October 11, 1969

Sen com rejects HR-approved proposal for 50% top rate on earned income, proposal strongly supported by Adm; rejects Adm proposal to drop as itemized deduction taxes paid to state and local govts on gasoline; Adm sought change as major revenue raiser; com also drops HR provision calling for higher taxes on deferred compensation recd by execs, provision opposed by Adm; also drops from bill proposal to require that property be held for yr, instead of current 6 mo, to qualify for capital gains treatment; move seen victory for Adm

IS 201 governing bd nominates M Stewart, Negro indicted for criminal anarchy in '67 and alleged Revolutionary Action Movement member, as dist admr, position which pays $30,000 a yr; city bd spokesman says bd regulations bar apptmt of person under indictment; sources say city bd hopes to persuade local bd to withdraw nomination before matter becomes pub controversy; Mayor Lindsay says 'system cannot permit individual under indictment for violent crime to hold position of responsibility,' statement; hopes Educ Bd will exercise its supervisory obligation in case

US, in dramatic overnight policy rovenal, bows to Mex demands, orden retreat on war against smuggling, joint statement; says Operation Cooperation will supersede Operation Intercept and that US will 'adjust' its border inspection procedures to end 'unnecessary inconvenience, delay and irritation'; US State Dept reptdly engineered retreat, prevailed upon Justice Dept officials to accept it; statement says reprs of both nations plan further talks on Oct 27 to discuss illicit drug traffic, that Mex will intensify its own enforcement programs

Sen com hearing

Lindsay cites achievements of his Adm, debate with mayoral candidates, NY Times