July 2, 1975

Chancellor of the Exchequer Denis Healey, in surprise statement to House of Commons, warns labor and management that unless they devise voluntary plan limiting wage increase to 10%, Govt will move toward statutory controls on incomes, prices and dividends; announcement, following Cabinet meeting, represents Prime Min Harold Wilson Govt's strongest pledge so far to curb GB's inflation, now at 25%; announcement produces increase in value of pound in internatl currency mkts and stock market reverses its downward trend and closes with substantial gains; announcement also results in immediate outcry from left wing of Labor party, which argues that legal constraints on free bargaining will violate past pledges by Wilson's Govt and will weigh heavily and unfairly on those at lower end of income scale; Healey says Govt will publish white paper next wk setting forth its policy and describing sanctions that will be invoked unless voluntary agreement is reached (M)

Soviet Govt on July 1 makes public new law, effective next Jan 1, that puts 30% tax on money sent from abroad to Soviet citizens; law seen aimed at dissidents, and is expected to hurt Jews and others deprived of their jobs because they applied for exit visas and are now dependent on foreign help; alimony payments, inheritances, royalties, compensation for damages, proceeds from sales of property abroad and funds belonging to re-emigrants and repatriates will not be subject to tax (S)

Article on rancor and animosity within Dem Cong majority; causes noted; they include Dems' frustration over their failure in last 2 mos to meet expectations they set for themselves at beginning of yr; generational chasm that has developed between young and old, between newly elected Reprs and their leaders; HR Speaker C Albert and Majority Leader T P O'Neill Jr have less power than their predecessors; little party discipline is imposed; many freshmen are products of antiwar movement and student rebellion, who campaigned on natl rather than local issues; HR's 4 failures to override Pres Ford's vetoes noted; Reprs R Boiling, O'Neill, J J McFall, W M Brodhead, L Aspin, N Y Mineta, C Rose, P E Tsongas, T E Wirth, W Alexander Jr and P M Landrum comment; illus of Albert with Tsongas and O'Neill (L)

Fed Energy Adm estimates US oil reserves at 38.2-billion, compared with API estimate of 34.2-billion; acting deputy admr Eric R Zausner links 11% difference to agency's inclusion of heavy oil; sees no reason to doubt industry's integrity; Repr John E Moss says cos should be compelled to open books to audit by GAO; Zausner says Dem energy bill are unacceptable to Ford Adm; Deputy Admr John A Hill says rundown in gasoline stocks is result of price regulations and shutdowns for maintenance of some gasoline-intensive refineries; says 9 major refineries will accelerate gasoline production (M)

Indian Prime Min Indira Gandhi, appealing for public support to end India's pol crisis, announces broad program of econ reform that is especially appealing to rural areas, where most of India's nearly 600-million people live; program includes distribution of surplus land among landless, abolition of bonded labor and moratorium on litigation growing out of debts owed by small farmers; illus (S)