Lower Rates Could Save a Weak GNP

20 MANCUKSTKR IIKr<AI.O. Tuesday. Dt'( IB. I»)84 ISfiVLodji-iia SPORTS Town not meeting Lithuanian Noel Manchester cagers ] Clouds, fog tonight; | recruitment goals meant good food overwhelm Enfield ! clear, cold Thursday j page 4 ... page 15 page 11 . ... page 2 ^ Manchester, Conn. — A City ofUJaurfeatFr Village Charm Hrralft Wednesday, Dec 19, 1984 — Single copy: 25< Lower rates could save a weak GNP By Denis G. Gulino percent and the second quarter United Press International moved at a 7.1 percent expansion rate. yV WASHINGTON - The U.S. Because of the first half's vigor gross national product is expand the year as a whole, compared to ing at a weak annual rate of 2.8 1983, is seeing a 6.7 percent gain in ■ 'r : percent in this quarter, part of the GNP, the broadest economic indi same slowdown that pulled the cator of all, the department said. third quarter s rate down to a In 1983 the year-over-year in revised 1.6 percent, the govern crease was 3.7 percent. All GNP ment said today. figures were adjusted to remove The Commerce Department's the effects of inflation. «*■ tentative estimate of economic As soft as the economy seems to growth, known as the flash projec be now, most analysts are chang tion. showed the increased consu ing their forecasts for early next mer demand in the October- year to include a surge in buying, December quarter is being based on this week's lowering of balanced by slower business pur the prime rate to 10% percent, the chasing to restock inventories. lowest in 17 months. The economic pace remains in Economists generally believe a sharp contrast to the first half of sustained 3 percent to 5 percent the year. The first quarter roared growth in the GNP is necessary to Herald photo by Pinto ahead at an annual rate of 10.1 shrink the unemployment rate. Gains in that area have been slower lately but have not disap Winter pasture Now; kunous MarlboroRed peared, with the jobless rate in Hydro November 7.2 percent. These horses are still thinking summer. The good Thursday. This scene is at the Lent! farm on Gardner and Rbriboro Lights If the projection holds, the weather of the last few days ends as sleet and rain is Street, fourth-quarter GNP will be $3.7472 trillion in 1984 dollars and $1.6567 predicted for tonight with cold weather following are also available in permit trillion in 1972 dollars, the depart ment projected. Price increases for the entire Weinberger gives up $8.7 billion a convenient new pack. economy, not just consumers, are sought running at a moderate 2.9 percent rate in the fourth quarter, com A New York City firm h'as pared with 3.9 percent in the third, applied to the federal government the department's estimated "im Democrats say cuts not enough for a preliminary permit for plicit price deflator" showed. placement of a hydroelectric facil Corporate after-tax profits Bv Richard C. Gross cutting civilian salaries 5 percent: ity at the Union Pond dam. Stockman had urged $20 billion and Rep I,es Aspin, I) Wis , an dropped at a revised 5.7 percent United Press International slicing $2.5 billion from weapons $30 billion, respectively The Catalyst Energy Develop annual rate in the third quarter, aeknuwledged defense expert, said costs without canceling any pro Weinberger unveiled the $313.7 ment Corp. has estimated that the the department said in the same WASHINGTON — Defense Se the Pentagon budget will be a "fat grams but a torpedo, and saving billion budget for fiscal 1986 that he $270,000 facility would generate report, compared to a 0.3 percent cretary Caspar Weinberger has target" that can be tapped further $900 million through lower infla will propose to Congress next 704,800 kilowatt hours of electricity slippage in the second quarter. surrendered to White House pres to siphon money to further reduce tion and fuel cost e.stimates. month only hours after President annually, according to the com Today's tentative estimate of sure and given up $8.7 billion in the deficit and to bolster domt-stie In an apparent compromise Reagan decided to reduce Pen pany's application for the permit. economic growth will be followed defense spending next year as the programs. following a weeks-long wrangle tagon spending by $28.1 billion for The electricity would be sold to January 22 by the first formal Pentagon's contribution to shoring over the budget. Weinberger the next three years in line with " I think it's a meaningless Northeast Utilities. report based on far more data. up the federal deficit. emerged the long-term winner trying to reduce the projected $200 gesture," Rep Thomas Downt-y. Director of