MONDAY, FEBRUARY 10, 1974

L

43

Truckers Return

ence reported earlier in the
week.

In his radio address yester-
day, President Nixon made sev-
ral references to violence in
the strike, describing its perpe-
rators as "a handful of des-
eradoes" whose actions would
not be tolerated. He said that,
s of yesterday, "our highways
are generally free from vio-
ence."

Complaints Studied

Meanwhile, the Justice De-
partment said 379 complaints
of Federal law violations were
under investigation in connec-
tion with the truckers' strike,
including 91 charges of civil
rights violations.

The impact of the strike has
brought widespread job layoffs
and spot shortages of food and
fuel. Food shortages thus far
have been mainly at the distri-
bution level and shoppers have
been faced with bare shelves,
but a continuation of the strike
would bring consumer hardships
by the middle of this week.

An estimated total of 100,000
workers have been laid off as a

mini steps

# A New Canal For Kissinger

NYTimes

3/19/74

That other great international water-way, the Panama Canal, has briefly diverted Secretary of State Kissinger from his preoccupation with the Suez Canal—long enough for him to visit the Central American republic and sign a declaration of principles under which the United States and Panama will negotiate a new treaty.

There wasn't an American flag in sight as Mr. Kissinger and the Panamanian head of government, Brig. Gen. Omar Torrijos Herrera, drove in a motorcade to the signing ceremony. But there were plenty of hand-painted banners on the theme: "Sovereignty Yes, Colonialism No!" In an address, Mr. Kissinger dwelt at length on the importance of the ceremony "as an example of what we mean by the spirit of community in the Western hemisphere."

Since 1903, the United States has governed the 10-mile-wide zone through which the canal runs 51 miles to connect the Caribbean and Pacific Ocean. But particularly since anti-American riots 10 years ago, pressure has been building for a change. Last week's agreement revealed considerable American concessions. The United States will gradually abandon the permanent sovereignty assigned to it in the 1903 treaty; annual payments to Panama will increase from the present $2-million to at least $25-million; Panamanians will participate for the first time in defense of the canal.

There are still areas of disagreement. One is the future of the United States Army's counterinsurgency training program in Panama. The Nixon Administration has expanded it; Panama wants it to end. There is also disagreement over how quickly United States sovereignty will end and over how much Washington must pay for the rights it still holds. Panama wants more than $25-million a year.

Though in the days of intercontinental missiles, the canal has lost much of the strategic importance it held in the days of Teddy Roosevelt's Great White Fleet, it is increasingly important commercially for not only the United States but also for Japan, which carries on a growing trade with Brazil, and for Britain, Australia and New Zealand. In the fiscal year ending June 1972, for example, of the 13,766 toll-paying ships going through the canal, 1,533 were Japanese, 1,472 were British and 1,165 American.

Pentagon Papers, were extraordinary action." ahead of time about the trist's office and would

**Item:** That the President formation about theburglary of the b
39 days before he all
where Dr. Ellsberg was
May, the charges again

Response: In his Au
that, since no informa
since it was critical t
the Plumbers, he deci
dethe burglary and to
investigating the case
said, he released the

Item: That the Pre
Ellsberg trial. Between
burglary of the psych
mation was given to
President's knowledge
if he would be interes

Response: Mr. Nixon
that Judge Byrne had
because he was the "
never discussed the E

Item: That the Pres
intelligence plan draft
that included authoriz
covers and other illeg
rescinded five days la
plan.

Response: The Pres
bombings on college
among various Gover
approve the plan.

Item: That the Pres
of more than a doze

Response: The taps
May, "to tighten the
The wiretaps were "I
parently referring to
the Supreme Court de
warrants unconstitutional

Item: That the Pre
follow his brother an
ently in an effort to
with the Howard Hu
embarrassment to th

Response: The Pres
of the surveillance an
persons, particularly
him to use "improp

Personal Fina

Item: That the Pres
state taxes. Mr. Nixon
nominal Federal incor
tion for the donation
tional Archives and be
on the sale of Califor
conceded that the de
dated to show that the
was changed to profit
was elected President,
ment and bought the l

016A HFR 2-17

HENRY 2-10

KT

- - - WORLD HORIZONS FOR RELEASE SUNDAY FEB. 17 OR THEREAFTER - - -

(800)

KISSINGER GETS HIGH MARKS FROM WORLD'S STATESMEN

BY RICHARD C. LONGWORTH

BRUSSELS (UPI)--HENRY A. KISSINGER GETS GENERALLY HIGH MARKS FROM THE WORLD STATESMEN WHO DEAL WITH HIM.

"FLEXIBLE... A DREAMER ... REMARKABLE... TIRELESS... A SUCCESS ADDICT," WERE SOME OF THE COMMENTS FROM ADMIRING GOVERNMENT OFFICIALS IN EUROPE AND THE MIDDLE EAST WHO WERE ASKED TO SIZE UP THE U.S. SECRETARY OF STATE AND HIS ROLE IN HISTORY.

"WHEN KISSINGER STICKS HIS FINGER INTO SOMETHING, HE USUALLY SUCCEEDS," EGYPTIAN FOREIGN MINISTER ISMAIL FAHMI SAID.

KISSINGER ALSO HAS HIS DETRACTORS.

FRENCH PRESIDENT GEORGES POMPIDOU, WHOSE POLICY FREQUENTLY INFURIATES THE STATE DEPARTMENT, HAS CALLED KISSINGER "A MAGICIAN BUT A SHORT-SIGHTED ONE." AND A EUROPEAN DIPLOMAT, PAYING A TWO-EDGED TRIBUTE TO KISSINGER'S BRAINS AND ARROGANCE, COMMENTED THAT "KISSINGER'S FAVORITE NEGOTIATING PARTNER WOULD BE KISSINGER HIMSELF, BECAUSE BOTH OF THEM WOULD BE ON THE SAME WAVE-LENGTH."

MID EAST PRAISE

IN ADDITION, MANY EUROPEAN STATESMEN ARE DEFENSIVE ABOUT KISSINGER'S ILL-DISGUISED IMPATIENCE WITH EUROPEAN PAROCHIALISM AND CRITICAL OF HIS APPARENT NEGLECT OF EUROPEAN ATTITUDES AND SENSITIVITIES.

IN THE MIDDLE EAST, THE SCENE OF KISSINGER'S LATEST VIRTUOSO DIPLOMATIC PERFORMANCE, BOTH EGYPTIANS AND ISRAELIS WERE EFFUSIVE.

INITIAL EGYPTIAN SKEPTICISM HAS GIVEN WAY TO COMMENTS BY PRESIDENT ANWAR SADAT THAT KISSINGER IS A "FRIEND" AND EVEN A "BROTHER".

BOTH EGYPTIANS AND ISRAELIS SINGLE OUT KISSINGER'S INTEGRITY IN REPRESENTING THEIR POSITIONS DURING HIS CAIRO-TEL AVIV "SHUTTLE DIPLOMACY," AND HIS DILIGENCE IN WORKING OUT DELICATELY BALANCED COMPROMISES.

AN ISRAELI OFFICIAL RECALLED THAT HIS GOVERNMENT REGARDED KISSINGER WARILY AT FIRST, AT LEAST PARTLY OUT OF FEAR THAT "HE MAY LEAN OVER BACKWARDS BECAUSE HE'S JEWISH." IN ADDITION, EARLIER MEETINGS BETWEEN HIM AND PREMIER GOLDA MEIR WENT BADLY.

UNIQUE TALENTS

BUT IN PEACE NEGOTIATIONS, "HE WON OUR CONFIDENCE" THROUGH APPLYING PRESSURE AT EXACTLY THE RIGHT TIME AND THROUGH HIS ABILITY TO CONVEY MESSAGES BACK AND FORTH "WITHOUT ADDING HIS OWN IDEAS."

MRS. MEIR HAS CALLED KISSINGER "A MAN OF UNIQUE TALENTS".

IN EUROPE, KISSINGER'S REVIEWS ARE ALSO POSITIVE, IF A BIT MIXED.

IN HIS NATIVE GERMANY, OFFICIALS GIVE HIM HIGH MARKS FOR HIS ABILITY TO GET ALONG WITH BOTH CONGRESS AND PRESIDENT NIXON, HIS ESCAPE FROM THE SNARES OF WATERGATE AND HIS ABILITY "TO ACCEPT THE VALIDITY OF ANOTHER MAN'S ARGUMENT."

"HE IS AS GOOD AT LISTENING AS AT TALKING," SAID AN OFFICIAL WHO HAS SAT IN ON SEVERAL SESSIONS WITH KISSINGER.

YEAR OF EUROPE

AROUND EUROPEAN COMMON MARKET CIRCLES, HOWEVER, KISSINGER'S ATTEMPT TO PROMOTE A "YEAR OF EUROPE" IN 1973 HAS BEEN WRITTEN OFF AS A SO-SO IDEA BADLY HANDLED.

ONE OFFICIAL SAID HE DOUBTED KISSINGER UNDERSTOOD THE STILL INCOMPLETE NATURE OF EUROPEAN UNIFICATION. ANOTHER SAID KISSINGER'S "YEAR OF EUROPE" IDEA "CAUGHT US ALL BY SURPRISE. NO ONE KNEW WHAT HE MEANT WHEN HE SUGGESTED A NEW ATLANTIC CHARTER. AND SO WE ALL REACTED BADLY."

(MORE)

UPI 02-10 05:46 AED

017A HFR 2-17

HENRY 2-10

1ST ADD HENRY BRUSSELS X X X REACTED BADLY."

FRANCE--AND PARTICULARLY ITS FOREIGN MINISTER, MICHEL JOBERT--HAS ACCUSED THE UNITED STATES OF FOLDING ITS NUCLEAR UMBRELLA OVER EUROPE BY SIGNING A NO-NUCLEAR-WAR PACT WITH RUSSIA. THIS LED TO A SHOUTING MATCH BETWEEN JOBERT AND KISSINGER HERE IN DECEMBER. BUT FOUR DAYS LATER, JOBERT WAS LAVISH IN HIS PRAISE FOR THE AMERICAN.

"HE IS FLEXIBLE, CERTAINLY PASSIONATELY INVOLVED, CERTAINLY CALCULATING, VERY ORGANIZED, SOMETIMES ALSO DETACHED, MOST DEEPLY AN IDEALIST, A DREAMER," JOBERT TOLD A RADIO INTERVIEWER. "HE HAS INCONTESTABLY A GOOD HEART... THERE IS A HAPPY IMPROVISATION IN HIS DAILY ACTIONS."

## DIFFERENT ANIMAL

AT AN EARLY STAGE IN KISSINGER'S CAREER, ONE BRITISH DIPLOMAT REMARKED THAT "I DON'T KNOW WHAT TO MAKE OF HIM. WE COULD DEAL WITH (FORMER SECRETARY OF STATE) WILLIAM ROGERS. BUT THIS IS A DIFFERENT ANIMAL. NOT QUITE OUR CUP OF TEA."

THAT HAS CHANGED NOW. IN HIS COMPARATIVELY FEW MEETINGS WITH BRITISH LEADERS, KISSINGER HAS IMPRESSED THEM WITH HIS COMMAND OF HIS SUBJECT, HIS INTELLECT, HIS FAIRNESS AND HIS ABILITY--"A VERY, EVEN EXCEPTIONALLY ABLE MAN WITH OUTSTANDING NEGOTIATING ABILITIES AND DETERMINATION," IN THE WORDS OF ONE BRITON WHO HAS DEALT WITH HIM.

ONE EUROPEAN WHO HAD EXTENSIVE DEALINGS WITH KISSINGER RECENTLY IS K.B. ANDERSEN, FORMER DANISH FOREIGN MINISTER WHO REPRESENTED THE COMMON MARKET IN TALKS WITH THE UNITED STATES IN THE LAST HALF OF 1973.

ANDERSEN SAID KISSINGER HAS "A QUITE UNUSUAL ABILITY TO TURN A MILITARY CONFLICT INTO A POLITICAL ONE. HIS POLITICAL INGENUITY AND ABILITY TO FIND NEW COMBINATIONS IS REMARKABLE."

