Lexington Herald-Leader from Lexington, Kentucky • 10

IMNWrWI i A-10 The Lexington Leader Lexington Ky Tuesday November 22 1977 U8 warns Japan: Raise imports or risk disfavor By ANDREW MALCOLM New YoA Time New Sendee TOKYO officials-have -warned the Japanese government that its continuing substantial trade sur-pluses with the United States and other nations seriously threaten relations between Washington and Tokyo The confidential warning which came during the visit here of the latest working level group of US economic experts was the strongest yet delivered by the Americans during recent months of mounting trade fric- tions over Japanese trading policies and procedures and their economic ef- fects elsewhere After a five-day visit the US group which was headed by Richard Rivers general counsel to Robert Strauss President special trade representative left Tokyo for Washington Monday evening without announcing any specific agreements or much of the content of the talks However well-informed sources said the United States had strongly that within three weeks Japan publicly announce its commitments to cut its current account sup plus drastically to launch a dramatic increase in imports a restraint in export promotion' and a specific list of immediate and long-term measures to restructure successful trade programs Publicly American officials said they had mgde no threats in their many talks here But it was learned they told the Japanese that Carter himself would be closely watching economic performance? in the days ahead And Japanese sources said at one point Rivers raised -the possibility of import quota systems and said that without dramatic and prompt Japanese actions mounting protectionist pressures in the United States would prevail and the resulting trade damage would be responsibility Outwardly the Japanese government remained calm in the face of what amounted to a stern lecture from the United States its chief trading partner diplomatic ally and security umbrella his party declined to be quoted by name However in background briefings official American sources admitted it was for one nation to advise another on its economic policies But they said these were extraordinary times that required special leadership by the economically strong nations to assist the economic recovery of otters For the first 10 months of 1977 Japan had a $1336 billion trade surplus with $114 billion coming iri August $109 billion in September and $1-85 billion in October To overcome Japanese resistance to such steps which threaten to further depress a virtually stagnant domestic economy the Americans said they Japan will seek a real economic growth rate of 8 per cent' during the next fiscal year That is far higher than the 6 per cent that Prime Minister Takeo Fukuda had envisioned But privately Japanese officials expressed at what they regarded as an American ultimatum And many government financial experts worked long nfghts through the weekend to study the American demands' Rivers and the other members of World of business er gives some asks some of fuel industry Learning to think small At sessions in Detroit workers learn how to build the Chrysler smallest US-built cars the Dodge Omni and Plymouth Horizon Those models will be built at the Bdvidere 111 plant for 12 years a producer The cars differ from past products not only in size but also in design and training for key employes began months ago i Market Quotations Closing prices from Monday By STEVEN RATTNER New York Tuna News Service WASHINGTON In his most conciliatory statement to date Secretary of Energy James Schlesinger suggested Monday that the Carter administration expected eventual energy legislation to contain higher prices for natural gas more tax credits for businesses converting to coal and more revenues for the oil industry than originally proposed In return for accepting these changes he indicated the administration was determined that the package include a wellhead tax on domestic oil extension of gas price controls to the intrastate market and a tax on use of oil and natural gas by business Such ideas were not unexpected but the administration had been officially silent on what might emerge from the current House-Senate conference for fear of antagonizing House Democrats who have been main supporters Indeed Schlesinger's comments Monday came not as a formal statement but as intimations during a news conference on general matters his first in Washington since assuming the energy post Although no appointments are now scheduled Schlesinger Said he expected to meet with congressional conference leaders this week and that rapid was likely the week after Thanksgiving He said the administration was recommendations from those who support the as to how it should be modified but that as yet precise had been received On other matters he said: He had toward changing natural gas policy to prevent importers of liquefied natural gas from averaging its high cost in with low-cost conventional supplies This could effectively kill many LNG proposals now under consideration The beleaguered bill to speed licensing of nuclear plants under attack within the administration by environmentalists would be and on Capitol Hill before this session (Other sources contend that emergence was not yet certain) Carter had not yet decided whether to veto an appropriation for the Clinch River breeder reactor although believe the Clinch River breeder will not be built' While Carter vetoed an authorization he is soon to face an appropriation which is more difficult to veto because it also contains funds to terminate the B-l bomber project He was optimistic" about the natural gas outlook for the winter although the shift by industry from gas has increased petroleum imports Oil imports will total 46 per cent of consumption this year Schlesinger said although new Alaskan supplies would cause them to drop in 1978 from 85 million barrels a day to 81 million barrels dark Davit Gark Davis new president of Starr Group Clark Davis has been named president of Starr Broadcasting Broadcast Division He supervises company broadcast properties in Lexington Honolulu Detroit San Francisco Dallas Houston Little Rock and Kansas City Davis was appointed vice president of Starr Broadcasting Group in July 1974 as well as vice president and general manager of WTVQ-TV Lexington Starr will maintain headquarters in Lexington and will be moving additional personnel to the area to develop the group headquarters Class Nov 30 on