September 2, 1975

Ecuadoran Pres Guillermo Rodriguez Lara crushes revolt on Sept 1 led by Gens Raul Gonzalez Alvear and Alejandro Solis who seized Govt palace but were forced to surrender; Gonzalez had announced in radio communique that he moved against Pres Rodriguez because of alleged mismanagement of rich oil resources and promised to hand Govt back to civilians; Rodriguez escaped from palace in Quito and fled to army base at Riobamba before start of assault and led armored column to Quito; other army garrisons, Air Force and Navy supported Pres and air force planes began strafing garrison of rebel tank regiment; Rodriguez Lara por; map; illus (M)

Illus of Chinese Amb Huang Hua, Cambodian Deputy Premier leng Sary and Foreign Affairs Min Sarin Chhak at start of special UN Gen Assembly session, Sept 1

Gen Jose Morais da Silva, head of Portugal's Air Force, announces his opposition to Vasco dos Santos Goncalves's apptmt as Armed Forces Chief of Staff, Sept 1; says he will not accept any dictatorship by a minority party; explains reasons for his oppostion to Goncalves; increasing pressure is on Pres Francisco da Costa Gomes to withdraw Goncalves's apptmt; presidential spokesman is unable to give precise date for Goncalves's swearing-in ceremony; it is speculated that nomination might never go through; there are also rumors that this may have been precisely what was on Costa Gomes's mind when he got Goncalves to step down as premier; most of mil units in Portugal and those stationed in Madeira and Azores islands are against Goncalves; Goncalves has support of Communist party and party's allies; Socialists and Popular Dems seek to share in power of Premier Jose Batista Pinheiro dc Azevedo's Govt; Azevedo has indicated willingness to bring parties in with Communists; reptdly was under pressure from Communists to exclude Socialists from new Govt (L)

Pres Ford appeals to Cong to endorse use of US civilians to monitor new Sinai agreement, hailing it as 'one of the most historic' peace ventures of century; in telephone calls to Israeli Premier Yitzhak Rabin and Egyptian Pres Sadat, Ford pledges to do all that he can to assure success of accord and to continue bldg momentum toward permanent peace in Middle East; says 200 Amers scheduled to operate 'tactical early warning' stations in buffer zone are 'vital ingredient in assuring both Egypt and Israel the agreement will be upheld'; acknowledges that 'some criticism' of direct US role is likely from Cong, but discounts risk that any Amers will become involved in hostilities and warns that refusal to endorse use of civilian monitors will 'have a very serious impact' on search for broader Middle East peace; telephones Sec Kissinger in Jerusalem to extend congratulations; Kissinger say he agrees accord 'gives peace a chance in this area'; Ford invites Cong leaders of both parties to briefing on agreement at White House on Sept 4; Adm begins campaign to persuade sr members of Cong that arrangement could not have been arranged without early-warning system as central element and without symbolic US role; Ford says civilian technicians will be part of 'constructive' contribution to peace and 'not one that has great peril or danger'; US Defense Sec James R Schlesinger agrees that there are 'substantial' safeguards to protect US technicians but says that he cannot say that they are immune from danger, news conf; Repr Morris K Udall, Dem Pres candidate, endorses Middle East agreement and says US should accept 'very modest risks' entailed in terms of accord (L)

US proposals, prepared by Sec Kissinger and delivered by Amb Daniel P Moynihan, on problems of development and econ cooperation are put forward at opening of special session of Gen Assembly on Sept 1; Kissinger, in broad set of specific proposals for cooperation, calls for creation within IMF of financing agency that would lend developing countries up to $10-billion in amt of $2.5-billion or more a yr to sustain their development programs in face of fluctuations in demand for their exports, chiefly raw materials; calls for establishment of internatl investment trust, to be managed by IBRD's Internatl Finance Corp, to attract capital for investment in developing countries by safeguarding against major losses; calls for establishment of internatl industrialization inst to aid developing countries with research on indus tech; proposes establishment of internatl center for exch of tech information; suggests 76 be dedicated as yr of rev and reform of entire UN development system; warns third world countries not to make multinatl corps objects of econ warfare, praising such cos as powerful insts of modernization; says at same time they should obey local laws and refrain from unlawful intervention in domestic affairs of host countries; says nations with radically different econ interests and with entirely different pol concerns are combined in kind of solidarity that often clearly sacrifices practical interests; says it is ironic that most devastating blow to econ developing in this decade came not from 'imperialistic rapacity' but from arbitrary monopolistic price increase by cartel of oil exporters; advocates fairness in internatl econs and says no country or group of countries should have exclusive power in areas basic to others, like oil, trade and finance; says world needs system in which no nation arbitrarily withholds or interferes with normal exports of materials; is cool in reference to price indexing, which State Dept official says US is ready to discuss but does not support; says US proposes to discuss new arrangements in individual commodities on case-by-case basis and that consumer producer forums should be set up for every key commodity; message receives long applause; first reaction by delegates from Algeria, Iran and Yugoslavia are favorable; Algerian chief delegate Abdellatif Rahal finds 'many positive ideas' in message; Ivor Richard of GB terms message 'meatiest speech made on econ development since Marshall Plan'; Algeria's Min Abdelaziz Bouteflika, who is elected pres of special session, says developing countries' defensive attitude 'is not incompatible with the search for a dialogue'; views of EEC are conveyed to session by Italy's Min Mariano Rumor; Moynihan illus; illus of Huang Hua of China with Cambodian Deputy Premier Ieng Sary and Min Sarin Chhak (L)

