December 31, 1969

Ex-FDA Comr Ley, in int revg his 3 yrs with FDA, charges he was under 'constant, tremendous, sometimes unmerciful pressure' from drug indus; says FDA fails to protect consumer effectively, calls staff inadequate and filled with 'retreads', charges lack of funds and lack of support from Nixon Adm and Sec Finch; details pressure from Bristol Labs and Upjohn Co in cases involving antibiotics; details

NEWARK, Dec. 30 -- A Federal grand jury investigating corruption in this city today heard a former convict refuse to answer questions about alleged payoffs to the police, gambling operations and "business transactions" with Newark's Police Director, Dominick A. Spina.

Sec Romney announces rise to 8 1/2% in legal ceiling on mortgages that Govt insures or guarantees, effective Jan 5; says that higher ceiling should reduce to more reasonable size discounts now prevailing; adds that lenders would be expected to increase interest rate on home mortgage loans now being processed but at same time to correspondingly reduce amount of discount they charge; mortgage experts say that by sharply reducing discounts, change in ceiling should improve flow of funds in mortgage mkt; but they warn mortgage funds will continue in short supply and that effective cost of mortgages will continue to rise; Natl Assn of Mutual Savings Banks vp Klaman warns housing and mortgage outlook is grim; Natl Assn of Home Bldrs acting pres Barba scores increase

PARIS, Dec. 30 -- The Government was confronted today by suggestions in leading newspapers here that its officials had acted in collusion with the Israelis, allowing them to obtain five French-built gunboats from Cherbourg harbor despite a French embargo.