December 11, 1970

Cong conf com approves $210-million compromise appropriation for liner development, $80-million less than Adm requested and HR approved, but enough to keep project alive; com members confident Sen will accept compromise; approval of measure in HR seen assured; Sen Magnuson calls compromise 'pretty good victory for liner'; says some Sens have assured him since vote that they had not intended to kill project entirely; notes switch in conf com by Sen Smith who opposed $290-million figure; Sen Stennis, backer of project, says many Sens share Smith's change of heart; Pres Nixon in news conf, says arguments of environmentalists can be answered; sees cancellation serious threat to US supremacy in civil aviation; Sen Pastore, while objecting to restoration of funds, reptdly assures Sen Magnuson he will not speak against appropriation; Sen Case refuses to endorse restored funding, says he has not decided whether to join proposed filibuster against it; Stennis maintains view that conf com neither defied nor ignored Sen vote against craft; conferees rept they had difficulty persuading HR to drop below $250-million figure, which they maintained was point where further cutting would create delays in completion of prototypes and add to over-all cost of program; Transportation Dept and Boeing Co reptdly feel sum is enough to forestall breaking up team of scientists, engineers and subcontractors that have been working on project; $210-million compromise seen postponing hardware procurement but keeping design and research work going essentially as before; Sen and HR delegations in conf com were controlled by Sens who back project; conf com members listed

Nixon announces Rumsfeld's apptmt as Counselor to Pres, press conf; Rumsfeld will leave OEO post

Equal Employment Opportunity Comm seeks to block rate increase sought by AT&T on grounds that Bell System cos discriminate against women, Negroes and Spanish-surnamed Amers; petitions FCC to hold hearings and declare proposed increase illegal until cos end discriminatory practices

Sen approves Govt-backed investors ins plan; adopts 3 amendments by Sens McIntyre, Brooke and Proxmire to reduce maximum ins to $20,000 on each customer acct, to require brokers to hold percentage reserve in cash against customers' cash balances and to permit new ins corp to set standards for membership and compile list of 'unsafe or unsound' member-brokers; amendment gives SEC discretion to set reserve requirement and ins corp powers to take steps to correct unsound practices or to ask Cong for necessary legis to do so

reptdly chosen by Nixon to replace Amb Yost as permanent repr to UN; Nixon, at news conf, says Bush has agreed to take top position in Adm but refuses to say what job