Arizona Daily Star from Tucson, Arizona • Page 1

1 $77i winning starl ifok suction UA beats Soviets, 78-68 Women will bid for dates Accent, Page 1C Sports, Page ID fifstf 1987 The Arizona Daily Star Vol. 146 No. 321 Final Edition, Tucson, Thursday, November 19, 1987 350 58 Pages HOOD Record inflation rate of 141 announced From wire and local reports MEXICO CITY The Bank of Mexico halted its efforts yesterday to support the value of the peso against the dollar on the open market here, setting off a panic that sent the peso's value down as much as 59 percent. The action, which followed two days of sharp declines on the Mexican stock market, came shortly after government authori- adequate conditions, a measure that would save the country's foreign exchange. But this caused them to go to the free market in order to get the dollars to make the pre-pay-ments "Another reason for this action is that in the last few days the stock market in Mexico, affected by other world stock markets, dropped, which caused panic and speculation against the peso these factors started a decline in the levels of our reserves." Petrichioli added that authorities could i See PESO, Page2A ties announced that the inflation rate had hit its highest level in Mexican history an annual rate of 141 percent, compared with 105 percent a year earlier.

Economists and bankers here said both factors had led investors and savers to abandon the peso and acquire dollars at any cost. "There has been a big demand for dollars in recent days," a foreign economist said yesterday. "It looks like the Bank of Mexico decided that it would rather protect its foreign reserves than prop up the value of the peso." In times of crisis, Mexicans traditionally plain their decision publicly. Privately, they declined to characterize the action as a formal devaluation, noting that the official exchange rate changed by only a few pesos, as is normal here. Finance Minister Gustavo Petrichioli went on television last night to explain why the Bank of Mexico withdrew from the free market.

"In the last three weeks, there have been abnormal diverse and transitional pheno-menoma that have affected the level of our national reserve," Petrichioli said. "Private enterprises decided to repay their foreign debts under favorable and Sales drop drastically in No-gales, stores as Mexican shoppers find their pesos won't buy nearly as much. Page 2A. lose confidence in the peso and move heavily into dollars, which are perceived as more secure. These dollars are deposited abroad, mostly in banks in the American Southwest.

The last major round of capital flight here took place in 1982 after two large devaluations. Officials at the central bank did not ex President bears responsibility, says Iran-Contra report 3 7 St 1 Reagan's spokesman won't argue over report's criticism. Page 4A. Meese may have tried to cover up his involvement in a hostage-ransom plan, the report says. Page 4A.

Panama's military leader offered to undertake sabotage in Nicaragua. Page 4A. The Iran-Contra panels' minority report accuses the majority of questioning Reagan's honesty. Page 5A. The independent counsel says the Iran-Contra investigation may wind up soon.

Page 5A. The White House refuses to discuss the report's charges. Page 5A. V' 4 cr 'Contributed to deception' By Lawrence L. Knutson The Associated Press WASHINGTON President Reagan contributed to a massive deception of Congress and the public in the Iran-Contra affair and bears responsibility for thwarting the law by allowing a band of zealots to seize policy control, congressional investigators concluded yesterday.

"These committees found no direct evidence suggesting that the president was a knowing participant in the effort to deceive Congress and the American public," the Senate and House investigating panels wrote. "But the president's actions and statements contributed to the deception. "The ultimate responsibility for the events in the Iran-Contra affair must rest with the president," the panels' 690-page final report concluded. "If the president did not know what his national security advisers were doing, he should have." The report comes three months after the conclusion of summerlong hearings into the secret sales of U.S. weapons to Iran and the diversion of some profits to the Nicaraguan rebels, known as Contras.

At the White House, Reagan spokesman Marlin Fitzwater said: "This new report reflects the subjective opinions and not even the unanimous judgment of the committee. "We are moving on," he said. New disclosure The report, in one new disclosure, indicates the administration was deceived when, after concluding that middleman Manucher Ghorbanifar was untrustworthy, it switched to what it saw as a more reliable "second channel" for dealing with Iranian "moderates." The report said American operatives were dismayed to discover that the second channel represented the same Iranian leaders as did the first channel and that some U.S. weapons destined for so-called moderates in fact went to Iran's radical Revolutionary Guards. Also, Americans found that one of the "moderates" may have masterminded the kidnappings of at least two of the Americans then being held hostage in Lebanon educator Frank Reed and William Buckley, the Beirut CIA station chief who was killed while in captivity, the report said.

The report quoted American officials as saying the discovery "really London fire in subway kills 32 Rush-hour blaze, smoke injure 80 By Robert Glass The Associated Press LONDON Fire broke out yesterday below a wooden escalator in London's busiest subway station, killing 32 people and injuring about 80 others, fire and transport officials said. Rush-hour commuters on escalators were carried unaware into an inferno of flames and choking smoke as the fire raged for two hours at King's Cross Station. Witnesses told of seeing people with their hair on fire, and others lying face down in the smoke-filled terminal. Five lines of the Underground system connect with British Rail intercity services at the mammoth King's Cross station. Firefighters equipped with breathing equipment burrowed into tunnels filled with billowing smoke searching for anyone trapped.

The London Fire Brigade said 32 people were confirmed dead, in-See SUBWAY FIRE, Page 6A Mecham loses battle to stop Corbin probe By Steve Meissner The Arizona Dally Star PHOENIX Attorneys for Gov. Evan Mecham yesterday lost a three-week court battle over Attorney General Bob Corbin's powers and continued to fight legal skirmishes on several other fronts. A Maricopa County Superior Court judge ruled that Corbin does not have to drop an investigation into Mecham's campaign finances and into an alleged threat against a former staff member. But attorneys for Mecham and some aides "went behind closed doors in court late yesterday to quash some subpoenas issued by a state grand jury investigating Mecham's administration. The targets of the subpoenas were not named during the earlier open court proceedings.

