October 5, 1974

Pres Ford's press sec Ron Nessen says that 'sacrifices' that Ford will ask Amers to make in his Oct 7 address on econ will not include increase in gasoline tax or gasoline rationing; says Ford will ask for conservation of fuel (S)

internal Interior Dept memorandum is presented at meeting of coastal states' reprs in Washington on Oct 4, directing dept's Bur of Land Mgt and Geological Survey to draw up 'a firm leasing schedule' aimed at selling 10-million acres of offshore oil leases by '75; memo, produced by Alaskan repr Guy R Martin, reflects orders of dept's Under Sec John C Whitaker and is signed by Deputy Under Sec Jared G Carter; Carter says memo was to spur work on geological studies and environmental impact statements needed before lease sales could proceed; Martin, NJ Gov Brendan Byrne, NJ Environmental Protection Comr David J Bardin and Sen John V Tunney concerned over memo; Sen Edward M Kennedy schedules hearing of Subcom on Adm Practices and Procedures of Judiciary Com to probe affair (M)

Colony Development Operations, joint venture of Atlantic Richfield Oil Co, Oil Shale Corp, Shell Oil Co and Ashland Oil Inc, suspends plans to start construction in '75 on 50-bbl-a-day shale-oil plant in Parachutes Creek section of Colo; cites inflation, tight money, rising construction costs and absence of natl energy policy establishing role of oil from shale in natl energy picture; gen mgr Hollis M Dole comments; Fed Energy Asst Admr Duke R Ligon disappointed at decision; agency 'discussion draft' of environmental impact statement on shale says that production of 1.5-million bbls of shale oil a day in '90 could increase salinity of Colo River, create Salt Desert environment over wide area with possibly permanent climatic changes, inflict cumulative agr damage through '90 of more than $30-million and commit substantial financial resources for relatively low net energy gain; agency sources says maintenance of viable shale-oil operation in face of soaring construction costs would apparently require fixed future oil prices as high as $15 a bbl; Environmental Defense Fund repr Katherine Fletcher comments (M)

Oct 5-6: Israeli Foreign Min Yigal Allon on Oct 4 says that Israel, if attacked by Arab state, will not allow other side to determine 'the type of war' to be fought but will strike back at once with all its new mil might, int, NYC; says Israel will not permit itself to be drawn into war of attrition; pledges moderation in talks with Arab states; says 'now is best chance to get a political settlement in the Middle East'; says, alluding to Sec Kissinger's forthcoming trip to Middle East, that solution to area's problems is not question of shuttle diplomacy but patience on part of Arabs, of Israel and of US State Dept; conditionally agrees with recent US intelligence estimates that Israel has more mil power now in relation to Egypt and Syria than it had before Oct '73 war; says mil ballance is not sufficient to deter Arabs from attacking; says recent Soviet arms shipments to Egypt and Syria cannot be considered defensive because arms, including middle-range missiles and MIG-23 jet fighters, can hit every Israeli city; hopes Kissinger's visit will 'revitalize political movement' by defining procedures for new talks; says he hopes that interim agreement on nonbelligerency can be negotiated with Arabs; says Jerusalem must never again be partitioned; says talks can be held later with religious groups to establish special status for holy places of their faiths in Jerusalem under Israeli sovereignty; says Israel does not accept idea of separate Palestinian state because it would be expansionist at expense of Jordan; says Palestinian state will bring Soviets to outskirts of Jerusalem; says Israel might agree to federation between future Palestinian state and Jordan; reiterates Israel's rejection of talks with Palestine Liberation Orgn (PLO); Israeli sources say later that Israel might not object to presence of PLO members in Jordanian delegation at talks; Allon illus (L)

Sen votes, 56-7, to direct Ford Adm to retain custody of former Pres Nixon's White House tapes and documents; measure forbids destruction of any Watergate tapes without Cong's consent; some Repubs, including party's Sen leaders, attack legis, charging that it is politically motivated, vindictive and probably unconstitutional abridgement of Nixon's rights; Repub leaders vote for measure after attempts to alter or delay action on it were defeated by margins of 3-to-1; bill is described by its sponsors, Sens S J Ervin Jr and G A Nelson, as 'emergency' legis; provisions of Ford-Nixon agreement on documents and tapes noted; Sens H D Scott, H L Hruska and Ervin comment (L)