The Miami News from Miami, Florida • 50

II 1 OA 4 The Miami New; almA rus'el Wednesday, January 25, 1'978 -4 1 va i 1 i 'Each nation is spending something like 25 per cent of its GNP on defense They both have said, "This is enough," and that is the basis for the recent peace initiatives' Historian Charles Issawi 'Each nation is spending something like 25 per cent of its GNP on defense They both have said, "This is enough and that is the basis for the recent peace initiatives' Historian Charles Issaivi Askew Orient trip To include China Orient trip lude China 1 Israel, Egypt and the high price of hostility 41 MIMI ,11 I oe 1112 AL 1 iff Gov. Reubin Askew will visit mainland China next month after stopping in other Asian nations on a i Ix business recruitment drive. 1 He expects to visit Japan 1. and perhaps Hong Kong drumming up business for 0. 'top, 4 4 Florida and then will travel to China with other Askew members of the National Governor's Association.

Askew will be the second Florida official to visit the People's Republic in recent months. House Speaker Donald Tucker visited China last fall. Asko Governor't second Fic Republic ir Donald Tul Gov. Reubin Askew will A other Asian nations on a 7, 1 business recruitment drive. I He expects to visit Japan and perhaps Hong Kong drumming up business for .1 Ch th th Florida a ad then will travel $, 4 i Askew na wi er members of the National Governor's Association.

Askew will be the second Florida official to visit the People's Republic in recent months. House Speaker Donald Tucker visited China last fall. DAN WILLIAMS Miami News Business Writer 1 DAN WILLIAMS Miami News Business Writer "Iran, and Algeria, are the most controlled, but even they buy up all kinds of consumer goods, cars, air conditioners But Issawl, an Oxford graduate, feels that in some cases there has been good use of the money. "The Iranians invested in Krupp (the giant Industrial complex) in Germany. Now they can draw on the company's technical expertise.

Same with Kuwait and Mercedes-Benz." He frowns on the U.S. attitude toward Arab Investment here. "When Iran considered Investing in Pan American Airways, there was such an outcry, they quickly withdrew. America counsels everyone abroad on what a good thing foreign investment is. But when it's tried here by someone else, we raise a big noise." The U.S., Issawi thinks, has not done enough to conserve oil in the 'face of the oil cartel.

"In Europe, they recognized the urgency of the situation because they were so completely dependent on Arab oil. Here, we're back to '73 levels of consumption." The worries accompanying the early oil price hikes seem to have gone, Issawi believes. "I remember when papers in London invented a new measure called Co. pecs. They measured what OPEC could buy per rolled, but cars, air at in some it industriaw on the 'uwait and rab investng in Pan tcry, they ne abroad But when noise." enough to Europe, In because oil.

Here, )rice hikes tber when called Cor per fort into education: Palestine has perhaps the largest reservoir of trained people in the Mideast, except Lein-non. Of course, many of those people are abroad now." Issawi compares present-day Pal- estine with the Jordan of 1948. "It is self-sustaining, with a bit of aid from outside to make up budget and current account deficits. First, Jordan received help from the British, 'It then the U.S., now the (oil) Arabs. si of "But Palestine would have to be part of a wider settlement, with everyone agreeing to help out," Issawl, who was a Lebanese citi- Issawi zen before becoming a U.S.

citizen 20 years ago, laughs when he thinks of arguing with colleagues about how the Arabs Would spend their mounting petro-dollars. In fact, he thinks the Arabs are in trouble because of the sudden influx of dollars from oil. "I'm terribly pessimistic on everything. I believed that they might buy what some call arms, toys, and junk. Now a country like Iran, which takes in $20 billion a year, runs a trade deficit.

There's inflation a two month delay for unloading at the ports. fort into education: Palestine has perhaps the largest reservoir of trained people in the Mideast, except Leba- non. Of course, many of those people are abroad now." Issawl compares present-day Pal- estine with the Jordan of 1948. "It is self-sustaining, with a bit of aid from outside to make up budget and current account deficits. First, Jordan received help from the British, ij then the U.S., now the (oil) Arabs.

"But Palestine would have to be part of a wider settlement, with ounrurtnes nornaino .1 holn nut The hidden ingredient in efforts by both Israel and Egypt to seek peace is the huge economic benefits that could accrue for both. That's the view of economics historian Charles Issawi, Cairo native, currently professor of Near East Studies at Princeton and former professor at Columbia and Beirut universities. "Each nation is spending something like 25 per cent of its GNP on defense," he explained before lecturing last night at the University of Miami. "Some, maybe 5 to 10 per cent, is subsidized from outside by the Arabs, the Soviets, the U.S., but it's still a staggering amount." In his opinion, "They both have said, 'This is and that is the basis for the recent peace initiatives." Issawi, 60, who is fluent in Arabic and can read Persian, discounts an economic backlash against Egypt by its main backer, Saudi Arabia. "I can't be sure, of course, but I doubt that Sadat made his move without a blessing from the Saudis." Issawi also believes a future Palestinian state can be economically viable.

