January 4, 1968

Bonn sources rept US Under Sec Katzenbach, in visit to W Ger Min Brandt, discloses that US plans to demand 'full coverage' by W Ger of US costs for stationing troops in W Ger during coming yrs; stand linked to Johnson Adm program for defending dollar and reducing Amer balance-of-payments deficit; current offset payments accord runs out in June; US estimates future annual costs will range upward from $700-million; Bonn official rules out arms purchases as part of deal; top Govt officials see further US troop cuts inevitable

Rockefeller calls for $500-million tax rise for essential services, State of State Message to Legis; does not indicate what tax changes he will propose; Travia rejects stand that new taxes are needed entirely for local aid increases; blames adm plans to expand state operations and capital construction

Mayor Lindsay asks NYS Legis permit city to raise maximum interest rate from 5% to 6%; approval seen; city legis repr A P Savarese Jr repts city plans $125-million bond issue shortly; both see raise imperative to sale; Assemblyman Maresca, Sens Marchi and Greenberg sponsor legis; illus

Comr Fraiman, on basis of S D Leidesdorf acctg firm's rept, says taxi indus would realize $38.3-million more a yr if it were granted fare rise it desires; fleet owners charge 'gross distortion and deception'; hold their proposal to raise avg fare from $1.05 to about $1.70 will mean increase of about $11.5-million annually

Vatican newswkly expresses concern that US may expand war into Cambodia