May 4, 1974

A Federal grand jury is investigating reports of agents who say they have uncovered evidence of an extensive, systematic air‐travel kickback scheme in which millions of dollars in illegal rebates have been secretly funneled by air‐

Number of officials close to Watergate inquiry have concluded, on basis of edited White House transcripts, that John W Dean 3d testified with gen credibility and lucidly last summer before Sen Watergate com about his conversations with Pres Nixon; they are known to believe that Dean's testimony was more accurate than Nixon's subsequent acctgs of their Watergate conversations; Sens S J Ervin Jr, H H Baker Jr and L P Weicker Jr express faith in Dean's credibility; Sen H Scott says transcripts support his earlier allegation that Dean lied when he said Nixon knew of Watergate cover-up before Mar 21 '73; Vice Pres Ford says he has concluded from reading transcripts that Dean was 'real conniver,' news conf, Myrtle Beach, SC; transcripts raise questions about image Dean attempted to present during Sen hearings; that of having been loyal aide urging his Pres to put end to cover-up; transcripts depict Dean as eager to please and willing to be expedient; examples cited; Mar 13 '73 conversations quoted; analysis of transcripts appears to undercut much of White House criticism of Dean; Mar 21 '73 conversation quoted; pors of Nixon and Dean (L)

Manual Moore, Larry C Green and J C Simon arraigned on May 3 in Zebra killings; suspects Thomas Manney, Dwight Stallings, Edgar Burton and Clarence Jamerson released for lack of evidence; Moore and Simon accused of murder of Alario Bertuccio, 81, on Dec 20, '73, and of Jane Holly on Jan 28, '74; Green accused of killing Quita Hague and robbing her husband Robert on Oct 20, '73; Judge Agnes O'Brien reads gag order forbidding officials, lawyers, ct attaches, police and Mayor Alioto from releasing information about case; illus (M)

Sec Kissinger pledges in Damascus on May 3 that once disengagement accord is achieved with Israel, US is prepared to extend econ assistance for reconstruction of Syrian econ; illus of Kissinger with Syrian Foreign Min Khaddam (S)