Arizona Daily Star from Tucson, Arizona • Page 1

1 Kir Shirley's back MacLaine is 'Madame Sousatzka' Accent, Page 6B Down Hill year Receiver having off season Sports, Page 1C I 7 3te 1 988 The Arizona Daily Star Vol. 147 No. 309 Final Edition, Tucson, Friday, November 4, 1988 64 Pages an Diego utility cancel their merger By Richard Ducote The Arizona Daily Star INDIA A Calcutta SRI LANKA VQa MALDIVES SCEcorp, the parent company of Southern California Edison, proposed a buyout of San Diego stock after the TEP-San Diego merger plan was announced. SCEcorp's unsolicited $2.2 billion offer for was rejected by the San Diego board in September. SCEcorp says its offer still stands; many analysts predict it will prevail.

A combination of Edison and would become the nation's largest publicly owned utility, with 4.8 million customers. The Tucson-San Diego merger that payment of the $25 million penalty to TEP would not be significant in the overall cost of acquiring Chairman Thomas Page said his company is considering alternatives, including remaining independent, combining with SCEcorp and "other extraordinary transactions." Analysts had hailed the merger plan as a good match between power-rich TEP and the San Diego utility, which is short on generating capacity for its 1 million customers. The proposed merger was seen as a solution to TEP's potential over-supply of power-generating capacity. Tucson currently sells power to San Diego under a contract that expires next May. TEP said yesterday that it developed a "modified resource plan" to reduce or eliminate any adverse impact of the termination of the transaction.

Under the modified plan, TEP See MERGER, Page 4A would have involved a stock swap, with TEP shareholders getting 1.725 shares of stock in the new, combined company for each TEP share. A TEP-San Diego combination would have created a utility with $5.7 billion in assets. TEP will be entitled to a fee of $25 million in the event SCEcorp acquires the TEP announcement said. The fee, spelled out in the TEP-San Diego agreement, was to be paid to one party if the other party canceled the merger. A top SCE official once indicated Location of I coup attempt Indian Ocean CHINA Ld A Enlarged Area Indian Ocean The Maldives Population: 189,000 (1986 est.) The land: 1,200 islands (200 are inhabited).

Climate is hot and humid. State religion: Sunhi Islam Economy: Population is mostly islanders living by subsistence fishing and coconut gathering. Fish is the main export. History: Former British protectorate ruled by a sultan. Became a republic in 1953; fully independent in 1968.

Tucson Electric Power Co. and San Diego Gas Electric Co. called off their proposed merger yesterday, citing difficulty in fending off a third utility's efforts to acquire The boards of directors of the Tucson and San Diego utilities voted tb terminate their June merger pact after failing to agree on a joint approach to defeat SCEcorp's efforts to block the merger, TEP said. 'Virus' infects U.S. military computers By John Markoff 1988 The New York Times A nationwide Department of Defense computer network has been disrupted since Wednesday night by a rapidly spreading "virus" software program apparently introduced by a computer science student's malicious experiment.

The program reproduced itself through the data network, making hundreds of copies in each machine it reached, effectively clogging systems linking thousands of military, corporate and university computers around the country. The virus is thought not to have destroyed any files. By late yesterday afternoon, computer security experts were calling the virus the largest assault ever on the nation's computers. "The big issue is that a relatively benign software program can virtually bring our computing community to its knees and keep it there for some time," said Chuck Cole, deputy computer security manager at Lawrence Livermore Laboratory in Livermore, Calif. The Livermore lab was one of the sites affected by the intrusion.

Clifford Stoll, a computer security expert at Harvard University, added: "There is not one system manager who is not tearing his hair ouL It's causing enormous headaches." The affected computers carry routine communications among military officials, researchers and corporations. While some sensitive military data are involved, the nation's most sensitive secret information, such as that on the control of nuclear weapons, is thought not to have been touched by the virus. Computer viruses are so named because they parallel in the computer world the behavior of biological viruses. A virus is a program, or a set of See VIRUS, Page2A lflfv 'K Knight-Ridder Tribune News Coup attempt Paratroopers from India arrive in the Maldives to quell a coup attempt by about 150 foreign mercenaries. Story, Page 12A.

The Associated Press downed trees and power lines Wednesday, and some remote areas may be without electricity for five days. Schools in the area were closed Wednesday and yesterday because of the early snowstorm. Moving experience Don Lyons of Burlington, Vt, clears his mother's driveway of 2 feet of snow at Lake Placid in New York's Adirondack Mountains. The package of wet, heavy snow Reagan vetoes Montana wilderness bill In vetoing the bill Wednesday night the president said he acted because the measure "would injure the economy of Montana" by eliminating jobs and "vast mineral development opportunities." He said the legislation would also have hurt the ability of the government to obtain strategic minerals needed for military and industrial uses. But Montana's Democratic senators, as well as environmental groups, said the veto was moti- SeeVETO, Page6A permanently protected wilderness status, said Marlin Fitzwater, the White House spokesman.

