November 17, 1965

Thant urges major concessions by all involved to promote peace talks, s, UN luncheon; sees peaceful solution possible; holds 'bold steps' taken as late as '64 could have averted current crisis; sees reconvening of Geneva conf and adherence to '54 accords only means to restore peace

Chase Manhattan-1st Natl City syndicate may drop option to buy 1st big batch of bonds under 'borrow now, pay later' program; option on issue, $63.9 million for pensions, states bonds will be free from ct action, but issue is now under challenge by Citizens Tax Council through Bugeja suit in Appellate Div; syndicate aide G Barnett notes interest-rate rise on munic bonds since syndicate's bid was accepted July 20 and difficulty of mktg issue without loss; Beame stresses city's need for cash; notes pensions have been financed by issuing temporary notes but says practice cannot continue; Lindsay insists city is at 'peril point,'

GB seen seeking to undermine pub confidence in Smith regime to point where Gibbs would have wide support for calling new elections under '61 Const; Australia imposes econ sanctions; backs Brit opposition to use of force

Fair agrees to pay $4 million more to noteholders after Moses tells dirs bd outside sources may have to pay for restoration program; fair reprs rept more than 60% of money invested would be returned to noteholders under new pact; Chase Manhattan Bank, agent for holders, disputes rept; Chase pres Rockefeller resigns from fair bd to avoid conflict of interest

Pub Works Dept sets $1.8-million program to install emergency generators and convert existing power from direct to alternating current in 13 hosps