August 4, 1971

Soc Service Employes Union Local 371 and city reach tentative accord on new contract that would provide increased wages and benefits totaling 27% over 3 yrs; city officials, who wanted to achieve gain in productivity, rept caseworkers agreed to plan for no caseload limit; in exch caseworkers and supervisors will get productivity increment of $300 and $400 respectively, July '72; initial 9% pay rise will be effective July 1 '71, 2d 9% Jan 1 '72, 3d Ja 1 '73; Local 371 chmn Hill says salaries of supervisors will rise from present avg of $10,000-$11,000 to $13,000-$14,000, caseworkers from $8,500-$9,000 to nearly $12,000; says new contract provides job security under which no worker is to be demoted, lose salary or be laid off as result of dept reorgn; contract also provides security if dept is taken over by Fed Govt; provides rise in welfare fund payments for employes; cost of contract to city is put at $36-million, present payroll of dept is $138-million, other groups participating are Local 1549 of Social Services Chap of Dist Council 37 and unit of CWA

HR, 200-192, approves foreign aid bill authorizing $6.9-billion in econ and mil assistance over next 2 yrs; bill authorizes $3.44-billion for fiscal '72, including $1.4-billion in econ aid and $2-billion in mil and defense-related aid, and $3.49-billion for fiscal '73, including $1.47-billion for econ aid and $2-billion for mil aid; Sen com expected to use bill as vehicle for various amendments circumscribing authority of exec branch, including such requirement that State Dept be required to get annual Cong authorization for all appropriations

Sen agrees on $8.34-million TV-radio ceiling based on expected eligible vote of 139-million in '72 election in series of votes on campaign spending bill; compromise retains 5-cent per voter limit on broadcast spending but allows candidate who does not use all his print media funds to transfer up to 1 cent per voter to his TV-radio account; Dems seen giving in to White House by approving both repeal of equal time for Cong as well as Pres races and creation of 6-member Fed Elections Comm; changes in bill seen lessening chances of Pres veto but raise obstacles to HR approval, especially on equal-time issue; Repr Macdonald comments; provision to repeal equal-time rule protects minor-party candidates; Sen Scott drops amendment to bar candidates from obtaining airplane, phone and telegraph service on credit; Sen instead adopts proposal calling for Fed agencies to consider protecting airline and phone companies; voting unanimous on most issues; Sen bill would apply to both primaries and gen election and limit Pres primary candidates to spending based on eligible vote in each state

econ conflict between Japan and US linked to US complaint that Japan enjoys free access to US mkt but refuses to open its own domestic mkt; Japan sees US as strongest, richest country in world and contends that its share of US mkt in any major commodity is less than 5%; notes its protectionist policies are being revised but that process takes time

Fears of continued inflation and a possible increase in the prime lending rate sent stock prices tumbling yesterday in the second biggest setback of 1971. The Dow‐Jones industrial aver age plummeted 14.89 points to 850.03.