The Boston Globe from Boston, Massachusetts • 1

Index page 3 Volume 223. No. 30 Copyright 1983 Globe spa per Co. Teiephone: 929-2000 Classified: 929-1 500 Cirrulation: 929-2222 The weather Sunday: Clouds, 40s Monday: Rain, 40 Details page 33 $1.00 SUNDAY, JANUARY 30, 1983 to get extra tunas for transi 11 i I e. i rr steelworker stands outside a plant in Homestead.

Pa. During capacity, the lowest rate of mill use since 1932, a year the indus-' Christmas week of 1982, steel plants were running at 29.8 percent try averaged less than 20 percent. globe photo by stan grossfeld Crisis in steel and for a way of life US pledges $200 million By Thomas Oliphant Globe Staff WASHINGTON In a decision with major implications for the transportation needs of metropolitan Boston, the Reagan Administration has committed an additional $200 million in construction money for transit projects to the state of Massachusetts over the next three years. The far-reaching decision, revealed in a letter on Friday from Transportation Secretary Drew Lewis to Sen. Edward Kennedy, will give the administration of Gov.

Michael Dukakis unexpectedly broad latitude in making major decisions, affecting access to Logan Airport, traffic in downtown Boston and mass transit needs in general. "It's terrific from our standpoint," Dukakis said yesterday In a telephone interview; One immediate result of the commitment from Lewis is that Dukakis can now consider halting plans for a third tunnel under Boston Harbor without worrying about losing any federal money as a result." Th a'dditionTthe Dukakis administration will be able to make its transportation policy, plans, secure in the knowledge of substantial increases in federal money in marked contrast to the cutbacks that have reduced" ser- DREW LEWIS His letter approved funding First of Jour articles. By David Nyhan Globe Staff PITTSBURGH Steel Is coming back. But a lot of steelworkers are not. The American steel industry fell off a cliff quarter of all steel workers lost their jobs.

Companies closed inefficient mills, laid off thousands of workers, wiped out product lines that faced stiff competition and got help from the government to fight cheap imports. The companies' 1982 losses may be $3 bil- Hon. all told, but 1983 could see their shipments go up by 20 percent, in some industry forecasts, or 25 percent, as the Department of Commerce expects. -For the workers, the picture is much grim-" mer. The first week of this year, the industry counted 220,000 workers on the job, but 1 60,000 were on layoff.

Fifteen years ago. 551,500 Americans held steelmak-ing Jobs and there were nearly 400,000 steel Jobs as recently as 1980, Jimmy Carter's last year as President. Many of the laid-off steelworkers some think as many as half or more will never return to a mill except to clean but their i The industry is shrinking. Automation -steals more Jobs. Foreign, governments subsi-" dize their steel factories to keep their workers working; Americans charge subsidized foreign steel is dumped here to undercut the US product.

Foreign producers now. claim 23 percent of -the US market, -up from the 15 percent aver-age of the 1970s. Customers "are finding ways to get by with less steel. The typical American car has 1000 pounds less steel than five years ago. The permanent loss of some markets to.

STEEL, Page 18 vices in most other domestic programs. Addressing himself to both points, Lewis wrote in his letter to Kennedy: "I know how important it is to Boston-area independent truckers are angry enough about new taxes to join a nationwide strike tomorrow. Fopus, Page 61. 'state "and" locaf'fficials to know with as much certainty as possible -the levels of federal assistance that will be available. "Therefore, I am pleased to com- TRANSPORTATION, Page 17 'rLuv i mi STEELTOWM CLU5S last year.

The companies that survived are scrambling to regain their feet, but their ranks are thinner. They're a lot leaner and more diversified. The survivors of 1982 came through their worst year since the Depression. Last year, American production tumbled 40 percent. From 1981 to 1982, a PROTEST ON AN ANNIVERSARY -1! Dukakis meets.

vith Nickinello; US budget clash called ineyitable Arms not negotiable, Reagan aide says new possible 3ob i I Charles Kenney -Globe Staff Gov. Michael S. Dukakis met yesterday with IjLouis Nickinello. who served briefly as Massachusetts Port Authority executive director be-More he was fired earlier this month by Dukakis appointees to the board. An administration of- mm uciai saiu yesterday uuK.aK.is may oner mcKin-ello a position with his administration.

After emerging from 4 30-minute session in CCt 1 ft ouue nuusc unicc. yesieruay. tuier-. noon. Nickinello said Dukakis had not offered 1 TVTi ..1,1 1J 1 1 wun a puotLiuii, uul iiiuxviuuu oaiu Liiai iiw planned further discussions with the governor.

An administration official said later that Dukakis likes and respects Nickinello and that the governor expects to offer Nickinello a position dealing with state transportation policy. By Benjamin Taylor Globe Staff WASHINGTON President Ronald Reagan is least likely to compromise on his budget proposals for military spending and his tax cuts, a senior White House official said yesterday. The White House expects these to be the two biggest sources of controversy on Capitol Hill as Congress prepares to receive the President's fiscal 1984 budget. "We don't expect Congress to adopt every Jot and tittle" in the budget, said the official, who asked that his name not be used. "But there are some elements of it that he didn't send.up there as a negotiating position." The interview came at the end of a hectic week that included the President's State of the Union address, a visit to Boston that seemed very much like a campaign trip and final preparations for submission of the budget.

