January 30, 1971

Nixon sends $229.2-billion full employment budget to Cong for fiscal '72; budget reptdly is 1st of its kind in any country; full employment budget theory holds that when econ is sluggish Govt can and should spend not what it expects to collect in revenue but what it would collect if econ were operating at full employment

Rogers holds open possibility US air power may be used to support S Vietnamese expedition against Communist supply bases in southern Laos, news conf; rules out use of Amer ground combat troops in Cambodia or Laos, but says US will use its air power in any way necessary throughout Indochina to prevent enemy forces from massing strength for attack; warns US withdrawals from S Vietnam are entering critical stage and that danger increases as US troops are reduced; specifically expresses concern about large buildup of N Vietnamese forces in panhandle area of Laos, just across border from northwestern S Vietnam; his remarks stir speculation that S Vietnamese move into Laos might be in offing; major new allied offensive in northwestern corner of S Vietnam is another possibility; Laird says US will continue intensive bombing of Ho Chi Minh Trail; insists current US air activity in Cambodia is intended to protect Amer forces fighting in S Vietnam, not to guarantee survival of Lon Nol Govt; says period between now and May 1 will be critical because of continuing US withdrawals and probability of increased enemy activity in dry season; says Nixon intends to use air power as he sees fit to cope with this dangerous period; Rogers illus

Nixon's Budget Message seen implying unemployment will be declining throughout fiscal '72; Mgt and Budget Office Dir Shultz predicts unemployment rate should approach full employment zone by end of '72; forecasts '71 jobless rate will be 'near' 4.94% '70 Avg

Fed Dist Ct Judge Motley, in test case involving 5th Amendment, declares key provision of '70 Fed omnibus crime act unconst on ground that it fails to provide sufficient protection against self-incrimination; Motley, in case involving Fed prosecutors attempt to compel J Kinoy to testify before NYC grand jury about fugitive sought in bombing conspiracy, declares that privilege against self-incrimination must be upheld with liberal construction if faith is to be kept with Const; case revd

Pentagon announces Lt Gen J O Seaman, 'in the interest of justice', drops all ct-martial charges against Maj Gen S W Koster, div comdr of troops who were involved in alleged Sonmy massacre; says Seaman found 'some evidence' that Koster heard that about 20 civilians were killed during battle and that he failed to investigate it, but concluded that he was not guilty of any 'intentional abrogation of responsibilities'; R MacCrate, who served as special counsel to inquiry panel under Lt Gen W R Peers, says dismissal of charges is 'serious disservice to the Army'; makes other comments; Repr Stratton scores action; details on charges against Koster and others; war crimes inquiry comm com terms action a 'travesty'; repts that it received testimony in its hearings from former servicemen who said troops under Seaman committed atrocities in Vietnam