"They have put tremendous ef The hidden ingredient in efforts by both Israel and Egypt to seek peace is the huge economic benefits that could accrue for both. That's the view of economics historian Charles Is- sawi, Cairo native, currently professor of Near East Studies at Princeton and former professor at Columbia and Beirut universities. "Each nation is spending something like 25 per cent of its GNP on defense," he explained before lecturing inm ni 1,41 I Tvalyorcitty rif Minmi "glIMP mnyhe 5 Flock to Florida Foreign manufacturers have 55 projects in the works in Florida, says Richard Brock, chief of the state Trade Development Bureau. Almost all of them involve some type of manufacturing and would employ 55 to 75 workers each, Brock told Tampa -7 bankers recently. The projects include a joint venture by Seimens of Germany and Allis-Chalmers of the United States to to build steam generators for electric power plants at a Manatee River site between Tampa and Clearwater.

A Dutch company plans to make industrial plastics products near Orlando, Brock said. Flock tc Foreign in the worl chief of thi Bureau. Al type of ma to 75 work bankers re joint ventu Allis-Chain build stear plants at a Tampa an( plans to near Orlan Florida Ridi Her stactids the aff at Senate hearinto on Fed 1 min, MENEIMEIMEN Impe, 4 i TIMOTHY ADAMS' Cox Washington Bureau Dollar blamed The recent weakness of the U.S. dollar abroad is blamed by the Exxon the world's largest industial firm with operations in 100 countries, for its second decline in annual earnings in the last 10 years. The firm says its estimated net income for 1977 was $2.41 billion, or 65.38 a share, down 8.7 per cent from the 1976 net income of 62.64 billion or 65.90 a shire.

Company officials said the decline was due to foreign exchange losses of $265 million in 1977 simply because the dollar was worth less relative to other currencies than In 1976. Dollar The reci abroad is world's lar in 100 cou annual ear firm says i was $2.41 8.7 per cel $2.64 billic officials sa exchange I simply bec relative to The one serious bump in Miller's otherwise smooth ride through the questions came when Committee Chairman William Proxmire, asked Miller about payments made to an Iranian company by Bell Helicopters, a division of Textron, the conglomerate Miller has headed for the last 10 years. According to Proxmire, Bell had made a payment of $2.9 million in 1973 to Air Taxi a Teheran-based company that served as Bell's sales representative to Iran off and on since 1959. Proxmire said the funds presumably went to the late Gen. Mohammad Khatemi, whom he identified as owner of Air Taxi Co.

and as commander of the Imperial Iranian Air Force. Miller said he had no knowledge of a connection between the general and Air Taxi. The funds, he said, represented "settlement" of a contract between Bell and the Teheran firm. Bell paid the money to Air Taxi, Miller said, because both Bell the Iranian government wanted to deal with each other directly from 1973 on. And because a deal was in the works for Iran to purchase 480 Bell helicopters directly at a cost of $501 million it was in Beirs interest to terminate its agreement with the sales representative "as cheaply as possible," Miller said.

He said he was convinced that no improprieties were involved. Proxmire said his committee will vote on Miller's nomination next week. se smooth -ommittee Led Miller ly by Bell million ipany that ft and on ent to the entified as the tection be-he said, ween Bell Air Taxi, Lit govern from or Iran to a cost of minate its cheaply as that no In Miller's It Iif 1 i hv '41: ---4: I it '4---' '44- 1 )1 1 1 'Ll'i, 4:: 1 4'4 4., 40 .1. 'l 4 i4. 4 1...

if 7.. 11 0, Bethlehem hit by loss Bethleh Bethelehem Steel, troubled by foreign competition and natural disasters, lost more than $400 million during 1977, it announced today. The nation's second-largest steelmaker attributed most of the loss to a pretax charge of $750 million resulting from its decision to close mills and related facilities, idling about 10,000 workers. Betheleh competitior than 5400 today. The steelmaker pretax cha its decisior facilities, ic WASHINGTON G.

William Miller found himself being the rope in a tug of war. Pulling at him from one side: conservative senators eager to have him confess he was just like Arthur Burns, the man whom he has been nominated to replace as chairman of the Federal Reserve Board. Giving steady yanks from the other: liberal senators who sought to have Miller affirm that he doesn't. resemble Burns in the slightest. But through seven unruffled hours at his confirmation hearing before the Senate Banking Committee yesterday, Miller adroitly turned aside all senatorial attempts to have him characterize himself as either a carbon copy or direct opposite of Burns, the nation's greatest symbol of "tight" money policy.