(ADVANCE - WORLD HORIZONS FOR 2-17 RELEASE)

UPI 02-10 06:51 AED

SMITH HEMPSTONE

STAB-NEWS

2-8-74

# Oil Conference Crucial

The two-day meeting of the world's major oil-consuming nations, scheduled to begin here Monday, will be crucial to the future economic well-being not only of the United States but of the world. And the prospects for success are not bright.

Secretary of State Henry Kissinger, who, along with Treasury Secretary George Shultz and energy czar William Simon, will head the U.S. delegation, will be trying to slam the oil barn-door shut well after the horse has run away: France, Britain, West Germany and Japan all recently have signed long-range barter deals with the Arab producers in an effort to secure an adequate slice of the shrinking petroleum pie.

That the United States has not done so is less a tribute to our international virtue than a recognition of two facts: We are still subject to the Arab embargo and the richness of our domestic deposits makes us less susceptible to the oil sheikhdown.

Nevertheless, a failure of the Washington conference could trigger a series of protectionist trade wars and monetary conflicts from which the United States could not escape unscathed.

In their public utterances, both President Nixon and Kissinger continually emphasize the Arab oil embargo against the United States, triggered by the October war between Israel and the Arab states. Yet as they and the majority of the world's economists realize, the embargo, although freighted with emotional content, is not the real problem. The real problem is price.

Arab oil, which costs about 15 cents per barrel to produce, is selling for more than $10 per barrel, more than double its price a few months ago. Europe and Japan, which have no sizable petroleum reserves of their own, have concluded multi-billion-dollar deals to barter their manufactured goods, arms and technology to the Arabs in return for assured supplies of oil. In an effort to give themselves an additional competitive advantage, the Japanese have devalued the yen and the French have allowed the franc to float freely, thus destroying what remained of Western European monetary unity.

The American pitch is to try to get the Western European nations, plus Canada and Japan, to look beyond the present crisis to the day, perhaps 40 years from now, when fossil fuels will no longer be the principal source of energy. The United States is saying: Practice restraint and cooperation now and in the future we will share with you our technology on nuclear and solar energy.

The concept is neither ignoble nor unattractive. But unfortunately it does not meet the immediate needs of nations that are teetering on the brink of political and economic chaos.

The energy crisis, which was dramatized by but not rooted in the Arab-Israeli war, has arisen at a time when the nations of the West, almost without exception, are faced with serious internal political problems.

The United States, which cannot catch cold without giving the rest of the Western Alliance pneumonia, is scarred by the Vietnam

war, weakened by Watergate and unsure of the variety of sociopolitical assumptions that once were not open to question. Britain, on a three-day workweek and headed for a national election Feb. 28 even though there is no viable alternative to the uninspiring Tory government, cannot see beyond tomorrow.

West Germany, its dreams of reunification further away than ever from realization and its once-vaunted economy sputtering, has shed its Nazi past but has yet to define its future. France, De Gaulle's la gloire a forgotten posture, finds itself cast in the role of the cynical spoiler who can hurt others but cannot help himself. Japan, its economic miracle eviscerated by the Arab oil policy and shaken by the shoku of the American opening toward Communist China, knows not which way to turn.

In such an atmosphere, the temptation has been for each country to make the best deal possible for itself, letting tomorrow — when none of the present governments expects to be in power — take care of itself.

Kissinger is right to try to get the nations attending the Washington conference — including our own — to look beyond the immediate problem to the task of mutual cooperation that lies ahead. But, given the countervailing forces at work and the politically uncertain tenor of the world, the probability of much of consequence emerging from the meeting is slight.

The scramble for access to the world's economic resources is on, and it is very much a matter of "the devil take the hindmost," which he most certainly will.

Star-News Staff Writer

servation; development of
alternative energy sources;
research and develop-
ment; emergency sharing
of supplies; and financial
management."

Some underdeveloped
countries "simply do not
have the funds to pay (for
oil at prevailing prices), or
any realistic prospect of
repaying loans in the large
volume that would be re-
quired," Shultz said.

There is "no way that
aspect of the problem can
be reasonably handled"
unless the oil exporters step
up grants and other forms
of aid to the poor countries,
he said.

At the same time, he said,
the industrialized countries
must not use the oil situa-
tion as an "excuse" to re-
duce foreign aid.

THE HOUSE'S recent
rejection of legislation au-
thorizing the U.S. contribu-
tion to the International
Development Association
could, unless reversed, se-
verely damage "the entire
fabric of the cooperative
world order that we pro-
mote," he said.

International negotiations
to reform the monetary and
trade systems must be
pushed to maintain econom-
ic stability, Shultz said,
warning against "tempta-
tions for individual coun-
tries to seek their economic
salvation at the expense of
their trading partners."

Such measures "could
leave us all worse off,
caught in a maze of con-
trols, restrictions and dislo-
cations that impair growth
and stability," he said.

He called for emphasis in
trade negotiations on rules
to deal with restrictions on
supplies of commodities and
to govern the sort of barter
deals some countries are
making to obtain oil.

SKYLAB

Continued from Page A-1

A third attempt to move a
package of emergency ener-
gy powers through the Sen-
ate has run out of gas in the
face of a filibuster led by
Republicans and oil state
Democrats.

hour harangue yesterday on
the damage that a price roll-
back provision included,
Senate Majority Leader
Mike Mansfield, D-Mont.,
said that the debate had
delayed a Senate vote on
the Emergency Energy Act.

ALLOCATIONS

Continued from Page A-1

However, yesterday the
Federal Energy Office
deputy administrator, John
C. Sawhill, said the Nixon
administration has directed
the nation's refineries to
shift their production to
making more gasoline. Saw-
hill said no specific pro-
portions of extra gaso-
line were ordered, but the
FEO might later impose
such a requirement if
necessary.

FEO ANNOUNCED
Wednesday that the Wash-
ington area's estimated gas
supplies for this month were
far below expectations. The
District now is expected to
receive only 76.7 percent of
the total gas supplies it was
authorized to receive for
February, compared with
the national average of 83.3
percent.

FEO said Virginia would
receive 77.5 percent of its
authorized allocation, while
Maryland is getting 77.3
percent.

Despite FEO's insistence
yesterday that the oil com-
panies were making a good-
faith effort to distribute
supplies equitably, govern-
ment officials here ex-
pressed disbelief.

D.C. Del. Walter E.
Fauntroy accused the oil
companies of purposely
short-changing the Wash-
ington area in order to pres-
sure Congress into allowing
higher petroleum prices
everywhere. "I'm appalled
that oil company profits are
at record highs," Fauntroy
said. "It's high time for
Congress to move to bring
them under control."

Godwin said bluntly:
"We're going to look into
seeing that Virginia gets its
rightful share . . . I don't
know why we should be in a
less favorable position than
some of the other states."

Godwin told a press con-
ference in Richmond yester-
day that Northern Virginia
would probably present an
extraordinary problem for
the state during the gas cri-
sis, while rural areas can
adapt more easily.

"I'd be belaboring the
obvious to say that
(rationing) hasn't entered
our minds," he added.

Rep. Joel T.Broyhill, R-
Va., emerging from a meet-
ing with Northern Virginia
gas dealers yesterday, said
he plans to bring the fact
that Virginia, Maryland and
the District have been
short-changed on their Feb-
ruary allocations to the at-
tention of the House Com-
mittee that is considering
taxing windfall profits by
the gas companies.

Sen. Charles McC. Ma-
thias, R-Md., said the distri-
bution problem was predict-
able but unacceptable. "It's
apparent the FEO will have
to step in," he said.

THE FEO statistics on
estimated gas distribution
marked the first month gas
companies were required to
report their deliveries to the
federal government on a
state-by-state basis.

Only two states, Maine
and Kentucky, fared worse
than the District in Febru-
ary fuel deliveries, while
some states received more
than 90 percent of their au-
thorized allocations.

CHARLES BARTLETT

Jackson Breakthrough?

The Soviets are described by knowing sources as ready to make the concessions on Jewish emigration that will placate Sen. Henry Jackson, D.-Wash., and facilitate the enactment of a Nixon trade bill without restrictions on grants of credits to the Communists.

The deal with Jackson, who has led the effort to liberalize Soviet emigration policies, has not been struck. But Soviet Foreign Minister Andrei Gromyko reportedly conveyed his government's decision to seek an agreement with Jackson when he visited the White House last Monday. There is time to work out the compromise because Senate hearings on the trade bill will not begin until March 4.

This is one of two fresh indications of the Kremlin's readiness to be flexible in pursuit of closer commercial ties with the United States. The Soviets are also described as ready to negotiate the West's demands in the European Security Conference for more freedom of movement and communications in areas under Communist rule. This is an abrupt reversal of Moscow's past insistence that these demands were an intrusion upon national sovereignty.

The decision too bow to Jackson is plainly a painful one for the Soviets. It will affirm his contention that they are hungry enough for economic assistance to tolerate external prodding for internal reforms. It will confirm the soundness of Jackson's willingness to risk detente in pursuit of

liberalized emigration. It will expand Jackson's stature as a statesman and increase his chances for the White House.

Soviet Ambassador Anatoly Dobrynin, like Henry Kissinger and others in the White House, was tardy in recognizing the strength of the sentiment for which Jackson became the spokesman. The Jackson-Vanik amendment, curtailing credits to nations that restrict emigration, left the Soviet government with limited options after it swept through the House. Jackson has the votes to push it through the Senate, so they must deal with him or accept an indefinite freeze of their commercial aspirations from detente.

Even so, their willingness to let the issue be transformed into a major victory for Jackson will surprise many, including this reporter, who believed that national pride would inhibit any more concessions on Jewish emigration. This has been the view one of the prominent Moscow dissidents, Roy Medvedev, who has been arguing that direct western pressures will not produce democratization within the Soviet Union because the full spectrum of the hierarchy, including its liberal elements, will unite instinctively against the intrusion of alien influences.

To Medvedev, as to Kissinger and many others, the key objective has been to get on with detente so that its warmth might begin to soften the rigid framework of the Soviet system. "In the longer perspective,"

Medvedev said last November, "detente will promote democracy." in his approach to east-west diplomacy, Kissinger has consistently argued that concern with the moral shortcomings of the Soviet system should not be allowed to intrude on the opportunities for political progress.

If the Soviets do make a deal with Jackson, it will be argued that the United States should lean harder in behalf of other groups of dissidents. But the potential for dissent within the Soviet Union is so vast that this role could become a total preoccupation, precluding progress toward better relations between the governments. This role can also create an illusion that will endanger the dissidents because no U.S. action can protect them from being at the ultimate mercy of their own leaders.

The real lesson of this experience is a need to COMPANY the diplomacy of detente with more thought and intellectual examination. One of the nation's most highly respected intelligence officers, Ray Cline, had been arguing, in government and in his new post at the Georgetown Center for Strategic Studies, that Kissinger's diplomatic initiatives ought to be more fully staffed so as to secure clearer evaluations of the opportunities and risks.

Certainly in this instance Jackson perceived an opportunity which Kissinger overlooked. The senator will deserve much more credit if his deal goes through.

pay its computer
competitor, Telex Corp.

In papers filed with the 10th U.S. Circuit Court of Appeals on Friday, IBM said the lower-court judge's decision was so unprecedented that it should be shown out without even considering the huge damage judgement.

U.S. District Court Judge A. Sherman Christensen ruled in Tulsa, Okla., that IBM must pay Telex for monopolistic practices in the computer business.

"THE ENTRY, growth, product improvement, and price reduction described by the district court as characteristics of this industry are exactly what competition is supposed to produce," IBM said in its appeal.

Christensen on Sept. 17, 1973, found IBM guilty of monopolistic practices, in violation of the Sherman Antitrust Act.

Telex originally had sued IBM for $1.2 billion, claiming that IBM had priced computer accessory equipment in such a way as to freeze out competition. IBM is world's largest manufacturer of computers and so-called "software"-equipment to use with computers.

Christensen originally ordered IBM to pay $352.5 million, but later cut the award by $93 million, saying he had made "substantial error" in computing the damages.

THE DISTRICT COURT ruled that IBM had used "predatory" pricing policies in an attempt to freeze out its competition.

"The very meaning of competition is that one seller hopes and intends that by improving its price or its

part of the business they 'would have otherwise made-unless the competitors in turn respond with lower prices or better products,'" IBM said.

