July 22, 1971

Stans says nation's exports are being hurt by continuing ILWU strike

Survey by US Embassy in Saigon shows enemy gaining strength in up‐country areas evacuated by US forces as well as in parts of Mekong River Delta; survey contents made available to NY Times by official sources; survey, covering May and most of June, transmitted to Washington as Adm begins rev of its policy in light of new Vietcong peace proposals; chief conclusion of rept is that 'enemy continues to affect adversely internal security in selected areas' although 'national picture reflects gradual internal security improvement'; survey details; map

Adm devises formula that is seen as going far toward meeting demands of big‐city Dems that financial needs of local govts be taken into account in distributing gen sharing funds; has not yet officially endorsed its own formula; Treas worked it out in response to request from Ways and Means Com big‐city Dem members when they discovered that Adm's original proposal favored some rich suburban communities that impose high taxes on their residents; formula would eliminate this by incorporating ratio of per capita income in a locality to per capita income in state, and taxes raised by locality compared with total income of individuals in locality; lower income and greater tax effort would mean more aid; Gov Rockefeller, after meeting with Mills, says he has commitment from him that states will not be left out of any legis approved by com

Lindsay announces that about 750 out of 1,138 welfare families that were living in hotels 4 mos ago have been moved into Housing Auth projects or private apts; notes additional 248 families that had become part of Welfare Dept's hotel caseload since Mar 15 have also been placed in permanent homes; adds that HRA had reduced number of families being placed in hotels each mo from 300 to 18 and says that number of hotels with more than 50 welfare families had been cut from 9 to 2

Admitted stock manipulator, testifying before Sen Permanent Investigations Subcom under assumed name 'George White,' says he paid over $25,000 to Justice Schweitzer 15 yrs ago to obtain light jail sentence; says he was ultimately sentenced to 8‐mo term of which he served only half; says contact with Schweitzer was made through man named S Polly; says sentence was in connection with '55 grand larceny indictment resulting from complaints by his 2 partners in manipulation of stock in Shawmo Development Co; Schweitzer's son says Schweitzer denies charges; spokesman for Ct on the Judiciary, which was convened earlier this yr to look into Schweitzer's judicial conduct, is continuing its investigation