March 8, 1975

Assessment of soc and econ situation in Cambodia during current Communist-led insurgent offensive; some Amers working at US Embassy in Phnom Penh comment; Premier Long Boret comments on his dwindling role in Govt; inequities of Govt decisions and rampant official corruption assessed; people most hurt by current offensive are refugees, which make up 50% of Cambodian population; most of middle and upper classes are not directly effected by insurgent attacks because they live outside of cities, where rockets usually fall; illus of Cambodian refugees in roadside bunker and scene at Phnom Penh airport (M)

NYS Gov Carey and NYC Mayor Beame, announcing agreement on building 6-lane Interstate System hwy from Battery to 72d St, say Fed provision allowing transfer of Fed funds from hwy improvement to mass transit is not feasible because it will cut over-all financing to NYS by more than half (S)

4th fire within 9 days strikes NY Telephone Co facility in Grolier Bldg and Fire Dept says it is 2d time in 2 days that co has been victim of arson; co spokesman Donald Mahoney repts 1,000 mgt employes are being pressed into fire-watch duty; fire was followed by high-level security meeting among officials of Police and Fire Depts, phone co and FBI; Fire Dept spokesman Robert Perez comments (M)

Cambodian Govt troops reptdly have lost Sierra II, last beachhead on lower Mekong River, 10 miles up river to Neak Luong; mil sources say entire garrison of 800 to 1,000 men at beachhead was evacuated by navy craft; evacuated troops reptdly left behind ammunition supply and 3 of 4 Amer-made 105-mm guns; ammunition and guns reptdly were subsequently destroyed by Govt air strikes; loss of beachhead has stopped Govt efforts to reopen Mekong River, blockaded by insurgents in mid-Jan; situation is similarly bleak around Phnom Penh and Pochentong Airport, although US airlift of supplies and ammunition is continuing unabated; efforts to push insurgents out of range of airport have been unsuccessful; US Pres Ford's recent news conf calling for additional aid to Cambodia and lr to HR Speaker Carl Albert on same subject recalled; Western mil analysts believe reopening of Mekong River cannot be achieved until rainy season, scheduled to begin in late June, raises river sufficiently to force insurgents back from riverbanks, enabling minesweepers to clear river; Western mil observer says that 105-mm shells falling on airport in recent days were found to have serial numbers indicating that they had been captured since Feb 1; while Adm officials contend mil supplies will be depleted in 'less than 1 mo,' Western mil observers believe that stockpiles can last up to 3 mos longer; area map (M)

US BLS repts nation's unemployment rate remained unchanged in Feb at 8.2%, or 7,484,000 persons; holds that in sign of continuing deterioration in econ, total number of employed persons declined by 540,000; holds decline in employed persons brought total number of jobs down to 84-million, lowest level in 22 mos; paradox of unchanged unemployment rate accompanied by shrinking number of jobs resulted from fact that more than 500,000 persons quit actively looking for work during Feb and thus were not counted as unemployed; holds decline in number of persons in work force shows that 94,000 were adult men, 230,000 were adult women and 252,000 were young persons aged 16-19; White House press sec Ron Nessen acknowledges in statement that figures 'indicate continuing significant weakness in labor mkts' and warns that some additional increase in unemployment rates is expected in immediate future before turnabout anticipated in later mos of '75; BLS repts number of long-term unemployed, defined as those who have been out of work at least 15 wks, rose by 300,000 to 1.8-million; adds that avg length of time that those who were unemployed in Feb had been without work rose from 10.7 wks to 11.7 wks; holds percentage of those who were out of work because they lost their job rather than because they voluntarily left it rose to 55%, 22% above normal level; graphs show fluctuations in unemployment, Feb '72-Feb '75, and unemployment rates, '48-75 (L)