January 3, 1973

NYS PSC on Jan 2 denies NY Telephone Co's request for temporary rate increase of $217-million, which was sought as advance on co's pending request for permanent increase of $306-million; finds that co has provided 'no persuasive equitable or financial considerations to justify charging the public more at this time'; NYC Municipal Services Admr M Musicus hails ruling and says he hopes it indicates PSC will be stringent in dealing with request for permanent rise in rates; co spokesman repts that interim rate would have raised monthly phone bill for avg residential customer from $15.40 to $17.22; PSC says ruling does not prejudice question of requested permanent rate increase which is to be decided by comm by mid-Nov and would be effective, if granted, 1 yr from now; PSC holds that co must indicate which users are accounting for higher costs of phone service and relate requested changes to such patterns; co spokesman says request is in compliance with Price Comm regulations because co's inability to recover unavoidable cost constitutes undue hardship and gross inequity; Musicus notes that new rise would represent 41% increase in phone rates since mid-'71

Office of Science and Technology head Dr E E David Jr resigns on Jan 2; it is rumored that realignment of Science and Technology Office and other high-level technical groups is in offing; David career sketch; illus

US and Hanoi technical experts, Deputy Asst Sec W H Sullivan and Deputy Min Nguyen Co Thach, resume talks on a cease-fire, Jan 2, with a 4-hr session, Paris suburb of Choisy-le-Roi; talks are regarded as preliminary to main talks between Kissinger and Le Duc Tho scheduled to begin Jan 8; both sides silent on technical session; French Min Schumann, in contact with both sides, stresses that, as of the start of the new round, neither side has drawn 'closer together'; says France played essential role in getting talks started again; French Pres Pompidou revealed, Jan 1, he had exchange of lrs with Nixon and was in contact with both sides; says he does not think intensified US bombings helped situation; further technical session planned for Jan 3; formal peace talks session of all 4 sides set for Jan 4; Pompidou criticizes US alternation of bombing and negotiation, remarks to diplomats at holiday reception; Sullivan and Thach pors

FBI acting dir L P Gray 3d orders immediate reassignment of 9 members of his hq staff, 8 of them with long service in bur's Crime Records Div under late dir J E Hoover; 6 of reassignments involve transfers to posts outside Washington; Gray characterizes moves as 'promotions' but at least 2 men, J F Bland and D G Hanning, have resigned in preference to reassignment; agents reassigned are H P Leinbaugh, G T Quinn, H A Schutz Jr, B M Suttler, W H Stapleton, G W Gunn and G E Malmfeldt; Gray rejects repts that he made reassignments with intent of dispersing old-line agents who had been resisting some of his innovative policies; discounts repts that he has engendered some animosity among longtime bur employes by concentrating increasing power in his personal staff; 2-page memorandum, purportedly written by bur staff members and being circulated among reporters in Washington, alleges that Gray's 'airing of linen' in respect to Grapp and Kunkel matters 'has resulted in strong resentment on part of agents throughout orgn'; positions of W G Grapp and R Kunkel were recently changed reptdly for disciplinary reasons

US Defense Dept spokesman J W Friedheim confirms for 1st time repts of damage to Bach Mai Hosp and Gia Lam Airport in Hanoi during heavy raids by US in Dec but denies that the damage was either massive or intentional, news briefing, Jan 2; says that 'some limited accidental damage has occurred'; says 'our information does not square with Hanoi's propaganda claims of massive destruction at these sites'; gives no reason for long delay in conceding damage to these facilities; photos and motion pictures of damaged hosp have been circulated around the world; witnesses mention 'carpet bombing' in civilian areas; Friedheim says US policy remains one of targeting only mil targets in N Vietnam; says US regrets any 'accidental damage from whatever source'; continues flat denial of Hanoi charges that US bombs may have hit the 'Hanoi Hilton,' the camp in Hanoi where US POWs are held; says that in addition to the 15 B-52s US reptd shot down, another 'half a dozen' had been damaged and that some would presumably not be able to fly again; Rev M Allen, returned from Hanoi Jan 1, says that 'by all standards' he knows, Bach Mai Hosp was destroyed; Allen, R Clark, P Simon and Repr J Bond appeal to Amers help rebuild hosp by contribution to Med Aid for Indochina Inc, which has set a goal of $3-million; $250,000 has already been contributed; map