Chicago Tribune from Chicago, Illinois • 17

1 LJ: I i 1 mJf. I i 143d Year No. 104 Chicago Tribune Section matum economic gets ulti MlriMwi II if ft ILJll! Poles urge prosecution of 1940 massacre. Page 2. 1 Lithuanian leader, as the Kremlin ultimatum came on the start of the Easter weekend.

Lithuania is traditionally Roman Catholic. Edward Tuskenis, a spokesman for the Lithuanian Supreme Council (parliament), said the legislature was not scheduled to meet until Tuesday and it was unclear if the deputies would be called into emergency session. "Coming on the Easter weekend, it is kind of a slap in the face," he said, but he added that Landsbergis had expected such a move. "We could have expected worse," Tuskenis quoted Lands-See Threat, pg. 2 Soviet Union sells abroad for hard currency but provides to the nation's IS republics at prices far below world market levels.

Lithuania is totally dependent on the central Soviet government for its energy supplies and most other raw materials. Lithuanian economists and legislators have suggested that an economic blockade of the republic would be disastrous. Deputy Prime Minister Kazimiras Motieka said earlier this week that the republic's reserves of oil and petroleum products were "not large." There was no official response from Landsbergis or any other By Vincent J. Schodolski Chicago Tribune MOSCOW After a month-long war of nerves with Lithuania, President Mikhail Gorbachev Friday issued an ultimatum to the rebellious republic, giving its leadership two days to rescind a series of independence measures or face an embargo of vital goods. The Kremlin threat came in a letter addressed to the republic's new legislature and delivered to its president, Vytautas Landsber-gis.

The letter, signed by Gorbachev and by Premier Nikolai talks with British Prime Minister Margaret Thatcher, said: "Now is i no time for escalation. It's time for talk." The Kremlin letter said that if Lithuanian authorities did not rescind certain "anti-constitutional actions" within two days, "instructions will be given to stop supplies to the Lithuanian republic from other constituent republics of those categories of products that are sold on external markets for freely convertible currency." The reference was to goods the Ryznkov and carried in full by the official news agency, Tass, was unequivocal. It warned that unless the demands were met within 48 hours, Moscow would halt shipments of certain essential supplies to Lithuania. While no specifics were given, sources in Lithuania said they expected oil, gas and cotton to be affected first. In Bermuda, President Bush said he had "real concern" about Gorbachev's ultimatum, but he stopped short of condemning it.

The president, who was there for Tribune photo by Charlas Cher ney Court ruling to test TV license policy Bulls' winning streak at 9 Scottie Pippen gets a shot off around Brad Lohaus during the Bulls' 116-106 victory over Milwaukee. Sec. 3, pg. 1 Sox bumped off by Indians Jack McDowell gives the White Sox 5 strong innings, but the bullpen fails in a 6-2 loss to Cleveland. Sec.

3, pg. 1 Cubs fire blanks at Pirates Greg Maddux and Mitch Williams team up on a 3-hitter, and Ryne Sandberg hits a 2-run homer in a 2-0 victory. Sec. 3, pg. 1.

A Blue Grass preview Summer Squall is a 4-5 favorite in Saturday's Blue Grass Stakes, a key prep race for the Kentucky Derby. Sec. 3, pg. 1. Love letters to the IRS I Believe it or not, the Internal Revenue Service says many people actually enjoyed the audit process.

Page 3. AIDS restrictions relaxed The administration eases rules for foreigners infected with the AIDS virus who want to attend conferences in the U.S. Page 3. Tribune photo by Chris Walker Good Friday procession By James Warren Media writer Ownership of Chicago's largest Spanish-language television station has been placed in jeopardy because of a federal court's reversal of a license renewal granted the owners by the Federal Communications Commission. An appeals court in Washington ruled this week that the commission acted "arbitrarily and capriciously" in granting the renewal last year for WSNS-Ch.

