September 3, 1972

Deputy Treas Sec C E Walker confirms that he told private meeting of Amer Bankers Assn exec com that many Dem soc welfare programs started in '60s would be cut back or eliminated if Cong enacts $250‐billion Fed budget ceiling requested by Nixon, Sept 2 phone int; says he has found $45‐billion worth of programs outside 'uncontrollable' areas and defense that can be cut; also told bankers meeting that spending ceiling would in effect grant Nixon 'retroactive item veto,' power which Cong has always refused to give to Pres; item veto would allow Pres to delete selected items in appropriations bills without vetoing entire bill

MUNICH, West Germany, Sept. 2—Dave Wottle, who felt he was running for second place, won a gold medal today in the closest 800‐meter finish in Olympic track and field history.

Sec Peterson says key word in future trade relations will be 'equilibrium', by which he means relatively even balance of exports and imports for major trading countries and no more trading surpluses for US, int, Washington, DC; sees equilibrium as natural consequence of more flexible monetary values and of spread of competition and technology; emphasizes need for restructuring of internatl monetary and trade system; emphasizes that figures on value of US imports and exports do not reflect actual situation because of dollar devaluation and that physical volume of trade is what must be considered; says Commerce Dept has just begun special study of trade on volume basis which shows that imports are declining; is apprehensive about possible restrictive trade legis in next Cong and fears Burke‐Hartke bill may be pushed through by labor and union leaders as parts of other bills; drawing

H OUSTON, Sept. 2 — The magic that Leo Durocher, the new manager of the Astros, seemed to have brought to this space capital of America, went up in a cloud of smoke tonight as the Mets pulled out an 11‐8 victory to snap Houston's six game winning streak.

Mayor Lindsay adm plans to name 'blue‐ribbon' panel to study the often‐criticized NYC antipoverty program; move is seen in part a response to complaints that Jewish and Ital poor have been largely overlooked; broad study would cover the structure and financing of present $70‐million‐a‐yr Fed and city program; 1 goal would be to extend services to dissatisfied ethnic groups beyond the 26 existing poverty areas, where population is largely black and Puerto Rican; new citywide Jewish and Ital coalitions have been invited to submit proposals for programs for which city officials indicate up to $2‐million may be available; money is seen coming from Soc Security Act provisions that offer 75% Fed financing for new services to potential, past and present welfare recipients; new panel on poverty is to have 30 to 50 members, including persons who have been outside poverty arena, such as business, indus, civic and service leaders