"Why is this process good?" the appeal continued. "Why does our system urge competitors to compete? Because through competitive battles resulting in innovation and price reductions, the consumer benefits. This is why the antitrust laws exist."

6¼ by next winter.

"Our studies indicate that when inflation goes to unexpectedly high levels, there is a delayed response to the rate of inflation," the economists said.

"For a while in 1974, therefore, labor demands are going to be dominated more by that delayed response to the unexpectedly high inflation of last year than by rising unemployment this year," they added.

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INTER REMODELING

Summit Risks

The Soviet-American decision to reaffirm pursuit of détente with a Kissinger visit to Moscow in March — to prepare another Nixon-Brezhnev summit meeting there, presumably in June — comes at a time when the détente itself is in trouble.

"The Soviet Union continues to pursue an aggressive program to develop new military weapons," President Nixon told Congress, proposing a record defense budget and warning of possible renewal of the arms race just as he was arranging for his next Moscow visit with Soviet Foreign Minister Gromyko. The strategic arms limitations talks (SALT II), stalemated for more than a year, presumably will move into a more productive phase when they resume Feb. 19, but prospects for a comprehensive agreement by June appear slim. The mutual force reduction talks in Vienna between NATO and Warsaw Pact countries are no further along.

Prospects also appear dim that Mr. Nixon by June can deliver on his previous summit pledges to grant the Soviet Union most-favored-nation trade treatment, trade credits and opportunities to obtain American capital and technology for large-scale development of Soviet oil, gas and other natural resources. The trade bill is bogged down in Congress by amendments demanding free emigration from the Soviet Union.

Meanwhile, the Berlin agreement of 1971, assuring free access, seems to be fraying at the edges with East Germany resuming intermittent harassment of traffic. As for the Middle East, where the United States and the Soviet Union came close to military confrontation in October, the Administration's hope that Moscow would be helpful in achieving a settlement have yet to be confirmed.

In these circumstances, everything would appear to urge caution in advance of another summit meeting, rather than a firm commitment to go to Moscow on a fixed date. A well-prepared meeting might be able to restore some momentum to the détente policy, a matter that evidently is of some concern as well to Mr. Brezhnev, who has committed his prestige to that policy to obtain American trade and economic cooperation.

With new leadership likely to succeed to power in the aging Soviet Politburo before the end of the decade, it is hardly in the American interest to see Soviet critics of the détente policy make gains at Mr. Brezhnev's expense now. Détents is indeed important, but not at all costs. The chief danger in this respect stems from the November Congressional elections and the White

BALTIMORE SUN 8 FEBRUARY 1974

Marquis Childs

# Who's That on the High Wire? Kissinger, of Course

Washington.

Henry A. Kissinger is like a man crossing Niagara Falls on a high wire. From either bank his enemies are throwing everything from dead cats and rotten apples to old shoes as this lonely figure balanced precariously over the abyss.

Jealousy, resentment, old grudges, just plain hatred— these are some of the motives of those who would like to bring him down. To this must be added a kind of death wish to see the whole Nixon show collapse. His enemies realize as well as his loyal friends that he is almost the only strong point still remaining.

The suspicion is current that the German Mafia, H. R. Haldeman and John D. Ehrlichman, with their allies in the "plumbers" unit, are feeding out the whispered accusations. They themselves have fallen and may be on the way to prison while this alien, this outsider, not only survives but has achieved for his diplomatic triumphs the stature of hero. This is enough to set them intriguing for revenge.

There is nothing new in the thirst for revenge nor in the intrigues. The difference is that the insiders are now on the outside with their desire to get even greater than ever. How much harm they can do, how much they can surface that will seem injurious, is an unknown quantity.

Dr. Kissinger's survival for five years in the Byzantine intrigues of the White House

is in itself a small miracle. The atmosphere was a cross between Kafka and Little Orphan Annie with a pious facade out of J. Walter Thompson and the blessing of Billy Graham. In surviving, Dr. Kissinger's footwork must have been agile. If he ever gets around to writing his memoirs, that should be a fascinating chapter.

The imponderables the secretary of state contemplates as he balances on the high wire are a catalogue of ifs, maybes and buts. If the Syrians can be persuaded to disengage and return their Israeli prisoners, then the Middle East conference at Geneva will at least get off the ground. What happens after the conferees sit down around the table not even the boldest prophet would say. There are plenty of gloomsters predicting total deadlock.

The oil embargo may be lifted, but if this happens what about the doubling and tripling of the price? Dr. Kissinger believes this is a more serious issue than the embargo. Forced to pay these prices, the developing nations will be pushed over the economic brink, possibly triggering a worldwide depression.

The biggest if of all is whether the detente with the Soviet Union will hold, and whether within that framework a SALT II agreement limiting offensive nuclear weapons can be negotiated. So Dr. Kissinger is going to Moscow next month to prepare the way for President Nixon's meeting with the

Soviet Communist party secretary, Leonid I. Brezhnev, in June.

For the long term the outcome turns on Congress and public opinion with increasing evidence of a new isolationism. If the framework of detente falls, a great deal falls with it at a cost that generations still to come may be paying. This is inherent in the threat of a new nuclear arms race. In a respondent moment Dr. Kissinger once remarked that the American people behave as though they had won the grand prize in the international lottery and could do whatever they wanted to.

These are a few of the burdens the high-wire artist carries. He flew to Panama yesterday to give the possible new settlement of the dispute over the Panama Canal a shove and came back that night.

Yes, his detractors say, but he loves power. He has a giant-sized ego that must be constantly massaged. Working for him is like pulling the chariot of a Roman emperor in a triumphal procession.

I say, what of it? This man who has proved such a consummate diplomat deserves some compensation. Certainly he has made errors—errors of judgment, errors of human misunderstanding. But, when that is said, ask one question: Where would we be if it were not for Dr. Kissinger?

MINNESOTA TRIBUNE
AN 1974 (8 FEB)

S. Stake

WASHINGTON STAR-NEWS

7 FEBRUARY 1974 (8)

CROSBY S. NOYES

# The Trouble With Detente

The Soviet leadership is quite right in believing that its policy of detente with the United States and the West is in trouble. It is quite wrong in attributing the trouble to the work of Zionists, American right-wingers and Sen. Henry M. Jackson, D-Wash.

Their problem has nothing to do with conservative elements in American politics, who had no great illusions about detente to start with. It has a good deal more to do with the growing disillusion of American liberals, who have welcomed the rhetoric of detente as the dawn of a new international era of reason, cooperation and good-fellowship.

More and more, this group has come to recognize detente as a one-way proposition, all heading in the direction of Moscow. What the Soviet leaders hope to get are very practical advantages in trade and technology, of which last year's disastrous wheat steal was only a promising beginning.

What they propose to give in return is, in effect, little more than a comfortable feeling of complacency in the West. Relaxation of tension inevitably implies relaxation of effort, including such disagreeable things as defense spending and trying to get along with crotchety allies. For these propositions the Russians have found plenty of takers in the liberal communities of Western Europe and the United States.

of relaxing the ideological struggle. On the contrary, we must be prepared for this struggle to be intensified and become an ever sharper form of the confrontation between the two systems."

The Eastern Europeans, since the advent of detente, can attest that these are not idle words. So can a large number of Soviet Jews and a small number of Soviet intellectuals. What has happened to such people as Aleksandr Solzhenitsyn and Andrei Sakharov probably has done more to awaken American intellectual liberals to the limitations of detente than anything else.

There are, however, other more objective problems that have arisen that cast dark shadows over the proclaimed era of cooperation and negotiation. The unfortunate fact is that all of the major negotiations between the Soviet Union and the West are on dead center and appear headed toward probable failure.

These include the second round of the Strategic Arms Limitation Talks (SALT), the Soviet-sponsored conference on European security and the negotiation on Mutual and Balanced Force Reductions (MBFR) — all of which have been going on for many months. None of them is close to approaching a conclusion and all of them, in one way or another, have added to Western disillusion with detente.

try to limit the momentum of the Russian buildup, rather than to achieve a real reduction in the size of nuclear arsenals.

The prospects for the talks have not been improved by what seems to be a far-reaching revision of American nuclear strategy. The emphasis now is on a counter-force nuclear system — one aimed at Soviet missile sites, rather than cities — and a de-emphasis of the importance of land-based missiles as opposed to missile-carrying submarines. Both concepts are sound enough, but they raise new problems for the weary negotiators in Vienna.

The other two negotiations are no more promising. In both, the Soviet objectives have been obvious from the outset: To consolidate the Russian hold on Eastern Europe and bring about a retreat of American military power from Western Europe. Today, the Russians have good reason to believe that they can achieve these goals without the need for any concessions on their part. The hope of the Western powers for a liberalization of the regimes in Eastern Europe and the Soviet Union and an easier exchange of people and ideas is, if anything, further from realization than ever.

It is not entirely surprising, therefore, that detente is in trouble. The West, plagued by energy short-

THURSDAY AFTERNOON, 7 FEBRUARY 1974

LOS ANGELES TIMES - 7 FEB. 1974 P-3/20

# Yeoman Court-Martial Blocked, Moorer Says

## Admiral Claims He Was Overruled in Case of Clerk Suspected of Spying on Kissinger

BY JOHN H. AVERILL
Times Staff Writer

WASHINGTON - Adm. Ly before the same com-

In a letter filed with the Senate committee, Moorer said he was advised late in 1971 that Radford "had not only been retaining papers in the course of his clerical duties but also had been actively collecting them in a clearly unauthorized manner."

In a statement to the committee Wednesday,

Senate Foreign Relations committee Jan. 29 and which was released in edited form Tuesday.

In the earlier statement, Kissinger denied that he had misled the Foreign Relations Committee last September when he said he had no knowledge of the White House "plumbers" group created to investigate intelligence leaks or of the involvement of his former aide, David Young, with the plumbers.

Kissinger said Young had been reassigned from his staff to that of former presidential adviser John D. Ehrlichman and that he understood Young was involved in declassification work.

In his statements to both Senate committees, Kissinger recounted how Ehrlichman, who was in charge of Investigating White House leaks, had called him in late 1971 to get him to listen to a taped interview made by Young with Welander.

"As I recall", Kissinger said, "this interview covered not only the possible sources of leaks but also unauthorized transfer of papers from my office to the office of the chairman of the Joint Chiefs of Staff."

Kissinger said he knew nothing further about it.

seen by the inspectors, the base and its commander would have been subject to criticism.

We thought that this reported effort to fool the inspectors by the deliberate waste of thousands of dollars worth of supplies was a deplorable business, and we said so in an editorial.

The news story prompted an investigation by the Air Force, a careful follow-up look by the Detroit News and, at the request of The Times, additional investigation by UPI, which had also reported the initial story in August. As a result of all this, it appears that the allegation of large-scale dumping was erroneous. Some hiding of equipment in an effort to deceive the Air Force inspectors did occur, but not on the scale, or for the purpose, first reported.

What happened, according to the Air Force, was that a "well-intentioned young airman" did bury some grader blades for road-scraping equipment that were in overstock. His plan was to recover the

story of the incident was based on statements from "persons who said they were eyewitnesses or participants to the burial." Two of those persons, both civilian employees, were named. One of them later told Air Force investigators that he was misquoted. The other said he was quoted properly, and that the information he gave was true.

To try to draw some conclusions from this tangled episode: The Washington Post story was wrong in substance, and because of that so was The Times' editorial. There was no malice or bad faith involved. The Post reporter talked to a number of persons who said they were witnesses and whose statements about what they thought they saw supported one another. Moreover, their reports were plausible. As we remarked at the time, any veteran can tell similar stories about the wasteful destruction of military equipment. In this particular case, however, plausibility was no guarantee of accuracy. Noting that, we are glad to set the record straight.

2-A

KISSINGER WARNS
ARABS ON OIL BAN

NY Times 2/7/74
Biggest
Says U.S. Was Led to Expect
Embargo's End—Terms a

Terms a
Continuation 'Blackmail'

By BERNARD GWERTZMAN

Special to The New York Times

WASHINGTON, Feb. 6—
Secretary of State Kissinger
said today that the United
States had been led to expect
that the Arabs' oil embargo
would be lifted and that their
failure to lift it would be re-
garded as "a form of black-
mail."

