January 16, 1975

Pres Ford blames Cong on Jan 15 for breakdown in efforts to exch US trade benefits for liberalized Soviet emigration practices, State of the Union address; says if US foreign policy is to be successful, Cong cannot rigidly restrict in legis ability of Pres to act; says legislative restrictions, intended for best motives and purposes, can have opposite results, as shown in trade relationship with USSR; Sec Kissinger and aides believe USSR decided on balance that trade benefits authorized by Cong were too limited to make it worth price it would have to pay in allowing freer emigration; Adm also believes Cong erred in limiting USSR to $300‐million over next 4 yrs in Export‐Import credits; Sens Henry M Jackson, Jacob K Javits, Abraham A Ribicoff, and Repr Charles A Vanik issue statement saying USSR had freely entered into 3‐way compromise made public on Oct 18 by Sen Jackson at White House; say they do not know why USSR chose to scuttle ‘72 trade agreement nor why compromise of Oct 18 appears to have lost its appeal to USSR only when it became apparent that Cong would not approve Govt credits for multibillion‐dollar development programs in USSR; say Cong will not diminish its efforts to promote freer emigration from USSR and that Cong has right to expect USSR to honor Universal Declaration of Human Rights and Internatl Cong; US Jewish leaders issue statement in name of Rabbi Israel Miller and Stanley H Lowell saying Soviet repudiation of trade agreement is regrettable development; say they share sentiments of many Amers in supporting improved relations and easing tensions between US and USSR; reiterate support of US commitment toward expansion of human rights among countries with which US trades; express and reaffirm pledge to support fellow Jews in USSR in their struggles to be free; Kissinger is said to be privately concerned about possible snowballing effect of cancellation and would like to reopen negotiations with USSR to discuss future trade prospects; has informed private US groups that Adm wants to encourage rather than discourage future trade; privately, some Jewish leaders express unhappiness with Kissinger's negotiating efforts on trade‐emigration question and suggest that he might have given Sens some assurances that he had not received from Russians; illus of officials who signed Soviet‐Amer trade agreement in ‘72 (1)

Portuguese Govt officials and Angolan guerrilla orgn leaders sign agreement, Jan 10, granting independence to Angola on Nov 11 ‘75, Alvor, Portugal; guerrilla leaders Agostinho Neto, Holden Roberto and Jonas Savimbi are present at signing; Portuguese Pres Francisco da Costa Gomes speech at event noted; agreement provides for 10‐mo transitional govt carefully balanced among 3 guerrilla orgns in effort to maintain peace in territory; also provides for election of constituent assembly before independence; electoral campaign seen as test of ability of ogrns to maintain civil peace and engage in peaceful competition; 10‐man Natl Defense Council will be headed by high comr and include 3 members of Presidential Council; other details (1)

Mayor Beame, in 3d and most severe round of budget‐reducing cutbacks so far, announces that 4,050 additional NYC employes, including policemen, firemen, sanitationmen and teachers, will be dismissed next mo; action brings to 11,985 total number of city workers ordered discharged or forced to retire since austerity drive to reduce city's fiscal ‘75 expense budget deficit by layoffs began last Nov 22; new dismissals further whittle deficit in $11.1‐billion budget by $15‐million; earlier actions had reduced deficit from peak of what Beame estimated at $430‐million to $135.5‐million (M)

Sen Dems vote to open to public nearly all meetings of Sen coms and Sen‐HR conf coms; Sen Dems win 1st round of move to liberalize Rules Com (S)

Controller Harrison J Goldin predicts record increase of $1.09 in NYC real‐estate tax over current level of $7.35 after he estimates cost of debt service to city for fiscal ‘76 at $2.01‐billion, highest in history; estimate of debt service—cost to city of interest plus mandatory repayment of principal borrowed in past yrs‐totals $2,010,692,949 for fiscal ‘76; of this, $1.58‐billion is for long‐term indebtedness and $423.6‐million for short‐term borrowing (M)