News stories from Saturday January 2, 1982

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

Counting food stamps as income has been proposed by federal housing officials in determining eligibility for federally aided public housing. If counting the stamps as supplemental income is approved by Congress, tenants in federally subsidized housing would pay at least 10 percent more rent a year, according to official estimates. [New York Times] The "new federalism" is rejected in state capitals across the nation, reversing the once positive response to President Reagan's plan to return authority usurped by the federal government. In a period of depleted state treasuries, no state is moving to fill the gap left either by the Reagan administration's deep cuts in federal social services administered by the states or by the reductions in federal aid to cities. [New York Times] Deep cuts in the environmental staff in Washington are coming. The Environmental Protection Agency will announce a new reorganization plan next month that anticipates a reduction in the workforce by at least 1,000 people through attrition and "reductions in force." [New York Times] Poland's military rulers dismissed 90 provincial administrative officials, according to a high-ranking member of the ruling military council, apparently because they were not effectively enforcing martial law. Provincial military committees have been running the provinces since the imposition of military rule on Dec. 13. [New York Times] Lech Walesa has reportedly set terms for negotiating with the government. Sources close to the Solidarity leader said that one condition was that the talks be held on neutral ground. He has also reportedly demanded that the rest of 18-member union presidium and three advisers be present. [New York Times] The possibility of a world depression preoccupies Chancellor Helmut Schmidt of West Germany more than a possible war over Poland or the Middle East. In interviews in Florida, where he is on vacation before meeting with President Reagan later this week, Mr. Schmidt did not criticize the President's economic sanctions against Poland and the Soviet Union, but indicated that West Germany would not join such an effort. [New York Times] Egypt's cabinet was dismissed by President Hosni Mubarak, who also appointed a new Prime Minister and ordered him to form a new government. [New York Times] Saudi terms for accepting Israel were outlined by the Saudi Foreign Minister, Prince Saud al-Faisal. He said that in return for Israeli recognition of Palestinian rights and the return of occupied Arab land, his government was prepared "to accept" Israel. [New York Times]