September 22, 1970

The prime lending rate on business loans was reduced yes terday to 7½ per cent by at least a score of major banks across the country.

apptd Civil Aviation Security dir

Leaders of the Arab world called a conference for today in Cairo to deal with what the United Arab Republic termed the “deteriorating situation” in Jordan. King Hus sein, it appeared, will be represented by his Premier, and Cairb was reported to be putting pressure on Yasir Arafat, the commando leader, also to attend.

US alerts mil units stationed in US and Eur for possible movement into Jordan apparently after receiving Jordanian request for mil aid; US officials say Hussein's efforts to establish control are failing, particularly in north; rept Syrian forces are entrenched around Irbid and Ramtha but that Jordanian Army is strengthening hold in Amman; cite possible Syrian thrust southward as threatening Hussein's rule; note that Nixon has not made any decision to intervene and that US Embassy, Amman, has not asked for evacuation of US citizens; silent on whether Hussein asked for US mil aid but Jordanian Amb Sharaf confd with Sisco and, despite his statement that no formal request for intervention was made, some US officials indicate that Jordan has privately appealed for aid; say US has not asked Israel, Italy, Lebanon, Austria and Turkey for permission to fly troops over their territory; Nixon Adm seen reluctant to take mil action and is using show of force to intensify diplomatic pressure on Syria before war widens further and as warning to Libya and Algeria not to deploy additional forces; unknown location of hostages seen deterrent to intervention; Nixon confs with Rogers, Laird, Moorer and Kissinger; US officials concede that alternatives for intervention are unpalatable and risk provoking intervention on behalf of guerrillas; possible mil activities and dangers inherent in them discussed; State Dept says it has no doubt that Syrian units rather than those of Palestine Liberation Army, as Syria claims, are involved; Jordanian armored units reptdly fought well in Irbid and Ramtha; possibility that Syria could commit larger number of its 1,000 tanks noted; Hussein reptdly charges Syria with seizing Irbid and arresting and deporting large number of Jordanian officials; reptdly appealed to Big 4 to force withdrawal of Syrian forces, lr

Hussein's troops fight retreating battles with guerrillas backed by Syrian tanks; guerrillas control all cities of northern Jordan except for Amman; army reptdly controls center and better residential areas of Amman but sniping reptdly continues with guerrillas holding out in refugee camps; guerrilla repr says most casualties are civilians; guerrilla exec repts Jordanian Army has been counterattacking between Jarash and Ajlun and that cities from Syrian border to Zerqa are controlled by guerrillas; Syrian tanks seen lifting Jordanian siege of Irbid; Jordanian armor reptdly was driven back 10‐mi and suffered heavy casualties after 3 days of fighting in Ramtha‐Mafraq area; Syrian civilian repts armor being used by Palestine Liberation Army is Soviet T‐54 tanks hauled by US trucks; illus; tanks entering Jordan reptdly carry Palestine Liberation Army markings but possibility that equipment could have been repainted noted; T‐54 tanks seen too advanced and expensive for Syria to provide to Palestinian forces; Syrian tanks seen splitting into 2 directions after crossing border with 1 div heading to reinforce guerrillas at Irbid and other heading eastward towards Mafraq; map; question of why Jordanian Air Force has not been used against tanks noted; Israeli repts that Jordanian Air Force planes struck targets in Irbid region noted; Hussein declares unilateral cease‐fire in Amman but guerrillas rept fighting continues; UAR repts Hussein ordered cease‐fire in presence of Sadek; Palestine Liberation Orgn has thus far rejected any cease‐fire but official says situation has changed; cease‐fire will leave guerrillas in control of northern part of country and refugee camps in Amman with Hussein in untenable pol position; IRC plane returns to Beirut from Amman carrying 1st 10 casualties to be evacuated; IRC official Boisard repts 5,000‐10,000 casualties in fighting; suspension of $45‐million Kuwaiti subsidy to Jordan noted