February 27, 1975

US Ry Assn chmn Arthur D Lewis announces on Feb 26 preliminary plan by Fed Govt to reorganize 6 bankrupt Northeastern rrs by stripping away minor, unprofitable freight routes and investing more than $7‐billion in public and private funds in vast long‐term rehabilitation program, largest corp reorganization in nation's history, news conf; major provisions of sweeping plan, which skirts nationalization of indus, are: take‐over by a for‐profit corp, Conrail, of bankrupt lines, excluding abandoned routes; a 14‐yr program to rehabilitate track and facilities costing up to $5‐billion; take‐over by Norfolk & Western and Chessie System of portions of bankrupt lines, to create competing alternatives to Conrail, and restoration of rail ‘corridor’ passenger service between various cities; central to plan is elimination of unprofitable freight lines; funding for massive revitalization programs remains unclear; Ry Assn has only had $150‐million approved for improving facilities scheduled to be taken over by Conrail, although $350‐million is scheduled to be made available for such rehabilitation; other financial arrangements noted; plan envisions Conrail's needing $3.5‐billion in outside financing for rehabilitation by '85, with $500‐million coming from private sources; Lewis expects Fed Govt to contribute additional $2‐billion required; maps showing proposed Amtrak service and US Ry Assn preliminary plan of rail freight routes (L)

Met Opera exec dir Anthony A Bliss asks employes, gathered at meeting in opera house, Feb 26, to accept a 10% pay cut, plus a shorter work yr; says situation in one of ‘survival’; Amer Guild of Musical Artists pres Gene Boucher says ‘if it means survival, it's not so bad’; meeting attended mainly by chorus and ballet members and technicians; Bliss proposes 11‐month rather than yr‐round contracts; says every one from mgr Schuyler G Chapin, who is in Dallas on opera business, and himself would be affected by 10% wage cut; says savings from cuts, plus anticipated 5% rise in box‐office revenues and contributions, would mean 15% improvement that would leave enough capital to insure a '76‐77 season; says that up until this season co had deficit estimated at $4.6‐million; this season, unless it improves, will show a $2‐million deficit; next season expected deficit will be $2.5‐million, making 2‐yr deficit almost equal to the 10‐yr deficit; says Met will be faced with problem, in July '76, if it cannot arrest erosion, of being unable to open '76‐77 season; Bliss has discussed situation with AFM and Musical Artists Guild and will discuss it with other unions; Bliss illus (M)

Hasidic Jews, under orders from Rabbi Menachem Mendel Schneerson, leader of Lubavitcher Hasidim, visit front‐line fortifications and military camps in Israel to bring Purim celebration to Jewish troops; illus (M)

US Defense Sec Schlesinger reptdly believes that Cambodian Govt will fall whether or not Cong approves Ford Adm's supplemental emergency aid request; US Sec of State Kissinger believes that even with Amer aid Cambodian Govt stands 50‐50 chance for survival; both believe Cambodia's collapse would be setback but not disaster for Amer foreign policy as long as aid has not been terminated, thus leaving US open to blame; US Pres Ford's private views are not similarly known in detail; he reptdly is deeply committed to continuing aid to Cambodia and S Vietnam; all continue to be optimistic publicly about prospects of Cambodian survival if Cong approves aid request; Sen Hubert H Humphrey suggests that Adm is trying to shift ‘blame’ to Cong for certain failure in Cambodia; other Sens believe Schlesinger and Kissinger are sincerely trying to cushion adverse consdquences of Aer foreign policy if Cambodia falls to Communists; both are reptdly convinced that defeat must be clearly seen as stemming from deficiencies of Lon Nol regime rather than lack of US aid; Kissinger and Schlesinger comments on fate of S Vietnamese Govt seen as entirely different from those expressed on fate of Cambodian Govt; Kissinger reptdly willing to go along with Ford's 3‐yr aid plan for Indochina; plan reptdly calls for mil and econ aid of more than $6‐billion; Schlesinger reptdly disagrees; Asst Sec of State Philip Habib and Sen Mike Mansfield comment on situation; illus (L)

Both houses of NYS Legis pass bill, signed by Gov Carey, setting up new state agency, Project Finance Agency, to salvage insolvent NYS Urban Development Corp; Carey says if banks refuse to buy bonds of new agency, state might try to market them through other credit sources; other developments involving corp noted; Gov Carey says at meeting with legis leaders that state cannot afford to ‘go it alone’ and will have to let corp go bankrupt unless major banks agree to buy $370‐million of new agency's bonds; details of intensive negotiations between Gov Carey's office and banks on Feb 23 (L)

