is to attract voters' attention.

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