May 13, 1971

Rockefeller says additional state taxes will be necessary to finance additional $15-million in state aid to parochial schools, news conf; is reptdly linking tax proposal to revenue-sharing proposal in effort to sway legislators opposed to revenue-sharing but who seek school aid

Kahane and 6 Jewish Defense League members are arrested by US Treas agents and charged with conspiracy to violate Fed gun and bomb regulations; arrests were made on basis of sealed indictments handed up by Bklyn Fed grand jury; Treas Dept official says that actual firearms and weapons involved had not yet been seized but that agency 'had leads on them'; league exec dir L Fine says arrests were made 'to stop league from carrying on their planned demonstration tomorrow for those Jews on trial in USSR'; demonstration near Soviet UN Mission, reptdly will still be held

Comr Murphy, warning that FBI as well as Knapp Comm has power to investigate police corruption, issues memo that ha wants 'progress in this critical area as quickly as humanly possible'; says that 'time has come to speak out emphatically against police corruption'; says, noting that harsh penalties are not enough, that climate has to be created within dept in which every policemen would know it was his moral as well as legal obligation to take action when he knows or suspects that another officer has compromised his principles; memo detailed

HR approves welfare reform bill including escalator clause for Soc Security benefits

Fed Dist Cts in Bklyn and Manhattan temporarily bar reduction in Medicaid benefits on 2 separate suits, 1 brought by Brasters and other brought by M Bass and B Scardino in suit filed by Mobilization for Youth Legal Services; benefits that NYS sought to eliminate in econ move detailed