Asbury Park Press from Asbury Park, New Jersey • Page 1

PATBirir rAnv nvAiuwl the Shirley LOIllluis arship at Wall Township High School graduation ceremonies Minaay. The award was omitted from a list ot awaros in THE ASBURY PARK Your complete newspaper Store Price 75 cents June 21, 1987 Syrians say hostages to Pension losses $20.7 million Figure in line with divestiture estimate By COLEEN DEE BERRY Press State House Bureau be released Iran issues threat The Associated Press 7 I Putting on the dog Deutsche Presse-Agentur BEIRUT, Lebanon American newsman Charles Glass and Ali Oseir-an, son of Lebanon's defense minister, could be freed within the next 24 to 48 hours, a Syrian source said here yesterday. He said negotiations had reached a complicated phase that may delay the release of the two hostages but the Syrians were increasing their efforts to free the two men and their driver. The same source said Friday that the kidnappers had contacted the Syrians and offered to free Oseiran and his driver but keep Glass. The Syrians refused, the source said.

According to sources close to Defense Minister Adel Oseiran, the minister called Syrian Vice President Abdul Halim Khaddam in a bid to win his support for releasing his son and Glass. The sources added that Khaddam reassured Oseiran that Syrian President Hafez Assad was giving the issue top priority. Assad instructed the command of the Syrian forces in Beirut to mount their efforts and free the Oseiran, Glass, and their driver, Suleiman Suleiman. On Friday, the defense minister said he was informed that Hezbollah (Party of God), an extremist Shia Moslem organization, was behind the abductions in West Beirut Wednesday as the men drove from Sidon through the Shia district of Ouzai. Sheikh Mohamad Hussein Fadlal-lah, the spiritual leader of the organization, has denied that his group was responsible.

Meanwhile, the chief investigator into the assassination of Lebanon's Prime Minister Rashid Karami resigned yesterday after criticism of the findings of his inquiries, security sources said. Judge Mounif Oweidat quit a day after Omar Karami, the brother of the slain prime minister, accused him of "joining the choir of procrastinators." However, the Voice of the Nation, a Sunni Moslem radio station, quoted Oweidat as saying he resigned because of "pressures and unfounded criticism of his honesty." In another development, an underground group calling itself the "Organization for the Oppressed on Earth" said in a statement delivered to the See SYRIANS, pageA12 1A Even that didn't seem so unusual in a country where nearly one out of every two marriages end in divorce these days until she disappeared on that fateful April morning. Police have yet to come up with a solid clue. Mrs. DeStefano's mother and stepfather Anita and Barnett Pra-ger, who operate an insurance agency in Queens, New York have offered a $15,000 reward for infor- See MISSING, page A4 Win Arts Center Tickets On WJIK AM 1310 AM-Golden Boys Of Bandstand-Win All Week Enter Miss Jersey Shore Pageant Now! 681-1444 Jet Ski Rentals, long Branch, 222-5459 'It' 7v Dylan Reilly, 8, who Is recovering from being submerged in icy Deal Lake nearly a half hour last winter, gives a playful tug to the stuffed dalmatlan given him yesterday by the Wanamassa First Aid Squad at a block party in Ocean Township.

Family, friends and professionals are astounded by his progress. Page A2. BILL DENVERAsbury Park Prsss A'1 TWO YEARS ago, amid an atmosphere of protest and demonstrations against apartheid, the Legislature mandated the state pension fund divest itself of companies with interests in South Africa. Since then, the State Investment Council, responsible for investing New Jersey's pension funds, has removed 94 companies from its investment rolls, divested $2.8 billion of targeted securities and lost some $20.7 million in the process. But compared to the pension fund portfolio's total worth of $13.9 billion, that $20.7 million loss is no cause for concern, according to Roland M.

Machold, director of the investment council. "We predicted (during hearings on the divestiture bill) that we would lose about $25 million annually through the transaction process, and we are following those predictions," Machold said. "As long as we can balance the loss through good management practices, there is no cause for alarm." Under the divestiture law, the state had three years to fully divest all companies with South African hold-; ings. At the end of the three years, the 1 pension fund could lose as much as $56 million, Machold said, and $25 million annually after that. Gov.

Kean, who signed the divestiture bill into law on Aug. 27, 1985, said that so far, he hasn't seen anything to make him uncomfortable with the way divestiture has been going. "Overall, our state pension fund has increased greatly in value (despite the loss) so the figures are misleading," Kean said. "The investment council has been doing a superb job of handling the divestiture." The sponsor of the bill, Assemblyman Willie B. Brown, D-Essex, contends the importance of New Jersey's divestiture extends beyond the state's boundaries.

"We're sending a message," Brown said. "We're saying that it's no longer a privilege to have these companies as investors it's a liability." New Jersey was not the first state to divest, but until California's divestiture last year, it represented the largest such public fund to take the action. Currently, 70 cities, 16 counties and 24 states have divested. A total of 197 companies are now left in South Africa. Some 20 corporations pulled out of the country this year, with another 14 considering leaving, list year, 50 companies left, with 40 leaving in 1985.

"New Jersey was the first major public fund to go to full divestiture, and it was a significant moment," said Dr. Marcy M. Murningham, of the Mitchell Investment Management Company, Cambridge, Mass. Dr. Murningham noted that New Jersey's divestiture differs from other states in two ways the time frame and the stringency of the interpretation of what constitutes an interest in South Africa.

