a> - MANCUKSTKK HKRALD, M o i k U in . Jim 23. 1984 ^ BUSINESS Drop In Auto Expenses Cut your own taxes: Local couple runs Glovino cited, Cost in cents per mile T y p e of Car 1 9 8 2 1 9 8 3 Capital assets special a Maine ‘B & B’ then Is fired Counterpurchases are growing 3 4 .1 8 3 4 .6 3 Subcompacts ... page 2 ... page 11 ... page 15 BOSTON (UPI) — Counterpurchases, the to be concerned with along with other signs mechanism of countertrade they also C om pacts 4 4 .6 7 \ 4 3 .2 8 oldest form of trade with a tew sophisti­ of protectionism." he said. manage to obtain a marketing service from 4 9 .0 2 ,, 4 5 .4 6 cated twists, is a small but growing Countertrade is more likely to be a foreigner, which agrees to dispose of their M id -sized influence in the sales and purchase of goods employed in countries where government goods. Intermediates 5 0 .6 9 ! 4 9 .5 6 'spreading from its traditional base in plays a controlling role. For some with "Countries sometimes have an incentive 5 2 .3 1 Eastern Europe. defined economic plans, the acquisition of for disguising price cuts or what amounts to Full-sized 5 5 .4 2 One country sells railroad cars to another imports of high priority for fullfilling the price increases (taxes). Sometimes it with the provision that it will, in turn, buy or plan is more important than price-cutting. would be against intcrnjdioiKd-trade rules find a market for natural rubber from the In fact, many countries wind up paying or treaties to alter prices directly and Rain ending Manchester, Conn. other country. It's selling with an obligation more for a product than they would on the openly," he said. "That sort of thing can around midnight to buy in a flexible sort of barter agreement. open market. They could dump their really can be done by subtrafuge" with Tuesday, Jan. 24, 1984 Such counterpurchase arrangements products at a discount and then buy what countertrade. — See page 2 Single copy. 254 tend to become more popular in hard times. ever was needed at a market price to avoid In 1980, U.S, imports obtained through The lingering recession in some countries the whole countertrade arrangement at the countertrade were estimated at $278.6 illatuhpHtpr Ipralb along with the international debt problems same cost. million by the United States International have created a good atmosphere for But there are advantages to countertrade Trade Commission, triple the 1974 figure. countertrade, but it still accounts for only 1 that can't be found on a bottom line. More than a third of the total came in the percent of world trade. Countertrades often embody an implicit tax form of chemicals. UPI graphic "I guess there are bigger concerns on our or subsidy, allowing a country to indirectly Direct counterpurchases are le.ss promi­ minds, but there is a tide in these matters." cut prices or charge a tariff when such nent in U.S. exports than buy-back For only the second time in history, the per-mile cost of owning said Norman S. Fieleke. vice president and actions taken openly might violate previous arrangements, which allows a company or and operating atypical new compact car dropped in 1983, by 1.4 economist at the Federal Reserve Bank of agreements. .xountry to sell another an entire production 305: Parents worry Boston, "The.se countries may be adverse to plant or substantial equipment with an cents to 43.28 cents, an annual Hertz Corp. study showed C o n su m er "Since it's essentially a form of protec­ cutting their prices overtly and this is a way agreement to purchase a large amount of Monday. This chart shows data for various classes of cars in the tionism. it does seem to me to be something to do it subtly." Fieleke said. "Through the Price rise P ric e the goods produced by the machinery. Hertz study. 2 Index about closing’s (unadjusted) Foreign investors in U.S. often wary of disciosure is lowest 300 NEW YORK (UPI) - It's all quiet on the a chance to clarify how far states could go in Recently.;ntly. Brbdkey said, the "real fluflurry" has about an unfriendly reception in the United States as academic effect foreign-owned real estate front this season, according restricting foreign investment. involvedL'd federal reporting requirpmcmysrequiremciriys ratherrii than in their own government finding out what they're to an expert in title insurance who tracks state "If that case had been raised in the context of a state restrestriclions, J doing." 