August 27, 1975

US State Dept spokesman Robert L Funseth says Portugal has been advised that US is prepared to help airlift 300,000 refugees from Angola; says US imposed major condition--that there be a Govt in Lisbon that US can work with; says airlift effort and preliminary planning are underway, but that there will be delay pending more information on how big operation will have to be, its cost and where money will come from, as well as support from other countries; says Portugal did not make formal request for assistance; other Adm officials who wished to remain anony rept that US Amb to Portugal Frank C Carlucci reed unofficial request for help; US is also discussing long-term aid programs that will include help for resettling refugees; will also organize internatl relief effort; France and GB reptdly have already chartered aircraft for refugees (M)

Pres Ford has met with AFL-CIO pres George Meany and 5 other union leaders seeking end to union boycott against grain shipments to USSR but day's discussions ended in deadlock; White House press sec Ron Nessen has refused to say whether any progress had been reptd to Meany on negotiations between Maritime Adm officials and USSR reprs on shipping rates and increased share of cargoes for US ships, 2 issues that especially concern maritime unions; sources say that USSR negotiators have been conciliatory on both issues; 1 USSR concern reptdly is desire to retain access for ships to US ports, which they gained in agreement negotiated following massive '72 grain sales; maritime unions' underlying concern reptdly is work for idle oil tankers, which also can carry grain; 5 union leaders attending meeting with Ford were ILA pres Thomas W Gleason, Seafarers Intl Union pres Paul Hall, AFL-CIO sec-treas Lane Kirkland, Natl Maritime Union sec-treas Mel Balisic and Marine Engineers Beneficial Assn pres Jesse M Calhoun; illus (M)

talks between Rhodesia's white-minority Govt and black nationalist leaders break down on Aug 26 and each side blames the other; fail despite efforts by South Africa's Prime Min John Vorster and Zambian Pres Kenneth D Kaunda to keep discussions going; Rhodesian Prime Min Ian D Smith charges that negotiators of African Natl Council were determined to make const talks fail; claims that council refused to abide by agreement made on its behalf on Aug 9 by Zambia to continue further discussions in Rhodesia; says he will call new conf to which he will invite tribal chiefs and 'other groups of African opinion'; says 'door is still open' for African Natl Council to attend talks in Rhodesia; Bishop Abel Muzorewa of council says talks collapsed because Smith repeatedly refused to grant amnesty for council leaders who face possible arrest in Rhodesia if they return; declares that council agreed to substantive com negotiations in Rhodesia provided amnesty be granted; South African Govt announces that it is sending new envoy to Zambia; Vorster and Kaunda express optimism that talks are not dead; possible effects Zambia and South Africa might have on Rhodesia's econ and Rhodesian black nationalists if they apply pressure to groups discussed (L)

Postal Rate Comm overrules adm law Judge Seymour Wenner's recommendation to cut 1st class rates to 8.5c and raise charges to publishers, parcel-post shippers and bulk mail advertisers to make up lost revenue, thus opening way for US Postal Service to raise 1st class rates to 13c; comm reptdly has decided to certify current 'temporary' 10c rate as permanent; under law, Postal Service can raise rate by 30% on new 'temporary' basis after old rate becomes permanent; Postal Service has been considering dropping air mail designation and blending it with 1st class; Postmaster Gen Bailar says Postal Service, faced with mounting operating deficits, will move to obtain maximum rate increase as soon as it gets authority from comm; protests over Wenner's recommendations recalled (M)

NYS Gov Carey and NYC Mayor Beame announce on Aug 26 accord on creation of new panel, consisting of selves and Controller Levitt, to supervise NYC fiscal affairs; Carey says that he plans to call Legis into special session to approve details of plan, designed to restore confidence of investors; many details reptd still being worked out; Carey reptdly weighing asking Legis to appropriate as much as $1-billion in form of purchase of short-term notes of Munic Assistance Corp during next few mos; Beame holds that new panel will not dilute his authority over city finances but others disagree; Beame says that panel will simply certify whether city is running over budget so that city can cut expenses on own; says that he plans to create 'special deputy for finance,' move seen as means of diluting authority of Deputy Mayor James A Cavanagh; complex financing details of Carey plan discussed; events leading to its adoption revd; confused proceedings of day noted; some participants comment (L)