new fares on NYC subway, bus and commuter lines go into effect smoothly on Sept 1, with impact eased by holiday half-fare rates; most riders seem resigned to 50c fare; decision to halt issuance of half-fare return tickets on buses and instead ask riders to deposit 25c for a ride causes some confusion; Repr Abzug urges Gov Carey to place issue of fare increase before special session of Legis; Repr Wolff urges support for his bill that would permit Fed income tax deduction for cost of commuting to and from work on regular basis on all forms of mass transit (M)

Arthur Ashe, the Wimbledon champion, was upset by Eddie Dibbs in the fourth round of the United States Open tennis championships at Forest Hills. Rod Laver lost to Bjorn Borg. Page 39.

ALEXANDRIA, Egypt, Sept. 1—Israel and Egypt tonight formally initialed a new agreement that provides for Israeli withdrawal from some occupied territory in the Sinai desert in return for modest Egyption political concessions and major pledges of support from the United States.

Joint IMF-IBRD annual meeting opens on Sept 1, Washington; IMF managing dir H Johannes Witteveen cites US, West Ger and Japan in asking them to conduct their demand policies so as to take particular acct of internatl recession and of serious constraints felt by many other countries in pursuing expansionary course, speech; notes 3 countries have made more progress than most in reducing rate of inflation and that all 3 had healthy balance of internatl payments; says it would not be reasonable to expect US, West Ger and Japan to push expansionary measures to point of incurring undue risks with respect to inflation but cautions that without further measures, recovery in indus world will be modest; says if uncertainties in world econ situation are reduced, desire for more structured exch system may receive further impetus; W Ger Min Hans Apel cites his nation's huge budget deficit and its recently announced measures to stimulate construction indus; says these measures are appropriate contribution to revival of world econ; Japanese Min Masayoshi Ohira cites Japan's progress in lessening inflation and says this contributes greatly toward attainment of equilibrium now being sought in world econ; cautions against taking further measures, lest inflation revive; US officials say that Witteveen appeal and that of Interim Com were addressed much more to Japan than to US or W Ger; IBRD pres Robert S McNamara says situation in poor countries have grown more ominous as result of continuing world inflation, higher oil prices and reduction of their exports because of world recession; notes middle income developing countries are facing decline in their real per-capital incomes; indicates bulk of task of solving problems is in hands of local govts, not IBRD; Venezuelan Min Gumersindo Rodriguez cites need for new world econ order but is careful to pay tribute to help that IBRD and IMF have provided to poorer countries and several new initiatives they are taking (L)

NYS Gov Corey proposes $2-billion financing plan to get NYC through next 3 mos and law to delay payment of some NYC debts in case money cannot be raised; default plan would provide 60-day period during which city would not have to pay noteholders and would authorize proposed state overseers bd to devise 'rehabilitation' plan for orderly assignment of city debts, under NYS Sup Ct supervision; fiscal plan depends on $250-million in bank purchases of Munic Assistance Corp bonds and $156-million rollover of city notes held by banks that fall due through rest of '75; part of pkg will be legis mandate ordering NYS Controller Levitt to invest some state pension funds; plan announced following Carey meeting with Levitt, top aides and officials of MAC; Carey stresses gravity of situation; MAC official Felix G Rohatyn says state would contribute $750-million; both he and Carey decline to give details of plan; Levitt, who has opposed investing pension funds, says that if ordered, he will invest about $200-million; Mayor Beame meets with top aides, Gracie Mansion, to discuss possible reorgn of city agencies; Carey illus at conf with MAC officials Rohatyn, Simon H Rifkind and Peter C Goldmark Jr, gubernatorial aides Judah Gribetz and David Burke and Levitt (L)

Sept. 2, 1975

Ross H Munro article on lifestyle of Inner Mongolia; illus (M)