June 6, 1975

NYS Appeals Ct, 4 to 3, in effect rules that 200-yr-old practice of assessing property in state at only percentage of its value is invalid, and that all property in state must be assessed at mkt value for tax purposes; case involves only Town of Islip, but state officials hold it has statewide effect; Assemblyman Brian Sharoff says ruling, unless negated by legis action, would mean skyrocketing increases in real estate taxes for homeowners in about 18 mos; says bill, already introduced, will be speeded; state tax official Robert F Kilmer and atty involved in case, Prof Jerome Hellerstein, hold it is not certain that ct decision will mean sharply higher real estate taxes; Hellerstein sees beneficial effect because reassessment of property tax system is needed; Kilmer says some will pay higher taxes and some will pay lower taxes, in effect shifting burden from those overassessed to those underassessed; ct majority opinion, written by Judge Sol Wachtler, says custom of fractional assessment has been practiced since 18th century despite legal requirement that assessments be made at 'full value'; orders Town of Islip to reassess all real estate in its area at full value not later than Dec 31, '76; experts disagree on whether deadline applies statewide (M)

Majority of HR Select Intelligence Com's Dem members move to oust chmn, Repr L N Nedzi, on ground that his alleged prior knowledge of involvement of CIA in assassination plans and violations of domestic law has impaired his ability to lead com in impartial investigation of CIA; HR Speaker C Albert confirms that 'several' com members want Nedzi removed; circumstances leading up to ouster request noted; Nedzi says he will not resign; Repr R N Giaimo comments; illus of Nedzi with Repr R McClory; Vice Pres Rockefeller's office says final rept on his comm's investigation of CIA will include no information on charges that CIA was involved in plots to assassinate foreign leaders; sources say Rockefeller comm and staff were prepared to issue sec on question of charges that operations were planned to kill Cuban Premier Castro but that when other Adm members read material, they concluded that investigation was incomplete and that there was danger of compromising natl security; Nedzi, Repr McClory illus at hearing (L)

Problems confronting US coll admrs, as concept of need for expanded higher educ opportunities is being assailed in wake of rising jobless rate and lack of career opportunities for recent coll grads, assessed; educ boom, which started after World War II with promise of better jobs to coll grads, described; while Coll Placement Council has revised statistics to show that expected 4% drop in demand for coll grads by employers has now reached 18% drop, number of liberal arts grads has increased sharply and is likely to continue; some fields where specifically-trained grads are still in demand noted; qualified women and members of ethnic minorities reptdly have particular advantage currently because of pressure from affirmative action programs; NY Bd of Trade repts many coll grads are now competing for low-level low-paying jobs that hs dropouts and welfare recipients usually vie for; Wis Univ career adviser Ed Weidenfeller comments on disadvantages srs face who have not yet decided on specific careers; many colls and univs have instituted job and career-planning courses to assist students; some campus leaders question whether liberal arts courses have been oversold; Coll Placement Council figures show professional and tech positions in work force have grown from 10% to 30% over past 70 yrs while percentage of people going from hs to coll has increased from 4% to 50%; RI Univ pres Frank Newman comments (L)

Egypt reopens Suez Canal to internatl shipping on June 5, exactly 8 yrs after it was closed by '67 Arab-Israeli war; Pres Sadat, aboard destroyer Sixth of Oct as it cut thin chain across canal's entry and sailed south from Port Said harbor at head of ceremonial convoy, calls this 'happiest day in my life'; 1st commerical envoy, made up of 1 ship each from China, Greece, Kuwait, USSR and Yugoslavia, moves through canal 2 hrs later; US cruiser Little Rock is only non-Egyptian vessel in 5-ship ceremonial convoy; Sadat, in formal address, leaves unanswered question whether Egypt will permit Israel-bound goods to transit waterway aboard non-Israeli ships; map; illus of destroyer Sixth of Oct (M)

