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