Party hails Kohl in spite of cabinet rift

THE GERMAN Chancellor, Dr Helmut Kohl, was re elected chairman of the ruling Christian Democrats for the 12th time yesterday, a week before he becomes Germany's longest serving postwar chancellor,

Dr Kohl received an enthusiastic welcome from more than 1,000 delegates at the party's annual conference in Hanover despite bitter tensions within his centre right coalition,

He expressed support for his Finance Minister, Mr Theo Waigel, in his efforts to cut spending so that Germany can qualify for the EU's single currency. He avoided taking sides in a cabinet dispute between Mr Waigel's Christian Social Union (CSU) and the Liberal Free Democrats over tax cuts. The government came close to collapse last week when the Liberals blocked a higher tax on petrol proposed by Mr Waigel. The Liberals who campaign as the party of low taxation, reluctantly agreed to delay a reduction in the unpopular solidarity tax paid by western Germans to help to develop the economy in the east.

The CSU prime minister of Bavaria, Mr Edmund Stoiber described the Liberals as the party of the better off and said they lacked understanding for people with financial difficulties. The Liberals general secretary countered by accusing the CSU of being "trouble makers",

Dr Kohl yesterday backed away from the goal he set earlier this year to cut Germany's four million unemployment figure in half by the year 2000, Admitting, that the goal was extremely ambitious, he said he would be happy to cut the unemployed by two thirds of the figure stated,

He accused the opposition Social Democrats of endangering the country's welfare by attempting to block spending cuts. But the Social Democrat leader, Mr Oskar Lafontaine, insisted that Dr Kohl was responsible for Germany's economic troubles, accusing the government of breaking its word. He offered to co operate with the government if it was willing, to ease the tax burden on lower income groups.

Although Dr Kohl has yet to confirm that he will stand for office again in 1998, most observers expect him to try for a fifth term. If he were to complete an other four year term he could surpass Otto von Bismarck's 19 year record as, the longest serving chancellor in German history.