Albuquerque Journal from Albuquerque, New Mexico • Page 1

ALBUQUERQUE JOURNAL laaaiissssaaasisiasi MmiM-y-'----1'-' 1- to 104th Year No. 206 70 Pages In 6 Sections Tuesday Morning, July 24, 1984 Copyright 1984, Journal Publishing Co. Daily 25tf Sunday 75tf 7 ,1 Labor Party Leads Ruling Likud Bloc In Israeli Election rMiilc-P' oto Flap Ends Miss America's Reign New York Daily News NEW YORK Vanessa Williams, the former Miss America 1984, gave up her crown Monday at the request of pageant officials in a scandal over nude, sexually explicit photographs of her that appeared in Penthouse magazine. The pageant's first runner-up, Miss New Jersey, Suzette Charles, was installed as the new Miss America for the two remaining months of Williams' reign. Williams was the first black Miss America.

Charles also is black. "I am a fighter," Williams, 21, told reporters at a Manhattan news conference, but "the potential harm to the pageant and the deep division that a fight Continued on A-3 '( J) unity government. Labor has said such a national unity program must include readiness to trade parts of the West Bank for peace with Jordan, however, and Shamir has a longstanding pledge to work for annexation of the area to Israel. Final results were not expected until later today because hand counting of the paper ballots was a slow process in many districts and the large number of parties and candidates. si X.

1 III I WO) I TEL AVIV, Israel (AP) The Labor Party held a narrow lead over Prime Minister Yitzhak Shamir's conservative Likud bloc in incomplete returns from Monday's general elections, but both sought the first chance to form a new government. Israel Radio said early today that with 93 percent of the votes counted, it appeared that Shimon Peres' Labor Party would have 45 seats in the 120-member Parliament and Likud 42. But 61 seats are needed for a majority, and anaylists predicted a lengthy stalemate in negotiations to organize a ruling coalition because of the record 15 parties that were expected to win seats. There were calls for Shamir and Peres to join in a national unity administration to deal with with Israel's severe economic problems and the issue of peace with the Arabs. Both expressed willingness, but Peres said such a pact would have to be based on "an agreed program." The nearly complete vote count and an exit poll organized for Israel Television by pollster Hanoch Smith indicated Labor would win more seats than Likud, but with neither of the major parties coming close to a majority.

The exit poll projected 45 or 46 seats for Labor and 42 for Likud. In the outgoing Parliament, Likud held 46 seats to Labor's 50, while in the 1981 election Likud won 48 and Labor 47. Likud has ruled for seven years through alliances with smaller parties, and Shamir called the early election when four defections reduced the number of seats he could command to 60. Twenty-six parties entered candidates, and several minor parties gained at the expense of the two main rivals. That posed enormous problems for either one to form a coalition.

Likud appeared to have the upper hand because of the strength of five religious groups that are ideologically closer to Likud than to Labor. Former Defense Minister Ezer Weizman, who organized the centrist Yahad (Together) Party, said he would not join either Likud or Labor and called on them to form a unity government. "If the nation doesn't unite, we're in for a very difficult period of domestic problems, economic problems and issues of peace or he said. It appeared his party would win two seats. Peres told reporters, "I believe there is a chance the Labor Party will form a coalition.

I can't say anything final until the picture clears." Shamir said on television: "I am convinced that I have the best prospect of forming a coalition," and urged Labor to join him in a LTI Telepboioi there are dilapidated. But some of them including an auditorium are listed on state and national registers of historic places. By the terms of the transfer, the pueblo council must preserve the historic buildings. Both buildings were built before 1925 and typify the red-brick governmental style architecture characteristic of the period. The auditorium has mission-style parapets, a curved, arched portal, capped corner towers, and student murals on interior walls.

Lovato estimated that a two- to three-year planning period will preceed development on the site. "We want to study all possible, potential uses and come up with a project which well be a benefit to our people 10, 20, even 100 years from now," Lovato said. "It could include a hotel, motel, shopping center, office space and condominiums," he said. "We want to leave that door open until Continued on A-3 the 1984 Games at Los Angeles. Today, the Albuquerque Journal features a 20-page special section on one of the largest sporting events in history.

Pages B-l-20. Index Vanessa Williams Tells News Conference She'll Give Up Her Crown Penthouse Photo Spread That Sparked It All Causes Magazine's Sales To Skyrocket New Miss America Suzette Charles New Jerseyite Was First Runner-Up Pueblos Gain Indian School Land Title ALBUQUERQUE INDIAN SCHOOL LAND TRANSFER INDIAN PUEBLO Ov II CULTURAL CENTER CJ 7 -0 I hi fT liA1 ALBUQUERQUE 151 MDIAN SCHOOL II CAMPUS 5 7 1 ff IALL INDIAN PUEBLO COUNCIL. 0 II I OFFICE City May Avoid Auto-Test Debt, Lawyer Believes By NOLAN HESTER Journal Staff Writer Based on an outside legal opinion, Albuquerque city officials say they may not owe Hamilton Test Systems a dime of the $3 million the firm seeks for shutdown of the auto-emissions control program. "The whole contract is unconstitutional, regardless of what it said," said Mayor Harry Kinney late Monday. Under the state constitution, the city cannot incur a major debt for more than one year unless approved by the voters in a bond election, Kinney explained.

