May 29, 1973

Audit by NYS Controller Levitt reveals that NYC school system may have been overcharged as much as $6.3‐million on its textbook purchases during 5‐yr period from '67‐68 through '71‐72; rept says many school dists throughout country paid lower prices for same textbooks in same yr; rept criticizes Educ Bd's purchasing practices as major reason for overcharging; Educ Bd member M Bergtraum says bd asked city's Corp Counsel to investigate Levitt's charge and will file suit immediately to recover overcharges; illus of Levitt

Informed sources disclose on May 28 that J W Dean 3d has told Watergate investigators that H W Kalmbach, Pres Nixon's former personal atty, approved spending of $200,000 to $400,000 in leftover '68 Repub campaign contributions to help defeat Gov Wallace in closely contested Dem primary in Ala in '70; Wallace, then a former Ala Gov who was widely viewed by pol strategists as pol threat to Nixon in '72 Pres election, won runoff for Dem gubernatorial nomination by 3 percentage points in June '70; defeated Gov A P Brewer, who ran ahead of Wallace in 1st primary but failed to gain majority vote; 2 Washington attys familiar with election law say that such contributions would not have violated Fed law but caution that careful check of state campaign financing law would be required before final opinion could be rendered; both Vice Pres Agnew and W M Blount, former Postmaster Gen in Nixon Adm, endorsed Brewer in bitter primary elections, which attracted natl attention; Wallace repeatedly charged that Blount was raising money for Brewer but no evidence was provided at time

NY Times survey details S Africa's current moves to relieve pressures of apartheid, while preserving what it calls white 'identity' in predominantly black country; Govt has proclaimed that 16‐million blacks will become citizens of 9 African homelands and 650,000 Indians and 2‐million people of mixed race will achieve 'parallel development' although not in geographic homelands; Govt recently introduced bill that would give blacks qualifed legal right to strike‐right that had been withdrawn 31 yrs ago; has staged interracial sports competition; its wage board is urging review of minimum wages in more than 30 industrial categories; Afrikaner people themselves, descendants of Dutch, French Huguenot and Ger settlers who came to cape in 1600's, are becoming increasingly urbanized, prosperous and sophisticated; businessmen are demanding increasing frequency of 'rational' black labor policy that will permit them to increase productivity by greater training and use of blacks in skilled and semiskilled jobs; this will demand that urban blacks be given greater security and permanence of residence in white areas, bringing into direct conflict theory of separate development; Nationalist party's official newspaper has called petty apartheid humiliating, unjust and and held it increases racial tensions without protecting any fundamental white interests, such as pol power; main expression of black power has been wave of illegal black strikes; illus

rain driven in some places by high winds washes out parades and other Memorial Day events in NYC Met Area; Natl Weather Service puts into effect tornado watch covering NYC, Westchester and Rockland Counties and northern NJ; over 30 traffic fatalities in tristate area, including at least 3 in NYC, are among natl total that reached 400 before surge of homeward bound traffic began; illus of Defense Secdesignate Schlesinger presenting wreath at Arlington Natl Cemetery and Boy Scouts in Bklyn forming color guard

NYS Legit on May 28 approves measure sought by Gov Rockefeller that prepares way for state take‐over of adm of NYC welfare system; measure creates special div within Rockefeller's office to prepare for central welfare computerization; approval of measure in closing hrs of session was accompanied by assertions from 'suspicious' city Dems that they had received assurances from Repubs that Rockefeller's new welfare div would not overrun city; bill creates special div with $1‐million budget and an adm bd of 5 appointees; div's powers and duties include submission of proposal in '74 for public corp to administer welfare

Sources close to Watergate case say on May 28 that Watergate prosecutors have sent J W Dean 3d a lr formally offering to permit him to plead guilty to 1 count, obstruction of justice, in return for his cooperation; 1 source says prosecutors apparently decided to send lr after recent TV appearance by Dean in which Dean declared he wanted to tell truth; Dean has recd partial immunity from Sen Watergate com and is known also to be seeking immunity from Fed prosecutors in return for his testimony; some sources say Dean will continue to seek full immunity from prosecution before cooperating; special Watergate prosecutor A Cox is reptd to be ready to name top‐level staff lawyers for his investigation of scandal; Cox's 2 temporary assts, P E Heymann and J Vorenberg, are to be officially sworn in; Sen Ervin says that com will not hear from former White House officials until about mid‐June when it expects to complete qustioning of staff members of Pres Nixon's re‐election com, telephone int; Sen Muskie accuses Pres Nixon of 'obsessive secrecy' and 'systematic deception,' speech, Hyde Park, NY; Washington Post repts on May 28 that Fed prosecutors in Watergate case have told Justice Dept that there is justification for asking Nixon to answer questions about his role, but that there is no legal basis for doing so

