News stories from Sunday February 1, 1981
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- A cut in projected federal spending oy "tens and tens of billions of dollars" is necessary to bring down the government deficit and permit tax cuts, according to Paul Volcker, chairman of the Federal Reserve Board. Mr. Volcker reiterated in a television interview that tax cuts should not be voted without budget cuts as well. He said that if only tax cuts were approved the Federal Reserve's response would still be tight control over the growth of money and credit, which would make higher interest rates likely. [New York Times]
- Changes in milk-price supports indicated by the administration would be acceptable to the dairy industry if the modifications do not result changing the twice-yearly adjustments of price support levels nor lower their amount, industry spokesmen said. [New York Times]
- Francis Coppola was on the edge of bankruptcy. The producer had a choice of going into bankruptcy or pledging $8 million of his own funds when tax-shelter money for his new movie "One From the Heart" was withdrawn by foreign investors. He chose to risk his own funds. [New York Times]
- A Polish labor protest was called off by the independent union's National Coordinating Commission, headed by Lech Walesa. A one-hour strike was to have been held Tuesday to show Solidarity's support for private farmers who are demanding their own union. Mr. Walesa said the strike would be rescheduled "if there is any attack on us or on farmers." The union's press spokesman said the government-union agreements reached on Saturday "were far from satisfactory." [New York Times]
- Resumption of talks on arms control with Moscow is planned by the administration, officials said, despite harsh comments last week about the Soviet Union by President Reagan and Secretary of State Alexander Haig. The officials said, however, that talks would be impossible if the Soviet Union intervened in Poland, which is one of the major concerns of the new administration. [New York Times]
- Robert White was dismissed as United States Ambassador to El Salvador by Secretary of State Haig, State Department sources said. He was reportedly told that the Reagan administration will appoint a new Ambassdor as a sign of a change in United States policy toward that country and Central America. Mr. White resisted additional United States military aid to El Salvador that was not linked to social legislation, such as the redistribution of land from large estates to peasants. [New York Times]
- Peking's support for Communist rebels in Southeast Asia was limited to the "ideological and moral" level, China's Prime Minister Zhao Ziyang told the leaders of the non-Communist nations in the region at a meeting in Bangkok. Thailand's Foreign Minister, Siddhi Savetsila, said he was very pleased with Mr. Zhao's statement. The non-Communist countries had been concerned with Peking's unwillingness to publicly withdraw its support from Communist insurgents in the region. [New York Times]
- Four Mirage jets were sent to Iraq, Paris officials confirmed, despite France's official position of neutrality in the war between Iran and Iraq. The action brought an immediate protest from the Iranian Embassy in Paris, which said: "The Iranian people will never forget this act by the French government." The French Foreign Ministry said the fighter-bombers were part of a 1977 agreement for the sale of 36 of the planes to Iraq. [New York Times]
- Peru said it won the border fight with Ecuador that began five days ago and ordered its troops to hold their fire "when the adversary adopts a similar measure and abstains from any act of aggression." Ecuador denied Peru's victory claim and said a ground and air battle was continuing in the mountainous region where each country accuses the other of invasion. Both sides said they had inflicted heavy losses, but did not give casualty figures. [New York Times]