Pres Ford scores Arab attempts to discriminate against financial insts or individuals on religious or ethnic grounds, news conf, Hollywood, Fla; says such discrimination is totally contrary to Amer tradition and repugnant to Amer principles; speaks as Sen Foreign Relations Subcom on Multinatl Cos makes public Saudi Arabian edition of Arab boycott list containing 1,500 names of US cos; Ford refers to repts in recent wks of attempts in internatl banking community to discriminate against certain insts or individuals, without specifically mentioning ethnicity; says discrimination has no place in free practice of commerce as it has flourished in US; says that any allegations of discrimination will be fully investigated and appropriate action taken under US laws; says that Justice, Commerce and State Depts will look into action US might take against Arab nations that have embargoed Jewish‐owned banks; under regulations of boycott office of Arab League, Damascus, Syria, Arab countries are not supposed to trade with cos on boycott list or accept investments by them; Sen Foreign Relations Subcom chmn Frank Church, Sen Clifford P Case and Deputy Asst Sec Harold M Saunders comment; Church illus (L)

illus of Jack Nickiaus giving Pres Ford some putting tips at Fort Lauderdale, Fla, in Jackie Gleason Inverrary Tournament

US has reptdly agreed to buy Iranian oil for Israel at cost of $250‐million a yr as part of Israeli agreement to yield Abu Rudeis oilfield to Egypt (S)

Pres Ford, at news conf in Hollywood, Fla, says that at rate Cong is moving on tax cut, it might be June before legis reaches his desk; says he knows of nothing further he can do to reduce unemployment except possibly agree to tax cut larger than $16‐billion he proposed on Jan 15 (S)

Waterfront Comm on NY Harbor repts that crime has decreased sharply in NY Harbor and that docks and piers have become area of relative serenity and security; says tension and turmoil prevalent on docks 2 decades ago have been contained and that there is now trend to indus tranquility and posture approaching stable work force; officials of watchdog comm and Security Bureau Inc exec vp Jeremiah J Sullivan agree in separate ints that increased use of large containers has made thefts more difficult and that increased earnings, benefits and security make waterfront workers less likely to consider taking chances and losing jobs; comm warns that crime has far from completely disappeared in port but says it keeps abreast of activities of underworld characters who continually try to regain control of docks and once again return waterfront to ‘criminal jungle’; NY Comr to Waterfront Comm Joseph Kaitz and NJ Comr Ralph C DeRose rept several recent cases of pier workers collecting illegal payments from truckers for preferential treatment on waiting lines at Port Elizabeth and elsewhere, agency exec dir William P Sirignano says comrs are concerned that what may have started as innocent tipping practice could develope into compulsive and vicious racket; comm says there still is gambling on waterfront, but that loan‐sharking has been considerably reduced; notes it is now investigating how container repair business built up increase in sales from $77,600 for yr ended Sept 30 '71 to $429,900 2 yrs later; notes port hires 500 private guards, compared to 1,200 to 1,400 in '60; notes for yr ended June 30 '74, comm agents made 79 arrests for waterfront theft, down from 130 in previous yr; notes there were 52 arrests for gambling, compared to 50 in previous yr, and 27 for other offenses, against 8 in previous yr (L)

Sen M Mansfield and Sen R B Long propose compromise under which vote of 60%, or 3/5, of total membership of Sen would be sufficient to cut off debate; in last wk, Sen has been lokced in parliamentary struggle between those who want to keep present rule, that of 2/3 vote, and those who want to change it; Sens W F Mondale and J B Pearson, who have led reformers, indicate that they will support compromise; Sen J B Allen and some of his allies seem prepared to continue to try to block any change; Vice Pres Rockefeller's actions, which have tended to aid reformers, noted; illus of Sens Mansfield and P A Hart (M)

WASHINGTON, Feb. 26 (Reuters)—Secretary of State Kissinger would have had to pcistpone a meeting with Foreign Minister Chavan, even if Mr. Chavan had not done so, American officials said today. Mr. Kissinger is expected to be abroad on March 13 and 14, the scheduled dates for the meeting. He leaves March 5 for the Middle East and is not expected back for at least 10 days.