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12,000 Expected to Apply for 100 Minnesota Jobs DULUTH, Minn. (AP) - Up to 12,000 people are expected to apply for 100 entry-level jobs at a new paper mill, a grim reminder of the tough economic times facing northeastern Minnesota's mining industry.

``There's a tremendous number of skilled employees out there'' and the paper mill is giving them some hope, said Bob Nelson, employment service supervisor for the Minnesota Job Service office in Duluth.

``A lot of these people are worried about their future with thei present employers,'' Nelson said. ``These are people who are last or next to last on the seniority list. What they're looking at here is a company with promise.''

Many of the applicants lost their jobs when the bad times began on the Iron Range in 1980 as the demand for steel dropped. Taconite mining plants and manufacturers cut production and some, such as Reserve Mining Co., with plants in Silver Bay and Babbitt, shut down. Others moved out of town.

A positive note for the Range was sounded when officials announced last year that the Lake Superior Paper Industries paper mill would be built in Duluth. Company officials, who already have hired about 100 administrative and technical employees, expect the mill to be operating by the end of the year.

U.S., Common Market Reach Settlement BRUSSELS, Belgium (AP) - The United States and the European Common Market reached an eleventh hour settlement of a grain-sales dispute Thursday, averting a politically embarrassing trade war, officials said.

The accord was reached less than 24 hours before punitive U.S. import duties on a variety of European products were to take effect. The European Economic Community, as the Common Market also is known, had pledged to answer the American retaliation by slapping new charges on some U.S. products.

Representatives of the 12 EEC governments met in Brussels to hear details of the agreement and decide whether to formally approve it. Sources, speaking on condition of anonymity, said that while some members were not happy with the deal, final approval was likely.

However, trade trouble loomed on another front Thursday. Sources in Washington said the Reagan administration is considering retaliatory action to protest European commercial aircraft subsidies. Officials, who spoke only on the condition of anonymity, said the target is Airbus Industries, an aircraft consortium in which Britain, France, West Germany and Spain participate.

Farmers Flood Insurance Extension Clears Senate Committee WASHINGTON (AP) - A one-month extension of eligibility for $400 million in flood insurance for wheat farmers cleared the Senate Agriculture Committee on Thursday with lawmakers urging early floor action.

The measure, which would aid those blocked from planting as well as those who were prevented from harvesting, was approved without opposition. It would move the sign-up deadline from Jan. 31 to Feb. 28.

Reagan Seeks Federal Pay Raise WASHINGTON (AP) - President Reagan is asking Congress to divert $258 million from other programs to pay for a 3 percent pay raise that all federal workers received earlier this month.

The funds would come from 25 different accounts, including mass transit, food programs and occupational safety programs, said a spokesman for the Office of Management and Budget. The spokesman, Edwin Dale, said that the administration considers these programs no longer necessary.

The package of fund transfers, called deferrals, was sent to Congress on Wednesday. Congress voted te pay increase last year but did not provide funds to pay for it.

Dale said that under the Gramm-Rudman deficit-reduction law, new programs cannot be paid for unless accompanying reductions are made in other accounts. However, Congress has the option of taking the presidential recommendations or finding other ways to finance the pay raise. …