July 8, 1955

US accepts USSR offer to pay 1/2 damages in move seen aimed at avoiding harm to Geneva talks; stresses acceptance based on Molotov apology and assurance that USSR pilots are under orders to avoid future incidents; urges Moscow act to bar incidents; rejects USSR version; State Dept repts damages not yet determined

talks continue; agreements reached on stricter curbs on civilians crossing border, use of trained forces at border and return of prisoners; Egypt opposes direct communication between local comdrs; Tekoah, Gohar comment; Fawzi tells US Sec Dulles Egypt wants to avoid incidents that might lead to open conflict

pors and illus

USCG searches 4,000-sq-mi area off NJ for fishing boat reptd in distress; map; name given as Blue Star; distress signal heard by tug Nancy Moran; hoax seen; boat reptd afire and survivors picked up by foreign submarine; life preserver and oil slick found by searchers; no fishermen reptd missing; 6 boats regis with name Blue Star acctd for

Eden says West is ready to agree on reasonable security measures to meet USSR fears of free, reunited Ger; rules out neutralization; outlines Brit principles for conf