May 8, 1968

Johnson warns of sharp mortgage interest rates rise if Cong does not raise taxes, statement on signing mortgage rate rise bill; Cong conferees rept some progress on tax-spending pkg

Lt Comdr Arnheiter says Vice Adm B J Semmes Jr falsely stated memorandum derogatory to Arnheiter was not sent to bd considering comdr for promotion in '66, informal hearing convened in Arnheiter's behalf by Repr Resnick; says statement was made in lrs to several Congressmen; lr displayed from Semmes to Sec Ignatius in which statement was also made; some aspects of case revd

Col Ha Van Lao, N Vietnamese delegation's 2d ranking member, arrives, Paris; says he is optimistic; will advise Xuan Thuy; some of his activities noted; US is understood to have told France that proposed bldg is acceptable site; N Vietnam expected to accept site; US Embassy, Paris, is sealed off by police as precautionary measure against French students; US formally names 6-man delegation to be headed by Harriman; illus

Ford Foundation pres Bundy, announcing 5-yr $5-million gift to NYC, says it is in recognition of services city gives to tax-exempt foundation; acknowledges $1-million annual grant approximates what city would have recd if property had not been tax exempt

disqualified, placed last after chem tests show he ran with phenylbutazone in his system; Forward Pass named official winner; race finish and official derby program illus; Dancer's Image owner P Fuller and trainer L Cavalaris 'mystified' by drugging; probe under way

places 3d in Ind primary with 27% of vote; illus

fires sweep Saigon outskirts as enemy renews attacks on city; Tansonnhut air base hit; other targets noted; enemy's ground offensive appears to be subsiding; details on fighting; allied troops say they have killed more than 1,500 since May 4 in III Corps area; map; illus

Interior Dept wipes out 5,200 mining claims on oil-rich Fed-owned shale lands in Colo and Utah to clear titles and other legal uncertainties on pub lands and open way for orderly commercial development of reserves, regarded as richest in world; E Weinberg decision holds that mineral dawsonite is not subject to Mining Act of 1872; Sec Udall efforts to formulate policy for leasing lands noted

Legis approves $153-million compromise tax pkg worked out by Rockefeller, Travia and Brydges, including 2¢-a-pack rise in cigarette tax; leaders, at last min, hold up agreement on 10¢-a-fifth liquor tax rise, which would yield added $16.5-million, pending negotiations on restoration of some cuts in Medicaid program; pkg is in addition to $200-million in noncontroversial taxes, mostly business levies, passed earlier in session; legislators fear of voting new taxes in election yr noted

Columbia U student strike co-ordinating com distributes lr on campus, taken from univ office, which reptdly states that Times, through A M Rosenthal, would arrange int with univ pres Kirk to reply to lr in Times critical of univ's plan for gymnasium in Morningside Pk; E R Freedman and Rosenthal have no recollection of any such proposal

Pres de Gaulle warns further st violence will not be tolerated; 20,000 students stage peaceful demonstration; police cordon off Latin Qr; students are supported by widespread strikes and demonstrations at schools and univs across country; French Communist party backs students' demands for more power in school adm and improved curriculum; Educ Min Peyrefitte is scored by newspaper Le Monde for regarding student demonstrators as mere 'troublemakers'