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Reagan cuts food, health;
raises military budget
President R o n ald Reagan has
su b m itted a 1984 budget to C o n ­
gress that contains a $189 billion de­
ficit and a 14.2 percent increase in
m ilitary spending, making the m ili­
tary budget 28 percent o f the b u d ­
get. The budget is based on the as­
su m p tion th a t the depression hit
bottom in late 1982 and will recover
during the first h a lf o f 1983. The
budget projects a real annual G N P
growth rate o f 4 percent in the sec­
ond half as opposed to no growth in
1982.
The budget has already hit major
opposition fro m members o f both
parties w ho seek to protect social
programs already deeply cut.
Some o f the major features of the
$848.5 billion budget follow:
Urban assistance:
U n d er pressure fro m s u ffe rin g
cities and states the President seeks
to continue federal aid to states and
local governments at the 1983 level.
The p lan continues n early tw o
dozen p ro gram s in to fo u r block
grants to the states. These would be:
I ) a revenue-sharing grant that in ­
cludes the current co m m un ity de­
velopment block grant; 2) a block
grant consolidating ru ra l housing
programs! 3) a transportation block
grant; 4) consolidation o f I? other
programs.
Housing
Reagan wants to replace most sub­
sidized housing construction w ith
direct cost or vouchers fo r 8 0 ,000
fam ilies. A projected 10,000 subsi­
dized units for the elderly poor and
handicapped, renovation o f 30,000
existing units, and 1,500 units for
Indian families arc requested.
M e d ic a re
Reagan requested an increase in
the p rem iu m the eld erly and
disabled pay for supplem ental, or
P a rt B, that covers physicians*
charges. This prem ium , now $12.20
per m onth, w ill increase to $14.20
on January I , 1984, w ith increases
to $ 3 1 .6 0 by Ja n u a ry 1, 1988. By
then the insurance w ould cover 35
percent o f the cost rather than the
current 25 percent.
The plan would also increase the
amount the elderly and disabled pay
for hospital care. Patients now pay
$304 fo r the firs t day o f h ospital
care for each illness. This payment
is projected at $350 for fiscal 1984.
The next 59 days are without charge
to the patient; then the patient pays
a percentage o f the original deduc­
tible.
Reagan w ould re q u ire the firs t
day payment for only two hospital­
izations in a year but for the second
through the 15th days they would be
charged 8 percent o f the deductible
(the $304) and for days 16 through
60 would pay 5 percent. A fte r tw o
hospitalizations the 8 percent would
be collected beginning the first day.
T he patient w ould not pay afte r
the 60th day; however, the average
hospital stay is only 11 days. This
charge would cost the patients an es­
timated $663 m illio n in fiscal 1984
adn $1.2 billion in fiscal 1985.
There would be a one-year freeze
on physicians* rate increases. Also
being considered are ceilings on hos­
pital charges.
A fric a is going through its worst
economic crisis since W orld W ar II.
A fric a n nations are h ighly depen­
dent on raw m aterials exports and
their produces have undergone the
most service price drops since the
nations became independent in the
lat 1950s and early 1960s.
The income from exports o f many
A frican nations has reached such a
low point th at these countries are
nearly b an kru p t and cannot cope
w ith th eir g ro w in g fo re ig n debts.
Imports are being reduced to a m ini­
mum o f essential products.
Nigeria, the most populous coun­
try in A fric a , had a $9.6 b illion in ­
come in 1982 from o il exports, but
sales and prices are down due to the
surplus o f oil on the world market.
In November, President Shchu Sha-
gari said N igeria w ill have to incur
an added debt o f $4.5 billion in 1983
to make capital investments. Also,
the country w ill need $2 m illion to
cover the expected deficit in balance
o f payments.
Because of its depressed economy
and unemployment problem Nigeria
is expellin g tw o m illio n refugees
who had come from neighboring na­
tions to look for w ork. About one-
half are from Ghana.
Ghana has no foreign currency re­
serve and spends $400 million a year
on oil imports. This equals one-half
o f what the country earns from ex­
ports o f cacao and gold. The Ghan-
ian foreign debt stands at $2 billion
and paym ent on th at debt w ill
am ou n t to $900 m illio n in 1983,
which is more than half o f the coun­
try’s total annual income.
Z a ire has rich m in era l deposits
but prices and exports are diminish­
ing and incom e fro m co p p e r, co ­
b alt, diamonds and coffee was less
than $600 million in 1982, compared
to $ 1 .9 b illio n tw o years e a rlie r.
Z aire's foreign debt is $5.8 b illio n
States w ith M edicaid for w elfare
recipients w ould be requ ired to
charge SI a day fo r h ospital care
(Please turn Io page 2 column I )
and annual interest is over $900 m il­
lion.
Z am b ia gets 90 percent o f its in ­
com e fro m copper expo rts. T he
economy has dropped about 2 per­
cent per year since 1978, resulting in
a serious drop in the standard o f liv­
ing.
K enya’ s m ain exports are coffee
and tea. Kenya has been forced to
reduce its imports to a minimum be­
cause lack o f foreign exchange and
reserves on hand w ill cover imports
for only one month.
