August 17, 1971

US Appeals Ct, 2-1, overturns FCC decision involving Friends of the Earth demand for free TV time to counteract ads for high-powered autos and leaded gasoline under fairness doctrine; rules TV stations must broadcast information outlining pollution effects of autos if they carry promotional ads; orgn had argued in Feb '70 that spot ads for autos and gasoline bombard viewers with descriptions of products as efficient, clean and high-performing; said that under fairness doctrine, station is required to broadcast information that would make pub aware of pollution hazards of autos and leaded gasoline; FCC had later ruled in favor of station, drawing distinction between cigarette ads and auto pollution; ct rejects comm's argument, saying that it does not see such a distinction

Cong Dem liberals criticism of excise tax repeal noted; McGovern and others suggest tax benefits be limited to lower-income Americans

Japan reacts with anxiety and confusion to Nixon's announcement; Govt stresses determination to maintain yen's present parity by keeping Tokyo foreign-exch mkt open; Reuters repts that exch banks are holding talks with monetary officials on whether they will quote forward selling rates for dollar; officials are reptd to be closely watching Eur reaction since increase in value of Eur currencies against dollar would, in effect, devalue yen against Eur currencies; Bank of Japan official notes Japanese might be forced to reconsider parity question because Eur countries would be unlikely to tolerate for long devaluation of yen against their currencies; illus

business leaders laud Nixon program with varying degrees of enthusiasm; NAM pres Gullander declares 'bold move' deserves support and cooperation of all groups; numerous top execs pledge to be guided by spirit as well as letter of program; US C of C exec vp Booth states that wage-price freeze will allow time to consider long-range measures to achieve stability; Amer Can chmn May urges fundamental corrections in underlying problems and says he hopes that nation does not 'drift' into wage-price controls; other reaction revd

Ford pres Iacocca reptd generally enthusiastic about Nixon Adm attack on foreign imports; says that if foreign car makers do not raise prices to cover 10% surcharge tax, they might be liable to charge of dumping