June 21, 1973

Gov Rockefeller, in major reversal, orders end to all plans for LI Sound bridge project; seeks to avoid total concession by announcing that he will revive his proposal, defeated by voters in '71, for billion-dollar bond issue for mass transit construction and hwy projects which do not involve 'ecological problems'; '71 referendum for $2.5-billion in mass transit and hwy funds was defeated by vote of 2.4 million to 1.5 million

USSR and US Export-Import Bank are reptd close to final agreement on June 20 on extension of $180-million in credits to help finance construction of Soviet-Amer fertilizer complex in USSR that could lead to as much as $8-billion in trade over 20 yrs; Govt backed loan would represent 45% of total capital outlay, while private Amer banks would provide another 45% and Soviet Foreign Trade bank would provide remaining 10%; Export-Import Bank credit would spur construction of fertilizer complex, to be built by Soviet Govt and Occidental Petroleum Corp; credit has been under negotiation for several wks by Soviet Deputy Foreign Trade Min V S Alkhimov with bank officials

SEC atty T Levine, at Fed Dist Ct, Washington, dosed hearing on June 15,says M Laird, as Sec of Defense, asked aides to seek information about SEC's investigation of Fla East Coast Ry as favor to rr's chmn, E Ball; investigation led to Jan, '73, charges that rr, Ball and others were guilty of fraud and other violations of securities laws; comm seeks ct order to compel Ball to answer questions about his purpose in utilizing high Defense Dept officials to obtain information about probe; in transcript of hearing, made public on June 20, Levine tells ct that Pentagon aides made 2 calls about probe to SEC staff at Laird's request; Laird says inquiries were 'routine' reaction to Ball's complaint about probe; SEC case against Ball and others alleges fraud and misrepresentation in rr's plan to issue common stock in swap for outstanding bonds that had been quietly bought up by officers and trustees of line on basis of inside information; testimony detailed; Laird illus

Repr Rogers on June 20 says HEW Dept has taken steps to nullify provisions of important health bill before Pres Nixon signed it this wk; says dept moved to require many programs covered by bill to become financially self-sufficient; requirement would kill programs that are inherently incapable of becoming self-sufficient; bill in question extends for 1 yr several major health programs that Adm has repeatedly sought to kill; programs include Fed support for migrant workers' health services, community mental health centers, regional med programs and Hill-Burton program for hosp construction and modernization, although that program is apparently not involved in issue; says proposed regulations would seem to 'doom all migrant health programs, all neighborhood health centers, all family health centers and about 1/2 of community mental health centers; Rogers, in memorandum to HR Subcom on Public Health and Environment, of which he is chmn, says effect would be to seriously retard all health programs subcom that began in '60s; in lr to HEW Dept Sec Weinberger, Rogers says he believes regulations are illegal unless it can be shown that cong intended each of programs to become self-sufficient; asks Weinberger to delay implementing regulations for 120 days and to supply by July 2 evidence that it was intent of Cong to have all programs become self-sustaining; says he does not believe Cong had such intent, news conf

Japan's Sumitomo Group announces on June 26 that it has given $2-million to Yale Univ and $1-million to Japan Society of NYC to promote Japanese-Amer cultural understandings; corp's gift to Yale is largest ever received by univ from benefactor outside US; Sumitomo Metals Co pres H Hyuga and Sumitomo Bank retired pres K Asai comment; por of Koji Asai