T h e re have been drastic cuts in
government training in Ivory Coast.
Economic growth, which averaged 7
percent for the last 20 years, p lum ­
meted to zero in 1982, largely due to
the drop in coffee and cacao prices.
Ivory Coast has a $6 billion foreign
debt w ith $1 m illio n due in 1983,
nearly 40 percent o f its total expori
income.
Banks case tests sovereignty
b.v Jon Stewart.
Pacific News Service
Native Am erican activist and fu ­
gitive Dennis Banks has pulled o ff a
neat bit o f Indian magic: he has be­
come invisible in an invisible nation.
H e is, or is n o t, tak in g sanctuary
w ith in a land w hich m ay, or may
not, be a sovereign nation.
T his in v is ib ility suddenly has
raised in to stark re lie f tw o rather
obscure issues: Banks* guilt or inno­
cence, and the reality or illusion o f
In d ia n sovereignty w ith in the
United States.
Banks is the subject o f a warrant
issued by South Dakota authorities
who want him returned to that state
to serve a sentence for a 1975 con­
viction on riot charges Banks fled
South D a k o ta and took refuge in
C a lifo rn ia , having convinced G ov.
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Depression hits African nations
DENN.S BANKS
Volume XIII, Number 17
February 2, 1983
Jerry Brown that his life would be
endangered were he returned io
South D a k o ta . H e was forced io
leave California when new governor
George Deukm ejian agreed to com
ply with the extradition.
Banks now is w idely assumed to
be h id in g out on the O no n daga
Reservation in upstate New York
His attorney, W illiam Kunstler, will
adm it only that his client is some­
where in New Y o rk , and Onondaga
a tto rn e y Steven T u llb e rg , o f the
W ashington-based Indian Law Re­
source Center, avers (hat "as far as
I know Banks isn't there.** Ononda
ga tribal leader Irving Powless, Sr.,
claims he doesn’t know, either.
Since at least six state governors
have indicated they might be willing
to provide sancutary for Banks, the
question o f his g uilt or innocence
(Please turn to page 11 column J)
Portland march protests Raagan A dm lnlatra-
tlon'a certification of human rights Improvamant
In El Salvador to Justify additional aid to that gov-
arnmant.
(Photo: Richard J. Brown)
Battles
intensify
C a llin g the c e rtific a tio n by the
Reagan A d m in is tra tio n o f hum an
rights improvement in El Salvador a
sham, Jose Escobar, representative
o f the D em o cratic R evo lu tio n ary
F ro n t ( F D R ) o f E l S alv ad o r,
thanked the people o f Portland for
passing an in itia tiv e ca llin g fo r a
U .S. pullout.
Escobar emphasized the need for
m edical supplies and support o f
people’s medical clinics in his coun­
try.
A guerrilla offensive launched in
early January has spread to three
provinces. W ith the capture o f Ber­
lin , a city o f 3 5 ,000 T uesd ay, the
guerrillas control one-third o f agri­
culture-rich Usulutan Province. A
railroad bridge over the Lempa Riv­
er was destroyed calling the main
supply route from San Salvador to
Usulutan. The highway bridge had
been destroyed in 1981.
M o re than 6 ,0 0 0 U .S . train ed
governm ent troops are engaged in
M orazan Province and heavy fight­
ing in Chalatenango Province con­
tinues. Sporadic fighting is taking
place th ro u g h o u t the c o u n try in ­
cluding the capital. San Salvador.
Tuesday a right wing death squad
m achine-gunned a m eeting o f
•'m o d e ra te *' p o litic ia n s w ho had
stripped Assembly President Robert
d'Aubuisson, himself a death squad
leader, o f much of his power.
Jos« Eacobar of El Salvador's FDR asked for medical supplies and
funds for the people of El Salvador, who are being killed. Injured,
starved and left exposed to disease by an oppressive government.
(Photos: Richard J. Brown)
U.S. troops at Nicaraguan border
M ore than 1500 U.S. soldiers will
participate in join t m ilitary maneu­
vers with Honduras during the first
days o f February.
These maneuvers have the object
o f developing the defensive capacity
o f the H o nduran forces, to test in
the field the techniques o f deploy­
ment and logistics, the U .S. Depart­
ment of Stale said.
M ore than 900 U .S. m ilitary per­
sonnel are joining the 700 already in
H o n du ras. T h e H o n d u ra n A rm ed
Forces will contribute 5,000 soldiers
to the m aneuvers, w hich w ill c u l­
minate 15 kilometers from the Nica­
raguan frontier.
U .S . h elicop ters and airp lan es
will be utilized to transport the H o n ­
duran troops to the area.
C h riste n e d " B ig P in e *’ by the
Pentagon, the maneuvers were in i­
tia lly planned fo r early Decem ber
and were postponed so it would not
coincide with Ronald Reagan’s visit
to Latin America.
Six months ago the armed forces
o f the U nited States and Honduras
took part in an operation the results
(Please turn to page 2 column J)
s