August 12, 1971

comments on switch by McGovern, Muskie, Humphrey, former Sen McCarthy; pol strategists, assessing impact, see Lindsay popularity on campuses giving Dems a windfall in coll student regis; see his possible candidacy in '72 helping more conservative aspirants Muskie, Humphrey and Jackson, and possibly, for himself, Vice-Pres nomination

violence continues for 3d day in Belfast; Brit troops shoot and kill 3 men in gunfights with terrorists in E Belfast mkt area and in W Belfast, where troops sought to trace illegal radio station; snipers also kill mourner at funeral of IRA member; fires burn, mobs gather and sniper fire erupts in Ballymurphy and Springfield Rd areas of Belfast, as well as in Londonderry and Armagh; 21 civilians and 2 soldiers killed in 3 days of violence; Belfast remains stunned by violence; pubs and shops are closed at dusk and barricades block sts in Cath areas; Brit Maj R Jones says Brit troops are exhausted, that many work 16 hrs per day; 500 more troops sent to Ulster, bringing total to 12,500, highest since '69 riots; thousands of Caths and Prots continue disorganized flight from burned-out and threatened homes; Caths accuse Brit army of violence and prejudice; illus of soldiers in Belfast and Londonderry

comment on switch notes Burns statement that Lindsay has made himself most powerful Dem in state and front-running candidate for Gov; notes he has told staff he wants to stay 'somewhat detached' from Dem internal pol but wants to campaign for a Dem Legis in '72; Dems generally welcome him; among pol effects indicated is intensification of fighting among regular and Reform Dems as they seek mayoral patronage; many Dems liken situation to that faced by late Sen Kennedy in '64; list of Lindsay 'enemies' in party seen including former Mayor Wagner, Repr Badillo, Repr Koch, A Walinsky and S Kovner, vp of New Dem Coalition; Lindsay seen having used patronage to win over many regular Dems, such as Kings leader Esposito; his friendship with H J Samuels noted; Repr Chisholm, M A Procaccino comment

Por

HARTFORD, Thursday, Aug. 12—The Connecticut House of Represenatives late last night rejected a bill passed earlier by the Senate that would have repealed the recently enacted state income tax and substituted a sales tax of 6.5 per cent—up from 5 per cent.

Lindsay switches party enrollment from Repub to Dem, news conf, Gracie Mansion; says he did not invite Dem leaders to share dais with him because he does not 'want to be identified with the orgn structure' but he telephoned Burns and other state leaders and apprised them of plans and staff made 'courtesy calls' to lesser party officials; state Dem leaders sec him as 1 of most influential Dems in state by virtue of the power of his office

RC Archdiocese of NY announces it will move its adm offices from Villard Houses, Madison Av, into new $21.5-million bldg to be constructed at 1st Av and 55th St; plans to lease Villard Houses on long-term basis to commercial firm; new bldg, present officers described; Villard Houses were declared landmark in '68; illus

The Bethlehem Steel Corporation, the country's second largest steel company, surprised the industry late yesterday with an announcement that it would defer for two months a previously scheduled price increase on an important class of products.

Itkin testifies that Lipkins told him that Bway Maintenance and Welsbach rigged bids to get millions of dollars in st-lighting contracts; spokesman for Bway Maintenance issues 'absolute denial'; Itkin said Lipkins gave him 5 checks as part of $25,000 payoff for favorable treatment in '67, that he acted as intermediary in deal and that the $25,000 was payoff for Marcus to grant a $500,000 increase in Bway Maintenance contract with Water Supply, Gas and Electricity Dept; says Lipkins asked rum to prepare fictitious bills and backdate them; checks and bills identified by Itkin; E Karlin, Itkin former sec, testifies she typed bills in fall of '67 and backdated them; Itkin testifies that checks were payoff and bills were later effort to disguise payoff as payments for work done in Dominican Repub; says repeatedly that trips to Dominican Repub were coverup

Nixon press sec Ziegler says that Nixon has made it clear, orally and in writing, that he does not want dept to suggest any more busing of students as means of desegregating schools in urban South and that officials who are not responsive to directive 'will find themselves involved in other assignments or quite possibly in assignments other than the Fed Govt'

US Export-Import Bank rejects Chilean request for approximately $21-million in loans and loan guarantees for purchase of 3 Boeing jetliners until question of compensation for nationalization of US mining and other interests has been resolved, move seen forcing LAN, Chilean Airline, to purchase long-range craft from USSR, but changeover to Soviet aircraft would be costly and time-consuming because LAN is equipped only with US craft; preponderance of US-mfrd craft in Chilean Air Force noted

India and USSR issue joint statement which Indian officials say should be read as declaration that 2 nations have 'identical' views on E Pakistan crisis; statement, issued on eve of Gromyko's departure for Moscow, reaffirms in warmest terms closer Indian-Soviet ties estab by treaty