3Snrt lattò Al Volume XXXI Number 42 "T hp The f i t v City O f Of R www.portlandobserver.com Roses" Wednesday Committed to Cultural Diversity Established in 197« 50* October 17, 2001 Job Losses Slam Oregon Into a Recession Economic effects from the terrorist attacks still wait to be measured Northern Alliances Says Troops Near Mazar-e-Sharif D U SH A N B E .T ajikistan— The North­ ern A lliance reported that its troops are approaching M azar-e-Sharif in north­ ern A fghanistan, w ith som e units only four m iles from the key city. M azar-e- S h arif has been held by the T aliban since 1998. Jordan Foils Terrorist Attempts A M M A N , Jordan — Jordanian and L ebanese security officials helped d e­ rail terrorist plots against U .S., British, Jordanian and other em bassies in L eba­ non. O fficials declined to say w ho was behind the attem pts, but suggested it w as a group linked to O sam a bin Laden. Blair, Arafat Discuss Mideast Peace Process L O N D O N — Palestinian leader Y asser Arafat said that the present turm oil over terrorism and m ilitary action against A fghanistan w as no reason to delay a resum ption o f peace talks w ith Israel. British Prim e M inisterT ony Blair said a Palestinian state is necessary for long- lasting peace. DMVs Get Stricter on Licenses A m id concerns that it's too easy to get legal identification, many states are tight­ ening procedures over driver’s licenses and IDs. O fficials say it is unlikely the Sept. 11 attac k s w ould have been stopped had hijackers been denied IDs, but as m any as five o f them did get such cards under false pretenses. Deal Reached by Minn. Unions on Ending Strike ST. PA U L, M inn. — Leaders from the tw o largest state em ployees unions agreed to accept contract deals reached w ith the state, ending a tw o-w eek w alk­ out by 23,000 governm ent workers. The unions had struck over w age increases and changes to health benefits. The difficulty in finding and maintaining employment was evident last week as a line of prospective workers attends a job opportunity fair, sponsored by the Oregon Employment Division on North Webster Street. The office has scheduled another job fair on Nov. 1. photo by M ark W ashington /T he P ortland O bserver Walnut Park Theater To Be Demolished (AP) - The jo b less rate nudged upw ard again last month, officially pushing O r­ egon into a recession. The unem ploym ent rate rose to 6.4 p er­ cent in Septem ber, its highest level in seven years, David Cooke, the state’s labor econom ist, said Friday. The jobless figure was a full percentage point above the U.S. rate, making O regon’s unem ploym ent rate one o f the highest in the nation. O fficials noted the figures w ere com ­ piled before the Sept. 11 terrorist attacks in New Y ork and W ashington, D.C. Econom ic effects resulting from the attacks will not be reflected until O ctober figures are collected. M anufacturing in O regon was hit hard by layoffs in Septem ber, particularly high tech, w hich saw substantial losses com ­ pared w ith the prior month. C onstruction continued to falter, los­ ing 1,400jobs at the end o f sum m er, when a loss o f 300jo b s w ould be norm al for the tim e o f year, C ooke said. “ In the last few m onths, several o f our state econom ists and I have been debat­ ing w hether O reg o n 's current econom ic dow nturn should be characterized as a recession,” said G raham Slater, research director for the O regon Em ploym ent D e­ partment. But Slater said the Septem ber jobless figures and continued layoffs - including additional jo b cuts announced Friday at Freightliner in Portland - indicated “that O regon is indeed in the m idst o f an eco ­ nomic recession.” Freightliner Keeps Portland Headquarters Demolition workers plan to save the old Walnut Park Theater sign so that it can be incorporated into a new development in the Martin Luther King Jr. Boulevard neighborhood. Indian Army Shells Pakistan JA M M U , India — India's army shelled Pakistani military' posts across the dis­ puted cease-/ire line in Kashmii aftera 10- month border calm, destroying nearly a dozen posts. It com es a day before Sec. o f State Colin Powell arrives in New Delhi to ease tensions between the rivals. photo by M ark W ashing - TO n /T hf . P ortland O b ­ server Phone Threat Prompts U.S.-Canada Border Closing HIGHGATE, V t.— A bomb threat made to a business near the U .S.-C anada b o r d e r an d a s u s p ic io u s v e h ic le prom pted federal officials to close two m ajor border crossings. O fficials were investigating the threat and could pro­ vide few details. Report: Gotti Hospitalized for Blood Clot SPRINGFIELD, Mo. —H rm erN ew Yotk mob boss John Gotti was in stable condi­ tion at a hospital undergoing treatment for a blood clot, a family friend said. by A rlene G hoi . ston T he P ortland O bserve « The northeast Portland cultural land­ m ark, the W alnut Park T heater, is slated to be tom down. The Portland D evelopm ent C om m is­ sion is currently soliciting bids for the demolition o f the approxim ately 70 -year- old structure, w hich has been vacant for m ore than six years. A sbestos rem oval will begin this week. D em olition is ex ­ pected to begin the second w eek o f N o­ vem ber, taking about tw o w eeks, accord­ ing to project coordinator Lois Cortell. The PDC purchased the theater last January. They worked with the building’s former ow ner on feasibility studies to pre­ serve the building, but a structural crack continued on page AS Freightliner has decided to close its parts manufacturing plant on Swan Island, but keep its corporate headquarters in Portland. photo in M ark W ashington /T he P ortland O bserver ( A P I— Freightliner, the largest m anu­ fac tu re r o f heavy co m m ercial tru ck s in N orth A m erica, has an n o u n ced a re ­ stru ctu rin g p lan th at w ill clo se m ost o f its C anadian op eratio n and a parts m anu­ fac tu rin g p la n t in P o rtland. T he restru ctu rin g plan w ill also m ean the lo ss o f 1.100 w h ite -c o lla r jo b s in P o rtlan d , alo n g w ith a c o m p an y w id e 5 p ercen t pay cut. B ut it reta in s P o rtlan d as the c o rp o ra te h ea d q u arte rs fo r the truck m aker. continued on page AS Mailrooms Tighten Security After Anthrax Reports (AP) — W ith anthrax-contam inated letters arriving in offices from N evada to the nation’s capital, m ailroom s and d eliv ­ ery services across the country arc p ut­ ting new handling procedures in place. M ailroom em ployees are being warned tocheck packages for m isspellings in co m ­ mon nam es and words, to look for po w ­ dery substances and excessive or in ad ­ equate postage, and to contact authorities about any suspicious mail. The Postal Service announced the cre­ ation o f a task force to exam ine mai 1 secu­ rity and hazardous-m aterial safeguards. T he C enters for D isease C ontrol and P re­ vention issued guidelines for handling letters and packages. And private delivery com panies are scrutinizing their ow n p ro ­ cedures. At NBC, where one employee contracted the skin form o f anthrax and another has sh o w n sy m p to m s, the n e tw o rk has stopped accepting mail from the Postal Service. "O urentire mail system is being looked at by professionals," spokeswoman Kassie Canter said. “O ur interim procedure for the 4 near-term future is that w e 're accepting U PS an d F ed E x , and th e y 'r e b ein g screened. E m ployees have the option not to accept anything." In California. Gov. G ray D avis ordered state em ployees to stop handling letters and packages until they com plete training continued on page AS A