The News and Observer from Raleigh, North Carolina • 1

College football Clemson 10 Duke 31 East Carolina 66 Pacific 23 Southern Cal 21 Georgia 26 North Carolina 8 Wake Forest 10 East Tenn. St. 23 South Carolina 21 California 3 Florida 21 Penn State 22 Notre Dame 35 Marshall 17 Pittsburgh 47 Miami, Fla. 27 Nebraska 54 N.C. State 15 Georgia Tech 3 Appalachian St.

10 Rutgers 3 Florida State 19 Oklahoma 7 The News and Observer Main Number 829-4500 Classified 829-4600 Circulation 829-4700 186 Pages Today Raleigh, N.C., Sunday, November 8, 1981 116th Year Daily 25c, Sunday Slump threatens ens Reagan plan, economists ists say By THOMAS L. FRIEDMAN New York Times News Service NEW YORK Many leading private economists say that the long-predicted recession has taken hold of the economy so strongly in the last month that they have begun to doubt whether President Reagan's recovery program will get off the ground. Many of them have revised their economic forecasts for the next year sharply downward. The economists, who work on Wall Street, in universities and private concerns, say the latest economic indicators appear to foreshadow a Christmas season that will provide little in the way of economic good cheer. Although some on Wall Street look to the recession to produce the long-awaited decline in short- and long-term interest rates, which already has begun, many economists argue that this phenomenon could be short-lived.

"Just about every major economic indicator is now confirming that economic activity fell off a cliff in September," said Edward Yardeni, chief economist for E.F. cern, "and the the Hutton the brokerage, condrop is much larger than anyone anticipated." The steep dropoff, economists said, is largely a result of the fact that high interest rates, which already had depressed the housing Bryant, Tar Heels stumble UNC tailback Kelvin Bryant can't break the grip of these Clemson Tigers Saturday, and the Tar Heels lose their second game this season, 10-8. Bryant returned to action at Kenan Stadium in Chapel Hill for the first time since injuring his knee early this year against and automobile industries, began to sap the strength of consumer and business spending in the rest of the economy. "People thought that the negative effect of high interest rates was quarantined to housing cars, and that the rest of the economy was learning to live with it," said Walter Heller, who was chairman of the Council of Economic Advisers in the Kennedy administration. "But in the last month the contagion has spread to small business, farming, financial institutions and to all suppliers." The broad weakness of economic activity is quickly apparent from reports such as the following that have been issued from Wash- ington in the last few weeks: About 8.5 million Americans, representing 8 percent of the work force, were unemployed in October, the highest level since the 1974-75 recession.

Domestic automobile sales in October were down 27.2 percent from the year earlier levels, the lowest October selling rate since 1958, despite rebates and other incentive programs. Major retailers reported the weakest sales gains of the year in October. Sales of existing single-family homes fell in September to the lowest level in more than six years, Staff photo by Greg Gibson Georgia Tech. Clemson, ranked as No. 2 and No.

3 in the nation and undefeated after nine games, scored its points on a second-quarter touchdown and a third-quarter field goal. Story, more photos and reports on other area games, Section Il. Bud Nance charts way to top the way Monroe boys will do By ROB CHRISTENSEN Washington Correspondent WASHINGTON There are certain small towns that, by chance or because of special circumstances, produce an exceptional number of achievers. Monroe, N.C., in the 1930s was one such town. Graduating from tiny Monroe High School in 1937 and 1938 were Sen.

Jesse A. Helms, former Democratic gubernatorial candidate Hargrove "Skipper" Bowles the late Henry Hall Under the dome Wilson, former chairman of the Chicago Board of Trade and a Democratic candidate for the U.S. Senate from North Carolina in 1974; and James W. "Bud" Nance, the deputy assistant to the president for national security affairs. "Something was good down there," Nance said in an interview last week in his office in the West Wing of the White House.

"I don't know what it was. Maybe it was the red Until this year, Nance was the least known of that group of Mon- Education official hired despite debate A veteran education employee with good political credentials who was squeezed out of the Department of Public Instruction last summer has been hired by the State Board of Education despite some debate over his qualifications. Nurham O. Warwick of Garner, who since July has directed special state and federal projects for the N.C. Department of Commerce, will earn $31,284 in his new job as director of federal education funds accounting in the state board's Controller's Office.

Warwick was cut from a Department of Public Instruction job July while the median price of an existing home fell, on an inflation-adjusted basis, more than at any time since World War II. Machine tool orders in September dipped to their lowest level in five years. "The weakness is now all over the economy," said Donald Ratajczak, director of the economic forecasting project at Georgia State University. "You could argue that a recession was necessary to make the transition from a consumptive economy, with its high interest rates and inflation, to the savings and investment economy that Reagan projected. By this logic the Reagan program is still on track, and we should take the pain and not mess with it.