The Republican governor's legal woes continued along several other fronts: A special counsel hired by the House to investigate the Mecham administration subpoenaed "all documents and all correspondence" relating to Mecham's campaign finances including canceled checks and bank records. A subpoena also was issued to Valley National Bank to obtain Mecham's financial records. Max Hawkins, director of the Department of Administration, said he would ask Lee Watkins, the prison construction chief, to take a lie detector test to determine if he threatened the former staff member, Donna Carlson. A grand jury apparently continued its deliberations yesterday into that alleged threat against Carlson, who allegedly was providing information to investigators. Carlson, Mecham's former legis-See MECHAM, Page 2A A.E.

Araiza, The Arizona Daily Star Kerr, returning from a year's layoff after a knee injury, and his Wildcat teammates opened their season with a 78-68 victory over the Soviets. Details in Sports, Section D. Back in action UA guard Steve Kerr, right, brings the ball down the court against Soviet Union guard Tiit Sokk in the first half of last night's game at McKale Center. Widow may lose home over teen's crash MILPITAS, Calif. (AP) A disabled widow Arjo said the change of title on the motorcycle could lose her home because she has been held re blew our minds." But it said they voiced no objections to the operation continuing.

The congressional report spells out details of a story it said was laced with lying, deception, excessive and corrosive secrecy, disdain for the law, confusion and disarray, "pervBsi 'e dishonesty" and a cover-up marked by the deliberate destruction of thousands of documents. "A small group of senior officials believed that they alone knew what was right," the investigating lawmakers said. "What may aptly be called the 'cabal of the zealots' was in charge." The conclusions represented the majority opinion on the two committees, but they were not unanimous. Eight dissenters All six Republicans on the House panel and two of the five GOP Senate panel members registered dissent, concluding that the president and his men were guilty of no more than errors of judgment. The minority accused the Democratic majority of selective use of evidence to build an indictment of Reagan for partisan reasons.

"We emphatically reject the idea See REPORT, Page6A was not recorded at the state Department of Motor Vehicles by the new owner, leaving her legally responsible when a passenger lost a leg in the accident and sued for damages. The new owner had no assets that the injured teen-ager could claim, so Arjo, who has no liability insurance, was sued for damages. A default judgment of $108,000 was entered against her in March 1986. With interest, the sum has grown to $116,000. A hearing on the case was set Tuesday for Dec.

16 to allow both sides to agree on an appraisal of the property. The sheriffs auction would be held 90 days after agreement is reached. Fujioka said he is looking for ways to block the sale, but acknowledges that the deadline for filing objections to a default judgment has long passed and Arjo may have no legal recourse. Cyril Ash, attorney for Gary Warner, the injured teen-ager, said he is sympathetic to Arjo's plight. sponsible for damages awarded to a teen-ager hurt in a motorcycle crash.

But neither she nor anyone in her family was involved. Norma Arjo, a wheelchair-bound, nearly blind and diabetic mother of four, says she knows "this is all legal" but calls the $116,000 claim against her "immoral." Arjo, 49, is being held accountable because the motorcycle, once owned by her son but sold several days before the accident, was still registered in her name at the time of the crash. To pay the damages, Arjo's house may be auctioned by the Sheriffs Department early next year. "Simply put, this is a case where the justice system just didn't work," said Gen Fujioka, a Santa Clara County Legal Aid Society lawyer who has taken on Arjo's case. WEATHER English-only is policy at downtown Ramada Staying warm.

Today wiii be sunny and breezy at times, with southeast winds of 5 to 15 mph. The high ill be in the mid-70s, the low in the low 4iis. Yesterday's high was 75, the low 45. Details on Page 3A. INDEX assistant dean for Hispanic student affairs at the University of Arizona.

The memo sent by General Manager Lola Judy read: "Each of you has chosen the United States as your place of residence. The dominant language in the United States is English and that is the language we will speak here. "I do not wish to hear any foreign language spoken where a customer or an employee is ithin earshot. That eliminates almost every opportunity that I can think of to speak other than See ENGLISH. Page2A By Susan M.

Knight and Carmen Duarte The Arizona Daily Star Employees at the Ramada Inn-Downtown have been told to speak only English on the job. Some Tucsonans who heard about the policy said yesterday that they were outraged, calling the move "racist and discriminatory." Five employees also said they were offended by the policy. They said they would not deny their roots and would continue to speak their native languages at work. A Ramada Inc. representative in Phoenix.

who found out about the policy only yesterday, said the measure is not in keeping with the company's standards. He said he asked the inn's separate management company to "rectify the situation." An official with Paragon Hotel the Phoenix company that manages the downtown inn, said the policy is a "business necessity." A memo on the language ban, posted by time clocks in late September, wound up Tuesday in the mailboxes of three Tucson Hispanic leaders Sens. Jaime P. Gutierrez and Jesus "Chuy" Hi-guera, both Democrats, and Raul Grijalva, an Accent 1-8C Money MJB Bridge 2C Movies SC Ciified UtD Obituaries JD Cm SC Public records 4B Cmmfot 1I-1SA Sports HQ Crr-d Tucson today JC Dear JC TV-radi 7C A.