Greenspan Tempers

Optimistic OutlookThe outlook for real gross national product growth and moderate inflation look reasonably encouraging, said Alan Greenspan, chairman of the Federal Reserve.

But he warned that the nation should not be complacent about its economic future, particularly the trade and budget deficits.

Mr. Greenspan, in a speech to the governors and members of the Fed in San Francisco, said current economic indicators are mixed. Although fourth quarter business inventories pointed to slower growth, moderate interest rates and exchange rates, new business orders, consumer confidence and export prospects were all encouraging, he said.

On balance, he said, prospects look good for maintaining current expansion through another year.

South Korea Charged

With Reneging on Pact

WASHINGTON - South Korea is reneging on an August 1986 pact with the United States to protect intellectual property, including drug patents, according to the U.S. Pharmaceutical Manufacturers Association.

The association's Thursday letter to U.S. Trade Representative Clayton Yeutter said, For the past year, the Korean government has sought to renegotiate the agreement it signed, to inhibit the sale of U.S. patented pharmaceutical products in that country.

A major bone of contention is retroactive coverage. If a drug was marketed in neither country before July 1987 but was patented later than 1980, the agreement gives it patent protection in South Korea.

U.S. companies tallied about 1,000 such potential products. The U.S. government forwarded the list to South Korea. According to the trade association, South Korea recently rejected more than half the items, recognizing only 225 of the potential pharmaceutical products on the list as falling within the terms of the agreement.

AFL: Public Backs

Strong Trade Measures

WASHINGTON - The AFL-CIO Thursday strongly refuted the prediction of many analysts that Rep. Richard Gephardt's poor showing in Super Tuesday primaries will shift attention from the nation's staggering trade deficits.

In a statement, the nation's largest labor organization, said the public still supports strong trade legislation designed to break down foreign import


The primaries have brought trade to the forefront of public discussion. But the trade issue is not the exclusive domain of any one candidate nor was Super Tuesday a referendum on the issue, the statement said.

While the AFL-CIO has backed Rep. Gephardt's amendment in the trade bill aimed at retaliating against nations with unfair practices, the union said it believes the Senate's unfair practices provision has considerable merit.

Gephardt Amendment

Compromise Expected

WASHINGTON - The House and Senate will reach a compromise on the Gephardt amendment to the congressional trade bill, House Speaker James Wright, D- Texas, told reporters Thursday.

The amendment passed by the House requires retaliation against countries with excessive surpluses with the United States based on unfair trade practices, if negotiations to reduce the surpluses are unsuccessful.

The House amendment was originally sponsored by Rep. Richard Gephardt, D-Mo., whose presidential campaign faltered this week.