February 16, 1972

Asst US Atty in NYC discloses that P Parks, woman who was to have been key Govt witness in narcotics case of V Pacelli and D Papadakos, was found murdered in her NYC apt 4 days before she was scheduled to testify; Pacelli and Papadakos were found guilty in Fed Ct, NYC, of narcotics violations; identity of slain woman was withheld under pressure by Govt on local police officials lest it prejudice outcome of trial; case detailed

Premier Chaban‐Delmas denies charges that he evaded taxes for 4 yrs and hid wealth and accuses his critics of a ‘pol maneuver’ intended to drive him from office, nationwide TV s; says he will continue in office under high authority of Pres Pompidou, making it clear that he has Pompidou's support; tells interviewer P Desgraupes that politician should have nothing to hide; says accusations by weekly Le Canard Enchaine that he had been able to avoid taxes from ‘66 through ‘69 through tax credits equal to half dividends he received from his stock ‘is pure and simple invention’; notes tax credit is form of withholding and refers to Finance Min statement saying Chaban‐Delmas has ‘borne’ taxes from ‘66 to ‘70; says this means he has paid taxes either directly or through credit; notes law exempts from taxes allowances from Assembly Speaker; refrains from naming those responsible for what he says is a pol maneuver but fellow Gaullists, charging ‘a subversive plot’, accuse Communist party and its ‘accomplices’; Min Giscard d'Estaing reptdly explained to TV audience last wk system from which Chaban‐Delmas benefited, insisting it amounted to system of withholding; noted this is why some taxpayers might not pay much, if any, tax at end of yr, since it has already been paid at source; tech explanations reptdly made it plain that corp had paid and shareholders got reduction in taxes; Chaban‐Delmas illus

Kleindienst, Richard G (Deputy Atty Gen): Kleindienst appted Atty Gen

Amer Express Co and Intraco Ltd Tours develop tours of Communist China for special‐interest groups, such as orgns of drs, teachers, businessmen and ‘culture’ groups; rates for each trip noted; Intraco pres C‐E Runsteen says Chinese have requested personal lr from each visa applicant providing specific information, including reason for trip; says each lr must be translated into Chinese and forwarded to Chinese Embassy in Ottawa and then to Peking; Chinese, refusing to deal directly with Amer travel agencies, use Canadian intermediary, Skyline Travel Agency in Vancouver; Skyline head McLaren says he has recd 4,000 applications; orgns planning trips to China listed; Com of Concerned Asian Scholars, orgn that has spoken out against Amer policies in Vietnam, receives permission for trip

Defense Sec M R Laird warns that US is prepared to resume arms race if USSR fails to agree to a mutual halt in missile submarine construction, annual defense message to Cong; notes ‘it would be politically and diplomatically unacceptable’ if USSR, with 50% more land‐based missiles than US, were to top US missile submarine fleet by end of ‘73; is considering setting up single strategic command to control all offensive land‐and‐sea‐based missiles in light of USSR attempt to form wide ‘area’ antisubmarine surveillance system to locate US missile‐submarines; will seek $1‐billion for submarine project in defense budget as indication of determination not to fall behind USSR in ‘tech race’; other issues in rept detailed; statement follows Nixon's plan to prevent ‘further erosion of the strategic balance with the USSR’, State of the World Message; Nixon noted US compensating missile‐submarine construction programs will be mandatory if mutual restraint is not agreed upon under preferable alternative Strategic Arms Limitation Talks (SALT)