What emerged instead, over that stretch of time, was Miller's own portrait of himself as a prudent, pragmatic man who believes that the economy should operate in the most free manner possible but that the Fed should play "a responsible role" as a participant in that economy, steering monetary policy in whatever directions any given set of circumstances may suggest. When one senator after another posed hypothetical questions to the 52-year-old businessman-lawyer example: "What would you have done last year if you had been Arthur Burns?" Miller sidestepped them by saying he did not know "what data Dr. Burns had available to him at the time." Asked by Sen. H. John Heinz, if he planned to become a member of President Carter's inner circle of economic advisers, Miller said: "I would welcome the opportunity for dialog, but I do not foresee an inner circle role." The economy's three principal goals, according to Miller, should be to lower the rate of inflation, bring down the rate of unemployment, and make sure that the dollar is "sound and stable." His prescription, he said, is for the economy to "keep sawing 'wood" and to gradually "chew up bulges in energy costs and in the unemployed part of the work force." But when asked by Sen.

Richard Lugar, if interest rates would go up or down if he became chairman of the Fed, Miller smilled and said: "That continues to be a secret unknown even to me." i Size is in the eye of the beholder older Timid ads Timid ac Cox Washington la I WASHINGTON It's not only beauty that Is in the eye of the beholder. Take the situation of G. William Miller. Appearing at the Senate confirmation hearing on his nomination to become head of the Federal Reserve Board, Miller tried to explain that Textron, the con. glomerate he has headed for the last decade, isn't so big after all.

Yes, his salary was "about $400,000" last year. And yes, the company has 68,000 employes. But it is really comparatively small, he insisted. "Our total sales last year were less than IBM's profits," he said. One ad in New York newspapers reads that the advertiser's office can be found "next to Burger king." Another goes away 'round the bush, reading that the advertiser "is prepared to offer certain routine services which lend themselves toward standardization so that when delivered in sufficent volume they may be profitable yet reasonably affordable." The first ad was placed by a dentist and the second by a lawyer.

The U.S. Supreme Court last June 27 found unconstitutional a ban on advertising by laWyers. And the Board of Regents in New York has permitted advertising by physicians and dentists since Oct. 1. One ad i that the ad "next to Bi 'round the "is prepare services wt standardiv sufficent vc reasonably placed by lawyer.

The 27 found ul advertising Regents in advertising Oct. 1. Associated Press Miller arriving for confirmation hearing Singles swing into housing market Asseclatd Press 220 1 U.S. firms foster African apartheid, Senate report says Associated Open spaces Promoters have used false claims to sell 40,000 acres of wide open spaces in Colorado to 3,000 consumers across the country, the Federal Trade Commission alleges. The FTC, seeking compensation for the consumers, said the promoters falsely stated the land could be used for homesites, was a good investment, that low-cost utilities were available, that it was near recreation areas and was undergoing residential and recreational development.

Open sp Promote' 40,000 acr( Colorado tc country, thi alleges. Thl the consurr stated the I homesites, low-cost ut near recre( residential "Singles come in as many varieties as marrieds, excepting family size," she added. "Singles rent or buy more than minimum space for the same reason other people do they want it." A single man or woman wants an extra bedroom for house guests, a kitchen with conveniences such as microwave ovens and dishwashers, large closets, large storage areas, even two bathrooms, she said. "These are people who do things, and people who do things have things ski clothes and equipment, home workshops, more clothes than their married counterparts often," Ms. Magee said.

'If you offer limited space to singles, you will lose them. They need to be able to look over house and go 'ooh and ah' about the storage space just like married people." She and Goodkin cautioned against promotions based on a "fun and games" approach. "The idea of singles being 'swingles' is a totally inaccurate picture," Ms. Magee said. "There probably is no such thing anymore as swingles, particularly as it applies to the housing market.

It is a grossly misunderstood market." Ms. Magee said single people often desire more privacy than married people. They may be put off by a swingles concept, but it is important to them to have recreation and entertainment nearby and for other young people to live in the vicinity, she said. DALLAS A condominium developer is astonished to find that of 400 units, 116 were sold to single people. Unmarried airline attendants bought 90 of 300 units in a Miami complex.

Five of the first 15 houses sold in another project went to singles. Almost without notice, the singles crowd has become a significant part of the U.S. housing market, the 34th annual convention of the National Association of Home Builders was told yesterday. Builders and developers have aimed pitches at others, but single men and women are the ones responding, said Laurin Magee, president of the Housing Guidance Council of Washington, D.C., who said one of every five buyers today is single. Ms.

Magee and Lewis Goodkin, head of a Fort Lauderdale housing research corporation, suggested that builders and developers cultivate the new market. Single people are more affluent at a younger age than ever before, Ms. Magee said. She suggesVed that sales pitches to young adults should mention the tax savings, energy savings and the hedge against inflation that come from owning a home. Builders should not make the mistake of pushing small efficiency units, Ms.

