June 16, 1971

Civil Service Employes Assn cancels planned statewide strike after state officials reduce estimate of number of civil service employe layoffs that will be required because of Legis cuts in fiscal '72 budget from 8,250 to 6,057; Wenzl says he has recd assurances from Hurd and Lavine that there will be no further layoffs of permanent employes beyond 3,481 already reptd by union; Hurd and Lavine issue statement declaring layoffs are now largely completed; hold they have sought to keep layoffs of permanent employes to minimum; Wenzl says state has agreed to rev cases of permanent employes who have been laid off by Aug 1; holds 800 of these workers are certain to be rehired; expresses optimism that jobs might be found for others; Hurd says state agencies will avoid further layoffs of permanent employes by widespread job freeze, abolition of vacant positions, sharp cut in number of seasonal employes and transfer of some jobs to federally aided categories but warns unanticipated change in econ conditions could require further staff adjustments; earlier, 50 members of union's dirs bd arrived in Albany to rev situation; Rockefeller instructed all state depts and agencies to make emergency preparations for strike; priority was given to maintaining state services deemed most essential

US is delaying and may possibly block approval for import to US of liquefied natural gas from Algeria under 25‐yr contract signed last yr by El Paso Natural Gas; contract, if approved, would be largest ever made for gas imports and would also be largest commercial transaction between US and Algeria; Pres aide P M Flanigan reptdly prevented US State and Defense Depts from sending lrs to FPC expressing concurrence with contract; other Adm officials say matter has been moved out of depts to level of secret discussions between Sec Rogers and Pres Nixon; diplomatic and domestic problems involved with contract discussed

Beame contends Lindsay overstated expenses and under‐estimated revenues by $330‐million in his proposed $8.8‐billion budget, fiscal '72, news conf; Lindsay and Hamilton deny contention; Lindsay holds Beame's 'recklessness’ is doing untold damage to city; contends Beame is playing 'fast and loose’ with revenue estimates; says he has directed Hamilton to be prepared to answer all questions on matter at upcoming City Council‐Estimate Bd hearing on budget and revenue pkg; charges Beame's statements are 'insulting’ to every NYS legislator who supported revenue pkg; Hamilton assails Beame's calculations, news conf; contends he has 'bad track record’ on estimating budgets; Merola and Cuite announce they will slash revenue pkg 'to ribbons’ if Beame's findings are correct; Beame illus

HR, 275‐104, approves $5.5‐billion econ development bill embracing $2‐billion program to create pub service jobs for unemployed; Repub leaders warn that inclusion of pub works program in measure will almost certainly bring Nixon veto; prominent economists, both Repub and Dem, have contended that such a program would be costliest and least effective method of reducing unemployment rate; have argued that program could be inflationary; program would provide up to 80% Fed grants to areas of high unemployment to construct sewers, hosps, pub bldgs and other facilities

Bronx Dist Atty Roberts announces indictment of 17, including 2 police sgts, detective and 2 ptl, in connection with auto theft ring that allegedly stole and dismantled at least 1,000 late‐model cars; says probe shows that 4 or 5 other policemen were involved in ring but will face dept charges because evidence is not strong; says ring stole 15‐25 cars wkly and took them to Bronx wrecking shop where they were chopped up for parts; 3 of indicted police cited for conspiracy and extortion in $5,000 shakedown of ring operator in return for not arresting him, 4th allegedly moonlighted at wrecking yd and 5th allegedly accepted $2,300 bribe from members of ring after threatening them with arrest