January 15, 1975

Sen C T Curtis defeats Sen J K Javits for post of chmn of Sen Repub Conf; vote was 23‐14; debate was marked by speech by Sen L P Weicker Jr, who castigated Curtis for his enduring support of Pres Nixon, whom Curtis had stanchly supported until Nixon resigned; Sen E W Brooke rebukes Weicker; Javits's 14 votes coincide with number of members of Wednesday Club, made up of liberal Repub Sens who attended meeting; Javits did not expect to lose election; aide to sen J L Buckley, Sens C McC Mathias Jr and H H Baker Jr comment; illus of Curtis, Javits and Robert Stafford, who was elected sec (M)

White House says Pres Ford will ask Cong on Jan 15 to put tax of $2 a bbl on all domestic crude oil and comparable levy on all natural gas; prices of all petroleum products will go up by varying amts as result of tax; gasoline price might climb by 10c to 15c a gallon; announcement says Ford's intention to impose by exec action 'fee' of $3 a bbl on imported crude oil led to widespread speculation that proposed tax on domestic crude oil would also be $3; White House press sec Ron Nessen says import fee will drop to $2 once Cong enacts domestic tax; Nessen says proposed tax on natural gas will be 37c per 1,000 cu ft; says tax would be equivalent in cost to consumer to $2 a bbl of oil; its purpose will be to avoid any incentive for indus to switch from oil, as price of oil goes up, to natural gas (M) (L)

TRENTON, Jan. 14—Governor Byrne warned the New Jersey Legislature today that it would have to approve new taxes to bridge what one highly placed state official said would be a state budget deficit of approximately $600‐million.

US State Dept spokesman Robert Anderson says that US is free to breach '73 Vietnam cease-fire agreements because N Vietnamese have violated them, news conf; declines to confirm outright that US has resumed reconnaissance flights over N Vietnam, banned by June '73 agreement between Sec of State Kissinger and N Vietnamese negotiator Le Duc Tho; refers to dept spokesman Charles W Bray's '73 statement on internatl law permitting 1 party to breach accord if other side had already done so; Defense Sec James R Schlesinger says that blatant failure of N Vietnam to live up to its commitments has created set of circumstances different from those at time of signing of Paris peace treaty,' news conf; recent disclosure of State Dept note sent to 8 countries and UN Sec Gen Waldheim calling for them to urge N and S Vietnam to resume peace talks recalled; note and Anderson's veiled justification of reconnaissance flights seen as part of concerted 3‐prong Ford Adm effort to persuade Cong to allocate more mil aid to S Vietnam, bolster S Vietnamese Govt and caution N Vietnam against launching huge offensive; Schlesinger reptdly supports mil aid increase; says N Vietnam does not appear likely to launch countrywide offensive but seems to be trying to weaken S Vietnam Govt's control of countryside; '69 Law of Treaties provision of breach of agreements discussed; Adm officials privately have confirmed repts from N Vietnam that US is flying reconnaissance missions over N Vietnam but denies charge that reconnaissance is directing S Vietnamese Air Force strikes (M)

White House repts on Jan 14 that Pros Ford's new econ program Includes $163‐billion cut in individual tax rates for '75, in addition to $12‐billion rebate for 74; cut would heavily favor those in lowest brackets, unlike rebate, which would give same percentage tax cut to most taxpayers; new tax rates would be in effect for as long as additional $30‐billion in oil taxes that Ford has proposed are also in effect; major elements of tax program are 12% rebate on '74 taxes, changes in individual tax rates for '75 and subsequent yrs, credit of 15%, up to ceiling of $150, against cost of home insulation and other fuel-saving investments, increase in investment credit from 7% to 12% and cut in corp tax rate from 48% to 42%; tables of '74 tax rate schedules, proposed '75 schedules and of how changes in individual rates would affect different income groups in '75 (L)