December 3, 1970

Sen approves bill sponsored by Sen Magnuson requiring that liner be quieter in every stage of operation than present jetliners; measure and last-minute efforts to answer craft's environmental critics seen indicating waning support for development on eve of Sen vote; measure seeks rewriting of contracts with Boeing Co and Gen Elec to stipulate that engines must be quieter than those on subsonic craft on take-off and landing, with maximum of 108 decibels of sideline noise; uncertainty over reduction of engine noise without loss of craft's thrust or range discussed; Sen approves ban on flights over land areas; Sen Proxmire says this will exclude liner from payoff routes across US and limit mkt for craft below level necessary for Govt to recoup investment; US lines seen holding off on purchase of foreign supersonic liners as long as US craft is being developed but Amer Airlines pres Spater warns cancellation of project will force carriers to purchase foreign liners to protect their competitive position; Pres Council of Econ Advisors member Dr Houthakker, in reply to project dir Magruder statement that council concurred in his rebuttal of 15 economists opposing project, says rebuttal was developed by Magruder and not by council; says council has always supported development

HR Rules Com, in 7-7 vote, fails to clear bill; absence of bill supporter Repr Bolling held crucial; bill's chief sponsor, Repr Rosenthal, decline to admit defeat but expresses pessimism over chances of getting measure to floor before Cong adjourns; says he recd no reply from Pres consumer aide Mrs Knauer urging her to use her influence among Repubs on com

compromise housing bill, sponsored by Repr Stephens, that will make sweeping new provisions for development of new communities, wins test vote when HR defeats, 101 to 94, Nixon Adm substitute that would have continued present housing programs for 6 mos; members of both parties say that it appears that HR will pass measure that was worked out between Repub and Dem leaders of HR Banking and Currency Com; compromise bill's provisions include expansion of new towns sec of '68 Housing Act; Community Development Corp within HUD Dept to provide assistance to local govts and private developers for construction of new communities and guaranteed loans for bldgs and grants for such facilities as water supply and community bldgs; White House Urban Affairs Council to be charged with making long-range urban growth policy and reporting its recommendations to Pres and Cong; expansion of existing housing, urban renewal and other programs over next 3 yrs with increased costs totaling $2.8-billion, rather than $7.4-billion in original com bill; HUD Dept to underwrite crime ins for people in high crime areas if it is found that rates of private insurers become unreasonable; other provisions outlined; Rept Widnall, ranking minority member on com, comments

Estimate Bd members Garelik and Beame and 4 of 5 Boro Presidents sign statement charging that Lindsay had deceived them in urging razing of Corona neighborhood 3 wks ago and then suddenly reversing plan to assume role of 'hero'; Garelik says that delay had been requested Nov 13 by some bd members to look into alternatives but adm officials had insisted that no alternative plans could be considered and that cost of previous delays had reached $9-million; Queens Boro Pres Leviss endorses compromise; Deputy Mayor Aurelio replies to charge

Buffalo, NY, RC Diocese halts plans to build $7.2-million hosp in econ move