News stories from Monday February 20, 1978
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- A tentative coal contract agreement was signed by the United Mine Workers and a major coal company that is not a member of the industry's bargaining association, possibly setting a pattern for other separate agreements that would hasten a negotiated end to the 77-day miners' strike. Secretary of Labor Ray Marshall, meanwhile, was reported to have gained the private support of at least two major coal companies for a voluntary return-to-work proposal under an interim contract. The toughest issues would be negotiated later. [New York Times]
- The dollar fell to record lows in foreign exchange markets. In Frankfurt, the dollar dropped nearly 3 pfennigs from Friday's level to a new low of 2.0315 marks, even though the West German Central Bank bought about $90 million in dollars to help steady the rate. The dollar also was at a record low against the Swiss franc, quoted as low as 1.8225 francs, down from 1.8840 at the end of last week. The Belgian franc and the Dutch guilder also strengthened against the dollar. [New York Times]
- Bankruptcy was declared by one of Japan's largest companies when the banks that had provided a financial prop over the last five years withdrew their support. The Eidai Sangyo Company, the country's No. 1 plywood manufacturer and a major homebuilder, has debts of $750 million. The government immediately took steps to minimize the bankruptcy's economic and psychological effects, especially overseas. Foreigners hold about $10 million in Eidai corporate bonds, Companies that operate on 70 to 80 percent in borrowed capital are not unusual in Japan. There was speculation in Tokyo that, with Eidai's fall, banks might become tougher toward wobbling clients. [New York Times]
- Blank-check spending on cancer research may be ending. A report of almost total disregard for federal controls on the spending of federal money for one cancer research group is one reason why. The General Accounting Office made public an audit of the way the Eppley Institute of Omaha in particular spent $16.4 million in federal funds since the so-called war on cancer was declared by President Nixon seven years ago. A general lack of progress against the disease is another reason for the trend toward cautiousness in federal support. [New York Times]
- Cyprus agreed to free the 57 Egyptian commandos who survived an airport battle with Cypriot troops Sunday, but demanded the recall of the Egyptian military attache in protest over the fighting. Egypt then announced the withdrawal of its diplomatic mission from Cyprus and ordered the Cypriot diplomats to leave Cairo. Cyprus refused to turn over to Egypt the two terrorists who killed the editor of the semi-official Cairo newspaper Al Ahram.
Egypt did not tell Cyprus that it had sent commandos to free hostages held at Larnaca Airport, Egyptian officials said. They said that they felt that transmission of such a message might jeopardize the rescue, in which 15 commandos died. Therefore, they said, they decided to tell President Spyros Kypraianou only that Egypt was sending a group of people to assist the Cypriots "in dealing with this emergency."
[New York Times] - The Israeli cabinet began a debate on the government's controversial position on Israeli settlements in occupied Arab territory. There were signs that the cabinet was divided over the issue. The five-hour meeting was classified as a "ministerial committee for security affairs," a designation that makes it a criminal offense to reveal details of the meeting. Prime Minister Menachem Begin told reporters that the meeting would be resumed Sunday. [New York Times]
- Prime Minister Ian Smith proposed that he head Rhodesia's interim government during the transition to black rule and that government posts be divided equally between whites and blacks. His proposal differed sharply from that of the three black groups that agreed on the constitutional terms for the transition. The blacks demanded that each of the four parties to the transition agreement be equally represented. [New York Times]