4 legislatures' attempts to stop nonresident aliens from Middle Eastern investor buying oil land rather than a Suchi requirements are aimed at-Tielpingat-melpin federal Some foreign investors may be wary of alerting 295 By Sarah E. Hall questioned," buying American land. Canadian company buying a shopping center I'm not agencies determine exactly how much foreign their own country's tax collectors about their wealth, Herald Reporter Rut school board Chairman Leonard "It was a hot topic in the late '70s, but it has died sure the court would have come out with the same investment there is, and in making sure nonresident he said. Others may want to avoid being identified as in 11 years E. Seader insisted that the closing down a bit," satd Hugh Brodkey, a vice president at decision," he said. aliens pay their taxes if the land is sold. They are not investors who place their capital away from home. Dollar constraints and dipping enrol­ would represent a "real savings,” and Chicago Title Insurance Co. Foreign investment in American real estate runs intended to discourage investments but haW an One lawyer, Brodkey said, told him of a client who lments all but forced the decision to that to say otherwise was The recession, Brodkey theorized, wiped out the old the gamut from a Mexican family buying a condo in indirect chilling effect, Brodkey said. refused to allow his name to be linked with an recommend closing Highland Park irresponsible. fears of oil sheiks buying up the American heartland. Florida to a European steel mill purchasing an East "Some foreign investors just don't want to American deal, commenting; "Well, they shot my B y Dennis G. Gulino ment’s sample “market basket” of School in June, School Superintendent United Press International goods and services that cost $100 in Kennedy stuck to an assumption he "The pressure for state restrictions kind of blew-away Coast coal mine. disclo.se," he said. "S<^ic arc not worried so much brother." 290^^ Goods and services James P, Kennedy told the Board of made nearly three years ago in with people's concern that anybody come in and 1967. Education Monday night. WASHINGTON - Consumer In 1967 terms, the purchasing costing $100 in 1967 preparing guidelines for school clos­ invest," he said. But after Kennedy’s hour-|ong de­ ings — that ’ 'every dollar spent to keep Still, more than half the states have some kind of prices climbed 0.3 percent in power of the current dollar is 32.9 December to give 1983 an inflation cents, the department said. - | now cost $303.50 fense of his recommendation, school a school open that is not absolutely law that treats foreigners ■ differently than U.S. board members questioned whether necessary is a dollar taken elsewhere citizens when it comes to land purchasing. rate of just 3.8 percent, the lowest Dairy products declined in price in 11 years, the Labor Department by 0.1 percent in December. savings elsewhere could rescue the from the funds supporting education." "A couple have outright prohibitions," he said. “$100 now, m ore later, school, and parents asked whether the "Others say nonresident aliens can't own certain said today. The report said fruits and "What are the alternatives?" Ri­ it doesn’t take long to reach Inflation for 1982 was 3.9 percent. vegetables went up only 0.5 per­ 2 8 5 - J closing will hurt students chard W. Dyer, another Board of kinds of land, or a certain amount, or own it for more D J FMAMJJASOND academically. • than a certain period of time. Some got into little the m axim um deposit’.’ It was 3.4 percent in 1972. cent, primarily because most of Education member, asked. Although most goods and servi­ the price survey was completed by subtle things about filing reports. A couple had Flwood W. Siurtcvant, J r, ■ ’82 1983 "Many parents are concerned about No Highland Park closing would inheritance laws." liaM Hartlord •.V- ces showed only gentle increases the time December’s freezing what kind of environment, academi­ probably mean noitnproviemenls — no In the late '70s and early '80s, he continued, "dozens last year, the government report weather hit Southern crops. The cally, the Highland Park children day treatment center, no reinstate­ of bills were introduced in state legislatures." to showed the biggest break for cold weather destroyed more than would go into," Anita Rackow, mother ment of the Youth Services serious further restrict foreign investment in local real consumers was the decline in a fifth of Florida’s orange crop and of a Highland Park student, told the offenders' program, and no additional estate. Almost all involved farm land. Brodkey said. energy prices during 1983, down by devastated vegetable crops in both board. staff — in the 1984-85 budget, Kennedy South Dakota, for instance, restricted the alien 0.5 percent for the largest drop Florida and Texas, guaranteeing responded.