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Page 4 J U.S. proposes new peace negotiations WASHINGTON (AP) - Pres Reagan told the Soviet Union on Wednesday to "butt out" of the Falkland Islands crisis as Secretary of State Alexander Haig prepared to carry a revised peace proposal to Argentina Haig, who met with Reagan at the White House after returning from Britain, announced he has some "new ideas" which can avert war but require flexibility from London and Buenos Aires. Meanwhile, he said, the situa tion remains "exceptionally dif ficult and dangerous " In Buenos Aires, the Argen tine coast guard said two of its gunboats had broken the British blockade of the Falklands and were patroling the shores of the archipelago In London, British Prime Min ister Margaret Thatcher said at the start of an emergency debate in Parliament that "withdrawal of the (Argentine) invaders' troops" must precede any negotiations over the future of the islands taken over by Argentina on April 2 "Our diplomacy is backed by strength,” she asserted "And we have the resolve to use that strength if necessary ” The president told reporters that the Soviet Union evidently is providing military intelligence to Argentina, based on "what I've heard and read " And "I'd like to see them butt out,' he declared Deputy White House press secretary Larry Speakes said later the president based his comments on press reports and stated "I'm not going into what we know or don't know from intelligence sources " Earlier Wednesday, Argen tina's ambassador here, Esteban Takacs, denied his nation was receiving intel ligence from the Soviet Union Haig, who planned to depart for Buenos Aires on Thursday morning, said he had received assurances from British and Argentine leaders that they are ready to continue to work with him Thatcher told the House of Commons that some progress had been achieved during Haig’s talks, but Argentina was still demanding “some things which we could not consider because they flouted our basic principles." In Buenos Aires, Capt Victor Badini told The Associated Press that two gunboats, each carrying a crew of 30, crossed the 250 miles to the islands Tuesday It was the first con firmation of Argentine naval activity in the blockade zone imposed by Britain before dawn Monday There was no indication of change in status of the Argen tine naval fleet The 31 warships were reported tied up at the Puerto Belgrano naval base, about 430 miles south of Buen os Aries, and "ready to sail" upon orders from naval command Two Argentine journalists said on return from the Falklands that C-130 transports mainland “are landing and taking off continuously and Air Force Dagger fighter-bombers — the Israeli version of France's Mirage — are constantly flying over the islands " Haig said a solution “will require flexibility on both sides — not abandonment of principle — but responsible and defensi ble adjustments ” The secretary spoke at a hastily-arranged appearance before State Department reporters Haid said that as a result of his conversations in London, plus telephone conversations on Wednesday, he has developed "new ideas which I have de scribed to the Argentine government "Based on these new ideas, the Argentinians have invited me to return to Buenos Aires I propose to do so tomorrow (Thursday)." Unemployment rate rises to 11.4 percent SALEM (AP) — Oregon's sea sonally adjusted unemployment rate rose .2 percent to 11 4 per cent in March, the state Em ployment Division said Tuesday Oregon followed the national unemployment trend, which also rose 2 percent to 9 per cent In March, 1,149,900 Oregon ians held jobs, an increase of 6,700 over February The number unemployed was 161,000, down 1,800 from the previous month Nevertheless, the seasonally adjusted unem ployment figure went up beca use not as many Oregonians went back to work as normally would, said Libby Leonard, deputy administrator of the divi sion March is traditionally a pivotal month when unemployment begins to head down following winter layoffs, said Leonard The employment figures are obtained by the federal Bureau of Labor Statistics which makes a random household survey in every state to determine how many people are working and how many are looking for jobs. The survey does not reflect the number of people who have become discouraged and given up looking for work, said Leonard High interest rates continue to plague Oregon's economy, causing problems for the key lumber industry The number of lumber and wood products plants closed or on reduced production schedules stands in the hundreds, idling roughly one-third of the industry, the division said Reduced to 55,300 workers throughout the first quarter of 1982, employment in lumber and wood products is at its lowest point in over three decades "The plain fact is that there are no signs of recovery yet evident in Oregon,” Leonard said "Until interest rates recede to the point of sparking some demand for home building, Oregon's economy will contin ue to suffer." She said she does not expect recovery in Oregon until at least the third quarter of the year • Thursday, April 15,1982