Responding to news reports
from the Middle East that the
chances for the end of the
embargo were not as good as
Washington believed, Mr. Kiss-
singer said that in light of the
American efforts to bring about
a Middle East peace, maintain-
ing an embargo "under these
conditions must be construed as
a form of blackmail and would
be considered highly inap-
propriate by the United States
and cannot but affect the at-
titude with which we will have
to pursue our diplomacy."

Mr. Kissinger did not elaborate on what effect the embargo's continuation might have on American diplomacy. But State Department officials said that they would not quarrel with an interpretation that Mr. Kissinger was warning that the United States might slow its efforts to help bring about a settlement between the Arabs and Israel.

Mr. Kissinger, himself a
Harvard alumnus and former
professor, delivered a speech
and answered questions in a
hoarse voice at the annual

Continued on Page 8, Column 1

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Not Dazzled by His Office

W. POST 2-7-74

French Foreign Minister Baits Superpowers

By Jonathan C. Randal

Washington Post Foreign Service

PARIS, Feb. 6—Foreign Minister Michel Jobert flew to Iraq today for oil-for trade talks shortly after the Cabinet approved his partic- ipation in next week's Wash- ington conference about the Energy Crisis called for by the United States.

The irony of pursuing go- it-alone negotiations for bi- lateral oil deals with the Arabs while simultaneously attending the much-criticized Washington conference was summed up in a cartoon in the newspaper Le Monde.

Marching past a sign pointing toward the United States was Jobert, but his feet were headed in the op- posite direction.

At 52, Jobert, the son of a middle-class family in French-protected Morocco, is not a man to be overly im- pressed by the honor of fol- lowing in the footsteps of such great French foreign ministers as Vergennes, Tal- leyrand or Aristide Briand.

In his typically dry style, Jobert once told an inter- viewer that being a minister impressed him not at all. "You always get over it," he remarked. "You just have to be patient."

Such self-deprecation, and the fact that he has never been elected to a public office, did not prevent one of France's leading weekly news magazines from recent- ly tipping him as France's next prime minister.

This could only occur if President Georges Pompi- dou wishes it. But then again Jobert's rapid rise from the relative obscurity of a top civil service post to minis-

ter has depended entirely on his more than decade-long relationship with Pompidou.

Still, Jobert's career is dis- tinguished for a man who had never set foot on the French mainland until he was 18 years old. That was a few months after the out- break of World War II in 1939.

He went back to Morocco the following June after Germany swept aside the French and British armies only to return in a Free French uniform with a dis- tinguished record. He served with tough Moroccan troops during the Italian campaign and the invasion of southern France.

A high-ranking officer who knew Jobert during the war described him as "knowing no fear but loving to com- municate it to others," a somewhat backhanded com- pliment prompted by a wild cross-country jeep trip with Jobert at the wheel.

By 1946, Jobert had won entrance to the then new Ec- ole Nationale D'Administra- tion, the prestigious school which has produced the technocratic elite responsi- ble for much of France's postwar recovery and pros- perity.

He emerged with only middling marks and was as- signed to the Cours De Comptes, a Napoleonic-era institution which checks the government's accounts in much the same way the General Accounting Office does in the United States.

During the failing years of the doomed Fourth Re- public, he worked on the staffs of various ministers

including that of Premier Pierre Mendes-France dur- ing the latter's nine months in office.

He married an American woman and their teen-aged son attends the American school in Paris.

Professionally his great opportunity came in 1963 when then Prime Minister Pompidou named him dep- uty director of his staff, then director. When Pompi- dou became president in June, 1969, Jobert was named secretary-general, a post in which—among other responsibilities—he oversaw such important foreign af- fairs problems as British membership in the Euro- pean Common Market, the controversial sale of more than 100 Mirage fighter- bombers to Libya and rela- tions with the United States and the Soviet Union.

MICHEL JOBERT

... it takes patience

His elevation to foreign minister nonetheless caused surprise as well as assump- tions that Pompidou was put- ting his man in the Quai d'Orsay—as the Foreign Min- ister is called — much as President Nixon had done in installing Henry Kissin- ger at the State Department.

And although the United States and France are no more in agreement on major matters than has been the case in the past 15 years, dominated as they have been by the policies of Charles DeGaulle, Jobert and Kiss- inger show every sign of re- specting and even enjoying each other's company.

If nothing else, Kissinger is said to acknowledge an able adversary in the man who dashed his hopes of turning 1973 into the Year of Europe long before the Arabs made it their year by unleashing the October war.

Jobert has become the master of maddening "little elliptical phrases" suggest- ing—but only that—signifi- cant changes in French de- fense and foreign policies.

And since Pompidou twit- ted Jobert for submitting his maiden speech for presi- dential approval, much of the thrust of French foreign policy has been Jobert's.

Although in public he speaks of Kissinger as if they were members of a mutual admiration society. Jobert is tough in word and deed in his dealings with both the United States and the Soviet Union.

Jobert has instituted a modified form of the U.S. State Department's Policy Planning Committee much

to the anger of career di- plomats who have been over- looked in favor of bright, young outsiders. He has the reputation of not consulting career diplomats even in dealing with run-of-the-mill problems.

In carrying the old Gaul- list dislike of superpower "hegemony" to the point of saying the United States and the Soviet Union treat- ed Europe as a "non-person" and "forgotten victim" while they joined forces to settle the October Middle East war, Jobert has said in pub- lic what many Europeans have thought privately but hesitated to articulate.

Even so, Jobert is fully aware of the limits of French policy — especially since the Gaullist tendency to serve French interests first has spread to Britain and even West Germany and left European unity a sadly tattered shell.

WEDNESDAY AFTERNOON, 6 FEBRUARY 1974

WASHINGTON STAR-NEWS 6 FEBRUARY 1974 P-8

LETTER CONFIRMS SNOOPING

Moorer Got Spy Files

By Seymour M. Hersh

New York Times News Service

Admiral Thomas H. Moorer, chairman of the Joint Chiefs of Staff, acknowledged to the Senate Armed Services Committee that twice in 1971 he knowingly received documents that a Navy clerk had "retained" while traveling to Asia with President Nixon's top national security advisers.

Moorer also disclosed that he had been told in late 1971 that the clerk, Yeoman I.C. Charles E. Radford, "had not only been retaining papers in the course of his clerical duties but, also, had been actively collecting them in a clearly unauthorized manner."

The statements by the admiral were made in a letter to Sen. John C. Stennis, D.-Miss., the committee chairman. The letter confirmed the most significant allegation made since the first reports of the alleged military snooping—that documents were taken from the private files of Henry A. Kissinger and Gen. Alexander M. Haig Jr. while they traveled on secret negotiating trips.

THE LETTER also confirmed that military personnel assigned to the White House were actively seeking to pilfer national security documents not intended for the Pentagon.

Kissinger, then President Nixon's

national security adviser, is now secretary of State. Haig, then the chief deputy to Kissinger, is now the White House chief of staff.

In his letter, Moorer again asserted that he had given "no orders, no instructions and no encouragement" to anyone regarding the alleged snooping. Such activities were unneeded, he said, because he had easy access to Kissinger and "never had the feeling of isolation from information."

Moorer challenged the supposition that he and other defense chiefs were being kept in the dark about certain White House military decisions and diplomatic moves.

HE SAID that he frequently discussed secret operations in Indonesia with Nixon, helped Kissinger plan all his secret trips to China, and had discussions with Kissinger on arms limitations negotiations, "including contact from Moscow during the June 1972 summit."

Moorer disclosed that in late 1971 he personally recommended to Secretary of Defense Melvin R. Laird and J. Fred Buzhardt Jr., then general counsel at the Pentagon, that court-martial proceedings be initiated against Radford for his role in purloining the White House documents.

"I was, however, advised," Moor-

er stated, "that no disciplinary proceedings were too be conducted and that it had been decided by the civilian leadership that Yeoman Radford was to be immediately transferred."

At about the same time he first learned of the full scope of Radford's activities, Moorer wrote, he ordered his aides too return all unauthorized documents in his office files too the National Security Council staff. "Acting on those instructions," the admiral said, "all such papers were returned."

ELSEWHERE in the letter, the admiral repeatedly sought to minimize the significance of the materials provided him by Radford, noting that the documents he received "did not stimulate close attention to me because they contained no new information."

The admiral did not explain in his letter why, if the material provided was insignificant, he sought to have Radford courtmartialed and also deemed it important to order the documents returned to the White House.

The admiral's statement also contradicted his only previous public statements as to the importance of the documents provided to him and the importance of the documents provided to him and the method of their collection.

Moorer, Kissinger Quizzed

By Jeremiah O'Leary

Star-News Staff Writer

Secretary of State Henry A. Kissinger and Adm. Thomas Moorer, chairman of the Joint Chiefs of Staff, were to be questioned today in closed session by the Senate Armed Services Committee about alleged spying and counterspying between the National Security Council and the Pentagon.

At the same time, the committee was studying a demand by Sen. Harold E. Hughes, D-Iowa, for a full public investigation of the two-way espionage between military and civilian officials. Hughes said the committee should also be questioning former White House "plumber" David Young, Adm. Robert O. Welander and others involved in the purloining of NSC documents that were sent to Moorer.

Hughes also said Gen. Robert Pursley, military

assistant to Melvin Laird when Laird was secretary of Defense, should be asked to testify about civilian counterspying. Pursley's phone reportedly was tapped in what Hughes called a "strange, covert struggle for information that appears to have taken place between the Pentagon and the White House over a period of years."

KISSINGER'S secret testimony last week before the Senate Foreign Relations Committee, an edited version of which was released yesterday, reveals that Kissinger still insists he did not know Young, his former assistant at the NSC, was engaged in internal security work. Kissinger said that he had never heard of the "plumbers."

But Kissinger did tell the committee he knew that John D. Ehrlichman intended to investigate security procedures on the NSC staff in search of leaks, and he did not object to it. Kissin-

ger also said he was told to stay out of it. Kissinger said he would have had his own staff interview Adm. Welander if he had not previously been told this was Ehrlichman's bailiwick.

Kissinger said that when he found out Welander had come to Gen. Alexander Haig and disclosed that the leaks had come from Welander's own office, he sent Welander to Ehrlichman because of the orders to "stay out of it."

Kissinger said last week he did not object to an Ehrlichman investigation of his NSC staff because he thought any probe would be conducted by the FBI and "other investigative agencies reporting to Ehrlichman." He also insisted that he see a copy of any report from an investigation.

A man named John Sither, from the Air Force, was sent to study security procedures and handling of classified documents at NSC, Kissinger disclosed. Sither

wrote a report, but Kissinger said he did not read it because Gen. Haig had assured him it did not deserve attention.

WHILE HE KNEW from listening to a 15-minute tape of the interrogation of Welander that Young had done the questioning, Kissinger said he thought it might have been only a one-day assignment, not part of a larger ongoing project.

In sworm testimony last September at confirmation hearings on his nomination to be Secretary of State, Kissinger said he did not know Young was involved in internal security matters. In his later testimony, Kissinger said, "When I said that I did not know part of his duties was to investigate internal security affairs."

On this seeming contradiction, of Kissinger said: "You gentlemen can decide for yourselves whether my knowledge of Young's activity constituted knowledge of internal security matters."

3-A

# Gromyko Trip Here Stirs
Talk of U.S.-Cuba Thaw

## CUBA, From A1

new Panama Canal treaty. In the Latins' view, Panama and Cuba are the two major political problems in U.S. policy toward Latin America. If Kissinger arrived in Mexico with progress to report on both fronts, he could expect to be greeted with praise by the Latin diplomats who have been waiting for him to pull off one of his diplomatic coups in their part of the world.

Kissinger, who met Gromyko at Andrews Air Force Base, said only that the talks would deal with a number of issues, and cited the resumption of the Soviet-American strategic arms limitation talks and European security. The Middle East is also expected to be a major topic in the conversations.

Before leaving Cuba Brezh-

nev signed a joint statement with Cuban Prime Minister Fidel Castro. The text is to be released in Moscow and Havana on Monday or Tuesday, after Brezhnev returned home.

