June 11, 1971

Pres Nixon ends 21-yr embargo on trade with Communist China by authorizing 47 categories of exportable, nonstrategic items, and lifts all controls on imports from China; new list of exports carefully omits several major items of possible strategic value although White House implies that, consistent with US natl security, such items might be granted special licenses on case-by-case basis; US officials concede easing of trade would probably do little to spur US exports; predict Chinese exports to US will be slow at first with estimated mkt of from $100-million to $200-million; cite possible types of Chinese exports; illus

US Civil Rights Comm, in 1st extensive study of racial and ethnic impact of FHA's '68 home-ownership program, charges agency with abdicating its responsibility by allowing program to be used to perpetuate segregation; says FHA delegated its legal responsibility under program to private housing and home finance indus, which largely ignored intent of law; says 1-yr investigation of program in 4 cities found program following pattern of new homes for whites in suburbs and mostly older and sometimes dilapidated homes for blacks in central cities; study and its conclusions are contained in document forwarded by comm chmn Rev Hesburgh to Pres Nixon and Cong; home-ownership program revd; Sec Romney issues statement noting agency is legally structured to respond to private mkt and does not by itself control site location or other practices; also says it is unfortunate some of comm's more sensational, although largely unfounded assertions, may distract pub attention from agency's more constructive proposals

Police Comr Murphy issues statement scoring Fraiman for granting probation to 2 convicted men; Fraiman declines comment

Rockefeller, at news conf, NYC, says, in response to Lindsay's criticism of Legis actions on budget at NYS Conf of Mayors banquet, that Lindsay is 'not responsible for what he's saying. He's emotionally upset'; Lindsay's remarks quoted

Mills unveils alternative plan to Nixon's for Fed aid to cities, secret meeting with key Dem officeholders; plan differs from Nixon's revenue-sharing proposal and will be called by another name; key differences outlined; they include: aid would go to cities only, not states, counties and towns; amount would be less, about $3.5-billion; money would be allocated among cities, in part, on basis of need; aid would be authorized for ltd time; money could be spent only for purposes legis would specify; Mills is seen proposing to restrict uses of money to financing normal munic services; use of money for capital spending projects would be barred; those at meeting include Dem Chmn O'Brien, Govs Mandel and Gilligan, Mayors D'Alesandro, Burke and Maier, Sens Mansfield and Muskie