Nearly three weeks ago, Reagan decided to go along with an $8-bil-lion defense cut that would still al-. low the Pentagon's budget to in crease by $30 billion, or 9 percent in real terms after inflation is discounted. And even though the new budget, which officially goes to Congress tomorrow, has been generally -well received as a realistic starting point, congressional Democrats and some Republicans argue that the military budget shouldn't increase so dramatically when Reagan is calling for continued cutbacks in many domestic spending programs. To reduce record deficits, many Democrats also urge repeal or postponement of the third year of the Reagan tax cutscheduled to take effect July 1, and the indexing of taxes so that inflation would no longer force taxpayers into higher brackets. The cut in defense is "the most that can be safely pared away from a national security standpoint." White House chief of staff James A.

Baker 3d said terday. "The President feels very strongly about that defense number and about his tax cuts." BUDGET. Page 16 The official, who asked not to be identified, said that Dukakis called Nickinello and asked for the mwtlntf lWaiise Thikakts "wanted tn make sure Nickinello knew that there was noth- 1 i i i i i a a i. inn nrcnn'j i in nai i nrnsn ar nn 'j ucnnri 4, IMI -Jk I The governor has a lot of respect for Lou." i i 4v I I a 4110 coin rnor iiiiltou-iq rronennrrQimn W. secretary.

Frederick Salvuccl, also respects 'NicKineuo ana wants mm to take a position. a t- mmniiiiiii I Nickineuo, lormer Mouse cnairman ot tne i joint Committee on and unsuccessful candidate for the Demo- 'NICKINELLO. Page 11 Protesters take to the streets in Frankfurt, One of several West German cities where rallies were held yesterday to denounce the rise to power of Adolf Hitler. The Nazi dictator's National Socialists were swept to power 50 years ago today. Page 7.

upi photo Low pay, low aid, high costs After 39 years, a soldier returns harm INSIDE TODAY EUROPE UP IN Plans to deploy Pershing 2 and cruise missiles stir up a storm. Focus, Page 61. CHARACTER ROLES: In new movies, lenng N.H. education By Brad Pokorny Globe Staff 1 "i knew the pay was next to nothing Dustin Hoffman, Meryl Streep and Paul Newman totally inhabit the characters they play. Arts Films, Page Bl.

HOW Excitement runs low as public high school here two years tail number matching that of the downed bomber was discovered in the New Guinea jungle, and an Army recovery team helicoptered in to pick up the remains of what turned out to be 22 men. After an elaborate identification process that took nine months to complete, the Army 10 days' ago officially released a list of those who had been killed in the crash 39 years ago. Carlin Loop was on the list. In this community of 41,483 people in the central plains of Kansas where the skies are a hard blue, the air is clear, the English is spoken with a nasal twang and where the outskirts are dotted with clusters of grain elevators -word that Carlin Loop was finally coming home was big news. The local newspaper and radio stations all had stories, and Michael Loop, one the few relatives left in town, said he was del-' uged with expressions of condolence, including LOOP, Page 9 By Ben Bradlee Jr.

Globe Staff SALINA, Kart. Until the day she died in 1971, Rozetta Loop, a loving, gregarious mother of six, had absolute faith that her second-oldest would return home alive and well. Army Pfc. Carlin E. Loop and 21 other servicemen flying a noncombat mission in a B24 Liberator bomber had crashed for unknown reasons into the thick Jungle of New Guinea pn March 25, 1944, during World War II.

Although the Army declared Loop dead in 1946, his mother never believed it. According to her grandson, Michael Loop (Carlln's nephew), she would seize on periodic reports of a Japanese soldier being found alive on some remote Pacific isle as evidence that Carlin, who. was a medic, might have survived too. But last April, the wreckage of a plane with a As much as he enjoyed the students, however, the low pay, the slim chance for advancement and the constant threat of budget cuts by the school board were finally too much, He is leaving next month for a computer sales Job that wil) pay close to $30,000 nearly three times his present salary of $1 1 .000 a year. "The way the school pays, it just makes the American Dream of owning a car and getting married someday and owning a house it just makes it an impossible dream on that salary," said Healy, who is N.H.

TEACHERS, Page 12 ago, but he thought that working with youngsters would be a sufficient reward. "I started at $9900 a year," said the 23-year-old industrial arts "and with that figure I the laughing stock of all my graduating class at the University of New Hampshire. Most of my friends were business malors or en NEWMAN and Washington Red- skins close a strike-torn NFL season in today's Super Bowl. Sports, Page 41. 1983 PROSPECTUS: Whither "post-industrial Business.

Page Al. FIFTY YEARS AGO: Hitler came to pow- er, but the media were slow to get his message. The Boston Globe Magazine. gineers and made two or two-and-a-half times my salary to start.".