The Soviet leader's visit to Cuba was marked by enthusiastic receptions from large crowds of Cubans, given time off from work and school for the occasion. In the Soviet ion, it was covered on live television via a satellite system set up late last year.

Radio Havana broadcasts about the visit stressed the prospects for increased Soviet aid to the island. During the week, Brezhnev and Castro signed agreements providing for Soviet technical assistance in finding oil in Cuba and improving the country's aviation facilities and training programs.

WASHINGTON POST 2 FEBRUARY 1974 (4)

# Military Spending Rise Sought

By Peter Milius

Washington Post Staff Writer

President Nixon is to ask Congress Monday to increase defense spending by $7.2 billion, or 8.8 per cent, next fiscal year, to $87.7 billion, according to the economic report made public yesterday.

But military spending would continue to decline slightly as a percentage of the total budget. It will be about 29.4 per cent of all spending this year, and 28.8 per cent in fiscal 1975.

The President's budget contemplates total outlays in the fiscal year beginning next July 1 of $304.4 billion, as against $295 billion in revenues, leaving the government with a deficit of $9.4 billion.

The spending total would be up $29.7 billion, or 10.8 per cent, from this year's.

Of the increase, $15.1 billion would go for what the budget-makers call income security programs—Social Security, welfare and the like.

These income security programs will cost $100.1 billion in fiscal 1975, a third of all the spending proposal.

The year Mr. Nixon took office, 1969, they came to $43.7 billion, a fifth of the budget.

The budget total has risen 50 per cent in those same years, from just under $200 billion in fiscal 1970 to just over $300 billion now.

More than half of that increase has been due to the swelling of income security programs.

The tax that supports the bulk of these outlays, the Social Security tax, has also risen dramatically in the last six years. Revenues from the Social Security tax were $45.3 billion in fiscal 1970; they will be about $85.6 billion next fiscal year, an increase of about 90 per cent.

Revenues from the individual income tax, by contrast, have gone up about 44 per cent in those six years, from $90.4 billion to $129 billion.

Corporate income tax payments have risen about 48 per cent, from $32.8 billion to an estimated $48 billion next fiscal year.

The economic report said interest on the national debt will rise from $27.8 billion this year to $29.1 billion next.

## Federal Budget Receipts, Outlays, Financing, Debt Fiscal Years 1972-1975

MILLIONS OF DOLLARS: FISCAL YEAR

<table><thead><tr><th></th><th colspan="2">Actual</th><th colspan="2">Estimates</th></tr><tr><th></th><th>1972</th><th>1973</th><th>1974</th><th>1975</th></tr></thead><tbody><tr><td colspan="5"><strong>BUDGET RECEIPTS AND OUTLAYS:</strong></td></tr><tr><td>Total receipts</td><td>208,649</td><td>232,225</td><td>270,000</td><td>295,000</td></tr><tr><td>Total outlays</td><td>231,876</td><td>246,526</td><td>274,660</td><td>304,445</td></tr><tr><td>Total surplus or deficit (—)</td><td>-23,227</td><td>-14,301</td><td>-4,660</td><td>-9,445</td></tr><tr><td colspan="5"><strong>BUDGET FINANCING</strong></td></tr><tr><td>Total means of financing</td><td>23,227</td><td>14,301</td><td>4,660</td><td>9,445</td></tr><tr><td>Net borrowing from the public</td><td>19,442</td><td>19,275</td><td>3,500</td><td>12,500</td></tr><tr><td>Other means of financing</td><td>3,785</td><td>-4,974</td><td>1,160</td><td>-3,055</td></tr><tr><td colspan="5"><strong>OUTSTANDING DEBT, END OF YEAR:</strong></td></tr><tr><td>Gross Federal debt</td><td>437,329</td><td>468,426</td><td>486,350</td><td>507,973</td></tr><tr><td>Held by Government agencies</td><td>113,559</td><td>125,381</td><td>139,806</td><td>148,929</td></tr><tr><td>Held by the public</td><td>323,770</td><td>343,045</td><td>346,545</td><td>359,045</td></tr><tr><td colspan="5"><strong>BUDGET RECEIPTS</strong></td></tr><tr><td>Individual income taxes</td><td>94,737</td><td>103,246</td><td>118,000</td><td>129,000</td></tr><tr><td>Corporation income taxes</td><td>32,168</td><td>36,153</td><td>43,000</td><td>48,000</td></tr><tr><td>Social insurance taxes and contributions</td><td>53,914</td><td>64,542</td><td>77,907</td><td>85,603</td></tr><tr><td>Excise taxes</td><td>15,447</td><td>16,260</td><td>17,144</td><td>17,444</td></tr><tr><td>State and gift taxes</td><td>5,436</td><td>4,917</td><td>5,400</td><td>6,000</td></tr><tr><td>Customs duties</td><td>3,287</td><td>3,188</td><td>3,300</td><td>3,800</td></tr><tr><td>Miscellaneous receipts:</td><td></td><td></td><td></td><td></td></tr><tr><td>Earnings by Federal Reserve</td><td>3,252</td><td>3,495</td><td>4,400</td><td>4,700</td></tr><tr><td>All other</td><td>391</td><td>426</td><td>649</td><td>453</td></tr><tr><td colspan="5"><strong>BUDGET OUTLAYS</strong></td></tr><tr><td>National defense</td><td>231,576</td><td>246,526</td><td>274,660</td><td>304,445</td></tr><tr><td>Int. affairs and finance</td><td>70,536</td><td>70,021</td><td>80,573</td><td>87,729</td></tr><tr><td>Space research, technology</td><td>3,726</td><td>2,957</td><td>3,886</td><td>4,103</td></tr><tr><td>Agriculture, rural development</td><td>3,422</td><td>3,311</td><td>3,177</td><td>3,272</td></tr><tr><td>Natural resources, environment</td><td>7,063</td><td>6,191</td><td>4,039</td><td>2,729</td></tr><tr><td>Commerce and transportation</td><td>3,761</td><td>589</td><td>609</td><td>3,128</td></tr><tr><td>Commun. development, housing</td><td>11,284</td><td>13,070</td><td>13,521</td><td>13,400</td></tr><tr><td>Education and manpower</td><td>4,282</td><td>4,132</td><td>5,450</td><td>5,667</td></tr><tr><td>Health</td><td>9,752</td><td>10,185</td><td>10,819</td><td>11,537</td></tr><tr><td>Income security</td><td>64,909</td><td>18,417</td><td>23,268</td><td>26,282</td></tr><tr><td>Veterans' benefits and services</td><td>10,731</td><td>73,073</td><td>84,995</td><td>100,071</td></tr><tr><td>Interest</td><td>20,552</td><td>12,013</td><td>13,285</td><td>13,612</td></tr><tr><td>General government</td><td>4,787</td><td>5,480</td><td>6,800</td><td>6,774</td></tr><tr><td>General revenue sharing</td><td></td><td>6,636</td><td>6,147</td><td>6,174</td></tr><tr><td>Allowances</td><td></td><td></td><td>300</td><td>1,561</td></tr><tr><td>Undistributed intragovernmental transactions:</td><td></td><td></td><td></td><td></td></tr><tr><td>Employer share, employee retirement</td><td>-2,768</td><td>-2,927</td><td>-3,543</td><td>-3,577</td></tr><tr><td>Interest received by trust funds</td><td>-5,089</td><td>-5,436</td><td>-6,420</td><td>-7,140</td></tr></tbody></table>

### U.S. - BRITISH
... CONTINUED

Now they see their role as getting along with the French and the Germans.

American experts sympathize to Britain's problems fear that the hard line could eventually do serious damage to a relationship which is still special in many ways, and useful to the United States.

An example of the special relationship has existed in the Indian Ocean since 1966, when Britain pulled out its forces and signed an agreement with the United States making certain British-owned islands available to Washington for defense purposes.

For all its growth, the federal budget has remained fairly constant as a percentage of the Gross National Product in the last six years.

The Defense Department is currently seeking British permission to spend $20 million to expand naval and air support facilities on the tiny island of Diego Garcia, as a counter to possible Soviet naval expansion in the Indian Ocean.

"It would be a tragedy if something happened to our relations with the British," said one official. "I personally think things will improve from now on. After all, we just don't think of each other as being like any other country. There's the common language and tradition. When you sit down and start talking with the British, you just can't help ringing all kinds of old bells."

at about 20 per cent. The federal debt has declined as a percentage of GNP. It will be about $508 billion next fiscal year.

WASHINGTON POST

4 FEBRUARY 1974

* Sen. William Proxmire (D-Wis.) said he did not favor a tax cut "unless we can cut the President's budget." Speaking on the NBC program "Meet the Press" (WRC), Proxmire said he "would reduce military spending and instead have public-service spending" and would "decontrol most of the economy immediately."

WASHINGTON POST

3 FEB 1974 (4)

* West Germany said the 25th anniversary of the founding of NATO next April would be an opportune moment for President Nixon to pay his long-awaited visit to Western Europe.

8-F

Rowland Evans
And Robert Novak

wash
POST
2/4/74

Sinai
Time
Bomb

Despite Israel's comparatively swift and conciliatory agreement with Egypt on the first step back from the Suez Canal, Nixon administration policymakers privately admit growing concern over reluctance by Israel's weakened, post-election government to seriously move toward Phase II of the Sinai pullout.

That concern could lead to a major policy switch here: enlisting active support from oil-short European countries and Japan to help nudge Israel toward a Phase II withdrawal plan.

So far, the U. S. has intentionally played a lone hand throughout post-Yom Kippur war diplomacy to separate the Israeli and Egyptian armies. Although Washington has played that lone hand primarily to keep out the Soviet Union, it has dismayed and even angered U. S. allies.

But with new signs of Israel stubbornly digging in again, the United States may now call on those allies for help. As one key U. S. diplomat told us: "It is absolutely essential that pressure continue on all sides to make the momentum of the last few weeks seem irresistible."

Moreover, a little noticed time

bomb, connected to the Security Council resolution setting up the United Nations force in the western Sinai separating Egyptian and Israeli troops, could explode in late April. The time bomb, built into the resolution by the Soviet Union and France, authorizes the U.N. force for only six months starting Oct. 27, the day it was passed.

The resolution leaves no doubt that the veto by a single member could trigger the removal of the U.N. force if an extension is needed, as it surely will be, on April 27.

Although State Department officials do not talk about this proviso, the Egyptians and their Arab allies most assuredly do. To them, it is insurance against semi-permanent status for the new Israeli defense line 20 miles east of the Suez Canal.

That portends a possible renewal of fighting in the spring. If the Geneva conference (which the United States hopes to get into action as soon as possible) fails to bring agreement on Phase II Israeli withdrawal, the U.N. force cannot be used by Israel as a protective buffer against a second round of the war Egypt started last Oct. 6.

Hence, the importance of keeping up

the "momentum" toward agreement. As the successful architect of the new policy starting with last fall's war which has now forced the Israelis back from the canal for the first time since 1967, Egyptian President Anwar Sadat could not afford to extend the April 27 deadline unless confident that Phase II withdrawal was immutably fixed.

Yet, some high officials here fear Israel's flexibility shown in negotiating the separation-of-forces agreement may be disappearing. These officials say privately that Defense Minister Moshe Dayan has become the conspicuous exception—the only Israeli leader who understands Secretary of State Henry Kissinger's grand strategy.

This is partly due to the decline of Prime Minister Golda Meir's Labor Party and the rise of the hawkish right wing, partly to the lack of Israeli consensus on the best course to follow. Lacking strong government and national consensus, Mrs. Meir's still unformed new government may be playing for time, hoping something will upset the Kissinger-Sadat timetable.

But Sadat also nurses a dangerous problem. His 37 hours of totally private talks with Kissinger last November have raised Arab suspicions that Sadat, pushed by Kissinger, may be

moving toward a separate peace with Israel. Since even the appearance of such apostasy would be suicidal, Sadat (perceived here as a leader of uncommon stature) dares not push too hard for a Phase II Israeli pullback until Syria and Israel agree to separate their combat forces on the Golan Heights.

