July 10, 1973

US State Dept spokesman P J Hare says, July 9, proposals made by Cambodian Min Long Boret for a cease-fire and negotiations with the other side are 'a significant declaration which sets forth a major initiative for peace in Cambodia'; urges rebels to show goodwill; says Nixon Adm hopes proposals will get 'favorable consideration by interested members of the internatl community'; says Cambodia was discussed by Nixon and Kissinger with Chinese Amb Huang Chen; says US believes restoration of peace in Cambodia is question to be resolved through talks among Cambodian parties themselves

112 Amer Peace Corps volunteers, after almost 2 1/2 days of detention in Uganda, on July 9 are permitted to continue their journey to neighboring central African country of Zaire; Uganda Pres I Amin orders their release upon receiving assurances from Zaire that Amers had been invited; assurances are given in message from Zaire Pres Mobutu Sese Seko; Peace Corps volunteers, who are described by Amer officials in Uganda as unharmed, unalarmed and in good spirits, leave by plane for Kinshasa, capital of Zaire, at 7:03 PM; several hrs later, AP quotes Zairean press agency as saying that volunteers have arrived safely; East African Airways, which provided both plane that carried Peace Corpsmen to Entebbe Airport on July 7 and one that flew them to Zaire, is operated by regional orgn called East African Community; it is made up of Uganda, Tanzania and Kenya; Amin asks airline and community officials to make sure that in future all 3 countries be informed of any charter flights in advance; map

Cadman Towers (Bklyn): Cadplaz Sponsors Inc, sponsor of Cadman Towers co-op in Bklyn, and M Mishkin, Cadplaz atty, are acquitted of fraud on July 9 by NYS Sup Ct Justice V Titone; indictment of June 27, 1972, accused defendents of wilfully trying to defraud prospective tenant-owners of Cadman Towers by telling them that the contractor, rather than the tenants, would pay for increased construction costs; Justice Titone noted that Cadplaz Inc's agreement with contractor, Cauldwell Wingate Co Inc, permitted contractor to pass along many substantial costs to co-op but held that there was reasonable doubt that information on costs was false; Titone also said matter was not 'model of forthright dealing with the public' and that the emphasis in the information bulletin was on possible reduction in cost, not on an increase

GAO charges Agr Dept officials on July 9 with mismgt of '72 massive wheat sales to USSR, which it claims resulted in excessive export subsidies and high Amer food prices; Agr Dept's office of inspector general, in another rept, accuses several large grain cos of claiming more subsidies than they were entitled to, totaling $2.7-million; GAO rept, delivered to Cong, accuses Agr Dept's export officials of failure to keep abreast of mkt conditions and failure to demand information on scope of grain deals; notes that price of wheat in US nearly doubled since summer of '72; says dept is committed to pay over $300-million in subsidies on Russian and other export sales; believes that many of these sales would have been made even with reduced subsidies and that Agr Dept should have responded more rapidly to available information and reduced or eliminated subsidies sooner; criticizes dept regulations that permitted grain dealers to speculate in subsidies by delaying registration of sales until rising prices forced Govt payments upwards; holds that export officials used subsidies to keep export prices low despite steadily accumulating evidence that US was only country with large grain supplies; says that even though export mktg system lacked statistical analysis, it failed to take advantage of more than 200 economists and analysts in econ research service and foreign agr service; criticizes dept officials for not making an effort to inform themselves of size of traders' dealings with USSR; also criticizes dept for failure to pass on information to farmers about scope of deal; farmers had already sold their products to large cos before they learned of deals; GAO agrees with Agr Dept's claims of number of benefits that resulted from exports, noting that US balance of payment benefited, US exporters sold record amts of wheat, farm-income increased substantially, surplus stocks were reduced and idled acreage was put back into production; Agr Sec Butz, in lr of reply quoted in rept, agrees with recommendation that subsidy program should be revd before any reinstatement and that ways for better coordination should be found; adds, however, that dept is 'not nearly as certain as GAO' that record vol of wheat exports would have occurred at higher prices; GAO rept brings new attack from Repr J Melcher, who has long been critical of dept's handling of deal; Melcher says that dept had continued to pay out subsidies because of relationship with grain-exporting firms that was 'too cozy'; Agr Dept's office of inspector general charges that 19 exporters 'overbooked' subsidy claims

Attys for former Atty Gen Mitchell, former Commerce Sec Stans and NJ Repub H L Sears submit motions to dismiss indictments against their clients on ground that prosecution was 'guilty of persistent and deliberate misconduct'; 3 are charged with taking part in conspiracy to influence SEC fraud investigation of NJ financier R L Vesco in exchange for Vesco's $200,000 secret cash contribution to Pres Nixon's re-election campaign; Vesco left US before indictment was handed down and remains a fugitive in the case; defense attys accuse Govt prosecutors of asking Mitchell in front of grand jury about persons prominently identified with Watergate case, thereby improperly injecting Watergate scandal into Vesco case; attys say this 'irreparably prejudiced' defendants, and that additional damage was done when Govt sources 'leaked' news repts that Mitchell was likely to be indicted in Watergate case; attys further charge that statement made by then-US atty W N Seymour Jr at time indictments were announced 'proclaimed guilt' before a trial, thereby depriving defendants of their right to fair trial