Magee said. SCL hits record SCL hitt t- 4 Net income for Seaboard Coast Line Industries rose 1 1 to 633,655,000 in the fourth quarter of 1977, an increase of 44.3 per cent over the .1 same period of 1976, and for the full year net income '1' rose to a record 6102,356,000, SCL president Prime Osborne announced. 4k, 0. WASHINGTON American corporations operating in South Africa have done almost nothing to resist that nation's apartheid policy and have "acted contrary" to American foreign policy, a report prepared for a Senate committee says. The "net effect of American investment has been to strengthen the economic and military self-sufficiency of South Africa's apartheid regime," a Senate Foreign Relations subcommittee said in releasing the report today.

The report suggested the United States discourage foreign investment in South Africa and take action such as denying tax credits to companies that support apartheid. The panel, led by Sen. Dick Clark (13-Iowa), tried to survey 260 U.S. companies doing business in South Africa, including some of America's biggest corporations. Among them are Mobil, Standard Oil of California, General Motors, Chrysler, Ford, IBM, Control Data the General Electric 3M and the National Cash Register Co.

Seventy-five firms returned the questionnaires, which sought information on each company's hiring, training, pay and promotion policies in South Africa's rigidly segregated society. By one estimate, the report said, U.S. companies employ about 100,000 South Africans, 70 per cent of them blacks. Though a few corporations, including Chase Manhattan Bank, have refused to do business with the South African government, the subcommittee accused most firms operating there of an "abyssmal performance" in their racial policies. The report said U.S.

firms invested $1.7 billion in South Africa in 1976, more than a third of American investment in Africa. Wall Street Trend 11 a.m. Bank program aids student loans Associated Press Florida notes Florida student loan business, a $40 million-a-year business in Florida. The state annually grants about $15 million in loans and private lenders loan the other $25 million. But new federal laws have made it virtually Impossible for states to get federal insurance for their student loans.

So, lawmakers last year set up a new program that is aimed at shifting the entire loan program onto the shoulders of private bankers by next fall. The proposed Joint venture would ease the way for students who need loans during the transition, Smith said. Because some of the students who now have state loans are graduating, the private bankers are being asked to put up $1 0.1 million in money for loans to returning students with state notes. Smith said the state would process applications under the temporary program and merely notify a bank that a loan should be granted. "To the student, there should be no difference," Smith said.

The new nine-member commission, meanwhile, took the first formal steps netessary to get into operation. That included routine rule-making matters and discussions on the panel's duties. TALLAHASSEE Education officials say that almost 10,000 Florida college students may get federally insured student loans next year from a temporary lending program operated by the state and private bankers. They told the new Student Financial Assistance Commission that officers of 46 key financial institutions have indicated they want a share in the lending program that will temporarily take up the slack when the state stops writing student loans this year. "We don't want the financial institutions to be subjected to an onslaught of people," said Ernest Smith, the state's director of student financial assistance.

"But the commissioner of education has an obligation to see that nobody's money is cut off." Education Commissioner Ralph Turlington last month made the proposal to officers of 46 top banks. savings and loan institutions and credit unions. Smith said many had indicated they were interested in the temporary program but he did not report any commitments. The state is now in the process of getting out of the 30 Industrials 20 Transportation 15 Utilities 65 Stocks Osborn 772.26 0.69 210.95 0.69 105.92 0.17 271.19 0.44 The Civil Aeronautics Board has approved Braniff International's application to offer discounts of 15 to 20 per cent for first class air travel starting March 1 Pan American Bancshares a Florida bank holding company, reports income in 1977 before securities and investment transactions at $4,078,000 or 92 cents a share. In 1976, income was $3,191,000 or 75 cents a share Orlando-based orange growers still hope to hold the line on frozen concentrate prices despite two recent freezes in the Florida groves.

But, says the United Shippers and Growers Association, the currrent $3.30 per dozen six ounce cans can not stand another period of cold weather. The Juice is still in short supply because of damage from last winter's freeze Wometco Enterprises Inc. of Miamt has completed the acquisition of WZZM-TV in Grand Rapids, Mich. for $12.5 million cash City Gas Co. of Florida reports net income of $2,082,684, or $2.06 a share, on revenues of $21,694,910 In 1977.

The Civil approved to offer disc first class al Pan Americ bank holdin 1977 before transaction! share. In 19 75 cents a growers stit concentrate freezes in tt United Ship the currrent cans can nc weather. Th because of freeze Miamt has WZZM-TV million cash reports net a share, on 1977. 2 noon 30 Industrials 20 Transportation 15 Utilities 65 Stocks 774.08 2.51 211.92 1.66 106.16 0.41 271.99 1.24 1 p.m. GOLD SILVER COINS BULLION SCRAP GOLD BOOM AND MARKET LARGE BUYERS SELLERS.

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