June 1, 1974

Textron Inc and Lockheed Aircraft Corp reach agreement in principle under which $75-million in Textron funds would be used to revitalize financially-ailing Lockheed and thus release Fed Govt from its loan guarantee of $200-million, which rescued Lockheed from bankruptcy in '71 and salvaged L-1011 Airbus project; plan, which would entail financial restructuring as opposed to acquisition by Textron, could give Textron as much as half ownership of Lockheed; Lockheed's banks reptdly have made critical concession by agreeing to convert almost $300-million in loans into preferred stock; agreement was orchestrated by Lazard Freres & Co, investment banking corp; Lockheed's financial problems recalled; illus of Lazard Freres investment banker Felix G Rohatyn (L)

Pres Nixon is pressing ahead with arrangements for trip to Middle East beginning around June 9 as follow-up to Sec Kissinger's successful mediation of Syrian-Israeli disengagement agreement on Golan hts; illus of Nixon with Kissinger (S)

WASHINGTON, May 31 —The United States and the European Common Market announced today a major trade agreement that will reduce European tariffs on more than 20 products of which the United States is a big exporter. The cuts will compensate the United States for damage to American imports resulting from the enlargements of the Common Market.

 

Mayor Beame says May 31 that he will sign City Council legis to repeal and roll back rent increases of up to 4% per yr in many of the city's 1-million rent controlled apts; also says he is no longer seeking legis to provide temporary emergency rent increases for landlords of controlled apts affected by last winter's soaring fuel prices; Ruben Klein, chmn of Bronx Realty Advisory Bd, says if mayor signs bill, owners would move to cancel their contracts with apt employes, which could mean strike