March 31, 1984

The Speaker of the House asked the Foreign Relations Committee today to investigate whether the Administration had violated the War Powers Act by not reporting to Congress on recent activities by American military personnel in El Salvador. Speaker Thomas P. O'Neill Jr. made his request in the aftermath of reports that American pilots have been flying reconnaissance missions in support of Salvadoran troops. In addition, Senator Jim Sasser, a Tennessee Democrat, told the Senate Thursday that American military advisers based in the region have been fired upon three times in recent months.

The United States announced today that it was imposing stringent restrictions on the sale to Iraq of five chemical compounds that can be used in making the poison gases Iraq has been accused of using in its war with Iran. At the same time, the State Department confirmed a report in The New York Times today that quoted American intelligence officials as saying they had evidence that Iraq had used nerve gas against Iran. Earlier the United States said it was convinced that Iraq had also used mustard gas, a blistering agent. John Hughes, the State Department spokesman, said the curbs on the export of the chemicals also applied to Iran, but there have been no allegations that Iran has used chemical weapons in the war, which began in September 1980.

Government negotiators and Argentina's 11-bank commercial advisory group tonight reached an 11th-hour agreement on a $500 million package to help Argentina make long-overdue interest payments to the banks. The unusual agreement, announced by the Treasury Department at 11:15 P.M., will provide Argentina with short-term financing from three countries, Mexico, Brazil and Venezuela, which have their own serious debt problems. Under the terms of the financing package, Mexico and Venezuela will each contribute $100 million, while Brazil and Colombia will each contribute $50 million. In addition, the 11 commercial banks, which are Argentina's major creditors and make up the international advisory committee, will contribute a total of $100 million.

People removed from the welfare rolls in 1981 have generally increased their work efforts and their earnings but have not earned enough to make up for the loss of welfare and food stamp benefits, the General Accounting Office said today. Thus, it said, many of the people removed from the welfare rolls were living in poverty. The study by the accounting office, an investigative arm of Congress, was the most systematic and detailed analysis of how welfare recipients were affected by the Omnibus Budget Reconciliation Act of 1981. That law was the vehicle for most of President Reagan's social policy initiatives. The study, which was done at the request of the House Ways and Means Committee, said the law had achieved two of its main purposes: to save money and to reduce welfare caseloads. It also confirmed the Administration's contention that people would not quit jobs to regain eligibility for welfare.

President Reagan today formally ended the United States participation in the international force in Lebanon. The President's action freed United States marines aboard Sixth Fleet ships off Lebanon for duties elsewhere in the Mediterranean. Administration officials said the number of United States warships off Lebanon had already been reduced from about 25 to 15 in recent days. The officials indicated that the battleship New Jersey and the aircraft carrier John F. Kennedy were no longer close to Lebanon.