August 16, 1968

Fed Reserve Bd decision to cut basic lending rate seen indicating bd believes surcharge removes some inflationary pressures from econ; cut advocates argued combination of tax and credit restraint could slow econ too greatly, opponents held there are few signs tax rise has slowed econ growth or inflation

NYC PBA sends its members excerpts from Police Dept's rules and state law emphasizing their duty to obey only the lawful orders of superiors in the dept; Comr Leary, earlier, sent menage ever police teletype warning any policeman who disobeyed orders would be subjected to disciplinary action, restates his lawful authority to direct dept,; Mayor Lindsay silent on controversy, news conf

McCarthy discloses his choices for Cabinet; stresses he has not yet offered posts to anybody; proposes: Sens Fulbright, Cooper or Morton for State Sec; J W Gardner, Defense; Repr Conyers, Negro, Labor; Mrs M L King Jr, Negro, US Amb to UN; Govs N A Rockefeller or R H Hughes, HUD; D A Lindsay, Atty Gen; M I Ginsberg or W P Reuther, HEW; T J Watson, D C Cook, Dr F Stanton, Treas; W C Ford, C E Sanders, Commerce; P J Lucey, Postmaster Gen; Sen Pearson, Agr; H W Johnson, Transportation; Gov Hoff or J Whittaker, Interior

Nassau-Suffolk Repub legislators weigh asking for special session on LIRR labor slowdown

Some see French Pres de Gaulle seeking to replace Brit primacy in exportation of Biafran oil; Col Ojukwu denies bartering Brit concessions for arms or foreign exch