That reading, he said, came from attorney Jack Eastham of the Rodey law firm, which was called in last week to review the 128-page contract. "We got more than we bargained for," said City Council President Thomas Hoover. "I really wasn't expecting them to say that we had an invalid contract." Hoover said he had not discussed the matter with Kinney. However, he said any council action, if required, would come next Monday when the council was scheduled to debate the cost of the contract's termination. Kinney said the city has not decided its next step, but he said, "My guess is that if we refuse to pay that Hamilton will sue us." Hamilton officials could not be reached for comment.

While city officials had been aware of the argument used by Eastham, Kinney said it did not seem as clear-cut before now. Hoover said Eastham's opinion underscored the importance of seeking an outside legal opinion. Kinney remained cautious despite the apparent good news. He said Hamilton likely may fight the decision in federal court where the state constitutional argument Continued on A-3 Dow Jones Drops; Dollar Surges: D-5 since 1950, when the Korean War boom pushed up economic activity nearly 20 percent over the first seven quarters of growth. Most analysts now say they are convinced that strong growth and low inflation are almost certain to continue for the rest of the year, boosting President Reagan's reelection prospects.

"The pocketbook issue is going to be in the president's corner at election time," said Donald Stras-zheim, chief U.S. economist at Wharton Econometrics in Philadelphia. White House spokesman Larry Speakes hailed the report as "exceptionally good news again," while Commerce Secretary Malcolm Baldrige said that the dose of rapid growth and low inflation was "just what the doctor ordered." Continued on A-3 By TALLI NAUMAN Journal Staff Writer The All Indian Pueblo Council will have the authority to develop 45 acres of prime North Valley property, at the abandoned Albu- querque Indian School campus, as the result of a long-sought land transfer executed Monday in Washington. Assistant Interior Secretary Ken Smith transferred the deed to the property from the Bureau of Indian Affairs to the pueblos in ceremony attended by representatives of all but one of New Mexico's 19 pueblos. The pueblo council hopes to renovate buildings on the old schoolgrounds and possibly develop an office and hotel complex, according to Council Chairman Delfin Lovato.

Council members are scheduled to tour the school grounds Friday morning to take stock of existing facilities. The majority of the 44 buildings Good Morning The Economy Continues To Confound The Experts. It's Difficult To Sympathize With Those Confounded Experts. The Weather ALBUQUERQUE Partly cloudy through Wednesday; 20 percent chance for afternoon, nighttime thundershowers. High low 90s.

Lows mid-60s Heights, near 60 Valley. Details on E-9. 7.5; Inflation Shrinks Journal Map in a show of support for President Reagan, offered to begin peace talks with Nicaragua if its leaders stop "exporting revolution" to his war-torn nation. Page A-2. Fraud Suit Dismissed A lawsuit that alleged securities fraud by First City Financial a New Mexico bank-holding company, has been dismissed.

Page A-6. Hovey Hearing Closed The public and press will be barred from the second portion of a hearing aimed at determining whether 16-year-old John Hovey should be prosecuted as an adult on charges of murdering his parents. Page D-4. Let the Games Begin For the first time in eight years, the United States will compete in the Summer Olympics, and New Mexicans could play a big part in Defense Study Decried WASHINGTON Defense Secretary Caspar Weinberger and the chairman of the Joint Chiefs of Staff condemned as "potentially dangerous" a congressional report that found the nation's military lacking. Page C-6.

Duarte Seeks Peace Talks WASHINGTON Salvadoran President Jose Napolean Duarte, For 25 years Beverly Park served as one of Albuquerque's best-known and most-used tennis centers. But soon the Beverly courts will be bulldozed. In today's Impact magazine, Toby Smith tells the history of Beverly and what the park meant to the people who played tennis there regularly. The Los Angeles Times WASHINGTON Defying the experts once again, the economy grew at an unusually rapid 7.5 percent annual rate from April to June while inflation receded to 3.2 percent, the Department of Commerce reported Monday. Growth in the second quarter was somewhat slower than during the first three months of 1984 but still was far ahead of most economists' predictions.

The first-quarter growth rate was revised upward to 10.1 percent, making the period one of the best on record. The second-quarter gain in the U.S. gross national product, adjusted for inflation, was also sharply higher than the preliminary "flash" estimate of 5.7 percent issued last month by the government. Since the fall of 1982 when the worst recession since World War II ended the economy has rebounded 11 percent, making the recovery so far the strongest ACTION LINE A-2 ARNHOLZ A-3 BRIDGE A-7 BUSINESS 0-5-a CLASSIFIED E-2-8 COMICS E-10 CROSSWORD c-a DAILY RECORD E-9 DEAR ABBY C- DEATHS, FUNERALS E-9 EDITORIALSCOMMENT A-4, 6 FEATURES C-B HOROSCOPE c-a MOVIES C-6. 7 NEW MEXICO C-2 SPORTS P-1-3 TELEVISION A-7 TRENDS C-3, 4 WEATHER E-9 WHAT'S HAPPENING C-4 WORD SLEUTH C- Ji4w.

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