December 19, 1973

US's breeder reactor program, nation's most costly energy-research project, is suffering delays and large cost overruns that have forced re-examination of effort's pace and scope; AEC advisory panel under Dr H Bethe has strongly endorsed basic objectives of breeder program but has harshly criticized recent US steps toward this goal; Bethe int on issue; panel recommended changes in design and emphasis of test reactor being built at Hanford Works in Washington and of demonstration power plant to be built in Tenn; Bethe says Tenn plant should be built in commercially-oriented fashion desired by indus contractors, Westinghouse Elec Co, GE and Atomics Internatl Div of Rockwell Internatl Corp; among those serving with Bethe on panel were Dr C Starr and W Zinn; Hanford reactor, called Fast Flux Test Facility, is being built by Westinghouse Hanford Co, which took over project in '70 fron Battelle-Northwest, an arm of Battelle Memorial Institute; original and current cost estimates discussed; AEC Chmn D L Ray recent acknowledgement of cost problems noted; recent statement by W B Behnke, chmn of Project Mgt Corp, which is managing Tenn project, on costs there also noted; Prof M Driscoll comments on problem

Sen and HR negotiators, having agreed to give Pres Nixon far-reaching power during energy crisis, are still debating whether to include 1-yr or 2-yr extension of '75 'interim standards' on auto emission control devices

Watergate special prosecutor L Jaworski has decided not to call former ITT lobbyist Mrs D D Beard as witness before Watergate grand jury following 2 psychiatric examinations of her by ct-apptd psychiatrist; details of psychiatric repts are not disclosed; examinations became known on Dec 18 when Chief Judge J J Sirica unsealed 'stipulation and order' that was filed by special prosecutor's office in Nov; document stated that psychiatric repts on Beard had been prepared by drs selected by both Beard and Govt; says after examination subpoena requiring Mrs Beard to appear before Watergate grand jury was withdrawn; notes instead she was int by reprs of Jaworski's office; Beard's testimony is considered important in Govt's investigation into controversial antitrust settlement that allowed ITT to retain Hartford Fire Ins Co; memo said that pledge of up to $400,000 toward Repub Natl Conv was made by ITT in order to obtain favorable ruling from Govt; recently old friends of Beard have seen her in various parts of US, apparently in good health; about 2 mos ago Denver Post reptd that Beard had said she had been subpoenaed to appear before special Watergate grand jury but would try to avoid testifying for med reasons; por

Dem Congressmen up for re-election in '74 fear that Watergate scandal will spur voter backlash against incumbents in both parties; campaign consultant M Shields points to polls showing govt is being viewed increasingly as alien force; R J Keefe, exec dir of Dem Natl Com, says best course for Dems is to avoid trying to take advantage, overtly, of Watergate and to concentrate on more customary issues, such as inflation and law and order, which he feels Repubs have 'booted away'; unnamed consultant to Dems expresses hope that Pres Nixon stays in office, to dramatize Watergate issue; Sen L Bentsen, chmn of Dem Sen Campaign Com, says if Dems adopt 'go slow' strategem on HR's inquiry into possible impeachment of Pres, it would be 'counterproductive and transparent'; forecasts minimum 3-seat gain for Dems in Sen; Repr W L Hays, chmn of Dem Natl Cong Com who is 'shooting for' 40-seat gain for Dems in HR, also foresees backlash against incumbents, but only if gas rationing is put into effect

Louis A. Reiter, former head of the Municipal Loan Program for slum rehabilitation, was found guilty in State Supreme Court on larceny charges stemming from the scandal that shook the program two years ago. Details on Page 60.