September 10, 1973

IMF annual rept released Sept 9 warns that flexible internatl currency exchange rates are likely to have destabilizing impact on developing countries; says developing countries' record balance of payments surplus of $8-billion may weaken their case for IMF to provide additional monetary reserves to poorer countries

Fed investigators are examining Westgate-Calif Corp chmn C Arnholt Smith's alleged dealings with organized crime figures in yr that has seen his business empire come under attack from IRS, FBI, SEC and Controller of Currency; Fed grand jury in San Diego is reptdly investigating Smith's apptmt to Westgate bd of dirs San Diego atty J A Donnelley, whose name has been linked to organized crime figures for 25 yrs; SEC officials reptdly suspect Donnelley's apptmt was dictated by underworld figures in return for past or future investment in Westgate; Donnelley is suspected of acting as conduit for unlawful corp contributions to Fed office-seekers in Calif from C A Pratt, then pres of San Diego Yellow Cab Inc, which later became part of Westgate conglomerate; Smith and his enterprises reptdly have long history of dealings with organized crime; L Lipton was named sr vice pres of Smith-controlled US Natl Bank reptdly because of loans and accts his underworld associates would create for bank; Southland Amusement Co Inc, vending machine concern controlled by Mafia, has been beneficiary of hundreds of thousands of dollars in loans from bank and has also acted as guarantor for US Natl loans to bar and restaurant owners in return for allowing Southland to install its jukebox, cigarette machines and pool tables; Smith says he never heard of Southland, and US Natl Bank pres J F Mulvaney says he has only vague knowledge of its acct, which he describes as 'minimal'; Smith is also known to have had long business and personal relationship with J S Alessio, bookmaker, known organized crime figure and former dir of Westgate-Calif who recently served 2-yr prison term for income tax evasion; Smith claims Fed agencies are attacking him because of his longtime pol and financial support of Pres Nixon

comment on Sept 9 events at US Open tennis matches at Forest Hills; J Newcombe defeats J Kodes to win men's singles champ; M Court and V Wade win women's doubles champ; B J King and O Davidson win mixed doubles champ; illus

Cuban Premier Castro is applauded, notably by Arab countries, on Sept 9 at Algiers conf of nonaligned nations when it is announced that he has broken off diplomatic relations with Israel

Outbreak of cholera in southern Italy has increased north-south pol tensions; northerners are questioning use of money, estimated to be from $10- to $20-billion, that has been poured into southern Italy in development and aid funds in last 25 yrs; neo-Fascist newspapers and politicians arc among most vehement critics of authorities over shortcomings in south; right-wing extremists have for yrs been exploiting south's discontent and smoldering resentment against central Govt in Rome and prosperous north; extreme right wing has also played role in demonstrations in Naples in which crowds protested against lack of sanitation and vaccine after cholera broke out; Neapolitans are blaming politicians, admrs and central Govt for conditions in their city that favored spread of disease for yrs