international/regional
Shultz vows aid
BRASILIA, Brazil (AP) —
The United States will “work in
every way” to counter a
buildup of Soviet arms in
Nicaragua, Secretary of State
George Shultz said Monday.
“We have to help our friends
put themselves in a capacity to
resist the aggression that comes
from those arms,” Shultz said at
a news conference. He said the
United States was doing so with
“economic development and a
security shield against the ag
gression that has been launched
by Nicaragua against its
neighbors.”
The secretary of state’s news
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Page 4
conference, held after the open
ing session of the Organization
of American States general
assembly, centered on
Nicaragua’s claims of an immi
nent U.S. invasion.
Referring to the Reagan ad
ministration’s contention that
the Soviets are sending increas
ing amounts of arms to the lef
tist Sandinista government in
Nicaragua, Shultz said the
United States planned “to work
in every way to cast this ag
gressive and subversive in
fluence out of our hemisphere.’’
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Asked about Nicaragua’s
allegations of a planned U.S. in
vasion, Shultz said: “As far as
invasion fears are concerned
they are a self-inflicted wound
on the part of Nicaragua.” He
said such talk was “based on
nothing, and I don’t know why
they are doing this.”
In a speech to the 31-nation
OAS earlier in the day, Shultz
attacked advocates of violence
on both the left and right.
Combat alert
MANAGUA, Nicaragua (AP)
— Nicaragua’s armed forces
were put on a state of combat
alert and the civil defense force
was activated Monday in an
ticipation of military action, the
Sandinista government said.
Communiques from the
Defense Ministry and the civil
defense high command read
over nationwide radio said the
military moves were being
made because of threats of at
tacks on Nicaragua.
The communiques did not
specifically mention the United
States, but Nicaraguan govern
ment officials have repeatedly
said recently that a U!S'. inva
sion was “imminent.” The
United States has denied the
allegation.
Meanwhile, the Soviet
freighter that sparked the latest
U.S.-Nicaraguan confrontation
left port after unloading its
cargo, and Sandinista leaders
said U.S. suggestions that
warplanes had been aboard
were fabricated, to make
Nicaragua appear threatening.
Katz selected
SALEM (AP) — Women have
no trouble gaining political of
fice through the ballot box in
Oregon, but now a woman has
broken through the “old boy
network" that traditionally
elects the Speaker of the Oregon
House of Representatives.
Vera Katz, a Portland
Democrat, promises to endow
House politics with the same
flamboyant style that carried
her through four years as the
first female co-chair of the
Legislature’s powerful
Ways&Means Committee,
which writes the state budget.
Katz said her priority is get
ting a sales tax on the ballot in
the spring to raise money for
property tax relief. That will be
the first round of the tax reform
effort, she said.
If voters don’t buy the idea of
a sales tax, the Legislature
should then submit a back-up
plan to voters asking them to in
crease income taxes for property
tax relief, she said.
“If they defeat both ideas,”
Katz said, “then I guess the
public is saying it is satisfied
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with the tax system the way it
is.”
The tax reform debate and the
public demand for lower taxes
without cuts in public service
will test Katz’s leadership.
Those issues divided the 1983
Legislature, dragging the ses
sion into a stalemate.
Katz, a public relations direc
tor for Portland Community
College, moved into politics
from involvement in
neighborhood organizations
and citizens’ lobbying groups,
entering the house in 1973 as a
liberal Democrat.
Since then, her political
stance has rrtt> derated
somewhat, largely because of
her long membership on the
Ways&Means Committee.
She served on that committee
during the height of the state's
budget deficits, helping
spearhead spending reductions
that were unpopular with
liberal Democratic colleagues.
Katz was chosen House
Speaker on the 100th ballot ear
ly Monday after newly elected
House Democrats met for 17
hours without a break to select
leaders for the 1985 Legislature.
She and Rep. Rick Bauman,
also of Portland, were the con
tenders for the speaker’s job.
The Democratic caucus re
elected Bauman as speaker pro
tern.
Rep. Shirley Gold of Portland
will be House Majority leader.
Bauman and Katz were vying
to succeed Grattan Kerans of
Eugene, who gave up his seat in
his losing bid for state treasurer
in last week’s election.
The House speaker wields
considerable influence because
of the authority to appoint com
mittee members and decide to
which committees bills will be
sent.
State named
in lawsuit
SEATTLE (AP) — The state of
Washington will be named for
the first time in legal action in
volving the Washington Public
Power Supply System, as in
vestors who bought $2.25
billion worth of bonds on which
WPPSS defaulted are expected
to file the “largest municipal
bond liability suit” ever.
Representatives of the Na
tional WPPSS Bondholders
Committee will hold a press
conference in Seattle this morn
ing to announce filing of the
suit, which has been in the
works for months.
In a claim filed a little more
than one month ago, the com
mittee charged that, “The State
of Washington has a moral
obligation if not a legal obliga
tion to repay the bondholders.”
The bonds were sold in 14
separate issues between 1976
and 1981 to finance construc
tion on two supply system
nuclear plants, which were ter
minated before they were
finished.
In the largest default in mun
icipal bond history the supply
system admitted in July 1983
that it couldn’t pay the debt.
A series of lawsuits has been
filed in both federal and state
courts since the default, but this
will be the first naming
Washington state as a
defendant.
The committee sought
damages of $7.25 billion in its
claim. That figure includes
principal and interest on the
bonds. A claim is required
before the state can be sued.
Tuesday, November 13. 1984