News stories from Tuesday December 29, 1981

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

Key American economic sanctions against the Soviet Union were imposed by President Reagan, who spoke of Moscow's "heavy and direct responsibility for the repression in Poland." Mr. Reagan ordered the suspension of high technology exports and a halt in negotiations for a new long-term grain export agreement and in Soviet air service to the United States. He also restricted access to American ports by Soviet ships and warned of further actions if the military crackdown in Poland continued. [New York Times] The Kremlin reacted angrily to the sanctions imposed on Moscow by the Reagan administration. Soviet officials said that Foreign Minister Andrei Gromyko had forcefully rejected American charges of Soviet involvement in the crackdown in Poland. They also said he had told the American Ambassador, Arthur Hartman, that Washington had instigated an attempt to overthrow Communist rule. [New York Times] Sharply higher prices for raw materials, power and transportation, effective Jan. 1, were announced by Poland's leaders. Warsaw television also said that the increases in production and distribution costs would push up the price of retail goods. [New York Times] Lech Walesa has agreed to open talks with Poland's martial law government, according to sources there who are considered reliable. The informants, who have spoken with a relative of Mr. Walesa, the leader of the Solidarity trade union, confirmed that he had been on a two-day hunger strike, but said he ended the fast on Christmas Day when he decided to begin the negotiations. [New York Times] Budget cuts of more than $30 billion in the fiscal year 1983 have reportedly been approved by President Reagan. At the same time, according to administration officials, the federal budget office has informed him that there would still be a deficit of about $110 billion in every year through 1986 unless tax increases are imposed. [New York Times] The first cuts in Medicaid in the history of the 15-year-old program as well as further reductions in federal funding for school lunches are sought by President Reagan. He wants Congress to authorize a modest charge for medical care provided for the poor under Medicaid. [New York Times] A strict gun control law was upheld by a federal judge. He ruled that the village of Morton Grove, near Chicago, did not violate the Illinois or federal constitutions in banning the sale or possession of all handguns. Opponents of the ordinance, including the National Rifle Association, vowed to appeal the ruling. [New York Times] The indictment of a federal judge and a prominent Washington lawyer on charges of conspiracy to commit bribery and obstruction of justice was handed up by a grand jury in Miami. The lawyer, William Borders, was arrested in October by F.B.I. agents on charges of soliciting a $150,000 cash bribe on behalf of District Judge Alcee Hastings. [New York Times] A special prosecutor was appointed to investigate assertions of corruption made against Raymond Donovan, the Secretary of Labor. A panel of three federal judges gave the assignment to Leon Silverman, a New York City lawyer who is a former president of the Legal Aid Society. [New York Times] Police-community ties in Milwaukee are undergoing major strains amid a spate of complaints of police brutality. Such complaints have been made for years by black residents, but the concern over police conduct has now spread to white communities as well. The slaying of two policemen has further added to the tension. [New York Times] A continued cleanup of polluted water was facilitated as President Reagan signed legislation providing about $10 billion over four years for sewage treatment facilities. Environmental groups endorsed his demand that Congress reform the costly water treatment program, and the final bill met most of his demands. [New York Times] Nicaragua's revolution, far from the definitions outsiders try to impose, tolerates a level of political and press opposition -- a position that police states do not allow. The Sandinist government, though inclined toward Marxism, has not made Nicaragua a Marxist nation. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 868.25 (-2.09, -0.24%)
S&P Composite: 121.67 (-0.60, -0.49%)
Arms Index: 1.29

	Issues	Volume*
Advances	549	8.93
Declines	985	20.61
Unchanged	444	5.76
Total Volume		35.30

* 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 28, 1981	870.34	122.27	28.31
December 24, 1981	873.38	122.54	23.94
December 23, 1981	869.67	122.31	42.90
December 22, 1981	871.96	122.88	48.32
December 21, 1981	873.10	123.34	41.31
December 18, 1981	875.76	124.00	50.95
December 17, 1981	870.53	123.12	47.22
December 16, 1981	868.72	122.42	42.37
December 15, 1981	875.95	122.99	44.13
December 14, 1981	871.48	122.78	44.81