March 2, 1974

The value of the British pound fell 1.85 cents and prices of stocks went down 24 points in hectic trading in London yesterday in reaction to the setback for Britain's Conservative Government. Details on Page 41.

Fed Judge Lee P Gagliardi suspends Mitchell-Stans trial on Mar 1 for 'apparent excesses' by Asst US Atty James W Rayhill; expresses grave concern after Rayhill, in opening statement, tells jury to put itself in place of grand jurors who indicted defendants, thereby suggesting indictment was proof of guilt; adjourns trial until Mar 4, at which time he will decide whether to call mistrial; Rayhill discloses coconspirator Harry L Sears will testify for prosecution under grant of immunity; courtroom sketches by Marilyn Church (M)

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Sec Kissinger on Mar 1 takes part in ceremony at US Embassy in Cairo marking formal resumption of full diplomatic relations between US and Egypt; US officials say Pres Nixon will probably accept Egyptian Pres Sadat's invitation to visit Egypt but trip would probably not occur until 2d half of '74 (S)

White House deputy press sec Gerald L Warren says, in statement approved by Pres Nixon, that indictments indicate judicial process is finally moving toward resolution of matter; cautions US to remember that accused are presumed innocent unless proved guilty; Warren says Watergate prosecutor Leon Jaworski did not inform Pres of indictments and that news came to White House on teletype machines; says Nixon has not been informed of what might be in sealed grand jury rept given to Judge John J Sirica; Charles W Colson and Kenneth W Parkinson, indicted by Watergate grand jury, issue personal statements of innocence and predict their eventual exoneration on charges; 5 other indicted men issue statements of innocence through their attys; Nixon's son-in-law David Eisenhower says, in response to question about indictments, that defendants 'have been accused for a yr, so it is nothing new'; Nixon's soc activities noted (L)