Austin American-Statesman from Austin, Texas • 1

HIGH SCHOOL Cli Stat. fraelc meet, golf and tennis tournaments Speak one's peace at fostiwai, pun-off Time Out, D1 ma 77 fcr.HWOi Sports, Section 4.. ft-tv a-1 lilt Saturday May 14, 1988 35 cents Weather Mostly sunny afternoon with late night clouds. South wind at 10 to 15 mph. High, upper 80s.

Lows, mid-60s. Details, A20. Arizona training mission claims lives of 2 fliers I 1 rraQh feTl 1 Las From Staff and Wire Reports IVeaas RF-4C aircraft Mission: reconnaissance Crew: two (pilot, weapons system officer) Dimensions: wingspan, 38 feet; length, 63 feet; height, 16 feet Speed: 1,600 mph Ceiling: 50,000 feet Range: 1,400 miles Maximum takeoff weight: 58,000 lbs. Sources: Air Force, Aerofax, Inc. "crew title only; RF-4Cs carry no weapons Flagstaff Wjns(ow ARIZONA Other recent RF-4C crashes A9 Bergstrom nor law enforcement officials in Arizona would confirm that the men were stationed at Bergstrom.

A Bergstrom official said that the Air Force could not release information until next of kin were notified. The jet crashed shortly before 3 p.m. Austin time, about one mile north of Interstate 40 and seven miles west of Winslow, according to Lt. W.R. Anderson of the Coconino County Sheriffs Department.

An initial search of the crash site indicated that one of the plane's two occupants had tried to eject, but the attempt was not successful because the jet was beginning to turn over and was too close to the ground, Anderson said. "You could see a whole lot of smoke from the highway," a spokeswoman for the Coconino Sheriffs Department said. She confirmed that two bodies had been recovered and the area secured by military personnel. The accident occurred in an unpopulated area about 43 miles east of Flagstaff in northern Arizona. No one on the ground was injured and no structures were involved.

The jet was on a routine training fission en route from Davis-Monthan Air Force Base in Tuc-See Crash, A9 Phoenix Two Air Force pilots were killed northwest of Winslow, Friday afternoon in a crash involving an RF-4C Phantom II jet assigned to Bergstrom Air Force Base, officials said. It is the second crash of an aircraft detailed to Bergstrom in four weeks. The names of the men had not been released late Friday. Neither Tucson 50 miles Staff graphics roke Texas a wi merge -p ij 1 1 I U.S. wild for exotic imports Smuggling of illegal animals is growing First federally assisted deal of new plan By Kirk Ladendorf American-Statesman Staff IbJ it, m' Jf i Regulators on Friday consolidated four insolvent thrifts into Coastal Banc Savings of Houston as the first federally assisted merger in the long-awaited Southwest Plan.

Coastal Banc, a small, conservative association, will expand to nearly nine times its former size as a result of the merger, which the Federal Savings and Loan Insurance Corp. estimated will eventually cost it $138.3 million. The Houston which listed only $69 million in assets at the end of last year, took over four broke associations with about $470 million in combined assets. The four thrifts consolidated into Coastal Banc were: Colorado County Federal Savings of Columbus; Alliance Savings of Houston; Security Savings of Dickinson; and Cameron County Savings of San Benito. Regulators said depositors at all the institutions were protected in the transaction.

With the merger, Coastal Banc added 15 branch locations scattered from Houston, to East Central Texas to the Mexican border. Coastal Banc will continue to operate all the newly acquired offices for a time, but it has agreed to consolidate half of them within a year to reduce operating costs. Coastal Banc will contribute $3.5 million in new capital as part of the deal. AP By Jim Phillips American-Statesman Staff HOUSTON The man had just returned from a trip to Mexico and was going through the Customs inspection at Houston Intercontinental Airport when Danny Burleson noticed the boots he was wearing. The boots were made from the skin of sea turtles, and Burleson, an inspector for the U.S.

Fish and Wildlife Service, told the man it was illegal to bring them into the country. Burleson took the boots, and the man grumbled as he opened a suitcase to get out another pair. They were crocodile boots. Burleson seized them, too. As the man now out several hundreds of dollars and grumbling even louder started putting on a pair of tennis shoes, his shirt rode up in back and Burleson noticed his belt.

