News stories from Tuesday December 16, 1980

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

Iran's "final answer" on conditions for the release of the 52 American hostages has been approved by Ayatollah Khomeini, Prime Minister Mohammed Rajai announced. He said that the captives could be freed by Christmas if Washington provided certain "financial guarantees," which he did not specify. The crux of the dispute still appeared to be the complex monetary issues involved.Washington warned against hopes that the hostages might be freed soon. Officials had no details on Iran's latest position, but some saw encouraging signs in Teheran's continuing statements about efforts to resolve the 13-month dispute. [New York Times] Sharply higher crude oil prices were approved by the 13-member exporting cartel under an accord that will permit charges up to $41 a barrel and wide pricing flexibility for each OPEC country. Private and government analysts calculate that the agreement could increase gasoline and heating oil charges paid by Americans from 5 to 7 cents a gallon. [New York Times] Alexander Haig was nominated as Secretary of State by President-elect Ronald Reagan, who also named Raymond Donovan, a New Jersey construction company executive, as Secretary of Labor. Senate Democrats said that before voting to confirm the retired general as Secretary of State they would look into Mr. Haig's role in the Watergate scandals. [New York Times] The 98th Congress adjourned, ending a five-week, post-election session and Marking the close of 26 years of Democratic control of Capitol Hill. The adjournment followed approval of stop-gap financing for many key government agencies. Deleted from the measure before final passage was a proposal to raise salaries for members of Congress and high government officials by about 16 percent. [New York Times] Higher federal salaries were urged by a presidential advisory commission. It recommended raises ranging above 40 percent for members of Congress, high executive branch officials and federal judges. The commission cited a "quiet crisis" caused by a "massive exodus" of officials and difficulties in attracting qualified successors. [New York Times] Colonel Harland Sanders died of acute leukemia at the age of 90. The honorary Kentucky colonel made his courtly manner, white hair, white goatee, black string tie and white suit a trademark for his Kentucky Fried Chicken all over the world. [New York Times] Complete 1980 census figures for all the states except New York were issued by the Census Bureau, confirming that the nation's population balance shifted markedly toward the South and West in the last decade. The fastest growing state was Nevada, up by 64 percent. It was followed respectively by Arizona, Florida, Wyoming, Utah, Alaska, Idaho, Colorado, New Mexico, Texas, Hawaii and Oregon. All of them grew by at least 25 percent. [New York Times] Conjugal visits in federal prisons that will permit sexual relations between spouses will be allowed under the government's first comprehensive guidelines for the operation of prisons and jails. The 352 new rules were issued by the Justic a Department. [New York Times] A dispute between Indians and Arizona over water rights is being fought in the federal courts. The state won the first round as a judge issued an injunction invalidating the contracts that the Interior Secretary had signed with 12 tribes alloting them water from a project that is nearing completion. Arizona's burgeoning cities are pressing for the water, which the Indians want for crop irrigation. [New York Times] Weapons training by cults in California is prompting increasing alarm among state officials, The Attorney General has warned the legislature that "California has become a haven for paramilitary groups and cults" and that the growth of the organizations "has been phenomenal." [New York Times] Panama will seek increased control over the operation of the Panama Canal. The Panamanian government announced the objective after being asssured by President-elect Ronald Reagan that he would carry out the new Panama Canal treaties, which he strongly opposed in 1977. [New York Times] A remarkable display of Polish unity marked a memorial service for the workers slain in anti-government rioting in 1970. The Roman Catholic Church, the Communist Party and the independent union movement called for reconciliation, understanding and amity to enable Poland to overcome its national crisis. Hundreds of thousands attended the ceremony near the Lenin Shipyard in Gdansk. [New York Times] A Libyan military victory in Chad was reported. Well-placed French officials and dispatches from the desert region said that, after a week of fighting, Libyan tanks and troops had seized the capital of the Central African country from guerrilla forces in the name of the embattled government. But the guerrilla side in the long civil war was said to be still strong. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 918.09 (+6.49, +0.71%)
S&P Composite: 130.60 (+1.15, +0.89%)
Arms Index: 0.62

	Issues	Volume*
Advances	732	21.93
Declines	824	15.28
Unchanged	428	4.42
Total Volume		41.63

* in millions of shares

Arms Index is the ratio of volume per declining issue to volume per advancing issue; a figure below 1.0 is bullish.

Market Index Trends
Date	DJIA	S&P	Volume*
December 15, 1980	911.60	129.45	39.69
December 12, 1980	917.15	129.23	39.53
December 11, 1980	908.45	127.36	60.24
December 10, 1980	916.21	128.26	49.31
December 9, 1980	934.04	130.48	53.22
December 8, 1980	933.70	130.61	53.60
December 5, 1980	956.23	134.03	51.99
December 4, 1980	970.48	136.48	51.17
December 3, 1980	972.27	136.71	43.44
December 2, 1980	974.40	136.97	52.35