June 6: Egypt has informed US that it is ready to resume negotiations for interim Sinai agreement with Israel and to make concessions if Israel does; sources familiar with contents of recent talks in Salzburg between Pres Ford and Egyptian Pres Sadat say Sadat made it clear that Egypt will still insist, as minimum condition, that Israel withdraw from Abu Rudeis oilfields and Mitla and Gidi Passes in Sinai; US officials say Sadat's willingness to resurrect step-by-step approach is significant development toward maintaining momentum in negotiations but caution that it is not certain that such talks will resume; informants say that in discussions with Ford and Sec Kissinger, Sadat agreed with their assessment that step-by-step approach offered more prospect than reconvened Geneva peace conf; say new format for talks may be devised, possibly under umbrella of new Geneva conf; Ford and Kissinger want to explore Israel's negotiating position with Premier Yitzhak Rabin to determine if there is bargaining room between Egypt and Israel to make another US mediation effort worthwhile; State Dept is upset by publicity given in Israel to repts, later denied by Transport Min Gad Yaacobi, that Liberian freighter carrying sugar for Israel will try to enter Suez Canal (M)

Negotiations between NYC and NYS officials over contents and language of state legis that would create corp to help resolve city's recurring short-term debt problem fail to produce agreement; Beame recesses meetings when it becomes apparent that negotiators will not reach accord; objects to 4 items that Sen Majority Leader Warren M Anderson added to proposed legis, disclosed earlier by Gov Carey; Anderson proposes that corp have absolute veto power over future issuance of short-term notes by city; suggests that Sen and Assembly leadership appt member to corp's bd; says NYC's 4% sales tax should be made state sales tax and that all sales taxes be diverted directly to corp; says amount of bond anticipation notes should be limited; Beame spokesman says such proposal could mean 'end of middle-income housing in city'; Councilman Matthew Troy Jr says Anderson's proposals 'would put state in Mayor's chair'; Beame opposes paragraph in bill that he says will empower corp to sue city officials whose figures they challenge; Donald B Smiley and Richard R Shinn, members of Gov Carey's advisory panel, say Munic Assistance Corp is city's only alternative to solving its financial crisis, testimony before City Council's State Legis Com; Carey aide Felix Rohatyn comments; (L)

Grand Duke Jean and Grand Duchess Charlotte of Luxembourg arrive in Moscow on June 5, latest visitors in round of royalty invited by Presidium of Sup Soviet for state visit (S)

Two Govt repts issued June 5 indicate continuing moderation of inflation and prospect of relatively slow recovery from recession; Labor Dept repts wholesale price index for May rose 0.4% after seasonal adjustment of some prices, compared with 1.5% increase in Apr; rise again linked to higher farm prices; key index of indus commodity prices rose only 0.2%; index for all commodities rose at annual rate of 5.5% in last 3 mos, compared with 35.3% rate for 3 mos ending Aug '74; Commerce Dept repts small downward revision in projected business investments in plant and equipment in '75, reflecting sluggish demand in econ; Commerce Sec Rogers C B Morton, in statement, says reduction in projected outlays does not alter prospects of recovery of over-all econ activity in 2d half of '75; investments put at $114.2-billion in '75, compared with $116.1-billion in Mar estimate; chart showing wholesale price index for all commodities and components, Mar '74 to May '75 (M)

drs' protest over malpractice ins continues for 5th day despite Gov Carey's proposal for study panel; Drs Norman S Blackman and Saul M Luchs comment on Carey proposal; NYS Med Soc pres Dr Ralph S Emerson says county societies will decide on whether to accept Carey proposal; Natl Union of Hosp and Health Care Employes pres Leon J Davis appeals to drs to return to work so that jobs of hosp workers will not be jeopardized; Queens County Med Soc pres Dr Joseph Klements hails Carey's proposal; illus of child waiting for treatment at Queens Gen Hosp (M)

NY Times gets confidential rept of Northrop Corp revealing Northrop has paid or committed more than $1.8-million in commissions since early '70s to Swiss-based orgn, Econ and Development Co, formed to promote Northrop's overseas aircraft sales on no-questions-asked basis; Swiss co apparently employs influential individuals abroad to assist Northrop in winning contracts in exch for share of lucrative comms; Northrop consultant Frank J DeFrancis quoted on operations (M)

Illus of part of Geraldine Rockefeller Dodge's suite in Dodge mansion at 800 Fifth Av

Greek Cypriote leader Glafkos Clerides and Turkish Cypriote leader Rauf Denktash meet with UN Sec Gen Waldheim on June 5, Vienna; Waldheim succeeds in steering 2 men away from issue of Turkish Cypriotes' June 8 referendum on formation of separate federated state on Cyprus; Clerides reiterates threat to walk out of talks if referendum is held; Denktash tell reporters that he cannot ask Turkish Cypriote House of Representatives to postpone vote (M)