Public Works George In the last quarter the depart But congressional Democrats, over budget director David billion federal deficit. I) N.Y.. .said of the $8 7 billion A. Kandra said a preliminary ment's initial flash estimate was as expected, complained he didn't Stockman. Although Republican congre.ss- cutback "It's absurd, it's laugha permit would mean only that far too optimistic, seeing a 3.6 go far enough. In surrendering $8.7 billion, men remained mute. Democrats ble. There's a lot more to save Catalyst has first rights to develop percent rate of growth that has "We have a very satisfactory Weinberger gave Stockman more balked almost immediately there and everybody realizes it's a hydroelectric facility on the been continually revised downw budget result decision," Wein waterway. than the $8 billion he wanted to Sen. Dale Bumpers, D Ark . a got to be done. " ard to the 1.6 percent reported berger said Tuesday in giving the save. But the Pentagon chief member of the Appropriations In its application. Catalyst said today. bare bones outline of his proposed Tbe total $313.7 billion budget fended off more than half of the Committee, predicted there will be electricity could be generated by Up until this week economists $277.5 billion budget outlay for represents a c utbac k of $t| | July 1987. Kandra said the facility reductions Stockman .sought for "a lot of blood all over the floor" of had little to go on except statistics fiscal 1986, which begins Oct. 1. billion from the $;i24 8 billion could be started as early as fiscal 1987 and 1988. the Senate unless Weinberger showing weak sales, lackluster The reduction was made by Weinberger originally planned. October 1986 if parts of it are According to figures from the comes up with deepercuts Mesaid factory production and huge trade lowering the proposed military That translates into $277 5 billion White Hou.se. Weinberger agreed more than $.50 billion should be constructed as they are approved. deficits, and so were looking to the pay raise from 6 percent to 4 for spending in fi.scal 1986 only to only $9.2 billion in reductions in sliced from defenseduring the next The town and Catalyst have flash report as their best guidepost $8 7 billion less than the original percent, to save about $1 billion; 1987 and $10.2 billion in 1988, while three years entered into an agreement for the to the future. $286 2 billion. operation of the facility. Then on Monday the economic The Union Pond dam, which was world changed with the half-point Transfer planned for 1997 built in 1901, once generated decline of the prime rate to KPa electricity but that production percent. As it spreads to become stopped when the town bought the the prevailing rate economists are dam about 40 years ago. The dam now more confidently looking was recently found to be in poor beyond today 's GNP report to what Britain, China sign Hong Kong pact condition by the U.S. Army Corps they hope will be a resurgence of of Engineers and is slated for demand early next year — promp By Ann Scott Deng Xiaoping, who considers the extensive repairs by the town. ted by^ower interest rates. Mu Yaobang. who described the selves accepted the agreement" United Press International reunification of Hong Kong with signing as a "red letter day. " In an earli(;r meeting. Premii;r China his crowning achievement. "This is going to be a day to be Zhao Ziyang assured Thatcher PE KIN G — British Prime Minis Deng, in a m eeting with remembered by tbe people of our ih.d China would honor the Mong ter Margaret Thatcher and Chi Thatcher just prior to the signing two countries," he said. "Your Kong accord "in every respect " nese Prem ier Zhao Ziyang today ceremony, said the pact removed a ‘Special lady’ needs excellency (Thatcher) and Chair Zhao .said the 1997 transition of signed a historic agreement “ shadow" that had clouded Sino- man Deng Xiaoping have laid a ( ajntalist Hong Kong to commii transferring capitalist Hong Kong British relations for 150 years. milestone for relations between nist rule would be a "m ajf)r event to communist rule in 1997. “ The failure to solve this ques our two countries." in modern world history," and both shoes, room, love The accord, which will end tion was casting a shadow over the Tbatcher replied she was sur China and Britain were committerl nearly 150 years of British colonial relationship between our two na Editor's note: This is another prised an agreement on Hong Kong to honor the agreement medical problems, and then rule in the world's third largest tions. Now the shadow has been in a series of vignettes prepared with an anxiety attack.

Load more