As a result of the veto, the entire 5.4 million acres reverts to a protected status and will remain in that status until Congress acts and the president signs a new bill designating how it should be used. The veto is consistent with the Reagan administration's longstanding policy of encouraging economic growth by promoting private access to public lands and their resources and opposing efforts to protect public lands. By Philip Shabecoff 1988 The New York Times WASHINGTON President Reagan vetoed legislation that would protect 1.4 million acres in Montana as pristine wilderness, setting off a debate about whether his action was politically motivated. The legislation was vetoed even though it would have at the same time opened 4 million acres of protected federal land to development Reagan vetoed the measure because he wanted to put only half of the 1.4 million acres into Houston firm tentatively OKs KDTU purchase By Jim Radcliffe The Arizona Dally Star A Texas broadcasting company tentatively agreed to buy financially ailing KDTU-TV for $8.5 million, it was announced yesterday. The nearly 4-year-old station, known as Channel 18 to most Southern Arizona viewers, would be sold by the Roman Catholic Diocese of Tucson.

Clear Channel Television of Houston would pay the diocese $2.5 million in cash and assume up to $6 million of the station's contracts with film and serial distributors, said Thomas Murphy, an attorney for the diocese. Richard Beesemyer, a vice president of media brokers Kalil which helped handle the deal for the diocese, said only that the station's liabilities exceed the selling price. Before Clear Channel Television purchases KDTU, its board of directors must approve the acquisition at a special meeting next week. The 2-month-old company, which owns an Alabama television station, is a subsidiary of Clear Channel Communications, owner of 16 radio stations. "I'm real excited," said Dan Sullivan, the president of Clear Channel Television.

"I think it's a great market" McKinnon Broadcasting, of Corpus Christi, Texas, has first right of See KDTU-TV, Page2A WEATHER i New education chief cites danger to U.S. from 'educational deficit' members and students at Arizona State University's College of Education. "We've heard a lot about deficits in the last few months, haven't we? We have just as dangerous a deficit, as far as I'm concerned, and that's the educational deficit We better treat it just as serious as the other two," said Cavazos, who was nominated Aug. 9 by Pres- See EDUCATION, Page4A By Susan M. Knight The Arizona Dally Star TEMPE The nation's "educational deficit" is as "dangerous" for the country's future as the budget deficit or the trade deficit, the new U.S.

secretary of education said yesterday. "We have a serious problem in this country today, and that problem is the lack of education of many, many of our citizens," Lauro F. Cavazos told faculty FBI reportedly bullied Hispanic whistle-blowers By Holden Lewis The Associated Press EL PASO The FBI has harassed and intimidated Hispanic agents who successfully sued the bureau for discrimination, according to documents filed yesterday in federal court Attorneys for the Hispanic agents asked U.S. District Judge Lucius Bunton to issue an injunction prohibiting the FBI from the alleged retaliatory acts. The attorneys' 32-page brief includes affidavits fro.n the primary plaintiff in the case and two others, all of whom contenc they were retaliated against after Bunton ruled on Sept 30 that the Federal Bureau of Investigation haa discriminated against Hispanics in assignments and promotions.

The three agents testified in the two-week, non-jury trial in August The 311 agents who jMned the class-action suit successfully argued that the FBI assigned them to less-desirable jobs, promoted them too See FBI. Page2A Heating Up. Today is expected to be sunny, warmer and breezy at times with northwest winds of 5 to 10 mph. Look for the high in the mid-80s, the overnight low in the lower 50s. Tomorrow will be sunny with the high near 90.

Yesterday's high was 83, and the low was 52. Statewide, sunny skies and near-record heat will continue through Sunday under a high pressure system. Details, Page 3A. Defense inquiry questions consultant payments INDEX II such criticism to the legions of consultants who work for private contractors. The audit conducted by the Defense Contract Audit Agency, examined a total of 60 units.

Although the audit did not specify which companies were involved in unjustified charges, it did say that the units examined included the headquarters of these 12 companies: the Boeing the General Dynamics Corp, the Hughes Aircraft Co, IBM, Litton Industries, the Lockheed Corp, the Martin Marietta Corp, the McDonnell Douglas Corp, the Northrop Corp, the Raytheon Corp, the See PENTAGON, Page 6A Pentagon was proposing changes to correct the flaws. While it is not improper for military contractors to use consultants in performing work for the Pentagon, the work must directly benefit the military if it is to be paid for by the Defense Department Often, Pentagon investigators discovered, this test is not met The Justice Department's continuing criminal investigation has focused attention on consultants and their role in the designing and selling of weapons, and the Defense Department has been criticized for using consultants too freely. Now the Pentagon's own investigation extends By John H. Cushman Jr. 1988 The New York Times WASHINGTON A Pentagon investigation has found that the nation's largest military contractors routinely charge the Defense Department for hundreds of millions of dollars paid to consultants, often without justification.

The investigation report said that neither the military's current rules nor the contractors' own policies are adequate to assure that the government does not improperly pay for privately arranged consulting work. Senior Defense Department officials said the Dr.Ctt MB Horactpc 7B Mowy H2C Mks 1IB ObitMriw 14C Public rectrds. 1JC Sjwrts 14C TV 1SB Acwnt HtB Achulidades Bridge 1JB CUssitiH Ctmits MB Cwnmert lt-HA Croswtrt 14C IfcarAbby 7B.