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...Year dawned, Mexico was bracing itself for a painful reality. Jan. 1 marked the start of the Pact for Economic Stabilization and Growth, the latest package of wage and price controls intended to help keep Mexico's inflation rate below 20%. But it will probably pinch workers, whose real earnings have fallen steadily since 1982, and add further stress to an economy already staggering under more than $100 billion in foreign debt...

Author: /time Magazine | Title: Latin America Sounding the Alarm: Debt-Threatened Democracies | 1/9/1989 | See Source »

...right. Both parties agreed to strict limits on the steps Israel would take toward peace. In a nine-page coalition contract, Likud and Labor flatly rejected recent proposals in P.L.O. chairman Yasser Arafat's peace campaign, saying the Israeli government "will not negotiate with the P.L.O." Instead, the pact reiterated Likud's long-standing call for direct talks with Israel's Arab neighbors, such as Jordan, and adopted Labor's offer to include non- P.L.O. Palestinians who live in the occupied territories. "We must do everything to say to America, to the Soviet Union, to Europe, to the Arabs, that...

Author: /time Magazine | Title: Middle East Saying No to Arafat | 1/2/1989 | See Source »

While the Warsaw Pact would maintain a solid numerical advantage in combat planes (8,250 vs. 3,977 for NATO), the West's fighters and assault aircraft are considered better at providing support for ground troops. The Soviet pullback of roughly 10% of the Warsaw Pact's European-theater aircraft, while not large, would signal a shift toward a defensive stance. The cut in artillery would be a hefty 20% slash in existing Warsaw Pact firepower along the central front. But the total cut is less significant; the Soviet bloc could still field some 34,900 artillery pieces, mortars...

Author: /time Magazine | Title: Crunching Gorbachev's Numbers | 12/19/1988 | See Source »

...avoid the "bean-counting" disputes over troop numbers that have stalled conventional cuts for years, the NATO ministers agreed to seek more verifiable limits on the firepower of both sides. In tanks, for example, they proposed a cap of 20,000, which would require a Warsaw Pact drawdown of 31,500 and a NATO retirement of only 2,000. Within these totals, NATO asked for sublimits for each nation; the Soviets could retain no more than 12,000 tanks of the 37,000 they now deploy in the region...

Author: /time Magazine | Title: Crunching Gorbachev's Numbers | 12/19/1988 | See Source »

CAPTION: NATO vs. WARSAW PACT IN THE CENTRAL FRONT

Author: /time Magazine | Title: Crunching Gorbachev's Numbers | 12/19/1988 | See Source »

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