"There are some disquieting signs to this effect, particularly the sharp drop in capital equipment orders at a time when investment should be rising. Because of the decline in sales and high interest rates, producers are forgoing expansion. But without a growth in capital investment, you will not get the growth in productivity, employment and savings that the Reagan program hinges upon." Between the recession and the high interest rates, the stimulus of the Reagan program will be negatSee SLUMP, page 18 Altering health aid proposed By ROBERT PEAR New York Times News Service WASHINGTON Administration officials want to make fundamental changes in the Medicaid and Medicare programs as part of their effort to control federal spending on domestic social programs that pay guaranteed benefits to millions. Proposals include strict limits on federal payments for hospital care and physician services for the elderly, an increase in Medicare premiums and a new payroll tax on federal employees that would generate money for the Medicare trust fund. cial Security.

Medicaid is a profor the poor financed by the See MAJOR CHANGE, page 18 gram Man, three children die after boat flips at sea By RAEFORD BROWN admitted to New Hanover MemoSpecial Correspondent rial Hospital for observation. They CAROLINA BEACH A man were Mildred Oxendine, 49, wife of and three children on a weekend Roscoe Oxendine; Shirley Locfishing trip died Saturday and klear, 41, mother of the two youngthree companions were rescued est victims; and Ms. Locklear's after their boat capsized in rough son Sammy Watson, 15, all of seas just south of Carolina Beach Greensboro. Inlet. New Hanover sheriff's deputies A spokesman for the New Hano- said Shirley Locklear told them ver County Sheriff's Department the engine of the 18-foot inboard identified the victims as Roscoe motorboat malfunctioned and the Oxendine, 53; Junior Locklear, 12; stalled boat turned broadside to Juan Florez, and Cheri Ann Loc- the swelling waves near a sandklear, 3, all of Greensboro.

bar. Two women and a youth were See FOUR PERSONS, page 19 states and the federal government. Richard S. Schweiker, the secretary of health and human services, gave details of the proposals in a letter to David A. Stockman, director of the Office of Management and Budget.

Schweiker said the proposals had been approved by an interagency group searching for ways to cut entitlement programs, which provide government benefits to groups of people who meet certain eligibility standards. White House aides said Friday that the proposals probably would be approved soon by President Reagan, who said on Sept. 24 that he wanted such reductions made. The federal government paid $33 billion in Medicare benefits to 29 million people in 1980. The records of the Interagency Entitlement Advisory Group show that it has endorsed these changes: Medicare, a nationwide health insurance program, pays hospital and doctors' bills for the elderly and for some disabled people.

The program is open to people of all incomes if they are covered by So- roe High School boys. He was a career Navy man who rose through the ranks to become a rear admiral before retiring in 1979. In January, Nance came into greater public view when Richard V. Allen, national security adviser to President Reagan, made Nance his chief deputy. Nance also figured prominently in the headlines last month, when he assumed the duties held by Maj.

Gen. Robert L. Schweitzer as See BUD NANCE, page 19, James W. 'Bud' Nance his Navy days Body found with Hitler not Braun, scientists say 1 under a state government reduction-in-force effort. He had been the department's supervisor of vocational programs for handicapped and disadvantaged students.

Endorsed for the new post by Controller J.A. "Joe" Porter, Warwick has a bachelor of science in vocational education degree, N.C. State University and 13 years' experience with the department. He is close to both top Hunt administration officials and to powerful legislators allied with Lt. See DOME, page 18 LONDON (AP) New dental evidence uncovered by a California research team strongly suggests that the woman found next to Adolf Hitler in his Berlin bunker was not his mistress, Eva Braun, a British medical journal reports.

The findings indicate that Miss Braun was buried elsewhere or may have escaped, the British Medical Association News Review said in its November issue. Miss Braun was 24 when she met Hitler in 1936 through her Nazi photographer employer. She spent nine years as the Fuhrer's mistress before marrying him in the last days of his life. Soviet soldiers who captured the burning German capital in the spring of 1945 found 13 bodies near the bunker, and Soviet authorities said autopsy records proved the bodies of Hitler and Miss Braun were among them. The British medical journal said a 10-year study of World War IIera records revealed that the Soviet evidence on Hitler matches the Nazi leader's known dental records on 26 points, including an unusual "window crown" on one tooth and bridgework in Hitler's lower right jaw.

However, "'The odontological data virtually eliminates the previous assumption that (the woman's body found by the Soviets) was the remains of Eva the BMA review said. See BODY, page 20 Sunny, fair Inside Sunny with highs in mid-60s, lows in upper 30s. Details on today page 2. Payment by Czechs Iranian 'massacre' U.S., Czechoslovakia iniCivilians reportedly mastial pact returning Czech sacred in fighting between in Iran. gold seized by Nazis and rebels and troops paying U.S.

claims. Page 6. Page 3. Democratic rules Quebec out in cold Democratic panel chaired Canada's basic constituby Gov. James B.

Hunt Jr. tional problem is back nears accord on rules gov- where it began. Page 10. erning national conventions. Superiority claim Page 4.

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