September 16, 1971

WHIPPIE, & CARLSON PR Is Growing. Try Our New Phons. MU 4–0831. Or set ter Still, Drop In, At 205 Madison.—Advt.

Volpe illus

Group of Ten mins meet to discuss dollar crisis, London; Connally says US trade partners must help produce what he concedes would be 'stunning' $13-billion improvement in US balance of payments; holds US is sharing its problem with world just like it did its prosperity; says $13-billion is realistic figure and makes no allowances to cover short-term money movements nor net increase in long-term capital flows; gives no indication of time scale he has in mind for achieving surplus; offers no new commitment on opposition to changing official price of gold; Min Ferrari Aggradi criticizes projected $13-billion turnabout as 'too ambitious' and 1 that would disrupt world economies if achieved too quickly; expresses view of many Eurs that immediate US objective should be moderate deficit and that mid-term objective should be equilibrium rather than surplus; Min Benson tells newsmen that it is fruitless to discuss amt of US payments surplus; Volcker says $13-billion represents turnabout from higher deficit that might be achieved if econ is running near capacity; estimates '71 deficit will probably be near $9-billion; A F Burns says US objective is to achieve equilibrium in balance of payments with certain margin of safety; Eur foreign exch mkts are reptd highly unsettled by prospects that mins might negotiate higher parities for strong currencies, with dollar under strong pressure; conf illus

US decides in principle to actively support assignment of China's seat in Security Council to Poking; Adm officials rept decision made so that US might win adequate co-sponsorship for simultaneous effort to bar ouster of Nationalist China from UN; will not confirm that Amer resolutions for 'dual representation' for China will contain specific provision ceding Council seat to Peking because US still wants to retain diplomatic flexibility on issue; acknowledge privately that US has 'no certainty' that adequate co-sponsorship can be found for 2 US resolutions; say final texts of resolutions may remain in abeyance until very eve of Assembly session; say US may drop provision granting Council seat to Peking if it fails in quest for enough influential co-sponsors; Japan's stand is key element in US effort; large number of members accept Peking's pub insistence that it will not enter UN unless Taiwan is expelled and thus are unwilling to go through what they fear may be futile diplomatic effort in Taiwan's support; Australia, NZ, Philippines, Argentina and Brazil, mentioned as potential co-sponsors, still noncommittal; foreign diplomats say that US move to declare Taiwan exclusion 'important question' requiring 2/3 majority for approval may collapse; Com of 1 Million Against Admission of Communist China to UN attacks possible admission of Communist China, statement issued by chmn Dr W Judd

Sec Stans says wage increases after current wage-price freeze will be based on productivity gains, conf with business execs at White House; says Pres Nixon leans toward continued Govt adm of any wage and price controls in second stage of program, rather than tripartite bd demanded by organized labor; says Adm has ruled out any wage and price increases retroactive to 90-day freeze period; AFL-CIO expert says organized labor will oppose wage formula based on productivity 'or any other formula handed down by Govt rather that determined by an ind bd which includes labor reprs'