That decision now hangs on whether Syria agrees to tell Israel everything it knows about Israeli POWs captured (and, Israel has charged, murdered) in the Yom Kippur war. Israel has secretly assured Damascus that once the POW issue is cleared up, it will give Syria a separation-of-forces similar to the Israeli-Egyptian agreement, including Israeli withdrawal from all Syrian territory seized last October.

Odds here are that, even though Syria is one of the most intransigent of Arab states, it will give Kissinger and Israel what they want and thereby permit the Geneva conference to open. The spotlight then would be back on Israeli withdrawal from the Sinai, with only a few weeks left before extension of the U.N. force becomes explosive. Once again, it boils down to quiet U.S. pressure against that Israeli reluctance which so worries policymakers here.

© 1974, Field Enterprises, Inc.

122UPR

(WORLD REPORT)

-0-

SIGNIFICANT WORLD NEWS IN DEPTH. BACKGROUND AND ANALYSIS...BY UNITED PRESS INTERNATIONAL.

(TODAY'S COMMENTARY)

-4-

KISSINGER IS GOING TO TURN HIS ATTENTION TOWARD LATIN AMERICA.
U-P-I'S JUAN WALTE IN WASHINGTON.

SECRETARY OF STATE HENRY KISSINGER...ARCHITECT OF THE MIDDLE EAST TROOP WITHDRAWAL AGREEMENTS...WILL CARRY HIS DIPLOMATIC SKILLS SOUTH TO SEEK A "NEW DIALOGUE" WITH LATIN AMERICA.

ONE OF THE INITIAL STEPS FOR THE "NEW DIALOGUE" THAT KISSINGER PROPOSED LAST FALL WILL BE TAKEN IN MEXICO CITY FEBRUARY 21ST TO THE 23RD AT A CONFERENCE OF WESTERN HEMISPHERE FOREIGN MINISTERS. KISSINGER GOES TO PANAMA THIS WEEK AND MAY FOLLOW WITH OTHER VISITS TO KEY NATIONS IN CENTRAL AND SOUTH AMERICA LATER.

THE MEXICO CITY CONFERENCE IS EXPECTED TO STRESS ECONOMIC MATTERS. IT WILL DEAL SPECIFICALLY WITH THE SHAPE AND SIZE OF ECONOMIC COOPERATION BETWEEN THE UNITED STATES AND THE OTHER HEMISPHERIC NATIONS WHICH BASICALLY EXPORT EXPENSIVE AND SCARCE RAW MATERIALS AND AGRICULTURE PRODUCTS TO THE U-S MARKET.

THE LATIN AMERICANS FOR YEARS HAVE BEEN ASKING FOR SPECIAL PREFERENCES FOR THEIR EXPORTS, THOUGH SYMPATHETIC, THE UNITED STATES HAS PROPOSED INSTEAD GENERAL TRADE PREFERENCES TO INCLUDE OTHER REGIONS SUCH AS ASIA AND AFRICA.

BUT THE CONFERENCE ALSO WILL DEAL WITH THE GENERAL ISSUE OF U-S-LATIN AMERICAN RELATIONS. IN THE 1970S. ALSO SUCH SPECIFICS AS THE PANAMA CANAL AND LATIN AMERICAN CONCERN OVER THE GROWING POWER AND INFLUENCE OF LARGE MULTI-NATIONAL CORPORATIONS, MOST OF THEM AMERICAN-OWNED.

THE ISSUE OF CUBA, AND ITS RELATIONS WITH THE REST OF THE WESTERN HEMISPHERE, MAY BE RAISED EVEN THOUGH IT IS NOT ON THE AGENDA.

THAT AGENDA IS BASED ON AN EIGHT-POINT DECLARATION APPROVED BY LATIN AMERICAN AND CARIBBEAN FOREIGN MINISTERS DURING A MEETING IN BOGOTA (BOH-GUH-TAH'), COLOMBIA, IN NOVEMBER. THOSE POINTS ARE...

---DEVELOPMENT OF COOPERATION WITH THE PURPOSE OF CREATING A "COLLECTIVE ECONOMIC SECURITY SYSTEM."

---PROTECTION AGAINST THE APPLICATION OF COERCIVE ECONOMIC MEASURES. (LATIN AMERICA CHARGED THE UNITED STATES WITH DOING THAT WHEN IT CUT OFF MILITARY AID TO ECUADOR SEVERAL YEARS AGO FOLLOWING THE SEIZURE OF AMERICAN TUNA BOATS BY THE ECUADOREAN NAVY.)

---RESTRUCTURING THE INTER-AMERICAN SYSTEM. (THE THIRD GENERAL ASSEMBLY OF THE ORGANIZATION OF AMERICAN STATES SET IN MOTION A PROCESS TO REFORM THE O-A-S, WHICH STILL GOES ON.)

---SOLUTION TO THE PANAMA CANAL ISSUE. (WASHINGTON AND PANAMA HAVE AGREED ON A DECLARATION OF PRINCIPLES WHICH WILL SET THE STAGE FOR FURTHER NEGOTIATIONS TO REPLACE THE 1983 TREATY THAT GIVES THE UNITED STATES CONTROL IN PERPETUITY OVER THE CANAL ZONE.)

---REITERATION OF LATIN AMERICA'S REQUEST TO PARTICIPATE ACTIVELY IN NEGOTIATIONS AND DECISIONS ON NEW MONETARY AND WORLD TRADE MATTERS.

---M-ULTI-NATIONAL CORPORATIONS MAKE UP ANOTHER POINT. (THEY BECAME THE TARGET OF LATIN AMERICAN CRITICISMS TOWARD U-S POLICY DURING THE LEFTIST GOVERNMENT OF THE LATE PRESIDENT SALVADOR ALLENDE (AH-YEHN'-DAY).

THE DECLARATION ALSO SAID THE UNITED STATES SHOULD INCREASE THE FLOW AND TRANSFER OF TECHNOLOGY WHICH LATIN AMERICA CONSIDERS VITAL FOR ITS DEVELOPMENT.

OVER-ALL EXAMINATION OF THE RELATIONS BETWEEN LATIN AMERICA AND THE UNITED STATES ALSO IS CALLED FOR.

-4-

CUBA IS ONE OF THE 24 MEMBERS OF THE O-A-S, BUT THE CASTRO GOVERNMENT WAS EXCLUDED 12 YEARS AGO. THOUGH CASTRO CONTINUES TO SAY HE IS NOT THE LEAST INTERESTED IN REJOINING THE INTER-AMERICAN SYSTEM, WHETHER HE ULTIMATELY DOES WILL DEPEND ON A RECONCILIATION BETWEEN CUBA AND THE UNITED STATES.

STATEMENTS AND RUMORS DURING THE LAST FEW WEEKS ON A POSSIBLE RESUMPTION OF RELATIONS BETWEEN WASHINGTON AND HAVANA HAVE BEEN CONTRADICTORY, AND THE PICTURE STILL IS FUZZY.

BUT SOMETHING SEEMS TO BE STIRRING AND A RECENT U-P-I REPORT FROM LONDON QUOTED DIPLOMATIC SOURCES THAT CASTRO MAY WANT TO RESTORE TRADE WITH THE UNITED STATES IN VIEW OF WHAT IS SAID TO BE A POOR ECONOMIC SITUATION IN CUBA.

KISSINGER HELPED OPEN THE DOOR TO CHINA, BUT IT IS DOUBTFUL HE WILL DO THE SAME WITH CUBA AS EARLY AS THE MEXICO CITY MEETING.

YOU'VE BEEN LISTENING TO A COMMENTARY BY U-P-I'S JUAN WALTE IN WASHINGTON.

(END COMMENTARY)

-4-
MORE MORE

UPI 02-03 08:09 PED

Kissinger's Latin Vista

SECRETARY OF STATE Kissinger heads for Panama shortly to sign the recently negotiated statement of principles for a new canal treaty. In a few weeks he is due to confer with the foreign minister of Latin America in Mexico City. This evidence of his specific concern for a long-festering Latin issue, the canal, and of his general concern for inter-American relations, has elicited a certain amount of expectation that the "mature partnership" envisioned by President Nixon in 1969 (in his first and last major statement on Latin America) may be starting to take on real life. Latins have properly become wary over the years of periodic American re-affirmations of devotion to the hemispheric welfare. But certainly the need for such a thrust is undiminished.

The economic ties between the United States and Latin America continually grow thicker and more diverse. To cite one "new" example, Venezuela and Ecuador are fullfledged members of the oil cartel which has quadrupled energy costs around the world. The politics of the hemisphere increasingly center on easing the strains created by these economic ties. For just this reason, Latin America requires from Washington not occasional spurts of headline diplomacy, however symbolically satisfying these may be, but steadfast application to day-to-day affairs. Latins deserve to be assured that their voices are regularly heard. Sen. Robert Byrd (D-W.Va.) noted candidly the other day that many congressmen have stinted Latin America "because Latin fields are not regarded as politically fertile." But the Executive Branch has no similar excuse for such a casual approach.

Responding to an earlier Kissinger suggestion for a "new style of dialogue," Latin foreign ministers met at Bogota last November to draw up "Bases for a New Dialogue" with the United States. This offers encour-

aging evidence that Latin Americans have used the recent years of Washington's relative inattentiveness profitably—not to draw away from the United States but to prepare for more fruitful and mature relations. In particular, the Latins have moved toward a position where they are less disabled by lack of confidence than they previously were in dealing with the non-Latin world. For instance, the Inter-American Development Bank is right now at the make-or-break stage of drawing into its membership and its work some 18 countries from outside the region; on the outcome largely hinges the question of whether the Latin economy grows in a regional or world context. The United States remains, and will remain, the dominant power of the hemisphere, but perhaps we are learning some of the advantages of self-effacement too. Dr. Kissinger's upcoming Latin visits should be especially instructive in this regard.

If economic relations are central in the hemisphere, however, at least one major political issue remains. Though Havana itself stays in a negative stance, it becomes progressively more anomalous that the United States should exert its influence to keep Cuba formally outside the inter-American system. Why should we treat Havana any less pragmatically than we treat Moscow or Peking? Latin governments with problems on their own left remain cool to lifting the sanctions which the Organization of American States voted against Cuba 13 years ago. But many other Latin governments are more than ready to move on. Now that the Latin subsidiaries of some American corporations see a chance to sell their products in the Cuban market, the United States is likely to come under heightened pressure from that quarter too. Mexico City would be an appropriate place for Dr. Kissinger to start bringing our Cuban policy into step with the times.

davocated.

Others asked for more
followed the middle

Arabia? Mr. [Petro-
ikh Zaki] Yamani?

in the Saudi Arabian

ess that the Western
perhaps not bear the

it, because everybody
opinion.

once said Iran would
be most advanced and
the world within a

tion.

China among them?

tions, we have a very old history — 3,000
years. Why should we copy others?

Q: And Western technology?

A: You have spent million of dollars in
research. After many years of hard
work you have discovered things. Why
shouldn't we take them? But we take all
these things and we keep what is good. And
we can develop ideas also. All these "isms"
—capitalism, socialism, communism or any-
thing else—are so old now and do not cor-
respond to the ideals of the human being.
They don't correspond to the breakthrough
in technology. They don't correspond to our
times.

Q: Your Majesty, you once said that if the Western countries would want to change the rules of the oil business as you now see them, you simply could close the oil wells. You said: "We can survive without the oil money and live on goat's milk as we did for centuries. But the industrialized world would die without oil." Would you not be afraid that the industrial nations would ultimately rather fight than die and take the oil—their lifeblood—by military force?

A: This will not happen, because it will
blow up.

some of the petrochemical products the
price increased five times, in some cases even
30 times.

Q: But now you are selling your oil, which is produced at a cost of 10 or 20 cents a barrel, for a price of $7 or more. That's a profit rate quite unusual in Western countries.

A: But you know that this wealth is going
to finish in 30 years. What are we going
to do after 30 years if it continues this way?
We are going to start our own atomic cen-
ters immediately, as soon as you will. I would
buy oil tomorrow if I could.

Q: Seriously?

A: I hope that you will take me seriously. I start my atomic reactors, I will cooperate with anyone in search of solar energy and I'll start buying oil. But again, you never put those other questions in your articles, only that the price of oil is up. For what reason? I give you the reason. You never questioned why you collect so much tax on oil. You want to have such beautiful highways in your country at our expense. Why?