selecting good workers Effective Selection Interviewing is the topic of a one-day seminar to be held here for persons who make employment decisions and wish to improve skills in locating interviewing and selecting employes The seminar will be held Nov 30 at the Holiday Inn North on Newtown Pike It is being sponsored by the Center for Professional and Executive Development in the University of College of Business and Economics The seminar will focus on selecting personnel in business government and academic fields and will include practical information on selecting proper individuals for jobs ranging from hourly workers to top level execu- -lives For more information contact Dr Levis McCullers associate dean for continuing education 227 Commerce Building UK Remodelers elect The Blue Grass Remodelers Association has elected new officers for the coming year They are Paul Guess president Mike Haley first vice president Gordon Shinn second vice president Murrell Blankenship secretary John Bricken treasurer Elected to the board of directors were John Oldham-Guess Gay Dunaway Robert Stapleton Haley Bennie Oaks and Vernon Deaton Ortho sales representative Paul Rowland has joined Ortho Pharmaceutical Corp as a sales representative in the Blue Grass region He is a graduate of Murray State University and was formerly a marketing representative for Texaco Inc He resides in Lexington Blumenthal about capital NEW YORK (AP) Treasury Secretary Michael Blumenthal provided encouragement Monday to businessmen who are worried that their taxes on capital gains might be increased In a speech to the Bond Club of New York Blumenthal said more incentives are needed for investment and business risk-taking if new jobs are to be created forthcoming tax proposals will contain incentives for capital formation both for corporations and he said in prepared remarks fully understand the important role that preferential tax rates for capital gains have played in en Strikers arrested NEW HAVEN Conn (UPI) Police Monday carried 50 striking Yale University blue collar workers and student sympathizers from a driveway where a sit-in was being staged to stop a convoy of police cars and fuel trucks delivering heating oil to the school Protesters were booked for disorderly conduct and released on a written promise to appear Ronald Sanbrook 49 president of the Federation of University Employees Local 35 was one of those arrested The union had threatened to stop oil deliveries to try to force the university to loosen up in its latest contract offer cops had two cars in front of the convoy There were two oil trucks and then about 10 more patrol care plus police vans he said don't know if anyone was hurt but there was a lot of kicking and strogglxg About II pm Sunday sinkers manned picket lines at the Pierce-Sage power plant which supplies steam to heat university buildings Allegheny Airlines Allied Chemical Alcoa Amer Air Filter Amer Brands Amer Can Amer- Std Amer Tech Amer Water Works ARA Services Ashland Oil Assoc Dry Goods Atl Rich Automation Ind Bearings Bendix Beth Steel Brown-Forman Bundy Coro Capital Holding Chessie System Chrysler Cincy Gas Clark Equip Coca-Cola Col Gas Control Data Corn Glass Credit Thrift Delta Air Over The Counter DuPont Eastern Air Eastman Kodak Eaton Corp Esmark Exxon Falcon Seaboard Fed-Dept Stores Firestone FMC Corp Ford Motor General Electric Gen Foods Gen Medical Gen Motors GenTei Genesco Glen Dist Goodyear WR Grace Great Gulf Oil Heublin Holiday Inns HooverBB Humana 111 Power Interco IBM Corp Inti Harvester Inti Paper Irvin Ind Johns Manvilie Ky Utilities Walter Kidde Knight-Ridder Kroger Kuhlman Litton Lou Cement LouGas Marathon Oil McLouth Steel FW Means Mel Shoe Merc Stores Mobil 121 6 S3 Natl Dist Natl Service Ind Natl Steel Occidental Pet Owens-Illinois Pacific PM Pall Corp Parker-Hannifan PepsiCo Phil Elect Phillip Morris Phillips Ind Pitney-Bowes Procter Gamble Ramada Inns Rockwell Royal Crown BF Saul Sher-Williams AO Smith Southern Railway Square Std Oil of Calif Std Oil of Ind Std Prod Teneco Texaco Tex Gas Trans Texas Inst Textron Thomas Ind Trane Union Carb Vermont Amer Vulcan WestElect Whirlpool Wickes Winn-Dixie Wool worth Xerox 22 14 31 24 23 47 32 41 16 22 44 39! 25 26 19 62 1 82 3 29 18 4 31 30 33 14 54 25 39 47 23 31 27 44 78 25 14 32 4 10 18 8' 27 14! 19 15 26 43 261 29 42 4 33 23 27 38 26 15 12 25 25 46 10 39 63 41 22 18 23 18 48 Lees purchase Clark complex Mr and Mrs CC Lee of Winched ter owners of CC Lee Inc Lexington have purchased the Grand View Apartments in Winchester from Car-roll Cole a Lexington developer The Lees purchased the complex which contains 104 units for $1325000 The transaction was handled by realtor Richard Berini quiets fears gains tax couraging capital formation especially for venture capital and new businesses will of course take this into account in designing reforms to reduce or eliminate unjustified tax pref Blumenthal said President Carter is studying the latest version of a proposed tax bill to be introduced in January Currently capital gains are taxed at about half the rate of other income but during his presidential cam-: paign Carter proposed full taxation of capital gains However the administration has been worried in recent weeks about a downturn in the economy late next year unless business steps up its investments In his speech Blumenthal expressed concern about the decline in the stock market particularly the shift of institutional investors away from common stocks As a result he said there is a disturbing rise in the percentage of debt in the capital structure of American manufacturers Without new equity capital they cannot grow and without growth they cannot increase their earnings Blumenthal said He said economic problems cannot be solved until business executives decide that the best way to make prof- its is through expansion The government must create the right atmosphere by setting a steady prudent set of policies for lasting ec-nomic results he said must scale down the increasing bite that federal income taxes take from the incomes of American workers we will also continue our fight against inflation building cn the success made this year in moderating price si i A -r a r'oy PALM READING FORTUNE TEUING CARD READING GiRed Spiritual Reader and Advisor 0- es hn rW aew-t 'm ni to- mi In i- Mn tar a- SPEGAL COMPLETE REASMS S3C3 frs week on'j CALL £35-9333 V31 st Second National Bank and Trust Company rJTTING YOU FIRST 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