44, in part because the commission "improperly refused to consider evidence of obscene broadcasts" by the station in the early 1980s. The decision, apparently the first such court reversal of an FCC license renewal of a TV station in many years, means that the commission must conduct further proceedings in an ownership dispute that dates to 1982. According to broadcasting attorneys, the decision could affect stations nationwide by possibly altering criteria and raising the threshold to be met in seeking renewals. Those renewals have tended to be pro forma if the holder could show that the station's performance has been "substantially above a level of mediocre service which might just minimally warrant renewal." The WSNS litigation stems from a change in programming in the 1979-'82 period by the station's owner, Video 44, a joint venture of Harriscope of Chicago Essaness Theatres and National Subscription Television of Chicago a subsidiary of Oak Communications. The head of the joint venture is Califor-nian Burt Harris, brother of Chicago investor Irving B.

Harris. The station moved briefly from conventional programming, with a large amount of non-entertainment shows, to a subscription service, for which a viewer had to pay to receive the otherwise scrambled signal. Some late-night programming included adult films, containing what the court called "nudity, offensive language and various sexual acts." With the Video 44 license due to expire in 1982, Monroe Communications Corp. challenged the renewal. Monroe seeks to win the license.

Its principals include Chicagoans Robert Haag, a co-founder of Alberto-Culver Wayne Fickinger, former president of the J. See TV license, pg. 2 Rev. John Ouper leads a congregation from St. Paul commemoration.

The procession paused along the the Apostle Catholic Church in Jonet in a Good Friday route to visit other churches as well as a hospital. Candidate saw psychic Indianapolis Mayor William Hudnut, Re- New snag for Du Page water line if ill ublican candidate tary of state, defends visits he made to a psychic during the mid-1980s. Page 3. Hudnut By Neil H. Mehler Work on a Du Page Water Commission pumping station has fallen about a month behind schedule, the second time there has been such a problem with the $40.3 million facility near the Eisenhower Expressway and Laramie Avenue, in Chicago.

Commissioner Raymond L. Benson of Itasca, former head of a large general contracting firm, said he was really concerned about the delay's effect on completion of the overall project by 1992-93. Contractor S.A. Healy of water to 24 Du Page County towns in 1992 and 1993. Malm told the commission members Thursday night: "We do not think the effort has been either substantial enough or what effort there has been has been properly applied.

Things obviously are not right yet." The project Healy is building includes twin 1 5-million gallon reservoirs as well as pumps. A similar facility is being built by another contractor in Berkeley and is on schedule, officials said. Benson said the Healy project is 13 See Water, pg. 5 McCook, was ordered in January to go on double shifts to get back on schedule on building a cofferdam to allow excavation to proceed. At the same time the commission said Healy agreed to a revised construction schedule, which the commission staff described as rigorous but doable, to complete the project by the original July 1, 1991, deadline.

However, according to. Arthur P. Malm, commission manager of facilities construction, Healy is again about 4 weeks behind on the pumping station work, a critical part of the $389 million system designed to bring Lake Michigan Israeli officers face trial Three Israeli police officers are to face trial on charges of using excessive force to disperse a peace march. Page 3. Food and fuel costs fall, help price picture Alderman Jones dies Aid.

Ernest Jones, 64, who had represented Chicago's 20th Ward since 1987, dies of a heart attack, after being stricken in his South Side home. Page 7. Drug war in D.C. is not a failure, Bennett insists Jones Producer prices Total finished goods; in J' percent change from previous month, seasonally adjusted 2.0 Eastern plan turned down Unsecured creditors reject a last-minute proposal to allow Eastern Airlines to. emerge from bankruptcy.

In Business. BAT: Sale will go on B.A.T Industries presses ahead with the sale of its retailer units despite a victory in the Farmers Group battle. In Business. 1.5 1-0 0.5 0 ill- Il-l 0 AP Ltswpnoto By Terry Atlas Chicago Tribune WASHINGTON Shaking off the effects of winter weather, wholesale prices dropped in March for the first time in seven months, the government reported Friday. But the 0.2 percent decline in the producer price index reflected primarily falling food and fuel prices, which had soared following the record December cold snap, rather than a broadly based price decline.

