January 28, 1975

NYS Atty Gen's Advisory Com on Ethical Standards, in rept to Atty Gen Louis B Lefkowitz, says Vice Pres Rockefeller's gifts to NYS aides while he was Gov did not violate state Code of Ethics but that gifts were ‘not in the public interest’ because they created a ‘great deal of suspicion’; rept notes Sen confirmed Rockefeller despite controversy during his confirmation hearings over financial gifts; com says it presumes that this was either because they believed Rockefeller's explanation or ‘reached conclusion that his long record of meritorious public service clearly outweighed those mistakes if they be so considered’ (M)

Chinese Govt cancels contracts to purchase 601,000 tons of Amer wheat, scheduled for shipment between Feb and Sept ’74 by Cook Industries Inc; move seen by many grain traders as attempt by Peking to relieve itself of contracts negotiated early in ’74, when wheat prices were above $5 per bu compared with current $4, but others note China rejected cargoes of US wheat several times during ’74 because traces of plant disease were found in samples; cancellation also seen reflecting ‘calmer attitude’ toward future world supplies; during crop yr ended June 30 China purchased 3‐million tons of Amer wheat and became largest purchaser of Amer grain (M)

Commerce Dept repts US trade deficit worsened to $606‐million in Dec from $113‐million in Nov; holds sharply higher cost of oil imports pushed nation's trade deficit to $3.07‐billion in ’74, 2d highest deficit in 20th century; notes that if oil imports in ’74 had cost same as in ’73, nation would have had trade surplus of about $14‐billion; repts exports in ’74 rose to $97.9‐billion, up 38.3% from $70.8‐billion in ’73, while imports rose 3.5% to $100.97‐billion; in 4th qr of ’74 exports were running at annual rate of more than $100‐billion, or double rate of 2 yrs earlier; part of rise reflects inflated prices, but much of it is in real volume of shipments abroad; Commerce Sec Frederick B Dent calls ’74 trade deficit ‘disappointing, but not unexpected’; asserts that doubling of value of exports in 2 yrs ‘has resulted from increased competitiveness of Amer products in world mkts due to devaluation’ and ‘demonstrates dynamic opportunities available for US concerns that serve export mkts’; holds that internatl trade prospects for ’75 are ‘bright’ in part because inflation in US has been less than in some other countries and that prospects for further reductions in inflation in ’75 are good; dept repts exports totaled $8.73‐billion in Dec, while imports were 2d highest on record at $9.34‐billion; graph shows fluctuations in US imports and exports, Oct ’72 to Dec ’74 (M)

Frank C Arricale, exec personnel dir for NYC Bd of Ed, says fingerprint checks will soon be made of all 55,000 teachers and 65,000 other employes in city school system; reveals fingerprint checks of recent candidates for city school jobs have found number with arrest records for sexual offenses, child abuse, illegal possession of guns and other offenses; is ‘grateful’ for state law, enacted in ’74, which allows city bd to have employe fingerprints checked through state police authorities and FBI; School Chancellor Irving Anker emphasizes that measure will be taken to protect civil liberties of school employes; says he will demand assurance that fingerprints will not be filed with FBI records; identification cards with photograph of individuals to be issues for first time to all school employes as part of new system‐wide effort to tighten school security; cards will not, however, contain fingerprints, as originally planned (M)

Controller Goldin announces 3 bond and note sales for Feb 4, 11 and 13; they will total almost $700‐million, including $260‐million in anticipation notes to be issued by NYC Stabilization Reserve Corp; corp is authorized to borrow $520‐million to help make up city's fiscal ’75 expense budget deficit (S)