January 5, 1974

Soaring increases in jet‐fuel costs brought warnings from the airline industry yesterday that it would face bankruptcies or need massive government subsidy unless sharp new fare increases were authorized.

Jan 5‐6: UN Emergency Force deputy spokesman Birger Hallden repts on Jan 4 that blockade of food and other nonmil supplies for elements of 3d Army have been lifted after UN interceded with Israeli Army and Govt; says Israelis cited shooting in areas as reason for blocking supplies on Jan 2; ability of Israelis to block trucks underlines their actual control of hwy to Suez, which they relinquished in Nov under US‐sponsored cease‐fire agreement; increasing outbreaks of shooting incidents along frontlines, many intitiated by Egyptians, disturbs Israelis; pressure on supply lines of 3d Army and city of Suez offers form of retaliation; 1st restraints of supplies were reptd on Dec 26, when Israeli officers beside Suez Canal transfer points obstructed unloading of some trucks because of gunfire in area; Hallden says there has been marked increase in in gunfire along Egyptian‐Israeli lines; repts number of incidents on Jan 2 was 42, compared with 10 during previous day; latest fighting included 18 cases of artillery bombardment and 13 incidents of machine‐gun fire; Hallden says that at latest rept, Egyptian troops that advanced to new position east of Qantara are still there, despite agreement to pull back; map (M)

Pres Nixon on Jan 4 pocket‐vetoes HR bill that would have facilitated use of Fed funds for purchase of local buses; says that bill had ‘become antitransit measure'; says bill would allow use of funds from Urban Mass Transportation Act for purchase of buses even if they were to be used part time for charter operations, but would prohibit use of ‘73 Fed Hwy Act funds in same circumstances; will continue to press for legis permitting purchase of buses on equal footing under both acts

Soaring increases in jet‐fuel costs brought warnings from the airline industry yesterday that it would face bankruptcies or need massive government subsidy unless sharp new fare increases were authorized.

Legislature: Fed Dist Ct, applying provisions of ‘70 Voting Rights Act to Northern state for 1st time, holds on Jan 4 that Cong and Legis dists in Manhattan, Bklyn and Bronx are subject to scrutiny of Justice Dept for racial fairness; ruling, won by NAACP Legal Defense and Educ Fund after lengthy litigation, appears likely to force NYS to redraft dist lines for Cong and Legis elections in 3 counties in time for ‘74 elections; fund attys announce immediately that they will seek injunction in Fed Dist Ct, NY, during wk of Jan 7 to bar holding of ‘74 elections on present dist lines; express confidence that injunction will be granted; application of ‘70 Voting Rights Act to NY could result in creation of several new election dists that could send black or Puerto Rican reprs to Washington, DC and Albany; fund lawyer Eric Schnapper says that he believes ruling, which was made by Judge June L Green, is not appealable; effects on ‘74 elections should Justice Dept find that present election dists have been gerrymandered discussed; present ruling is temporary determination that NYS will not be exempt from voting act but is just as effective as though it were final since Dist Ct and Sup Ct are not expected to rule before elections; situation in Bklyn discussed; history of fund's litigation traced (L)