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WORLD Embassy opens PEKING ? Treasury Secretary W. Michael Blumenthal hoisted the American flag above the first U.S. Embassy on the Chinese mainland since 1949 Thursday as the Chinese and American governments completed the process of establishing normal Hinlnmati/t mlatiAnp vupivtiiu V1V I VIUHUUO. China has raised its liaison office in Washington to embassy status with a similar ceremony later in the day. The U.S. Embassy in Taiwan was closed simultaneously with the Peking ceremony. There was little fanfare in either Peking or Washington, reflecting the strains that have developed because of the Carter administration's outspoken opposition to the Chinese invasion of Vietnam on Feb. 17. I/I I Knomeini goes nome QOM, Iran ? Ayatollah Ruhollah Khomeini, siritual leader of the Islamic revolution that drove Shah Mohammad Reza Pahlavi from power, returned to his nntivP hnlv r?itv ThlircHau a trinmnhorit umlnnma ?v. ? X/ ..vaj V*VJ J. ??MA WV*W^ VV U VllUllipiiailV TT V1W111V after 14 years of exile. Aides said he will live here permanently but "he has no intention of retiring." They said he would actively keep control and maintain the direction of the revolution. "His move to Qom will in no way affect his existing role," said Ayatollah Shariat Madari. Tens of thousands of jubilant Shiite Moslems braved the morning cold to get a glimpse of the 78-vear-old religious patriarch. rr. - i i Official convicted ROME ? Italy's highest court has convicted former Defense Minister Mario Tanassi of taking Lockheed bribe money, sentenced him to 28 months imprisonment and ordered him removed from Parliament. The Constitutional Court also found the former air force chief of staff, Gen. Luigi Fanali, and three others guilty of corruption in the $1.6 million Lockheed bribery scandal but acquitted former Defense Minister Luigi Gui and four others. Fanali was sentenced to 21 months in prison. Would withdraw BANGKOK, Thailand ? China said Thursday it would withdraw from Vietnam if the Vietnamese 11/AIIIH nnU A 1 ! ? - 1 11 nuuiu ijun v/auiuuuici. out me wimese shiq mcy were sure the Vietnamese would not accept the challenge. "The main trend of world public opinion is that Vietnam should withdraw from Kampuchea (Cambodia) and China from Vietnam," Peking's Hsinhua news agency said. I Mass quantities Ten submarine sandwiches, each six feet long, provided some hearty nourishment for these Columbia Hall revelers. The subs were the center of attention at the Tuesday night party, sponsored by the dorm government Richard Voael ? GAME Slowdown likely WASHINGTON ? A key government indicator of future economic trends plunged by the sharpest margin in four years last month, providing sign of an economic slowdown, it was disclosed Thursday. A steep decline in building permits and the average work week caused the index of leading economic indicators to drop 1.2 percent in January, the Commerce Department said. The dropoff followed declines of 0.4 percent in November and 0.1 percent in December. The government wants economic growth to slow somewhat as it tries to dampen inflationary pressures. It was not clear from the latest report whether the nation faces an orderly slowdown or a recession nin (""rirtor moot ! ?? -W ^ I ? I / w VJ1 I I III W V I WASHINGTON ? President Carter, frustrated, impatient and already supporting key Egyptian demands, opened new Mideast peace talks Thursday with Israeli Prime Minister Menachem Begin. The outlook for wrapping up a treaty did not appear bright as Carter prepared for what he says will be "a frank discussion of the issues." Before flying here, Begin criticized the United States for supporting Egyptian proposals he said "were totally unacceptable to Israel." Plans approved WASHINGTON ? President Carter, yielding to anticipated political opposition, has approved two modest reorganization plans that would consolidate domestic economic development programs in the Commerce Department and turn the Interior Department into a Department of Natural Resources, sources said. The President's decision, expected to be announced Thursday, caps two years of frequently bitter battles between Cabinet officers and between top White House aides over who would control programs in these areas. Moinr lnKKiiinff n???\n?\p 1 1 1 mujui lUULrjuig glUU}? ailU tUllglC&aiUIICll lCdUtl!) joined the fray to see that their close ties to existing agencies were not disrupted. They may continue the fight when Carter's plans go to Congress for approval, but initial congressional reaction praised the President for dropping more extensive reorganization plans. mr *s i i I 1 mm I mm Woomer transferred CONWAY ? A man charged with four counts of murder in connection with a three-county crime SDree last week has been moved from the Horry County jail to a state Department of Corrections hospital in Columbia. Horry County officials said Wednesday they transferred Ronald R. Woomer for security reasons and so he could undergo psychiatric testing at the state prison hospital. Authorities, who earlier declined to say where Woomer was being held, confirmed that he had been 4 ~ 1_ 4? 11 I !i- 1 m 1 - umt-ii iu me nuspiiai mesaay. Hike 'partial victory' Consumer representatives who opposed Southern Bell Telephone Co.'s request for a 32 percent increase in its South Carolina rates have claimed a partial viciury. The state Public Service Commission, PSC, late Wednesday granted just over half what the phone company asked for last Aug. 1. And since about two-thirds of that 32 percent increase had been in effect under bond since last Aug. 31, what technically was a rate increase may actually mean lower bills next month. i ne new raies went into effect Thursday morning for the 1.4 million South Carolina customers of the American Telephone and Telegraph subsidiary. Riley: leave to states Gov. Richard W. Riley says if mandatory energy vauun measures are pui inio eilect by the Carter administration, he hopes states will be allowed to decide the details. "My favorite approach is for the federal government to say there will be a 3-4 percent cutback and leave it to the states" to establish their own conservation procedures, Riley said. He returned to South Carolina Wednesday after attending the National Governors Conference. Committee oraised r Gove. Richard W. Riley praised the House Judiciary Committee Thursday for its quick handling of a bill providing for merit selection of the Public Service Commission. The governor made his remark to Rep. Robert McFadden, D-York, chairman of the committee, at a meeting of the Legislative Liaison Committee today. "I think your action was not only responsive but was responsible," Riley told McFadden. "I was real proud I of the product that came out of the committee." MB V'flj K:' ' 1 ' mH| W KfJPS:"- ? W*#* :Z*m ^mLM^d ittu r M