December 18, 1967

W Turner series on ins indus problems; consumer protests over restrictive underwriting practices, discrimination for age and occupation, high rates, thievery and poor mgt spur Fed officials to question whether natl standards should be enacted to replace state regulation; several Cong probes noted

Panel headed by Sec Rusk to propose plan for openly financing voluntary orgns once secretly supported by CIA is split and cannot meet Dec 31 deadline for reptg to Johnson; narrows choice to 4 plans ranging from stop-gap appropriation to establishment of semi-pub ind orgn that would take over many of overseas acad and cultural activities now under other agencies; most Cong members on panel favor cheapest plan (Alternative I), which would cost $5-million for fiscal '69; plan for semi-pub orgn (Alternative IV) would cost $25-million; latter plan backed by Dr M Eisenhower, Dr H B Wells, P R Porter, Sen Fulbright; Budget Dir Schultze backs gradual plan, Alternative III, to set up quasi-pub comm but give it authority to make grants only to CIA 'orphans,' voluntary groups formerly subsidized in secret; other programs would continue under State Dept, USIA and AID; Alternative II would make subsidization of voluntary orgns part of foreign aid program

Controller Levitt suggests 20% surcharge on income tax, end to deductions for life ins premiums, lr to legislators; opposes across bd rise in income tax, end to $10 and $25 credits because moves would place heavier burden proportionately on poor; urges allowing $5 sales tax credit a person

US planes hit MIG bases, Kep and Phucyen; rept several bomb hits; fight with MIGs, 1 MIG probably downed; 1 US plane reptdly downed in recent attack; other targets hit by US planes; N Vietnam repts 9 US planes downed; map

Deputy Prime Min McEwen not to be sworn in as successor until all hope of finding Holt has been abandoned; Liberal party expected to select Treas McMahon as new party leader and eventual Holt successor