Vegetable rices plunged 25.5 percent, the iggest monthly drop in more than 20 years of government record-keeping. "We are witnessing the unwinding of the weather-related, earlier burst of inflation, and that is a welcome sight," said economist Allen Sinai of First Boston Economic Advisors Inc. "The result is good news for businesses on the cost side, but it is by no means evidence that retail price inflation is headed back down." Economists generally expect the underlying rate of inflationexcluding the gyrations of the food and energy sectors will continue to at 4 to 4.5 percent this year, unless the economy is even weaker than most anticipate. "t' kind of stuck nt tMt MAMJJ ASCNDJFM CHICAGO AND VICINITY: Saturday: Early rain likely, then clearing; high near 54 degrees. Saturday night: Partly cloudy; low near 38.

Sunday: Scattered morning showers, then partly cloudy; high near 52. The national weather report is on Page 6. By Glen Elsasser Chicago Tribune WASHINGTON William Bennett, director of President Bush's drug-control policy, disputed claims Friday that the federal anti-drug effort in the nation's capital is moribund. While conceding that "the city still suffers a terrible problem with drugs and attendant Bennett declared that he did not intend "to walk away" from the challenge "or from the city." The Bush administration selected the city last year as the leading showcase for its war on drugs. "I am not here today to declare failure," Bennett said at a news conference in reviewing progress in the year-old federal-local anti-drug effort in the capital.

"By a sober assessment of the merits, I don't think that's warranted." "We chose D.C. for this effort because D.C. was on fire," Bennett said. Despite the lack of success, he said Washington "remains a federal priority in the war on drugs." His remarks were aimed in part at assertions made by members of Congress and some federal officials earlier this month that the city has failed to demonstrate a broad commitment to controlling drug abuse. City officials, in turn, blame Bennett, saying he oversold the program and failed to back up promises with federal money.

But Bennett said Friday that the city didn't spend 85 percent of $2.3 million in funding for special National Guard anti-crime assistance. Federal funding to the district's anti-drug efforts has increased 40 percent since last September and now is Vk times the national average, Bennett said. He did report a few bripH rnt rWritp "hittpr 4 Chicago Tribune Chart; Source: U.S. Department of Labor U.S. drug policy director William Bennett says Washington, D.C, statistics reflect "the great American change of mind" about using drugs.

disappointment" over the city's high number of murders, since a majority are drug-related. The city had the highest number of murders in the nation last year. 438, with 262 of them, or 60 percent, drug-related. The 1990 pace, 134 killings as of Friday, indicates the total could exceed last year's. Adding to that worry, the price of cocaine on the streets remains low, supplies are plentiful, jails are crowded and courts backloggcd with cases.

According to Bennett, the number of people arrested in Washington who tested positive for drugs was down in every category from 1988 levels. In 1988, 73 percent of suspects arrested tested posi- Sn rro no NewtTmpo Sc. 1 Almanac 7 Bridge 15 Citysuburbs 5 Comics 14,15 Crossword puzzle 15 Dear Abby 15 Editorials 8 Gallery 9 Horoscope 12 Ann Landers 13 Dick Locher 8 Obituaries 7 Television 18 Voice of the people 8 Weather 8 Weekend Chicago 10 Business Sec. 2 Business ticker 1 Sports Sec. 3 Horse racing 4 Scoreboard 4 Horns Quids Sac.

4 Classified Sec. 2 and Sec. 5 level," said economist James Annable of First National Bank of Chicago. Analysts expect the government to report on Tuesday a 0.2 percent rise in March consumer prices, down from 0.5 percent in January. Wholesale prices had showed a jump of 1.8 percent in January, Se Price.

i. 7.