Rutland Daily Herald from Rutland, Vermont • 1

I Willianjs Witness Will Only Testify In Secret (P.13) HERALD ESTABLISHED IN 1794 VOL. 130 NO. 288 COPYRIGHT RUTLAND, VERMONT, TUESDAY MORNING, DECEMBER 2, 1986 2 SECTIONS 24 PAGES PRICE 30 A President Wont Object To A Special Prosecutor Nicaraguan rebels. Officials said that Donald T. Regan, the White House chief of staff, conferred on Monday with Meese on the issue.

Under the law, the attorney general alone can ask a special three-judge panel of the United States Court of Appeals for the appointment of on independent counsel. The Republican leader in the Senate, Bob Dole of Kansas, said on Monday that the case was beginning to hurt his party and must be dealt with quickly. He urgently repeated a suggestion that Reagan call a special session of Congress, but Democrats continued to oppose the proposal. Meanwhile, Reagan denied "flat out" that he had any prior knowledge that profits from arms sales to Iran had been diverted to Nicaraguan rebels. In a statement through White House spokesman Larry Speakes, in response to questions from reporters, Reagan said.

"You can tell them flat out that I had no knowledge whatsoever of it until Ed Meese briefed me on it Monday afternoon." By BERNARD WEINRAUB The New York Times WASHINGTON President Reagan said Monday that if the Justice Department recommended it. he would welcome the appointment ot a special prosecutor to investigate the diversion pf millions of dollars to Nicaraguan rebels from United States arms deals with Iran. At the same time, Reagan ordered his National Security Council staif not to conduct diplomatic, military or intelligence operations while a three-member review board examines the operations of the council. The council set up the seciet arms deal with Iran, and one aide, Lt. Col.

Oliver L. North, was dismissed last week by Reagan for his apparent role in tunneling funds to Contra rebels. The council's director, Vice Adm. John M. Poindexter, resigned.

Reagan appeared to be giving Attorney General Edwin Meese III a signal that the White House would endorse a Watergate-style investigation to examine the secret arms deals and the diversion of fjinds to the One day later, Nov. 25, Reagan told reporters that that he "was not fully informed," and Meese said that as much as $30 million may have been diverted to the Nicaraguan rebels from arms sales to Iran. Pacing the gravest crisis presidency, Reagan pledged on Monday "a full and complete uiring of all the facts" involving the government's secret dealings with Iran and the Nicaraguan rebels. Reagan, addressing a three-member commission he appointed last Wednesday to examine the operations of the National Security Council staff, said he wanted "all the facts to come out The panel members are its chairman, former Sen. John G.

Tower, It-Texas, former Secretary of State Edmund S. Muskie, and Brent Scowcroft, a former White House national security adviser. After a 45-minute meeting with Reagan, Tower told reporters that the commission expects to complete its work in two months and would not "make findings of guilt or innocence." (See Page 12: Reagan) AP Photo) President Reagan makes comments during a meeting Monday with a three-man commission he established to probe the operations of his National Security Council. The special board of inquiry is headed by former Sen. John Tower of Texas, left; former Sen.

Edmund Muskie, second from right; and retired Lt. Gen. Brent Snowcroft, right, who was national security adviser to President Ford. Testimony Convinces Senators of High-Level Knowledge Poll Shows Reagan Support Dwindling By RICHARD J. MEISLIN The New York Times NEW YORK President Reagan's overall public approval rating has plunged to 46 percent, from 67 percent a month ago, amid deep public concern over his administration's arms deal with Iran and the tunneling of funds to Nicaraguan rebels, according to a New York Times-CBS News poll.

The decline is the sharpest one-month drop ever recorded by a public opinion poll in measuring approval of presidential job performance, according to Andrew Kohut, president of the Gallup Organization. Presidential approval polling began in 1936. The poll, conducted Sunday, found a majority of Americans believe that the Reagan administration is "covering up" the facts of its arms deal with Iran and that the incident is at least as serious as the Watergate affair, which toppled the administration of Richard M. Nixon in 1974. A majority of the 687 adults (See Page 12: Poll) Leahy to Reagan: Wait for Report By DEBBIE BOOKCIMN SOUTH BURUNOV -Sen.

Patrick Leahy, laid Monday that President Reagan should wait for the Senate Intelligence Committee to complete its investigation before appointing a special Watergate-style committee to review arms sales to Iran and the diversion of fund to icaraguan rebels. Leahy, who is vice chairman of the Senate Intelligence Committee, also said he was opposed to convening a special session of Congress before the new session begins Jan. 6. More work could be done, h(T said, if the Intelligence Committee and other standing committees that oversee armed services and intelligence could work through the next four weeks. "I think a special session would be grandstanding," Leahy said, before boarding a jet in Burlington for Washington Monday.

"Weve only got four weeks left in this session." Leahy said it would make more sense to allow the committees to keep working, report to (See Page 12: Leahy) Intelligence Panel Begins Its Inquiry By MARTIN TOLCHIN The New YorkTimes WASHINGTON Robert C. McFarlane, the former national security adviser, testified for more than seven hours before the Senate Intelligence Committee Monday, leaving several participants with the clear impression that top members of the Reagan administration had known that money from the sale of arms to Iran was being channeled to the rebels in Nicaragua Sen. Thomas F. Eagleton, a member of the committee, said after hearing part of McFarlanes testimony: No one in the world believes Oliver North was acting alone. Lieutenant colonels don't intervene in one war, i.e.

