March 27, 1974

Brit Chancellor of the Exchequer Denis Healey, in dramatic effort by country's new Labor Govt to resolve econ difficulties, announces broad range of tax increases, substantial food subsidies and other fiscal measures, new Cabinet's 1st budget; announces reduction in cost of some basic necessities, increased taxes on many nonessential items and price increases for some essential goods and services; Govt's resolutions are not expected to face major challenge from Opposition in House of Commons; programmed Govt expenditures, including capital outlays, are $105.4‐billion, or about $6.4‐billion more than projected income; Healey illus (L)

Pakistani Prime Min Bhutto, in int with A M Rosenthal, discusses how he has rebuilt nation's econ framework and put together different and delicately balanced foreign policy since nation was defeated in ‘71 war with India; Bhutto says Pakistan is entering new and decisive stage; is optimistic about nation's future; says skilled Pakistani labor combined with money from nations rich in oil could create arms indus for Middle East; Bhutto por (L)

High Nixon Adm official repts US has notified EEC nations it is no longer interested in obtaining a declaration of principles on their Atlantic relationship and has suggested Eurs propose a system of consultations instead; says Sec Kissinger informed W Ger Chancellor Brandt and Min Walter Scheel in their confs Mar 24; says abandonment of US aim, growing out of Kissinger's Apr ‘73 call for ‘new Atlantic charter,’ will probably be interpreted as victory for France; adds that it can also be interpreted as defeat for EEC foreign policy, which has primarily been a French cause; says if any declaration is preserved it will be NATO one; says Adm has also shelved plan for associating Japan with US and W Eur (M)

George Foreman retained the world heavyweight boxing title last night by stopping Ken Norton in the second round of a scheduled 15‐round bout in Caracas, Venezuela. Page 49.

HR Judiciary Com attys John Doar and Albert E Jenner Jr receive secret Watergate grand jury rept on Pres Nixon and accompanying evidence from Judge John J Sirica; evidence will reptdly be crucial to com's eventual recommendation on whether Pres Nixon should be impeached; measures taken against risk of leaks discussed; White House counselor Bryce N Harlow says he does not believe com or its staff, when it asked for vast additional numbers of White House tapes and documents, was intent on fishing expedition or delaying tactics; suggests there is procedural problem in narrowing scope of com's inquiry and that White House and com attys are in daily consultation; predicts HR will vote against Nixon's impeachment by end of May; illus of Doar and Jenner carrying evidence; por of com Chmn Repr P W Rodino Jr (M)