4 Dem mayoral candidates, although short of money, plan extensive TV ad in final wk of primary campaign to combat what their strategists believe is extraordinary voter appathy; for Repr Badillo, TV commercials will be 1st of his campaign; Badillo aides, contending that they have had influx of money into campaign as result of endorsements by NY Times and NY Post, say that will spend up to $70,000, largely on TV; Controller Beame and Repr Biaggi will resume radio and TV ads after interruption of several wks; each plans to spend about $30,000; Assemblyman Blumenthal has had extensive TV campaign because he is least known of candidates; Blumenthal campaign mgr M DelGiudice notes that total of $115,000 had been spent on media in last mo and $40,000 would be spent in last wk; asserts there is 'sense of apathy' about election, echoing other campaign mgrs; among reasons cited for apathy are preoccupation with Watergate scandal, absence of any major issue dividing candidates, shortage of campaign money, lack of colorful candidate with strong following, and failure of 1 liberal candidate to emerge in essentially liberal Dem city

Greek regime declares on May 28 that 35 navy officers will be tried, probably on treason charges, in last wk's mutiny aboard Greek destroyer; says episode was not merely mutiny but full‐fledged attempt to overturn leadership by blackmail; Defense Min notes naval officers planned to hijack Greek fleet, occupy some unguarded Aegean islands, blockade main ports, and, after inviting army and air force to join them, ask Govt to surrender; holds plot failed and would‐be mutineers were rounded up on night of May 22 before they had time to move ships; notes only Greek destroyer Velos, which was taking part in a NATO exercise, headed for Italy, where 31 men were promised pol asylum; does not say how many ships were involved in reptd plot, but reliable informants say that 25 had been involved; min notes 32 of 35 navy officers implicated in plot were of sr rank and that men face possible death penalty on treason charges; indicates more officers had been in plot than was originally believed; says plan of insurgents was to move largest possible number of ships, which would have made rendezvous at harbor of Hermoupolis, on Syros Island; notes insurgents were to issue proclamation outlining pol targets and demanding Govt's resignation and would proceed to show force by sending small landing parties to various islands of Cyclades to bolster morale of population until demands were met; says group planned to blockade ports of Piraeus and Salonika and that fleet planned to leave for Italy if plot failed; identifies Capt G Konofaos, and retired Vice Adms C Engolfopoulos and I Mincos as alleged coup leaders; asserts that mil underground group known as Greek Antidictatorial Youth was to have engaged in sabotage and pol assassinations while navy was to stage coup; says security police disrupted this group, seizing its arms and arresting all its leaders and members

The San Diego Padres of tine National League have been sold to a Washington syndicate for $12‐million, heralding the return of major league baseball to the capital. The transaction, confirmed yesterday, is subject to approval by the club owners. Details, Page 43.

NY Times survey finds enrollment of whites of Eur descent (all whites except Puerto Ricans) continues to drop substantially in NYC public and nonpublic schools; white enrollment in city schools was 100,000 less in '71 than '66; whites have been minority in public schools since '66 and their share of total enrollment in all types of schools has dropped from 59% in '66 to 52% in '72; decline in white enrollment has outpaced decline in white births, indicating that whites continue to leave city in large numbers; tables; charts show public school enrollment by race in each city school dist, '71‐72

Skylab astronauts, in TV news conf on May 28, rept that their orbiting space station is in 'excellent shape' and that they fully expect to complete planned 28‐day mission despite high onboard temperatures and limited electricity; conduct 1st med tests by taking and processing blood samples and checking condition of their hearts and circulatory systems; Dr Kerwin notes, contrary to expectations, that it is possible to sense difference between 'up' and 'down' in zero‐gravity environment, observing that all it takes is a 'conversation' with the brain; concludes that it must therefore be possible for eyes and brain to override body's vestibular system, which is centered in inner ear and provides sense of balance; astronauts are saving fecal and urine samples for return to earth; rept special scale for weighing waste materials is not functioning properly; Comdr Weitz conducts experiment in pressure chamber to test effect of pooling of blood in legs, and pedals stationary egrometer to determine his capacity for strenuous work in zero‐gravity environment; temperatures inside space station continue to fall slowly, reaching 86 degrees Fahrenheit; flight controllers estimate atmospheric temperature in Skylab will stabilize at 75 degrees Fahrenheit

17 die in 2‐day 'land war' in Guatemala as 3,000 peasants clash with police in dispute over ownership of 54 acres of land outside Guatemala City