February 7, 1969

The city's Human Resources Administration has decided to adopt at least 50 new safeguards to prevent the loss of antipoverty funds through fraud or theft.

Pres Nixon, citing task force rept, says he hopes to gain respect and eventual friendship of Negroes, news conf; Adm delay in ending aid to 5 Southern dists seen factor in Negro discontent with Nixon; Nixon calls aid cutoff 'ultimate weapon'; implies schools would close if funds were halted; says freedom-of-choice plans will be judged on their ability to end segregation; holds funds should be denied dists who continue segregation but gives no indication of his plans on enforcement of Fed integration guidelines

Rockefeller, in message to Legis on call for cuts in state aid to localities, says state would need revenue rise equal to at least 15% income tax rise to pay for aid if current aid formula is continued

Pres Nixon says he will give 'immediate consideration' to using Fed troops to combat 400-sq-mi slick; his press sec says he gave assurance to Repr Teague; Nixon refers Teague to Interior Dept on question of halting offshore drilling; suggests 'very stringent regulations should be applied to oil cos to prevent spills, news conf; says there could be 'minimal danger' if cos followed regulations; says Hickel acted promptly; says Interior Dept is working on updating offshore drilling regulations; illus

HR Repubs irked by Nixon's failure to consult them before announcing new plan; vote to call in Blount to explain new policy; Repr J B Anderson voices criticism of Pres move after Repub caucus's leader Ford says criticism centers on implementing plan without Cong approval; Nixon visits PO Dept; suggests more exec changes may be made

diplomats have informed Israel that responsible qrs in Baghdad rept Iraq has freed 21 to 25 Jews in last few days; Israeli officials believe those released were last of group of Jews who were jailed during '67 war; say release of original group would be consistent with Govt rept to Thant that it does not plan to try Jews found in jail when it came to power last summer; assume release has no bearing on plan to hold more spy trials; see Iraq watching reaction of internatl community before deciding whether to go ahead with trials; seek to spur foreign govts to offer haven for Iraqi Jews; Dutch Min Luns says they are welcome in Netherlands; Canadian Min Sharp pledges to weigh plan to aid them; Israelis outline deterioration of conditions for Jews since war; al-Bakr says 14 men were hanged in prison before bodies were displayed on scaffolds, news conf; confirms members of another alleged spy ring will go on trial; says all are Iraqi Moslems

US and S Vietnam, at 3d plenary session, urge enemy to reconsider proposal for mil steps to reduce fighting; enemy restates earlier rejection; enemy negotiators accuse US of trying to separate mil questions from fundamental pol problems, denounce Saigon Govt as main obstacle to progress and urge US to deal directly with NLF; Lodge tells newsmen 'going is hard' despite efforts; says there must be no false optimism, but US must not be discouraged; lack of progress appears to bear out predictions that talks will be long and arduous; details on session; 4 teams agree to meet next wk; Tran Buu Kiem says conf has not made 1 step forward; Pham Dang Lam upraids enemy for using conf as propaganda forum

Amer Cyanamid, Pfizer & Co, Bristol-Myers, Upjohn and Squibb Beech-Nut offer $120-million to settle damage claims by states, cities and individuals resulting from alleged illegal price-fixing and overcharging on tetracycline and other broad-spectrum antibiotics, biggest single settlement in antitrust history; settlement results from '64 NYC suit; Corp Counsel Rankin says NYC would get $5.6-million, says $37-million would go to consumers; Atty Gen Lefkowitz says state would get $4-million; atty D I Shapiro credited with consumer aspect; cos defend offer as in best interest of stockholders; stress right to withdraw offer if by Mar 7 acceptances by plaintiffs should be deemed inadequate; case revd

Nixon says he will spend a day in Paris discussing strategy for talks during his 9-day tour of W Eur that will start Feb 23, news conf; says he thinks talks are off to good start; says reduction in US troops is high on list of priorities; says there will have to be progress in talks before he can announce manpower reduction; says there are no present plans for him to meet with S Vietnamese or N Vietnamese negotiators; says he will conf with Lodge

Laird orders temporary halt in Sentinel deployment pending 1-mo rev of 'all major weapons systems'; Nixon, at news conf, stresses that Sentinel system was designed not simply as defense against Chineses ICBMs but also to bolster 'over-all defense capability'; Fed of Amer Scientists urges Adm to abandon system entirely

Lehman Brothers: SEC censures co and 39 of its gen partners, including Gen L D Clay and G W Ball, for willful violations of bookkeeping provisions in brokerage operations; says at 1 point in May firm was unable to determine the accts to which nearly $500-million in securities should be allocated; says co had made significant headway in alleviating conditions by time SEC instituted proceedings last Aug; says co had made vast amt of progress by Dec 31; dismissed individual charges against R Lehman, merely censuring him along with other partners; co consents to censure; case is 1st major publicly disclosed SEC action as result of operational crisis in Wall St

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