June 4, 1970

Commerce Dept and SEC rept business now plans to spend $81.4-billion for new plant and equipment in '70, up 7.8% from '69, compared with earlier projection of $83.6-billion, up 10.6%; survey provides some reassurance to economists that important investment sector will be less of an inflationary factor than indicated in earlier surveys and, at same time, should not be actual downward force contributing to recession; actual outlays in 1st qr were at $78.22-billion annual rate, well under $80-billion originally planned; projection for 2d half is $83.2-billion rate, compared with $86-billion earlier; 4th qr rate is planned slightly lower than 3d; entire downward revision is in mfg sector; separate statistical series, planned new starts, or new investment projects, shows starts in mfg turned upward slightly in 1st qr though level remained well below 2d and 3d qrs of '69

illus

Israel repts its jets downed 3 MIG interceptors within 3 mins in dogfights over Suez Canal northern sec during sustained bombing of targets around Port Said; repts its attacks lasted total of 11 hrs; repts 2 schoolgirls killed, 6 injured in shelling of Beisan from Jordanian territory; says Israelis returned fire; repts Jordanian arty later hit 3 Israeli settlements S of Sea of Galilee and town of Tiberias; repts 2 civilians killed and 4 hurt; retaliated with air and arty strikes on Irbid area and hts of Gilead; repts 8 Arabs who staged mortar attack at Hatzeva were killed S of Dead Sea following pursuit across Jordanian border, says soldier was killed in exch of fire across Suez Canal and border policeman killed by blast in Jordan Valley; UAR claims downing 2 Israeli jets and damaging 3d in dogfight W of Suez Canal near Port Said; repts shelling canal southern sec, causing heavy damage; Amman radio repts northern Jordan came under heaviest and longest Israeli air and arty attack since war; charges 'scorched earth' tactics; repts 8 civilians and soldier killed, 42 hurt; repts Jordan retaliated by shelling Tiberias and Al Himma, in occupied Golan Hts; both Israel and Jordan complain to Security Council; map, illus

Nixon describes allied drive into Cambodia as most successful operation of entire Vietnam war, TV s; says it has insured continuance and success of program to withdraw US troops from Vietnam; reaffirms earlier pledges to bring Cambodian venture to an end by June 30 with 'all our major mil objectives' achieved; says 17,000 of the 31,000 Amers who entered Cambodia in May have returned to S Vietnam; says only remaining Amer activity in Cambodia after June 30 will be air attacks on enemy troop movements and supplies; shows film of ammunition dumps, rifles and other war material captured during Cambodian operation; justifies incursion in both mil and diplomatic terms; again appeals for pub support and thanks those who have supported him; reiterates that he, like most Amers, wants peace; prior to talk newsmen get complete inventory of all equipment and supplies captured or destroyed in Cambodian operation

state will add special drawing for $1-million 1st prize; details