Sea turtle again. Doug Morris, a special agent for Fish and Wildlife who operates out of Houston, was recently looking back on his career with the agency. In his college days, he said, "What I really wanted to do, when I got my degree in wildlife management (in 1970), was to help kids bait hooks and catch trout up in Oregon. That's really what I wanted to do, but reality caught up with me." The reality that Burleson and Morris live with daily concerns their work as a small part of a very thin line that stands between Americans with a taste for the exotic and unscrupulous merchants who are decimating entire popula-See Wild, A7 M. Danny Wall announces the Coastal Banc deal in Washington, D.C.

Friday's announcement was the first of many expected under the Southwest Plan, which regulators want to use as a guide to dispose of 140 or more insolvent thrifts in See Thrifts, A16 onega says oargaimrig with U.S. 'fell apart' Staff photo by Jim Phillips Amy Bailey, an inspector for the U.S. Fish and Wildlife Service in Houston, checks a leopard skin and other items seized from an airport shipment. Ambassador Everett Ellis 1 Briggs briefed 1 delegation 17 1 -J ti Udya auei lie met with Bush. Senate drafts military for roles in drug war Pentagon reluctant about expanded duty NEWSM AKER OF THE liWCXJNTEST i il iJ Austin American By Jim Mann and Ronald J.

Ostrow Cos Angeles Times Service WASHINGTON Panamanian leader Manuel Noriega said Friday that negotiations with the United States about his resignat ion have broken down, while in Washington the Reagan administration remained divided over how far to go in dealing with Noriega. "Everything fell apart," Noriega said during a visit to the rural Panamanian town of La Negrita. "As long as the aggression against Panama persists, as long as there are foreifn troops on our territory, the dignity of Panama is above all else, without any faltering, without anything else mattering." But White House spokesman Marlin Fitzwater rejected Noriega's claim. He said negotiations between the Reagan administration and Panama were "continuing," but declined further comment. The talks are being conducted by Michael Kozak, a State Department official.

Meanwhile, at the Department of Justice, U.S. Attorney Leon Kellner of Miami said Attorney General Edwin Meese met with President Reagan Friday to oppose dropping the Florida drug indictments against Noriega. The administration had said it was considering such an action as part of a "plea bargain" agreement under which Noriega would give up power. William von Rabb, commission-See Noriega, A17 Who win it be? Look for the entry blank for a new contest, 'Newsmaker of the Inside today's paper Index Comics D15 Deaths F42 Editorials A18.19 TV D14 Delegation told of allegations, witnesses claim By Stephen Engelberg New York Times Service WASHINGTON Three witnesses say a U.S. ambassador briefed a congressional delegation about narcotics allegations against Panama's military leader in 19S5, fully 17 days after he met with Vice President George Bush.

The ambassador has denied reporting the charges to Bush at that meeting, saying he lacked the evidence to do so. The witnesses to the later meeting are John Donaldson, a former aide to the assistant secretary of the Treasury for legislative affairs, and two former Democratic House aides who declined to be quoted by name. All three said Everett Ellis Briggs, then ambassador to Panama, told members and staff of a House committee that allegations of Gen. Ma-See Bush, A17 Barton Springs pool is closed as crews work to clean up a spill. City State, B1 tling illegal drug trafficking in the coming months.

'''TVe Defense Department has uniy.r xpabilities, expe and equipment to particv in the kind of detection that necessary if we are to stop drugs before they gain entrance to our nation," said Sen. Pete Wilson, a chief proponent of the legislation. "We are in a dire emergency: We have reached a period of time in our history where drugs are becoming an enemy equal to any foreign enemy," said Sen. Dennis DeCon-cini, D-Ariz. "We are now going to turn our attention as if we were at a war where we had hot ammunition flying back and forth between different armies, navies and air forces." But the measure has been opposed by some military officials for See Drugs, A17 By Mark Thompson Knlght-Ridder News Service WASHINGTON The Senate overwhelmingly approved legislation Friday that would put a reluctant military at the forefront of the fight against illegal drugs, granting them the power to seize boats on the high seas and to arrest suspected drug smugglers.

The proposal earmarks more Air Force and Navy planes to anti-drug surveillance efforts, calls for an increased role for the National Guard in halting drug-trafficking, and allocates more military helicopters for the Coast Guard and Customs Service. The legislation, passed 83-to-6, comes on the heels of a similar proposal in the House and virtually assures a greatly expanded role for the Defense Department in bat- Today's sections News Section 1-20 City State Section 1-11 Sports Section 1-10 Time Out Section 1-16 Lifestyle Section 1-12 Business Section 1-6 Section 7-41 Classified.