August 24, 1975

300,000 Laotians gather in Vientiane to mark Communist-led Pathet Lao takeover of city, repts monitored from Vientiane radio and Pathet Lao news agency broadcasts; takeover began when Pathet Lao troops and tanks rolled through Savannakhet, May 20; crowd reptdly is addressed by 'uprising com' chmn Thao Moun; Premier Souvanna Phouma's and King Savang Vatthana's status unclear; Pathet Lao reptdly has said it continues to respect and recognize Phouma as head of Govt and Vatthana as head of state; Vientiane radio earlier announces takeover of Luang Prabang, 130 mi northwest of Vientiane; long-expected takeover was heralded when Laotians authorities sealed country's borders, cut all internatl telecommunications and closed airports for 24 hrs; Nong Khai Prov (Thailand) Gov Kampol Klinsukol ordered entire frontier bordering Laos sealed for at least 5 days in expectation of Vientiane celebrations; border incidents have increased in recent days and diplomats of both countries have been expelled as bitterness between Govts grew (M)

Fed Reserve System set to head off widespread financial crisis that could result from default by NYC (L Silk rept); will not directly provide funds by buying city bonds or those of Munic Assistance Corp; will not bring pressure on private commercial banks to do so or undertake to guarantee city against default lest Mayor Beame be relieved of what it sees as urgent need to cut outlays further and submit credible plan for city to regain stability; Fed Chmn Burns, in int, indicates that when reform program is forthcoming and if investing in city obligations were to threaten banks' liquidity, 'discount window will be open to them'; discount window is bankers' jargon for privilege of member banks to take eligible paper to Fed in exch for cash, for which bank pays discount rate--currently 6%; Fed still hopes to help prevent default and has therefore tried to hold open possibility that large NYC banks will acquire more city and MAC securities; some bankers and city and MAC officials skeptical about Fed efforts to help solve crisis; Fed Reserve Bank of NY officials see unwillingess of banks to acquire NYC paper in view of risk as factor that inhibits raising enough money for NYC, not lending capacity of banks in region; some bankers comment; illus of Fed Reserve emblem; Burns por (M)

ed cites failure of NYC mayors to stand up to munic unions as factor in NYC financial crisis in scoring San Francisco Mayor Alioto's capitulation to 13% wage increase demands of striking police and firemen

IRS spokesman says IRS is conducting 'intensive internal investigation' to determine if law was violated when CIA was secretly given information from individual tax returns; says IRS is following up Rockefeller CIA comm rept that revealed that in at least 14 instances information on tax returns of 16 persons was given to CIA out of normal channels; other sources say tax return information was given to CIA on 'several occasions' over 10 yrs; from '62 to '64 liaison between agencies was handled at IRS by Mitchell Rogovin, then asst to Comr Mortimer Caplin; Rogovin, now representing CIA as its legal counsel, says that during his tenure he knew of no information from individual tax returns being made available to CIA; intelligence community source says 16 persons whose tax return information was passed to CIA were all either employes of CIA or associated with it (M)

Sec Kissinger is told in Damascus that King Hussein is angry with US because of Cong reluctance to approve projected sale of 12 Hawk AA missile batteries; Jordanian-Syrian communique issued on Aug 22 reptdly indicates that Jordan might seek arms from USSR if necessary (S)