"The projected time frame was very tight they (the investment council) were to have full divestiture in three years," Dr. Murningham said. "The state investment council should have been given a time frame of three to five years, so that they had more time and more discretion with their portfolio." She characterized New Jersey as having "the most stringent interpretation in the nation" of what constitutes doing business in South Africa. "So considering the time frame, the size of the fund and the stringency of the interpretation, New Jersey has been doing quite well with its divestment," Dr. Murningham said.

Under a series of decisions issued by then-state Attorney General Irwin Kimmelman, the definition of doing business in South Africa was expanded beyond just maintaining a factory, office or plant in that country. Companies that do not have a physical presence there, but operate through intermediaries are also target-See PENSIONS, page A4 D'Jais Belmor. "1st day of summer party!" Summer munches wear shorts or a bathing suit. Tall 2'fers $175, (12pm-opm) 681-5055 Bettor Gardens. Start with tips from Asbury Pork Press garden pages.

NICOSIA, Cyprus Iranian Prime Minister Hussein Mu-savi yesterday threatened "crushing blows" against U.S. targets in the Persian Gulf after Iraqi planes attacked an Iran-bound oil tanker to end a one-month lull. Iran has evidence that Kuwait provided the facilities for an air strike at dawn yesterday against the tanker in the northern gulf, Musavi said in a Tehran Radio broadcast monitored in Nicosia. He did not elaborate, but the Iranians have charged in the past that Iraqi warplanes regularly fly through Kuwaiti air space on their way to attack ships and that Kuwait aids Iraq in its t'h-year war with Iran. "Following this provocative move, insecurity in the Persian Gulf will be much greater than in the past," Musavi said.

"Everyone should know that we will not shirk making America's military prestige in the region a target for our crushing Musavi said the attack on the tanker was designed to "pave the way for America's presence in the region." Gulf-based shipping executives told The Associated Press in Bahrain that the vessel was the Liberian-regis-tered Tenacity. Tehran radio said the ship was sailing from Bandar Abbas in the Strait of Hormuz to Iran's Kharg Island terminal in See IRAN, page A12 Fairness doctrine vetoed Los Angeles Times WASHINGTON President Reagan, intensifying the debate over whether the nation's broadcasters must present opposing views of controversial issues, has vetoed legislation to turn the 38-year-old "fairness doctrine" into law, the White House announced yesterday. "This type of content-based regulation by the federal government is, in my judgment, antagonistic to the freedom of expression guaranteed by the First Amendment," Reagan said in his veto message. "In any other medium besides broadcasting, such federal policing of the editorial judgment of journalists would be unthinkable." The legislation had been staunchly opposed not only by the administration but also by the nation's broadcasters, who maintain that the Federal Communications Commission policy is an unconstitutional intrusion that has a chilling effect on their operations. Opponents also contend that the explosive growth of the telecommunications industry in recent years makes the fairness doctrine obsolete.

In his veto message, Reagan noted that the FCC has concluded "that the doctrine is an unnecessary and detrimental regulatory mechanism." The legislation containing the doc-See REAGAN, page A12 Anticipation. LaBamba matinee at 4. 681-7422 Bobby Bandiera. No cover. Brokers, Red Bank Joann, Happy 22nd, I love You, Rich Mom, Happy Birthday-The Big 4-0 15 Her Li in i i Asbury Park Press Rachelle and Louis DeStefano (inset) about five years ago, and their Manalapan Township home.

Wife, mother still missing Inside Nurturing dads How children benefit when fathers get actively Involved. PanoramaBl Better days ahead The Berkeley-Carteret is recouping from a rough year. BusinessDl Supreme Diana Ross A talk with her about her summer tour and recent pregnancy. EntertainmentGl U.S. Open leader Tom Watson takes one-stroke lead into today's final round.

Sports1-1 Chance of showers Increasing cloudiness extending into tomorrow. Weather1-25 Complete index, page A2 Osprey, Countdown At Noon. Free Buffet at 2. Turtle Races at 4. 223-0707 Paul Cilinski 91.

Norwood Inn, Avon, 775-3900 Country Brunch, Clipper Pub, Sea Girt 449-7200 she had obtained a real estate license and planned to return to the work force. She was excited but apprehensive about beginning her first job since getting married 10 years earlier. Her relationship with her 46-year-old husband, Louis Rudolph "Rudy" DeStefano, a New York brokerage firm clerk who works on the floor of the New York Stock Exchange, was somewhat less stable. There had been problems, and she had consulted a lawyer about divorce. Montegol! Shore's Famous Happy Hourl Yesl Midnight Madness! Si drinks 10-12.

Belmar. Richards! Dance party! DJ Art! 899 9000 Columns Avon Breakfast-DinnerCherubs at 5 By TRACY SCHR0TH Press Freehold Bureau MANALAPAN TOWNSHIP From the outside, Rachelle DeS-tefano's lifestyle seemed like that of many other young mothers until April 21, 1986. The 34-year-old housewife lived with her husband and two children in a quiet, wooded neighborhood on Tracy Drive here. She kept a clean house, worked on the lawn and occasionally lunched with friends. With both children in school.

Stone Pony, 988-7177 Cats and Beyond The Blue. Mon. Patty Smyth. Tsunami Si drinks 8-2amno coverOJ 870-9292 Cafe Bar tonight Jah love 229-9823.