Iran, and run another war, i.e. the Contras in Nicaragua, on their own. That doesn't fall into the rank of lieutenant colonel." Lt. Col. Oliver L.

North, who worked on the National Security Council staff until he was 'dismissed last week, has been identified by the Reagan administration as being the only (See Page 12: Congress) Sanders Announces for Fourth Term, Says He Has Energy and Enthusiasm Brian Burns, a former lieutenant governor. In announcing for a fourth term, Sanders listed the accomplishments of his administration; In terms of taxation, it is my desire to see the city of Burlington continue to lead the. state in attempting to break our dependency on the regressive and unfair property tax that funds educational and municipal services," he said, sounding a theme he often used during his gubernatorial campaign. Burlington residents have not seen a general property tax increase over the past five years because the city has sought other means of raising revenue, such as excavation fees on utilities, a gross receipts tax on hotels and restaurants, and a fire protection fee from the University of Vermont. Burlington has also become a state leader in economic development, he -TTSserted.

The citys unemployment rate is oneof the lowest in America, partly because of the healthy economic climate in New England, he said. But there is no question hundreds of new jobs in Burlington are directly attributable to the hard work of the citys Economic Development Office in securing federal grants and working with the small business communtiy," Sanders said. Six years ago the city streets and sidewalks were in horrendous condition. There was no plan on how to rebuild them and there was no money to rebuild them," he said. Today, he said the city has reconstructed almost every major artery and many side streets, and within three or four years, all streets will be up to standee Page 12: Sanders) By JAMES E.BRESSOR and DEBBIE BOOKCHIN BURLINGTON Less than a month after he finished third in the race for governor, Bernard Sanders Monday launched his bid for re-election to another two-year term as mayor of Burlington.

Sanders, the self-proclaimed socialist mayor, said Burlington's progressive coalition would hold its convention Saturday to nominate a candidate for mayor. "I intend to seek that nomination and will be, asking for the support of the progressive coalition for a fourth time, he said. The election will be held in March. "Like every other city in America, especially with the federal cutbacks, we have our share of problems," Sanders said. In almost every area, he continued, we have been successful in making Burlington city government more responsive to the needs of the people and opening up the political process to all the people.

We have accomplished much. But much more remains to be done," said Sanders. Sanders again will face opposition from the city's Democrats. Democrat Caryl Stewart has announced her candidacy and may face Alderman Paul Lafayette, D-Ward 5, for her partys nomination. Lafayette was expected to announce his intentions Tuesday.

Stewart, former Burlington City Democratic chairman, is aninvest-ment broker with Dean Witter Reynolds. The Republicans have not fielded a candidate yet. Sanders, who was decribed by close associates as tired of being mayor during the period before his Mayor. Bernard Sanders guberaorial bid, said he had thought about whether he had the "energy" to be mayor for two more years. Right now I feel very alive politically," he said.

If we are not capable of running the city with as much vigor and enthusiasm and joy as we have in the last six years, then we should not be running again, and that is a consideration. I did sit down and talk to myself and have to determine, do I have the energy I would not have made this decision unless I felt I had the energy and enthusiasm to go foward in a very positive way," he said. In his last run. Sanders defeated Joyce Belock walks her niece, 6-month-old Lori Allaire, on Dorr Drive as telephone wires are illuminated by Mondays setting sun. The photo was taken from a bridge on the new West Rutland bypass.

Inside Story Governors to Focus on Electricity Needs Sunny, Then Cloudy Sunshine Tuesday morning but clouding up in the afternoon, high 30 to 35. Snow, changing to sleet and freezing rain Tuesday low 20 to 25. Wednesday, snow, sleet and freezing rain. (Page 12) Burlington Fear Burlington residents express anger and fgar in wake of latest Vermont murders. (Page 9) would not be adequate through the end of the century.

Parts of the independent study were presented to the governors at previous meetings this year. The final report with recommendations about how to meet the regions future needs will be the. subject of Wednesday's discussion. Kunin is one of the advocates of more regional planning. Unlike some other states in the region, Vermont has developed (See Page 12: Governors) By JACK HOFFMAN Vermont Press Bureau MONTPELIER Planning for the regions future electricity needs will be a primary topic of discussion when the New England governors gather Tuesday in Massachusetts for their -annual winter meeting.

Gov. Madeleine M. Kunin will emerge from the two-day session as chairman of the New England Governors Conference. She will succeed Massachusetts Gov. Michael S.

Dukakis and head the six-state organization for the coming year. -The governors will focus on environmental issues, health promotion and state drug abuse programs during the opening session Tuesday afternoon. However, muchofthe Wednesday morning session will be devoted to discussion of a new report on New Englands electricity needs. The issue is one the governors have gotten supply needs. The decision was increasingly ihvolved in over the in response to a NEPOOL past 15 months.

forecast that power supplies Some of the states have been concerned that NEPOOL, an organization of New England utilities, has been the source of most data and analyses of electrical supply and demand in the region. In September-1985, the New England Governors' Conference decided to pool the states' resources to conduct an independent study of the regions power i.