January 13, 1973

Fed Reserve Bd approves Jan 12 increase in discount rate from 4 1/2% to 5% at all 12 Fed Reserve Banks, effective Jan 15; bd statement on action detailed; action underlines general expectation in money mkts that monetary policy will be gradually tightened in '73 as anti-inflation measure, and particularly so now that Pres Nixon has eased Phase 3 wage-price controls

There are indications in Watergate trial on Jan 12 that some of 6 defendants want to change their pleas to guilty; H B Rothblatt, defense counsel for B L Barker, F A Sturgis, E R Martinez and V R Gonzales, says he opposes any guilty pleas; defense informant says that 4 men had felt they were under certain pressure to withdraw from case but refuses to specify source of pressure; denies it came from Adm or from Com for Re-Election of Pres; US Appeals Ct 3-judge panel holds, 2-1, that Govt cannot disclose details of information obtained in alleged eavesdropping on Dems without approval of party officials who had been overheard; secret session held; Rothblatt refers to 'technical problems' and when asked why trial would not resume on Jan 13, says there are problems that cannot 'be resolved logistically'; C Morgan Jr, atty for Dem party officials, is seeking to overturn ruling by Judge Sirica last wk allowing Govt to introduce contents of conversations as evidence at trials

White House repts on Jan 12 that drug detection production program, which will require intermediate school students in Harlem, NYC, to submit to urinalysis to determine whether they are using drugs, is being prepared by Special Action for Drug Abuse Prevention; agency asst dir Dr Brill says program is viewed as possible model for rest of nation; program, which will be implemented at Frederick Douglass Intermediate School, will be based on 'parental and peer pressure'

labor leaders, on Jan 12, privately describe Nixon's decision to drop most mandatory anti-inflation controls as major victory for G Meany that will do much to promote labor peace in '73; say decision to drop controls and to name Dunlop as dir of Cost of Living Council was arranged, in part at least, by Meany and Sec Shultz; Shultz reptdly agreed to press for dropping of controls in return for promise by Meany and other labor leaders to return to participation in stabilization program and to cooperate in seeking noninflationary wage increases this yr; labor sources say key to leaders satisfaction with Phase 3 program is apptmt of Dunlop, who is respected and trusted by trade union leadership; not all officials convinced Phase 3 represents a labor victory or that Dunlop is completely trustworthy

Group of MIT scientists determines shape of class of molecules that plays essential role in all life processes; molecule is transfer ribonucleic acid, or RNA; its task is to assemble material of all living things; it is said to be 1st nucleic acid crystal whose 3-dimensional structure has been determined by X-ray probing; structure is L-shaped, with each arm of L a segment of double helix, twisting like 2 spiral staircases around 1 another; tRNA molecules have basic structural similarities; because abnormal tRNA is found in tumor cells, project has been supported by Amer Cancer Soc, as well as Natl Insts of Health, Natl Science Foundation and Natl Aeronautics and Space Adm; major puzzle remaining is how nature devised this method to maintain continuity in mfr of proteins; drawings