May 17, 1973

The dollar firmed against other currencies on leading European money markets yesterday in somewhat quieter dealings. Prices of gold bullion dropped following the sharp advances of Monday and Tuesday. Details, Page 63.

NYC mayoral candidate M Biaggi expresses outrage at recently announced investigation into '59 shooting incident in which he, as police lt, shot robbery suspect, saying that it has been considered act of heroism for 14 yrs

Pres Nixon accuses Cong, May 16, of 'action that could severely undermine' the chances of restoring peace to Cambodia and all of Indochina, statement read by his press sec R L Ziegler; argues that recent Sen and HR moves to stop US bombing in Cambodia are especially damaging because they come 'on the very eve of negotiations to achieve compliance' with the truce accord; refers to Kissinger‐Le Duc tho talks in Paris; Sen Repub leaders, using series of technical delaying measures, force Sen Mansfield to hold up action for a wk on a total cut‐off of funds for the bombing; Mansfield says he has no choice; Sen Scott says an opportunity should be given for Kissinger‐Tho to succeed; Repub Sen Saxbe says he will probably vote for fund cut‐off; says US bombing of Cambodia 'shows a callousiness for civilians that we cannot tolerate in this country'; thinks fund cut‐off will pass; Sen E J Gurney opposes further bombing; excerpts from Sec Richardson secret testimony, obtained by NY Times, suggest that Nixon will back off from conflict with Cong if it votes fund cut‐off; adds that if US can go ahead on bombing at present rate during Paris talks, 'we should have a relatively stable situation through the summer, and the whole situation should be reassessed then'; HR Dem Caucus votes 125‐10 for resolution urging legis to prohibit the conduct of war in SE Asia without specific permission of Cong

Sen Watergate com will begin its hearings May 17 in Caucus Room of Old Sen Bldg exactly 11 mos after Watergate scandal 1st arose with arrest of 5 men who had broken into Dem Natl Com hq; 1st witnesses will be R C Odle Jr, dir of adm for Repub re‐election com, B A Kehrli, staff sec to Pres, and Sgt P W Leeper, policeman who, along with 2 colleagues, arrested Watergate burglars; hearings will be televised nationally; Watergate com has divided its investigation into 3 principal areas: effort by J W McCord Jr, his co‐conspirators and any others to wiretap and bug Dem opposition in May and June '72; campaign financing irregularities and broader efforts at espionage and sabotage; major issue within com is question of whether to compel testimony from ex‐White House counsel J W Dean 3d by granting him immunity from prosecution; Judge Sirica grants Sen immumity to G G Liddy May 16; illus of Caucus Room

NYS Legis on May 16 overwhelmingly approves bill that would suspend for 1 yr 2.5% income tax surcharge authorized during '71‐72 fiscal crisis; measure passes Assembly by vote of 134‐1 and Sen by 59‐0; bill would suspend surcharge on '73 taxable income and save avg taxpayer about $15; loss of revenue to state is estimated at $80‐million; Sen majority leader W M Anderson says indications from Gov Rockefeller are that he 'would be happy to sign it'; surcharge was added to income tax as temporary, 5‐yr measure; only Assemblyman to vote against suspension of surcharge is A O Eve; Dems call passage of tax cut 'limited victory'; Assembly Speaker P B Duryea hails passage as 'historic event'; Dems in both houses take credit for 'forcing' Repubs to come out with surcharge suspension; Sen M Ohrenstein says that credit for passage belongs to Dem minority; during debate on measure, Assembly majority leader J E Kingston said that income‐tax receipts during Apr were up 12% over '72, assuring sufficient surplus to permit suspension of surcharge; Assemblyman B G Hecht estimates that there would be surplus in excess of $700‐million; Assembly minority leader S Steingut joins call for additional tax‐cutting measures; Assemblyman C E Cook comments; last tax cut in NYS was in '61, when income taxes were cut by 10% for 1 yr to absorb unanticipated fiscal surplus built up in '60‐61