Q: At the end. . . .

A: At the end I would like you to know that in our case it is not just to take vengeance on the West. As I said, we are going to be a member of your club. It is a question of readjusting the relation between the industrial world and the oil-producing countries. We have said that the era of cheap oil is finished. We must add that the era of exploitation is finished.

Q: There is no question about that.

A: There is more to it. Because of the ex-
ploitation of cheap oil you had an af-
fluent society and then the permissive so-
ciety when almost everything was free and

Stephen S. Rosenfeld

Kissinger and Schlesinger

2-3-74

The word from Henry Kissinger, passed by a journalist friend, is that the Secretary of State faces an interior challenge of "crisis" dimensions from Secretary of Defense James Schlesinger in making foreign policy. This is juicy Washington stuff. It's indicative of where we are in the world, too.

The interesting question it raises—and this is already a matter of lively concern in the whole foreign affairs community—is whether President Nixon is hinting that the United States, while hoping to cooperate and improve relations with the Russians, has the resources to make its way in the world without cooperating with them. There is not necessarily a contradiction between those general lines, which are front and back of the same policy, but there is a vital nuance all the same. Europeans are especially sensitive to it.

The Russians, one notes, have been quick to pick this up. They have begun zeroing in on Schlesinger by name, most recently for his suggestion that, if NATO is weak, the Soviets could "bring political pressure to bear against Western Europe." Kissinger, who has said the same more delicately, still gets the kid-glove treatment in Moscow.

The intriguing thing is that, by a friend's account, Kissinger, an international celebrity coming off a Nobel Prize in Vietnam and a huge personal triumph in the Mideast, feels that his authority is threatened by a truly obscure bureaucrat who is a homebody to boot.

Partly it may be that Schlesinger is a more substantial figure than any that Kissinger has previously dealt with in the national security apparatus. Melvin Laird, the only other man worth counting, concentrated on withdrawing from Vietnam and paid relatively little heed to the first-term horses which Kissinger rode to clout and renown: the Peking and Moscow

breakthroughs, and the Vietnam negotiations.

Schlesinger, though he has been barely half a year in the Pentagon, arrived with a formidable substantive knowledge of what is emerging as the "big" national security issue of the second Nixon term—strategic arms. Previously Kissinger monopolized this issue with his intellectual, bureaucratic and public relations razzle dazzle. As a former defense intellectual at Rand with experience since at the top of OMB, AEC and CIA, Schlesinger breaks the monopoly.

Moreover, he arrived at the Pentagon just as doubts were escalating across the political spectrum about the enduring value and viability of some of the first-term achievements often identified with Kissinger: the Vietnam agreement, SALT I and Soviet-American detente. These doubts may yet be eased but, until they are, it is only to be expected that a certain amount of the loose deference available in this town will flow from the upbeat Kissinger to the more somber Schlesinger,

Kissinger represents the idea that the nations that count can be brought into a certain stable relationship, a "structure of peace." This is the sense in which Schlesinger calls Kissinger a "diplomatist," defined by Webster as "one who is dexterous, tactful, or artful in meeting situations without arousing antagonism." The Mideast affords plenty of scope still for a "diplomatist." But the sag of detente and the messiness of the energy crisis, which lends itself poorly to flashy crisis management or secret diplomacy, make the going somewhat rough for Kissinger these days.

By contrast, Schlesinger has spent much of his career in and out of government thinking about the size and shape of the force which the United States ought to possess in the world; how to project that force politically to foreigners; and how to win support for it—in terms of budget and in terms of a will to use it—from the American people. In the current conditions,

when for the first time the United States has lost its clear strategic and political predominance and there is widespread nervousness and confusion about where the country goes from here, Schlesinger's hour may have come.

In fact, anyone who looks at the public work of both men is struck much more by their likenesses than their differences. Both are tough-minded intellectuals long fascinated with the uses of power. In manner, Kissinger is smooth, Schlesinger a bit rougher. Whether this will make a difference in respect to Congress, where Schlesinger has a responsibility (unmatched by Kissinger) of gaining approval for a large defense budget, will be especially important to see. But it seems to me misleading to imagine that Kissinger is the sophisticate and Schlesinger the boor, or to suspect that either is more than momentarily the captive of pique.

There is a natural high-low approach in foreign affairs. One man holds the carrot, the other the stick. In this case, it's Kissinger and Schlesinger. Others can say whether there is personal tension between them. I would say just that there is a professional tension which is not only unavoidable but essential. Mr. Nixon and the rest of us are fortunate to have two such talented men in the government's service.

The Washington Post

EUGENE MEYER, 1875-1959

PHILIP L. GRAHAM, 1915-1963

KATHARINE GRAHAM
Publisher

JOHN S. PRESCOTT JR. BENJAMIN C. BRADLEE
President Executive Editor

Philip L. Geyelin, Editorial Page Editor; Howard Simons, Managing Editor; Gerald W. Siegel, Vice President; Robert P. Thome, Treasurer; Joseph P. Lynch, Vice President-Advertising; Jack F. Patterson, Circulation Director.

Published by The Washington Post Company:
1150 15th St. NW, Washington, D.C. 20005

KATHARINE GRAHAM
Chairman of the Board

LARRY H. ISRAEL
President

The economic strength of your partners in Western Europe remains intact. The very suddenness of the oil price increase threatens this strength. There will be stagflation, unemployment on the one side and inflation on the other. By hurting Western industry now you are going to hurt your own policy aims.

**A:** No, because first of all we can plow back a lot of the oil money into those Western countries by buying your stuff or just investing abroad.

**Q:** Could you envisage investing in Western Germany, in refineries, gas stations or even the motor industry?

**A:** Why not? And this goes for the rest of the European countries. We want to have talks with the OECD. It depends on the offers we get. And if you take things seriously, I think we could harmonize this period of transition. This period of finding new sources of energy and of getting us industrialized.

**Q:** But in our country people are worried. There are estimates that we will have 750,000 unemployed in February as a result of the energy crisis.

**A:** Yes, but you have also 2.3 million foreign workers in Germany. Fifteen years ago I told Prof. [Chancellor Ludwig] Erhard that what you are doing in Germany in my opinion is not right because we won't stay a third- or fourth-rate backward country forever; we are going to get industrialized. And if we do so, we are going to have protection for our own industries.

**Q:** Your Majesty, you stated that oil is too precious to be wasted for heating homes and lighting electrical bulbs as long as there are vast coal reserves that could be exploited. Would you not be afraid that in the long run your high price policy could lead the Western countries to design a whole new energy concept by developing oil shale, tar sands, atomic energy, liquification of coal, etc., in order to become more independent from you before your country has been fully developed with the oil revenues?

**A:** You can't develop atomic energy, the fast breeder, before 1985.

are afraid that some of these sheikdoms would be tempted to use their billions of dollars, marks or pounds to threaten the Western monetary system in order to make political gains in the conflict with Israel.

**A:** Well, I don't really know — you see, there is something very sentimental about this Jewish problem. If this problem

**Q:** be one of the five powerful countries in short time.

**A:** Say in one general way.

**Q:** Would you include

The new Iran: A cement factory risks

Bonn Official Sees Kissinger on Berlin

NY Times 2/2/74

By DAVID BINDER

Special to The New York Times

WASHINGTON, Feb. 1—De-
lays of Western travelers by
East German authorities on the
land-access routes to West
Berlin was discussed today by
Secretary of State Kissinger
and West Germany's visiting
Minister Without Portfolio,
Egon Bahr.

A German official reported
afterward that Mr. Kissinger
was "very concerned lest creep-
ing chicanery undermine the
policy of easing tensions be-
tween East and West" in the
heart of Europe.

A week ago there were sev-
eral incidents in which East
German policemen held up
Western motorists and searched
vehicles for several hours at a
time on the highways connect-
ing West Berlin with West
Germany.

Political Motive Seen

East German authorities said
the delays were necessary be-
cause of a dragnet operation to
catch some lawbreakers. But

some officials of Chancellor
Willy Brandt's Government, in-
cluding Mr. Bahr, suspected
there may have been a purely
political motive.

They noted East German and
Soviet charges that West Ger-
many's plan to establish a fed-
eral environmental office in
West Berlin as a violation of
the 1971 four-power agreement
on Berlin.

The German official said that
Mr. Kissinger might say "a few
tough words" on the subject of
the traffic delays to the Soviet
Foreign Minister, Andrei Gro-
myko, here on Monday, since
both the West Germans and the
Americans assume they were
Soviet-inspired.

Sensitivity on Issue

He added that Mr. Kissinger
was disposed to wait a consid-
erable time before sending a
United States ambassador to
East Germany, a project that
has already been on the State
Department agenda for fivve
months.

A top American official said
that the Nixon Administration

was aware of the sensitivity
about West Berlin's land-access
routes even after the four-
power agreement assuring
smooth movement took effect
in June, 1972. But the official
added that Mr. Bahr probably
viewed the latest incidents in a
more threatening light than
did Mr. Kissinger.

Mr. Bahr has been for Chan-
cellor Brandt a framer of policy
and a personal envoy in much
the same way Mr. Kissinger has
for President Nixon.

He is presently concentrat-
ing on the long-range problems
of East-West trade and this
was the theme of most of his
talks since Tuesday with offi-
cials of the Treasury Depart-
ment, the United States Export-
Import Bank, the World Bank
and the State Department.

reduce the growth of reve

The report added:

"In view of the uncertainties facing us, it is extremely important to be prepared with fiscal measures to support or restrain the economy if it is clearly running outside the general track described here for 1974. The administration is now in the process of preparing for support action. A decision to take such measures would have to be made with great caution, however, in view of the additional supply bottlenecks that might be caused by the energy shortage."

An article on foreign trade aspects of the Economic Report appears on page 37.

said a rollback "would reduce current domestic production," discourage exploration and cause distortions in production and refining patterns.

Gerald L. Parsky, executive assistant to the Federal energy administrator, William E. Simon, testified that the Federal Energy Office could not undertake to regulate prices of new crude oil until Congress repealed its November, 1973 exemption of "stripper" wells, those that produce fewer than 10 barrels a day.

Otherwise, Mr. Parsky said, some producers would curtail their production to gain exemption. He said that had been occurring to some extent since November.

The report, which was written by the Council of Economic

"in many instances, total output would be reduced by only a small amount."

The states, especially sensitive to political pressures from small producers, have been resistant to such suggestions from the Federal energy administrator, William E. Simon. However, Mr. Simon is understood to be planning to continue this effort.

The report said that output of crude oil and natural gas "can be increased within a year by expanding output from existing oil fields."

In fact, the Federal Energy Office reported today that, in the first 25 days of January, production averaged 9,153,000 barrels a day, or 130,000 more than expected.

# News on the State of the Economy

Economic strain.

Maintain the stability of the face of thePresidentions will absorb a lot of this year. But he's not the fundamental

price level and the American consumer are directly influenced by the forces of world demand and supply. International cooperation is needed to promote food production and the maintenance of stocks adequate to shield consumers from the more extreme variations of

Kissinger Expected to Talk to Gromyko on Mideast

WASHINGTON, Feb. 1—Secretary of State Kissinger plans to assess Soviet reaction to the Egyptian-Israeli agreement on troop separation and to discuss the next phase in Middle East peace negotiations when he meets soon with Foreign Minister Andrei A. Gromyko, of the Soviet Union, Administration officials said today.

Mr. Gromyko, currently accompanying Leonid I. Brezhnev, the Soviet Communist party leader, on a visit to Cuba, is expected to fly from Havana to Washington some time Sunday. A formal announcement is planned tomorrow, officials said.

They said that Mr. Gromyko would see President Nixon while in Washington and was expected to leave for Moscow Tuesday night or Wednesday.

Although the officials would not rule out the possibility that Mr. Gromyko might discuss Premier Fidel Castro's attitude toward possible contacts with the United States, they said the primary focus of the Russian's visit would be on the Middle East and on such East-West issues as the talks on limitation of strategic arms.

Publicly, the Russians have been less than enthusiastic about being left out of the Egyptian-Israeli talks and their press has made a point of not mentioning that Mr. Kissinger was the mediator in those negotiations. Officially, Moscow has endorsed the results of the negotiations.

