May 13, 1972

Canadian member of Internatl Control Comm D Jackson, May 12, in Saigon, repts much of Hanoi has been evacuated; Jackson makes periodic trips from Hanoi to Saigon; says foreign missions there were advised to be prepared to leave; say most have evacuated their dependents; repts 4 Canadian members of the comm in Hanoi have remained; repts some but not all N Vietnamese Govt offices have remained in Hanoi; repts no evidence to indicate that any of the central areas of Hanoi had been attacked

US planes, May 12, reptdly cut N Vietnam's NE rr link with China by knocking out a bridge at an unspecified distance NE of Hanoi; Lt Col J P O'Gorman, who escorted planes to protect them, comments; entire N Vietnamese rr system reptdly is heavily bombed; US bombing reptdly limited to coastal strip of N Vietnam below the 20th Parallel well S of Hanoi and Haiphong; heavy fighting continues at Anloc; enemy tanks attacked by air near Pleiku; S Vietnamese planes knock out 3 enemy mortar emplacements 6 mi S of Hue; a US adviser is killed, another wounded at Chonthanh; map

May 13: Le Duc Tho rejects Nixon's latest proposal for settlement in Vietnam but says he will stay on in Paris and is ready for serious negotiations, May 12 news conf in Paris suburb of Choisy-le-Roi; says mil aspects of Nixon's proposal, including release of Amer prisoners, cannot be separated from question of pol future of S Vietnam; suggests a Govt in which Communists and their sympathizers would be in minority; says existing regime would name its own segment of new Govt but that Pres Nguyen Van Thieu would be excluded, as would all other members of 'repressive' Saigon regime; rejects Brit proposal to reconvene Geneva Conf on Indochina; says GB is no longer qualified to serve with USSR as co-chmn of conf because it follows US policy and has endorsed latest escalation of war; expresses confidence in continuing support of USSR for N Vietnamese; as news conf begins, he is informed of a US statement reaffirming US readiness to return to talks on basis stated during May 4 meeting; basis included halting N Vietnamese invasion of S Vietnam as 1st order of business; Le Duc Tho says N Vietnamese demand resumption of talks without conditions; indicates readiness to resume private talks with Kissinger; illus

Former NJ Dem state chmn R J Burkhardt pleads guilty in Fed Ct, NJ, on May 12 to charges of bribery and extortion; admits shaking down J R Steers construction co for $20,000 in '64 when co sought contract for bldg 2d span of Delaware Memorial Bridge; Burkhardt por

Fed Reserve Bd Chmn A F Burns outlines 10-point program for long-range overhaul of internatl monetary system, May 12 speech, Amer Bankers Assn Internatl Monetary Conf; proposes a continued but diminishing role for gold as reserve asset, with corresponding increase in importance of SDRs, re-establishment of some kind of dollar convertibility, systematic long-range plans for evolution of world reserves and official credit arrangements, strengthening of processes of internatl consultation and cooperation, substantial degree of autonomy for domestic policies so no country would sacrifice high employment or price stability in order to achieve balance-of-payments equilibrium, more prompt adjustments of payments imbalances, symmetrical div of responsibilities among surplus and deficit countries and better internatl consensus than exists at present about proper role of reserve currencies in new system; says he believes new and stronger internatl monetary system can and must be built; stresses it is urgent that nations of world start rebldg process quite promptly; warns that postponement of cooperative efforts to rebuild monetary system could result in world econ divided into restrictive and inward-looking blocs, with rules of internatl monetary conduct concerning exch rates and monetary reserves altogether absent; argues that major weakness of former monetary system was its failure to treat equally responsibilities of nations with balance-of-payments surpluses and those with deficits; illus; Under Sec Volcker immediately repudiates Burns's statement; asserts Burns is not speaking for US Govt; seeks to minimize any specific points of disagreement between them, holding Burns is attempting to set out position that in some sense opposed to Govt policy; adds that Burns's statement is no kind of model for reform; implies that Treas Dept views likely future role of gold in monetary system; illus; Bank of England gov Sir L Q'Brien hails Burns's talk as 'helpful and constructive'; Austrian Natl Bank chmn W Schmitz gives his strong support