July 12, 1975

Argentine Pres Isabel Martinez de Peron, amid pol and econ crisis, names new 8-man Cabinet, excluding Jose Lopez Rega, at demanded by mil armed forces; apptmt of Cabinet members raises doubt that Peron can stave off mounting opposition from her own party, organized labor, non-Peronist politicians and armed forces since Cabinet member are considered supporters of Lopez Rega; Lopez Rega was forced to resign after Pres recd virtual ultimatums from armed forces and most pol factions demanding his dismissal; labor leaders and most opposition party politicians hold Lopez Rega responsible for mounting repression of pol dissent and have accused him of masterminding Argentine anti-Communist Alliance; por of Lopez Rega (M)

Prime Min Harold Wilson on July 11 announces series of measures aimed at limiting wage increases for Brit workers to 6 pounds ($13.20) a wk for next yr at least, address to House of Commons; program, which is designed to bring GB's inflation rate of 25% down to 10%, includes suspension of cost-of-living adjustments, moves to assist poorest-paid workers and attempts to restrain prices, but without price freeze; Wilson, quoting from white paper containing details of program, says 'this is a plan to save our country'; program is designed to deter employers from submitting to wage demands in excess of 6 pounds a wk in negotiations beginning after Aug 1; major components of pkg, some of which can be realized by exec action while others will require new legis, are that Govt will not provide cash subsidies for wage demands above new limit, either to 2 million people it directly employs or for 3 million in nationalized industries; that Govt will exercise indirect pressure to limit increases to 2 million employes of local govt throughout country; that private employers who agree to excessive settlements will not be allowed to pass them to consumers in form of higher prices; that cost-of-living adjustments be suspended and employers be relieved of any contractual obligation to pay them; that wage increases be prohibited for those making more than $18,700; Wilson says Govt will continue subsidies on bread, butter, cheese, flour and tea in effort to help poor deal with living costs during austerity program; refuses to impose legal sanctions on workers who press for increases above new limit; white paper says Govt will try to restrict price increases on unspecified items of 'strategic importance to family expenditure' to about 10% through strict enforcement of price code; Chancellor of Exchequer Denis Healey notes that while Govt has rejected drastic cuts in public spending that might lead to mass unemployment, local govts might be forced to lay off workers if they go ahead with large pay settlements and central Govt denies funds to meet them; reaction to Wilson's program is mixed; Yorkshire miners leader Arthur Scargill, who demanded immediate increase of 60% for miners who work in dangerous jobs, says he has no intention of accepting Govt's proposals; illus of Wilson with Healey (L)

Hsinhua, official Chinese press agency, repts discovery of pottery army of thousands of life-size figures of warriors and horses that have been buried near Sian for more than 2,000 yrs: archeologists and peasants have unearthed 530 figures of warriors; figures probably were constructed at behest of Chin Shih Huang, founding Emperor of Chin dynasty: described (M)

NYC Med Examiner Dominick DiMaio says he is reopening case of Frank R Olson, CIA research scientist who died after fatal plunge from Manhattan hotel window in '53, allegedly while under influence of LSD, administered surrepitiously in agency experiment; says action is prompted by recent disclosure of Olson's CIA connection and by fact that Robert Lashbrook, believed to have worked for CIA and who shared hotel room with Lashbrook, omitted important facts when questioned about Olson's death (L)

Ford Adm informs Cong that it will sell Jordan modern air-defense system costing $350-million; lr to Sen Foreign Relations Com and HR Speaker reveals plans to sell 14 batteries of Hawk missiles, with sale price of about $260-million, and 8 batteries of Vulcan AA guns costing about $90-million; Adm officials say US will also sell Jordan about 300 shoulder-fired Redeye AA missiles for about $4-million; proposed sales result in immediate expression of concern in Cong; Sen Clifford P Case introduces resolution calling for hearings on sale to determine whether it should be permitted; Repr Jonathan B Bingham says he and others will introduce resolution to kill sale; White House, in memo justifying sale, tells Cong that transaction would be in 'natl interest of US,' strengthening King Hussein's internal position and reinforcing Jordan's policies of moderation at time when Jordan is under heavy pol pressure from outside forces; sale will be in cash, with Jordan expected to receive most of money from Saudi Arabia (M)