June 5, 1975

NYS Gov Carey advisory panel tells NYC's chief elected officials that they have no alternative but to accept creation of state agency to help solve chronic NYC short-term debt crises, even though agency will have some voice in city's future budgetary affairs; Mayor Beame, after several days of opposition, supports plan but he fails to get City Council leadership and Estimate Bd to vote in favor of it after panel member Simon H Rifkind tells him that legislative leadership is planning changes in proposed legis; City Council Pres Paul O'Dwyer and Bronx Boro Pres Robert Abrams are leading opponents of proposed corp; Queens Boro Pres Donald R Manes, Bklyn Boro Pres Sebastian Leone, City Coucil majority leader Thomas J Cuite, Controller Harrison J Goldin, SI Boro Pres Robert T Connor and City Council Finance Com chmn Matthew J Troy Jr support Beame; Carey panel says without corp city is in danger of default in next few working days; investment banker Felix G Rohatyn, member of panel, says banking support is contingent not only on formation of corp but on segregation of revenues from sales tax, stock transfer tax and other state revenues; Goldin' office says city will be short $43-million on June 6 when it must meet $132.9-million in expenses; munic-securities dealers question whether proposed corp will be better able to sell notes and bonds than city itself (L)

HR fails, by 277-145 vote, to override Pres Ford's veto of $5.3-billion emergency jobs bill; White House press sec Ron Nessen says Ford told Cabinet members that vote is significant victory (M)

Sen Select Intelligence Com Chmn Sen F Church says he has heard 'hard evidence' implicating CIA in more than 1 scheme to assassinate a foreign pol leader; cautions against drawing conclusion, based on recent statements by Vice Pres Rockefeller and others, that all CIA's transgressions were minor, news conf; will not say whether assassination 'plots' ever grew into actual attempts; assures that 'appropriate disclosure' of details will be made; says CIA Dir William E Colby testified at com hearing on matter and that he expects Colby to testify again; says Robert A Maheu and reputed organized crime figure John Roselli will testify; both have been linked in published accounts to 1 or more CIA-inspired plots against life of Cuban Premier Castro; Church says com will consider calling former sr officials of defunct S Vietnamese govt who may have been involved with Operation Phoenix, CIA's counter-terror program in Vietnam in late '60s; illus of Colby, Church, Sen J G Tower and Sen H H Baker Jr (M)

Confidential rept prepared by Ernst & Ernst, Northrop Corp's acctg firm, finds co paid $450,000 in bribes in '72 and '73 that were earmarked for 2 Saudi Arabian gens, and apparently were designed to help co win aircraft procurement contract; bribes reptdly were paid to Triad, orgn controlled by Adnan M Khashoggi, Middle East businessman who served as sales agent for number of US arms mfrs; rept, while failing to cite specific examples of bribery of Amer mil officers, notes former 2-star gen was hired for $1,000 per mo by Northrop consultant Frank J DeFrancis for Northrop's 'protection'; holds fees also were paid by Northrop in Iran, Malaysia, Brazil and Taiwan; identifies Cantona Financial Establishment, co operated by Saudi 'Prince,' as 2d Saudi orgn receiving more than $500,000 in '71 and '73 from Northrop; AP repts spokesman for Khashoggi has denied charges; says $450,000 payment to Triad was legitimate; allegations of bribery of Amer mil officials and alleged payments to Triad and Cantona discussed; Northrop has admitted maintaining $1.14-million slush fund for pol contributions, many of them illegal (L)

Sen, 70-2, rejects attempt to limit Army active divs to 14, going along with Army's plans to increase existing 13 divs to 16 by reducing non-combat troops (S)