July 18, 1975

July 18: Israeli Amb Simcha Dinitz on July 17 gives Sec Kissinger latest Israeli proposals for breaking deadlocked talks with Egypt on new Sinai agreement; US and Israeli officials say later that 'progress' has been made, despite Egyptian threat not to renew mandate of UN peace-keeping force in Sinai; new Israeli ideas will then be given to US Amb Hermann F Eilts for relay to Egypt; US and Israeli officials hope latest ideas will be sufficient to persuade Egyptians to accept new mandate for UN force, and thereby forestall bitter debate in UN Security Council; Dinitz reptdly told Kissinger that Israeli Govt is ready now to accept line in Sinai along easternmost slopes of Gidi and Milta Passes; they also discussed Israel's desire to retain early-warning system at western end of Gidi Pass; source says Kissinger expressed unhappiness over Egptian lr to UN threatening not to extend Sinai force mandate (M)

The American Telephone and Telegraph Company has placed a $100‐million note issue with the Government of Saudi Arabia, the giant telecommunications company said yesterday.

Commerce Dept repts 2d qr GNP, adjusted for higher prices, was essentially flat, declining at 0.3%, providing further evidence that recession has hit bottom; GNP had dropped 11.4% in 1st qr and had declined in every qr since end of '73; in current dollars, 2d qr GNP was at $1,433.4-billion rate, up $16.8-billion; striking feature was massive reduction of inventories, at record annual rate of $33.7-billion; after-tax personal income, adjusted for inflation and any increase in population, showed its 1st increase since 3d qr of '73; 'final demand' also up; GNP 'chain' price index shows moderation in inflation rate; 'capacity utilization' was at rate of 66.5%, down from 68.2% in 1st qr and 80.1% in '74 2d; Commerce Sec Rogers C B Morton and Asst Sec James L Pate comment on figures and their implications for recovery; graph of GNP in current and '58 dollars (M)

NYC Parking Violations Bur discloses that biggest scofflaw in city is Fed Govt, which is running up unpaid bills estimated at $6-million a yr; NYC Transportation Adm confidential memorandum says that indirectly Fed Govt, as host to UN, will be responsible for over $14.5-million in unpaid parking tickets issued to cars with diplomatic and consular license plates; bur officials say cars assigned to many of 77 Fed agencies in city get 5,000 summonses a mo, which add up to $2.7-million a yr; say over 10,000 undercover cars get 6,000 summonses a mo, which adds up to $3.3-million a yr; say FBI, CIA and other agencies have cars regis to fictitious names and addresses; Fd official Gerald J Turetsky says cars used by many of 94,000 Fed employes in city are parked illegally; FBI recently gave Parking Violations Bur $7,000 in payment for parking violations; some Parking Violations officials say they are hampered in prosecuting Fed parking violators by fear that Govt may retaliate by cutting back grants to city's Traffic Dept

Robert V. Lashbrook, a former employe of the Central Intelligence Agency, said he believed Frank R. Olson, a scientist who committed suicide in 1953, had knowingly participated in an experiment with LSD. The statement appeared to contradict the Rockefeller commission's finding that Mr. Olson had been given the drug surreptitiously. Page 6.