In comments to aides, Mr. Kissinger has indicated his awareness of possible Soviet irritation at the way the disengagement talks were handled. He is expected to stress to Mr. Gromyko Washington's continuing interest in Soviet cooperation in prodding the Middle East parties to further agreements.

The next stage in negotia-

tions is widely assumed to include troop-separation talks between Syria and Israel. At the moment, Washington believes that those talks should begin at Geneva. Mr. Kissinger is expected to discuss with Mr. Gromyko the possibility of calling the Geneva conference

back into session early in March.

The United States and the Soviet Union are co-sponsors of the Geneva conference, which began on Dec. 21 but adjourned the next day after it was agreed that Egyptian-Israeli disengagement talks should be the first order of business.

If the conference is reconvened, Mr. Kissinger and the foreign ministers of the Soviet Union, Egypt, Israel, Jordan and Syria would be expected to endorse the Egyptian-Israeli accord and call for negotiations between Syria and Israel, American officials believe.

But Syria boycotted the first Geneva meeting, and much of the diplomatic discussion going on now is aimed at getting Syria to agree to attend.

Beyond the actual negotiations, the Administration is also aware of possible Soviet concern that, as a result of Mr. Kissinger's mediation, Egypt

might be moving close to the United States politically, at Russian expense.

Privately, American officials believe this is the case. They are reluctant to say it publicly for fear of embarrassing President Anwar el-Sadat and causing Moscow to become less cooperative.

who also hopes to begin talks with Israel soon, will visit Washington next Friday, the White House said, on an unofficial visit to the United States. Hussein, now in London, usually comes to the United States at this time for a medical checkup and talks with American officials.

The White House, in answer to questions, also said that President Nixon was optimistic that the oil embargo against the United States would be lifted when the Arab oil producers meet at Tropoli on Feb. 14. Mr. Kissinger had said the same thing yesterday.

Associated Press

SUITED UP: King Hussein of Jordan on his way Thursday to fly an English-French Mach 2 Jaguar strike jet. The King was on a visit in Coningsby, England, at an R.A.F. squadron bearing Jordanian throne's standard.

The real retail prices would not accelerate. It obtained commitments from the 10 largest retail chains

complete their criminal investigations.

still under curbs. The action is the most significant since last

"Whether it is months or years, there are no judicial shortcuts," Mr. Mansfield declared.

Continued on Page 39, Column 5

ROSENBAUM

New York Times

John D. Ehrlichman, his former top aides, but that Mr. Nixon had refused to do so.

Ronald L. Ziegler, Mr. Nixon's press secretary, said that from now on he would cut short reporters' questions about Watergate issues.

The attorney for Rose Mary Woods, the President's personal secretary, asserted that the court-appointed technical experts who found that the tape of an important Watergate conversation had been manually erased were "not experts [but] six professors who don't know what they're doing."

Senator Scott hinted that his charge that Mr. Dean had committed perjury might have been based on evidence that the special prosecutor had not seen. He told reporters that he hoped

The Senator spoke from a desk in his private Capitol office and then answered questions from a panel of six television and radio correspondents.

Mr. Mansfield appealed to the President to join the Democratic leadership in pressing for public funding of Federal elections.

"If it was in 1972 that Watergate arose, and in 1973 that it was investigated, may it be said that it was in 1974 that the matter was finally ended

Continued on Page 11, Column 1

## Pension Plan Improved

The United Steelworkers of America and the three major aluminum companies reached agreements yesterday that reduce the normal

# RHEINGOLD PLANT ORDERED CLOSED

## But Workers Vow to Remain in Brewery — U. S. Judge Rejects Their Plea

By FRED FERRETTI

The Rheingold brewery was ordered padlocked last night after a Federal judge refused to halt the closing of the 119-year-old Brooklyn landmark, but the workers vowed to stay inside.

The refusal to halt the closing came in a decision by District Judge John R. Bartels. He denied an argument by attorneys for two unions representing brewery workers that closing the brewery would endanger arbitration of a series of contract disputes connected with the closing of the facility, on Forest Avenue in the Williamsburg section.

News of Judge Bartels's ruling was relayed by telephone to the brewery, where 500 workers had been sitting-in during the day. It was greeted with shouts of "sellout" and shutless," and one man, Dominic Amarosa, who has been with Rheingold for 27 years declared: "They're going to have to carry us out."

Several minutes after the men in the brewery heard the news, several sleeping bags were seen being carried into the plant. Other men were sent out for cigarettes and cigars, and

Continued on Page 60, Column 2

# Trucker Protégé, Gasoline Delinquent

## Picketing at Terminals Curtails the Output

By FRANK J. PRIAL

Thousands of motorists in the metropolitan area, their fuel needles quivering dangerously close to "E," were denied their first tankful of February's gasoline allotments yesterday by picketing independent truck drivers who were protesting the fuel squeeze on their industry.

Those motorists who were lucky enough to find service stations selling gasoline—in some parts of the region fewer than 50 per cent of the stations had fuel—endured interminable lines and paid up to 6 cents a gallon more than they had last month when they finally reached a working pump.

The impact of the protest was particularly acute in New Jersey. The Shell Oil Company's terminal in the Sewaren section of Woodbridge was closed down for most of the company drivers. Around 3:30 P.M. several tank trucks filled with gasoline left the terminal driven by Shell supervisors.

A Shell spokesman said the regular drivers had been given a choice between "driving out or punching out" for the day. All of them chose to go home for the day, the spokesman said.

Normally, the Shell trucks will continue to do so.

Associated Press

A fire bank building in São
ot to identify victims.

People to go to the roof," Mr. Bouton said in stressing that more people would have been killed had the building had a port.

As it was, a large Brazilian
Force helicopter landed on
roof and was able to rescue
least 80 people. Smaller heli-
oters were unable to get
through the heavy smoke.

A major problem was the
traffic, Mr. Bouton declared,

Mr. Bouton noted that Brazil-
zilian law does not require cars
to pull over for ambulances.

He was at the airport when
the fire broke out and had to
make his way through the traf-
fic jam to the bank. He had
been called urgently to Rio de
Janeiro, where he lives, be-
cause his baby daughter, Shan-
non, had eaten a box of moth-
balls and was seriously ill.

‘Saved My Life’

"My daughter saved my life —everybody in my sector on the 25th floor was lost," he said. His daughter is in the hospital and her condition is grave.

All of those who died in the
fire were Crefisul employes ex-
cept for three First National
City Bank employes on loan to
the bank. They were Lindus
Cody Marsh, of Bay Shore, L.I.,
William Frantz Williams of
Denver, and a Brazilian, Af-
ranio Branquinho.

The Crifisul Building did not
have certain safety features
that are considered increasingly
essential in the United States.

The stair shaft was not
sealed off at the different
levels and there was no out-
side fire escape. A circular fire
escape was in the plans but
had not been built.

"The heat and smoke were so intense that people would have been cooked in sealed-off stairways and the fire escape would have probably been destroyed," Mr. Bouton declared.

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# Kissinger Plans Panama Visit To Sign Accord

United Press International

Secretary of State Henry A. Kissinger will make a flying trip to Panama next Thursday to sign a declaration setting the stage for the United States to bow out of its 71-year-old domination of the Canal Zone.

Kissinger will sign a declaration of principles, achieved at the end of last year by U.S. Ambassador Ellsworth Bunker, ending a 10-year deadlock on negotiations to give the Panama Government sovereignty over the Canal Zone.

Kissinger will report on the canal negotiations to the upcoming Western Hemisphere foreign ministers meeting in Mexico City, Ssistant Secretary of State for Inter-American Affairs Jack B. Kubisch said.

Hizzonors . . . Everywhere

By William Gildea

About 80 of the nation's mayors rolled into town yesterday to find just about everybody in government pre-occupied with Watergate rather than the troubles of urban America.

So, understandably, there was little frivolity at a Sheraton Carlton Hotel reception for the U.S. Conference of Mayors given last night by Houston's newly elected Fred Hofheinz, son of Judge Roy Hofheinz.

Rather, the group—minus many of the more familiar big-city mayors—appeared as solemn and dedicated as a pack of mountain climbers about to begin a sharp ascent. None of the mayors was ready to predict success in the uphillstruggle to get legislation for the cities unstuck in Congress.

And none was exactly sure if President Nixon would at

last get behind their cause.

"The President said this year he would give priority to passing the community development program,' 'said Hofheinz. "He's been saying it for four years. Every mayor here is hoping he means it now."

Some felt that even if Mr. Nixon were ready to deal with the problems of the cities the way they want him to, satisfactory results would still be hard to achieve.

"I think as long as the President is bogged down with Watergate it will be very tough for us mayors to get any action out of Congress," said Newark's Kenneth Gibson.

"I don't think the President is going to be very effective. The question is how are you going to get out of it: impeachment or resignation. And impeachment takes a while."

Floyd H. Hyde, under secretary of Housing and Urban Development who is leaving

the administration March 1, said he would stick around on his own time to help the mayors in their fight for passage of a Better Communities Act.

Fargo, N.D., Mayor Herschel Lashkowitz said Hyde, former Fresno, Calif., mayor, "is to domestic programs what Henry Kissinger is to foreign policy." Cincinnati Mayor Ted Berry added, "Too bad he didn't get the support Kissinger does."

Some optimism was offered by E.J. "Jake" Garn, Salt Lake City Republican who is contemplating a run for the Senate. He met privately yesterday with Vice President Gerald Ford, who will address the mayors at the mid-winter meeting's concluding luncheon today at the Statler Hilton.

"He was so open, warm and friendly," said Garn. "He couldn't have been more personable. I've never felt better about anybody in that position."

says) madness and the brain. The madness he discusses is schizophrenia, which hospitalizes one of every 100 Americans and probably touches many more who manage to avoid hospitalization. This book presents

definition of its various forms published by Eugen Bleuler in 1911 has scarcely changed since.

Snyder, a psychiatrist at Johns Hopkins University, builds his theory on a relatively new development: the arrival of drugs that provide

have also allowed psychiatrists to learn a great deal more about schizophrenia by studying how the drugs affect behavior and how they act on the molecular level. There is more new evidence: modern epidemiological studies, investigations of the

> "It offends Afrikaner principles in South Africa because it deals with love between a white and a non-white person, which is forbidden by law."

# Beyond the Afrikaans Tradition

By Peter Younghusband

Special to The Washington Post

CAPETOWN — Tremendous controversy is simmering around the banning—for the first time in history—of an Afrikaans book in South Africa.

The banning was gazetted this week on orders of the government's panel of censors, the Publications Control Board.

The book is "Kennis Van Die Aand" (knowledge of the night) by Andre Brink, an established author in the Afrikaans language.

The 500-page book has been described as "trash" and as havng "evil" on every page.

love for a white girl, Jessica Thomson, his courageous but unsuccessful attempt to establish a theater with a message for the black people of South Africa, his torture at the hands of security police and his conviction for murder.

It offends Afrikaner principles in South Africa because it deals with love between a white and a non-white person, which is forbidden by law—and because it describes sexual scenes frankly and uninhibitedly.

One critic of the book, Dr. Hendrik Terblanche, who is a prominent campaigner for the Afrikaans language, was so incensed when he read

been banned by South Africa's censors, Afrikaans books have always escaped action because Afrikaans literature is more docile and tends to toe the line set by government and by Afrikaner traditions.

This is the first time that an Afrikaans author has ever attempted to break out of the mould.

Brink has bitterly accused the censors of banning his book because it mirrors the society of which they are a part.

"If an ape looks into a mirror it cannot expect an angel to look back at it," he said.

The south African publishers, Buren Uitgewers

THE NEW YORK TIMES.

Phone PE 6-5100 today, order board o

ARABS CALL SYRIA
KEY TO OIL POLICY

Lifting of Embargo on U.S.
Linked to Pullback by
Israelis on Heights

By JUAN de ONIS

Special to The New York Times

BEIRUT, Lebanon, Jan. 31—
Arab leaders say that any lift-
ing of the embargo on oil ship-
ments to the United States will
be linked closely to progress
in achieving an Israeli pullback
from the Golan Heights front