US Commerce Dept repts that US trade surplus in July totaled $977.1-million; says US now has surplus of $6.4-billion for 1st 7 mos of '75; economists say continued strong trade performance has significantly cushioned impact of slowdown in domestic econ and underlines fact that US exports are more competitive than they have been in yrs; Commerce Dept forecasters predict that surplus for yr as whole will remain near 7-mo level because imports, particularly oil, will increase more rapdily than exports as US econ recovers; in July imports advanced 13.7% while exports rose by only 2.2%; dramatic turnaround in US trade accts stems from steep decline in US purchases abroad, which fell by 14% in 1st half of '75 from 2d half of '74; relative success of US sales overseas linked to new customers and to fact that US is winning old customers away from other nations; US sales to OPEC are expected to amt to 8% of total exports of mfrs, compared to 4% of total in early '73; First Natl City Bank says US share of world mkt for mfrd goods rose from low point of 21% in 1st qr of '73 to 23% in 4th qr of '74; Morgan Guaranty Trust Co economists estimate that between Dec '74 and June '75 US wholesale prices rose about 1% less than weighted avg of 14 major competitors; says at same time dollar depreciated by 0.7% and that result of 2 developments was gain in competitiveness of 1.7%

US Sec Kissinger reptdly will take more conciliatory stand toward demands from developing nations for greater share of world's wealth in address to UN Gen Assembly; officials say speech contains concrete proposals for world food reserve system, for more credits and lowered tariffs to promote industrialization, for aid to increase farm output, for steps to finance balance-of-payments deficits and for new internatl facilities to guide some of these activities; say Kissinger believes US must no longer stand as symbol of resistance to developing nations' goal of equal voice and equitable share of world's riches; aides say because of uncertainty over response in Cong to Kissinger's new approach, he has directed that as many as possible of proposals in his speech be framed so that they will not require new legis, and many proposals in current draft can be carried out under Trade Reform Act of '74; Kissinger reptdly has met over last 3 mos with key Cong members to encourage them to draft bills along lines that he could not get other depts in Adm to approve

Aug 27: US seems destined to emerge from present negotiations for new Egyptian-Israeli Sinai accord as major outside power in Middle East, in view of Arab, Israeli and US officials; officials say US is due to be deeply involved not only in future peacemaking efforts but also in pol, econ and mil affairs of Israel, Egypt and other countries in area; US role has shifted from that of ordinary intermediary to that of direct participant in negotiations, and deepening involvement has been unsettling to some of Sec Kissinger's aides; officials note that 1 of Washington's main goals is to further minimize Soviet influence in Middle East; say that if present trend continues, US will soon begin selling arms to Egypt; note that US Govt sees moves to peace in area as crucial to US natl interests; say peace would rule out possibility of direct Soviet-US clash and will allow US to penetrate Arab countries, enlarging Amer pol, econ and mil influence and protecting flow of oil to West; Ford Adm, as part of US measures in Sinai agreement, will probably ask Cong to allocate $3-billion for this fiscal yr in aid to Israel, Egypt. Syria and Jordan; Israel will get about $2.4-billion and Egyptians will receive about $400-billion; US will probably lift moratorium on sale of advanced mil equipment to Israel, such as F-15 and F-16 aircraft; US has agreed to send 150 civilian technicians into Mitla and Gidi Passes to man early-warning observation posts; US has agreed to sell Egypt equipment and supply and train Egyptians to man their own early-warning system; officials say 150-man observation force, which still needs Cong approval, may prove to be forerunner of US security treaty with Israel to persuade Israel to return to approximate borders that prevailed before '67 war; refusal by Cong to approve sale of 14 Hawk missile batteries to Jordan because of Israeli objections is example of difficulties faced by Adm in trying to widen its influence in Arab world; illus of Israeli Army officer loading maps of Sinai area into vehicle at end of meeting between Kissinger and Israeli leaders (L)

NYC likely to be chosen as site of '76 Dem natl conv despite handicap of possible munic insolvency (S)

illus of youth taking aim with slingshot, Leiria, Portugal, scene of continuing strife between anti-Communist crowds and Communists defending their hq with soldiers' aid

FDA says women who take oral contraceptives face increased risk of heart attack, rept in drug bulletin mailed to med profession; risk of death among women under age 40 appears to be more than 4 times as great for pill users as for nonusers; FDA recommends that women over age 40 be urged to adopt other forms of contraception; to revise labeling of oral contraceptives to reflect recommendation; bulletin estimates presumed risk of nonfatal heart attack among pill users in 40-44-age group is 5.7 times that of nonusers; says existence of other risk factors such as high blood pressure, obesity, cigarette smoking and diabetes seems to increase risk entailed by use of pill; indicates that women who discontinue its use can expect some dimunition of risk; statement is based on 2 Brit studies in Brit Med Journal (M)

TRENTON, Aug. 26—Governor Byrne went before the Legislature today to detail an $883 ‐ million borrowing program that he said would help the state break the economic recession, fulfill long‐neglected capital improvements and put 100,000 unemployed workers back on the job.