News stories from Friday April 9, 1982

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

The Producer Price Index dropped one-tenth of 1 percent in March, the first time in more than six years that this broad inflation measure has fallen for two consecutive months, the Labor Department reported. The decline reflected lower energy prices even steeper than in January and February, and lower food prices. The figures were regarded by economists as further evidence of the progress made against inflation. [New York Times] A contract with G.M. was ratified by union members by a margin of only 52 percent of the votes cast. Union leaders had hoped for a 70 percent margin. The contract gives General Motors wage and benefit concessions, and provides profit sharing and increased job security for employees. The vote was 114,468 to 105,090. [New York Times] Adding 500,000 union members in Houston is the goal of the A.F.L.- C.I.O.'s most ambitious organizing efforts in many years. Houston's labor force, which grew by 700,000 in the 1970's, is one of the least unionized in any big city. The A.F.L.-C.I.O. is committing a $1 million a year and 20 organizers to its campaign. [New York Times] Opponents want a court test for a bill approved by both chambers of Congress that would make it crime to identify undercover intelligence agents. The measure was sponsored by Senator John Chafee, the second-ranking Republican on the Intelligence Committee, and has stirred some of the most serious debates in the current legislative session. Mr. Chafee does not believe that the bill violates the First Amendment. Its opponents, who include newspapermen, do not agree, and they say they will test the bill's constitutionality in court. [New York Times] Budget compromise negotiations in the House were approved by Speaker Tip O'Neill on the basis of the general outline worked out thus far, congressional sources said. The White House and congressional negotiators indicated this week that they are close to agreement on targets for tax increases, cuts in the President's proposed military spending buildup and reductions in the cost-of-living increases in for benefit programs, including Social Security. [New York Times] A plan aimed at mending relations with Nicaragua has been submitted by the United States, a State Department official said. However, it depends on the Sandinist government's stopping support for Salvadoran guerrillas. As described by the official, the plan provides for resumed American economic aid, a pledge of non-intervention in Nicaraguan affairs, and pressure against Nicaraguan exiles plotting to intervene in Nicaragua in return for Nicaragua's cutoff of aid to Salvadoran guerrillas and participation in a limit in Central America on heavy arms and foreign military advisers. [New York Times] High posts for Christian Democrats in El Salvador's new government were demanded by a United States congressional delegation. Salvadoran political leaders were also told that they must continue the economic and social changes begun by the Christian Democrats if the country is to continue to receive aid from the United States. [New York Times] Time may be running out for a peaceful settlement with Argentina over the Falkland Islands, British officials said. They said only Secretary of State Alexander Haig had a chance of persuading Argentina to withdraw its troops before the 200-mile war zone imposed by Britain around the islands becomes effective at 12:01 A.M. Monday. Mr. Haig flew from London, where he held talks with Prime Minister Margaret Thatcher and Foreign Secretary Francis Pym, to Buenos Aires. [New York Times] Mr. Haig cited two positions on which the crisis over the Falkland Islands could be resolved. He said on his arrival in Buenos Aires that the Reagan administration's improved relations with Argentina were a "good basis" on which to resolve the dispute with Britain. He also cited last week's United Nations Security Council resolution as the basis for a diplomatic solution. It calls for Argentina's withdrawal of its troops from the islands, as Britain demands. It was not clear whether Mr. Haig was supporting the British position. [New York Times] Reports of Israeli troop movements near the Lebanese border received by senior Reagan administration officials have caused grave American concern about a possible Israeli attack in southern Lebanon. Although officials emphasized that they could not say an Israeli attack was certain, President Reagan was being kept informed during his stay in Barbados. [New York Times]