Word: slowdown
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What kinds of specific offers might the U.S. make for openers? Shultz could agree to a slowdown in the deployment of cruise missiles or a moratorium on testing antisatellite devices. The hard-liners in Washington, unwilling to forgo the U.S. buildup in either area, would merely suggest that the Soviets send monitors to watch U.S. underground nuclear tests and that an American counterpart go to the U.S.S.R...
...rumors reflected the frustration of budgetmakers who have been handed an almost impossible assignment. Briefly put, a sharper than expected slowdown in the U.S. economy has made the task of reducing federal deficits more urgent than ever. Nonetheless, for reasons of ideology, politics or both, President Reagan at least for the moment has ruled out all the most obvious methods of stemming the red ink, and the economic slowdown has narrowed the only remaining escape hatch...
...Asian economists said that a sharp U.S. slowdown would be damaging to their nations but not devastating. To some extent, the Pacific economies can make up for a fall-off in exports by boosting production for domestic consumption. Said Edward Chen, director of the Center of Asian Studies at the University of Hong Kong: "When the U.S. does well, we do extremely well. But when it does not, we are still all right...
After managing the slowdown so successfully, the government now feels it has the latitude to increase spending next year by 10%. Board Member Suh Sang Mok, vice president of the Korea Development Institute, predicted that growth will hum along at a 7.3% pace in 1985 and that prices will rise only 2.5%. Said he: "I think our very low inflation rate is becoming more or less permanent...
Surging exports of such consumer products as clothing, toys and watches have helped Hong Kong hit an 8.5% growth rate this year. Chen expects that pace to dip slightly to 6.5% in 1985, largely because of a slowdown in shipments to the U.S. Investment in new industrial plants and machinery is up 17% this year, but that has been offset by a continuing slump in commercial and residential construction. In the late 1970s and early 1980s, construction firms went on a speculative spree, and many of the luxury apartment and office buildings they put up are still not fully occupied...