January 30, 1973

Nixon Adm plans to seek legis that will require elderly to pay sharply increased share of their hosp costs, change that seems sure to trigger opposition from senior citizens and to lead to Cong fight; planned change in Medicare charges will require 23 million Amers eligible for Medicare benefits to pay additional $1-billion yrly in hosp costs; cost to patient of avg Medicare-financed stay in hosp of about 13 days would rise from present $72 to almost $200, if planned legis goes into effect in Jan '74; 2 other Medicare changes that would also need Cong approval would increase charges to 22.5-million people enrolled in supplementary ins feature of Medicare; net result of 3 proposals will be reduction in payments by Medicare of estimated $1.6-billion in 1st full yr of operation; informed sources complain that changes are attempt to 'raid' Medicare trust funds, which would be showing sizable surplus even without proposed reductions in payments; contend Adm will be using surpluses to reduce deficit in total Fed budget and is not considering Soc Security System; Adm's counterargument is that changes are necessary to contain inflation in Medicare costs specifically and in health service charges generally; '74 Fed budget for health services detailed

Nixon Adm's fiscal '74 Fed budget proposes savings of almost $600-million from sterner enforcement of 'quality control' in welfare program; policy is aimed at eliminating ineligible recipients from relief rolls and ending overpayments and is part of an avowed effort to restore public confidence in program

Pres Nixon on Jan 29 presents Cong with budget containing list of more than 100 cutbacks or terminations of Govt programs, noting that 'only responsible alternative' to reductions would be tax increase

 

Queens Asst Dist Atty Archer and codefendants Klein and Wassenberger are convicted on Jan 29 of conspiring to fix gun possession conviction of undercover agent S Barrio for $15,000; sentencing set for Mar 14; case revd

NYC Mayor Lindsay on Jan 29 orders drastic speed-up in training of police recruits in wake of recent ambush shootings of 4 NYC policemen; acceleration will be accomplished without lowering training standards by doubling or tripling sessions at Police Acad; as much as 1 yr maybe cut off 2-yr program to add 3,150 new recruits to force; plan will cost additional $13-million; Police Acad now has 1st class since Feb, '70, when Lindsay imposed job freeze on force for economy reasons; police force now totals 29,571, as compared with 32,000 2 1/2 yrs ago; city will also hire 2,300 civilians to relieve policemen from clerical tasks so that they can do patrol duties

fiscal '74 budget highlights

sources say FBI made no attempt to fully investigate pol espionage and sabotage activities allegedly conducted last yr by Calif lawyer D H Segretti, who reptdly acted under direction of White House and Repub re-election officials; say Justice Dept officials learned of Segretti's activities within wks after Watergate arrests last June 17 but decided on basis of preliminary interviews with Segretti that his activities were legal and therefore beyond scope of extensive FBI inquiry; it is believed that Segretti began his operations, apparently on behalf of some White House officials, as early as Sept '71, at about same time E H Hunt Jr, then White House consultant, reptdly began organizing his pol intelligence team; Segretti is known to have met at least twice with Hunt; sources say Justice Dept made no effort to find out who placed Segretti in contact with Hunt; White House officials repeatedly say they did not know either about Segretti's espionage operation or pol intelligence activities headed by Hunt and G G Liddy; source says FBI's decision was reaffirmed last Oct after newspaper accounts indicated full scope of Segretti's activities, which were said to have involved sabotage attempts against Dem candidates during primary election campaign; Pres Nixon, in Oct 5 news conf, depicted FBI inquiry into Watergate case as extremely thorough and complete, but Justice Dept and FBI officials said in recent ints that investigations early in summer and in fall of Segretti's activities were cursory at best; Justice Dept officials argue that even without any immediate evidence of wrong-doing, Govt had obligation to fully investigate Segretti's activities; other sources say that published repts of Segretti's alleged operations described number of ostensibly illegal activities, including forging of campaign lrs and promise of future pol rewards in return for pre-election support; in addition, Segretti was said to have been paid with funds from Repub fund totaling at least $350,000 that may have been collected in violation of campaign finance disclosure laws; Segretti's close friend L R Young quotes Segretti as having said that Pres aides coached him before his grand jury appearance and that Repub officials permitted him to review his FBI dossier; Young says he was surprised that he was not contacted by FBI

Owens, Cora (Mrs): 106-yr-old Mrs C Owens dies on Jan 29 when fire engulfs Street's Rest Home in Pleasantville, NJ

S Vietnamese Govt and Communists on Jan 29 accuse each other of scores of additional cease-fire violations, but US analysts describe fighting that continues around country as 'scattered light activity' that is gradually diminishing in intensity; S Vietnamese mil spokesman says Communists committed 257 additional cease-fire violations, bringing total since cease-fire began to 737 alleged Communist violations; do not rept any cease-fire violations by their own troops although information from field indicates that such violations are occurring; Vietcong command accuses Saigon Govt troops of violating cease-fire repeatedly while Vietcong units were 'scrupulously' adhering to terms of Paris accord; Internatl Comm of Control and Supervision of cease-fire holds its 1st meeing in Saigon on Jan 29; comm consists of reprs from Canada, Indonesia, Hungary and Poland; 4-party Joint Mil Comm also meets for 1st time but becomes ensnared in procedural dispute; S Vietnamese rept 1st political assassination since cease-fire-killing of deputy hamlet chief on Jan 28 in Dinh Tuong Province; withdrawal of US mil personnel from S Vietnam accelerates, with 400 men departing on Jan 28,300 to 400 on Jan 29 and same number scheduled for Jan 30; illus of S Vietnamese soldier wounded in fighting; illus of N Vietnamese captain posing with S Vietnamese soldier and Vietcong soldier; map

S Vietnamese forces openly ignore cease-fire accord in area NW of Saigon on Jan 29, but on a relatively small scale and selectively; Saigon Govt spokesmen charge there have been hundreds of Communist violations since cease-fire supposedly began at 8 AM, Jan 28; Saigon forces are trying, with considerable success to drive away Communist forces that had blocked rds and occupied hamlets in a last-minute offensive shortly before the cease-fire; US sources rept that that in a few cases Communist troops are moving about in S Vietnamese uniforms; Saigon Govt seems to have made a decision that it will not tolerate Communists' successful efforts to block key rds and lines of communications; S Vietnamese also shell fringes of hamlets that are under mil pressure from Communists; Amers are not involved in any of the fighting; cease-fire accord protocols relating to troops remaining in place cited; situation at Tay Ninh described

Turkish Repub People's party leader B Ecevit calls for end to martial law on Jan 29 and return to normal dem govt; holds Govt's denial that it has tortured pol prisoners is 'unconvincing;' says in Parliament that it is natural in dem Western nations to criticize Turkey, where Govt 'avoids its authority and responsibilities vis-a-vis martial law, where martial law has lasted 2 yrs and where thousands of persons have been arrested'