February 4, 1975

E Shanahan analysis of econ discusses table labeled Economic Assumptions that was presented, without any particular explanation or justification, as part of Pres Ford's budget; says Cong seems almost certain to ignore $12‐billion in budget cutbacks, which require Cong action, that Ford has proposed; says Adm most fears a fast recovery; says it fears inflation as result; says it may also fear that governmental policies aimed at bringing about faster recovery, more spending, bigger tax cuts and bigger deficits, would cause such trouble in financial mkts that policies would be self‐defeating and would abort recovery; says it is unlikey that Cong will accept view that any attempt to use tax spending policy to force stronger recovery is doomed to fail (M)

S Vietnam Govt of Pres Nguyen Van Thieu on Feb 3 closes down opposition papers, Dien Tin, Song Than, But Thep, Dong Phuong and Tia Sang, and continues wave of arrests of journalists; confiscates on Feb 2 editions of closed‐down papers and 4 others that published new indictment of Thieu issued by Roman Catholic‐led People's Anticorruption Movement, headed by Rev Tran Huu Thanh; Information Ministry in statement expresses Govt's respect for right to free speech but says Govt is determined to smash all attempts by Communists to sabotage press in order to protect natl security and maintain public order; Ly Chanh Trung, editor of Dien Tin, comments; list compiled by Press Struggle Com gives names of 11 journalists who, it claims, have been arrested; several publishers rept that number of their employes were absent from work and that they suspect that absentees had either been arrested or intimidated by police from coming to work (M)

NYS Comm to rev NYC Charter recommends adm restructuring of city into 40 or 50 ‘service dists'; proposal is first of 20 recommended Charter revisions to be voted on in Nov election; comm chmn Sen Roy M Goodman urges plan's adoption to replace present ‘unresponsive hodgepodge of randomly overlapping dists'; 7 of 12 comm members voted for decentralization concept, while other 5, led by Assemblyman Leonard P Stavisky, favor dist boundaries coinciding with 5 boros; comm vice chmn Edward N Costikyan questions whether Charter revision is necessary to accomplish redistricting; comm recommendations would: establish service dists of about 200,000 people each; designate mgr for each local agency; draw dist lines in consultation with Budget Bur and give Bd of Estimate power to change individual lines; Goodman comments on various aspects of plan (M)

Sec Kissinger speaks to Natl Press Club

Pres Ford, in his budget message to Cong, says payments to individuals and state and local govts, which totaled $140‐billion in fiscal ‘74, are estimated at $173‐billion for fiscal ‘75 and $190‐billion in fiscal ‘76; calls for $17‐billion in cuts, mostly in soc programs; if Cong, as seems likely, rejects Ford's proposals to increase oil prices sharply, there will be savings of about $5‐billion in budget: $3‐billion in higher costs of Fed Govt itself and a proposed $2‐billion ‘energy revenue‐sharing’ grant to state and local govts to cover their higher costs (L)