News stories from Saturday February 21, 1981

Summaries of the stories the major media outlets considered to be of particular importance on this date:

State budgets will be "dislocated" by the cuts in federal funds proposed by President Reagan's budget, and the states will have sizable reductions in corporate tax revenues, according to a study prepared by the National Governors Association and the National Conference of State Legislatures. The report also warned state governments to expect "a large proportion" of the as yet unspecified $6.3 million in budget cuts to affect state aid. [New York Times] Aid to veterans will be unaffected by the President Reagan's proposed budget cuts. Although almost every other federal department and agency has been told to reduce spending for at least some of their programs, the Veterans Administration's compensation, pension, education and health programs will remain intact. [New York Times] The Pentagon toughened its position toward the NATO allies. Deputy Defense Secretary Frank Carlucci told them that the United States could not be expected to increase its military contribution in Europe or other areas unless the allies contributed their "fair share." Mr. Carlucci, seeking assistance in developing a a "mature alliance," asked the allies to adopt an "expanded concept of European security" that would take in the Persian Gulf area. [New York Times] Moscow's anti-Western campaign be-came more aggressive as the opening of the 26th congress of the Soviet Communist Party approached. Marshal Dmitri Ustinov, the Soviet Defense Minister, accused the West of conducting an offensive against detente and trying to reopen the cold war. The Soviet press campaign, building up over the last month, appears intended to prepare the people for more sacrifices to counter the West. [New York Times] A fleet of long-range bombers capable of penetrating Soviet defenses well into the next century is planned by the Pentagon. The Reagan administration has reportedly decided to ask Congress for about $2.5 billion next year to initiate the fleet's development, which was strongly urged by Gen. Alton Slay, who recently retired as head of the Air Force command. The new bombers would eventually replace the Air Force's B-52's. [New York Times] Atlanta remains distraught and baffled by the inability to solve the deaths and disappearances of 20 black children. Investigators have tried everything from enlisting the aid of psychics to programming a computer system for quick retrieval of facts. Vice President Bush has announced that a panel has been established to coordinate federal efforts in the city's inquiry. [New York Times] A $25 million out-of-court settlement was made by the corporate owners of the Three Mile Island nuclear plant with thousands of claimants in a 25-mile radius of the facility. One of the plant's nuclear reactors partly melted nearly two years ago. Most of the money will make up for business losses that followed an evacuation of the plant area near Harrisburg, Pa. [New York Times] The black market is providing weapons for Salvadoran guerrillas, a group of their leaders said in an interview in San Salvador. They refused to comment on whether they were receiving arms from Soviet-bloc countries, as the United States has charged. The four leaders said they were now short of arms, but were preparing for an offensive against the government. [New York Times]