September 29, 1971

Heath, Faulkner and Lynch join in urging 'process of pol reconciliation' in Ulster but leave specific problems unresolved, communique following Chequers conf; agree to condemn 'any form of violence as instrument of pol pressure'; call for end as soon as possible to internment of suspected terrorists without trial; both Irish leaders express satisfaction with conf and say that they have come to understand each other better; Lynch, at later news conf, says that 1st essential step is to halt internment, which would weaken IRA hold on RC population and allow elected Cath reprs to end boycott of talks on pol reform; Faulkner says that communique, which mentioned violence 1st, makes priority clear; says that internment policy has prevented murders; Heath and Faulkner anxious to have Lynch use influence with Soc Dem and Labor party to have them drop boycott without dropping internment; Lynch likely to speak with party leaders and urge moderation on them; stresses urgency of dialogue between Faulkner and Cath party

revised draft conv outlawing all forms of biological warfare and weaponry is submitted to Geneva disarmament conf by US and USSR, with their respective Atlantic and Warsaw Pact allies joining as co-sponsors; 12 of 25 conf members have now formally backed draft; conf expected to submit draft to UN Gen Assembly where it is expected to get overwhelming support and be sent to individual govts; draft provisions discussed

White House, in policy shift, announces support of legis to create ind Fed agency with authority to advocate and defend consumer interests; Mrs Knauer issues statement endorsing bill approved by HR com; calls it 'balanced and responsible proposal'; Nader says that her statement is 'reflection on how weak the bill is'; holds that if bill were strong, White House opposition would never be overcome; Rosenthal charges White House 'concocted weakening ingredients' in bill; says what remains is 'mere shell of what could have been effective consumer protection agency,'

number of leading indus countries at IMF annual meeting make proposals for new world monetary system in which dollar would no longer serve important function as reserve currency and in which US, like any other nations, could devalue or revalue upward internatl exch rate of its money; GB outlines new system in which key internatl monetary reserve assets would be SDRs; Barber, who proposed many details of plan, says he has explored ideas with reprs of other leading countries; no country proposes complete elimination of gold from world monetary system but leaves future role to be negotiated; several delegates say they believe atmosphere for forthcoming talks has improved; exec dirs of IMF approve resolution calling on all members to promptly establish satisfactory structure of exch rates together with reduction of restrictive trade and exch practices; urge all members to reverse tendency in present circumstances to maintain and extend restrictive exch practices; formally set in motion procedures for negotiating reformed monetary system after present turmoil can be resolved; Giscard d'Estaing warns that world outside US is already heading for econ slowdown; Benson says world is faced with situation of utmost gravity and urgency; says he sees genuine desire to come to grips with problem and willingness to contribute and to take risks in contributing to solution; several countries, including France and Italy, reaffirm view that solution of exch rate problem will have to involve small formal devaluation of dollar

Henderson trial; Peers says Henderson testified before Army bd that he was aware on day of attack on Mylai that a number of civilians had been killed; reading from bd rept quotes Henderson as recalling that a helicopter pilot had told him 'there are bodies all over the area'; rept indicates Henderson directed a helicopter co comdr to survey his fliers as to whether civilians had been killed; co comdr denies he ever got such an instruction; rept also indicates Henderson said that only the one pilot informed him of killings; at least 1 helicopter crewman said he also told Henderson about them; both secs of rept relate to charge against Henderson of lying before the bd; Peers, under cross-examination, concedes that official rept of his bd is not a verbatim transcript but was put together by 'editors' who were not present at hearings; concedes sec on Henderson may contain errors and corrections

Pres Allende deducts $774-million in alleged excess profits from compensation that was to be paid to US cos whose mines were nationalized, in effect virtually eliminating possibility of any compensation; deductions itemized; Anaconda spokesman declines to comment; Kennecott Corp cannot be reached

Supervisor Deegan announces he will not enter Jersey City mayoral race; Nov election will mark 1st time in 50 yrs that J V Kenny orgn does not have its own candidate for Mayor; Deegan says orgn may back candidate in 2 or 3 wks; several orgn leaders say they plan to reach accommodation with Gangemi; regard M Longo, orgn member, as 'fall back' candidate if no agreement can be reached with Gangemi; principal impediments to successful alliance seen Kenny's hatred for Gangemi and charges of corruption involving latter; Deegan decision may hurt Jordan's candidacy because he will not have clearly visible orgn candidate to make target of his drive; Krieger, acceeding to wife's request, has decided against making race; may back Jordan if Gangemi and Kenny orgn reach agreement

Banneker Elementary School, Gary, Ind, which is 1st in country to be placed under performance contracting program, successfully completes initial yr; rept on Behavioral Research Lab's operation of school shows nearly 73% of school's pupils reached or exceeded natl norms in reading or math skills or both in 1st yr, compared to statistics last yr when 75% of children performed below natl norms; lab's programs described

Sec Stans denounces critics of Pres Nixon's econ policies, accusing them of making inaccurate statements about program and of 'bringing it into the pol arena,' news conf; scores charges that Adm econ policies are 'bonanza for business'

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Oswald says that his dept is seeking facility to house as many as 500 of system's most agressive inmates so that they can be isolated from rest of state's prisoners, news conf; details; other developments stemming from Attica rebellion listed

Gromyko criticizes Nixon Adm for not ending war in Vietnam, s, UN Assembly; says that despite statements predicting troop withdrawals, scale of mil operations is rising; endorses Vietcong peace proposals; pledges USSR support to 'fraternal Vietnamese people'