February 18, 1971

Nixon's pkg health care proposal expected to contain proposals for increased reliance on health maintenance orgns as way of offering comprehensive care rather than emergency care as it is needed

Inclusion of most cough medicines, cold preparations, med for asthmatics and drugs for pain relief in proposed FDA standards on safety and effectiveness of fixed-combination drugs noted

Nixon vows to take 'action' to check wage-price spiral in construction indus, news conf; does not specify what action will be but vigorous response viewed latest sign that Adm is prepared to modify its wage-price policy; White House press sec Ziegler draws distinction between temporary wage-price freeze in 1 indus and gen system of wage-price controls

E S Callender, NY Urban Coalition pres, calls for state take-over of local costs of courts, NYC hearing; NYC Controller Beame argues that for yrs NYC has financed cts and other services that are more properly NYS responsibilities

Eban says Israel insists on retaining some occupied Arab territory in peace settlement, s, Knesset; insistence seen implied rejection of suggestion for settlement reptdly made by Jarring, who reptdly proposed total Israeli withdrawal from Sinai Peninsula in exch for explicit recognition by UAR of Israeli sovereignty with posting of internatl force at Sharm el Sheik to insure freedom of Israeli shipping through Strait of Tiran; Israeli official says that interpretation is not necessarily correct; notes that Eban does not specifically mention UAR and that territory could also be Jordanian or Syrian; explanation seen intended to bridge reptd differences within Israeli Cabinet between mins who want rejection of Jarring suggestion and those who want guarded response; Eban seen doubtful over possibility of acceptable UAR reply to Jarring; scores offer, reptd in NY Post (pub) int with Zayyat, that UAR would recognize Israel as Jewish state provided Jewish immigration is ltd; some Israeli mins reptdly believe UAR is moving towards readiness to negotiate peace settlement and would accept formula somewhat more ambiguous than unequivocal statement officially demanded; if formal talks materialize, Cabinet will have to face showdown and decide on proposed boundaries; some officials contend that retention of security requires some 15% of occupied territories including Jerusalem, strip along Gulf of Aqaba to Sharm el Sheik,Gaza Strip, part of west bank area and Golan heights; others would settle for Jerusalem and fraction of remainder; Dayan says he would choose Israeli presence at Sharm el Sheik over peace agreement, s