January 12, 1968

Pres Johnson asks AID to help cut balance-of-payments deficit by cutting dollar outlays abroad by minimum of $100-million, conf with Admr Gaud; praises AID efforts to stem flow of dollars in recent yrs

article on effectiveness of Operation Sea Dragon begun by allies in fall of '66 to sink enemy supply vessels; details on campaign in '67; US sources say campaign has become significant complement to air war and has forced enemy to rely on other methods to carry supplies to S Vietnam

Rockefeller reptdly has not ruled out possibility of running in Ore primary; conflicting advice from pol confidants and increasing pressure from prominent party officials are forcing him to re-evaluate prospects; conflicting advice comes from bro, Gov W Rockefeller, who urges him to run in Ore, and from N A Rockefeller's chief pol adviser, G L Hinman, who holds victory in Ore over Nixon would not substantially increase his chances; Hinman seen convinced that only way Rockefeller can get nomination is to stay out of primaries and wait for someone else, hopefully Romney, to make strong enough showing against Nixon to persuade delegates that Nixon cannot win election; Percy reptdly has said that if Romney fails to make strong showing against Nixon and Rockefeller does not enter Ore primary, he will do so

2 apt houses burn, Bronx; illus; 8 hurt; rash of fires throughout city and met area revd

over 100 hurt, 25 seriously, when PATH train plows into rear of another just W of Journal Sq station, Jersey City, during evening rush; illus; map

IRC repts Israel and UAR agree to gen POW exch across Suez Canal; says it will assist in exch; Israeli sources say Israel holds 4,000 Egyptians, UAR holds 16 Israelis, mostly airmen; Jarring role in achieving exch agreement and in plans to free ships in canal noted; there is no evidence that he has made any progress on peace talks; Suez Canal Auth prepares for clearance operations to free ships; UAR POWs illus

Barnes announces rates at 497 more meters in midtown Manhattan will be increased from 10¢ to 25¢ in extension of test program to discourage prolonged parking; holds pilot project involving 322 meters was success; says ultimately all 3,000 meters in 23d-60th St area will be converted to 25¢; locations of 497 new meters listed

RH Roden arrested by FBI and charged with participating in plot to murder Govt witness; Govt source says he was hired to arrange murder; FBI refuses to identify target of alleged plot but another Govt source says it is Itkin

Postmaster Gen O'Brien says he will ask Cong in '69 to eliminate 10¢ airmail rate under plan by which all 1st-class lr mail going more than 200 miles will go by air for 6¢; notes overwhelming percentage' of 1st-class lrs going any distance are now being sent by air within the US; notes rrs are now handling very little 1st-class mail but says PO will continue to use rrs for handling bulk mail; Sen Monroney sees Cong approving plan

Detective P E Meenan reduced in rank; allegedly linked to accepting gratuities

Israel expropriates 838 acres of former Jordanian Jerusalem ranging from Mt Scopus to Sanhedrin sector of Israeli Jerusalem, essentially to insure Jewish settlement in Old City; land is largely barren and most was owned by Jordan; Israel to compensate private owners; plans to develop area to house 1,400 families, including 400 Arab families who have been removed from Old City; notes Brit '46 master plan for city envisaged similar move; map

Dem state exec com endorses Gilligan for Sen nomination, repudiating Lausche; Lausche comments; Gilligan backers see difficult race