August 8, 1969

Illus

WASHINGTON, Aug. 7 -- President Nixon was reported to have told Chancellor Kurt Georg Kiesinger of West Germany today that Soviet opposition would not inhibit the United States from dealing directly with the Communist nations of Eastern Europe.

Justice Dept drops case

Sen, 70-27, rejects McIntyre amendment barring Safeguard installation in 1st 2 test stations but permitting sites to be otherwise equipped; Mansfield says he hopes Nixon will interpret narrowness of votes on Safeguard as indication he should not move to deploy system until after control talks are arranged with USSR

HR, 394-30, passes bill, most opponents are Reprs of oil-producing areas; Sen Finance Com tentatively plans 4 wks of hearings, starting early in Sept, and 4 wks of closed-door meetings to write its version of measure, com committed to rept bill by Oct 31; HR-passed bill provides, in all, $9.2-billion in relief by '72, not counting relief from surcharge on June 30 '70; reforms would raise total of $5.2-billion in new revenue by '72 and more later; Treas officials see revenue-losing provisions too extensive; major reform provisions and main liberalizing provisions; wide support in HR for bill described; Repr Bush motion to recommit bill defeated, 345-78; NYSE vp D L Calvin lr to members cites 4 arguments against changing capital gains taxes; says 7 HR com members opposed change; lr contains excerpts from Reprs Gibbons, Utt, Bush, Morton repts

FDA study panel concludes FDA is not equipped to protect Amer consumer from bad drugs, rept to Ley; sees FDA extremely vulnerable on imported drugs; other details and recommendations

29th session; provisional revolutionary govt spokesman indicates it as begun discussions with other groups inside and outside S Vietnam to form coalition govt, news briefing; both sides agree there was no progress in session; Lodge appeals for consideration of allied peace proposals, says allies remain ready for serious negotiation; asks other side to respond; Mrs Nguyen Thi Binh declares Vietcong plan is only correct one; Communist spokesmen say allied plan has been categorically rejected because it is absurd; enemy side brushes aside suggestion that there is lull in fighting

Con Ed plans to apply to PSC for rate increase of about 15% sometime before Sept 1; expected to argue it needs increase to offset increased costs of labor, fuels, bank credit and taxes; time of filing request may hinge on outcome of PSC hearing; co refuses to comment on request for rate increase; critics of co are reluctant to accept co statement that loss of Queens generator was chief factor in power crisis; contend crisis would have occurred anyway because of inadequate planning

Jet Propulsion Lab scientists give preliminary repts on Mariner 7 mission findings

Gov Rockefeller promises LIRR service will be 'finest in country' in 2 mos, s, Garden City, NJ; illus; says promise is not prediction, 'but an announcement'; says major problems plaguing rr's new equipment have been worked out; expects 6 or 7 serviceable new cars to be recd each wk until goal of 620 is reached; concedes his chances for re-election could be affected by LIRR operations; Nickerson 'skeptical' about Rockefeller's pledge; says Rockefeller only became interested in problem when politicians put pressure on him; Ronan, Budd Co pres P W Scott, Pryor and D'Avanzo support Rockefeller's explanation that 'we tried to do too much too fast'; indicate problems of modernizing line have now been solved

bill provision for taxation of unrelated business income of chs noted

Pan Amer ground personnel begin leaving jobs in at least 5 cities in wildcat walkouts as Teamsters Union Local 732, representing 8,000 clerical workers, cargo handlers and others, continues talks with co in Washington, DC, into early morning hrs; Labor Sec Shultz enters talks; union delays posting pickets; 16% wage increase and cost-of-living provision sought in new contract