January 17, 1976

Pres Ford reptdly plans to propose in upcoming State of Union and Budget messages increase in Soc Security tax in ‘77 to 6.15% of wages from current 5.85%; combined increase and annual adjustment of wage base would raise maximum Soc Security tax to $1,014 in ‘77 from $895 in ‘76; plan is expected to be opposed by Dem‐controlled Cong; under present formula tax base is to expand to $16,500 in ‘77 from current $15,300 (M)

labor situation in Spain described as unrest continues; police, in sudden raid on RC Ch labor hq, Madrid, round up 120 persons and charge them with planning gen pol strike; Govt reptdly is taking tough stand toward strike movement and encouraging large number of struck private cos to do same; strike leaders reptdly are seeking to defeat Govt hold on wage increases and are demanding free labor unions, speech and assembly (M)

2 Lebanese Air Force jets on Jan 16 attack leftist and Palestinian forces involved in siege of Christian town of Damur; attack, against gunmen who ambushed Lebanese mil convoy, represents 1st mil action by air force since current factional fighting began in Apr ‘75; Moslem leaders say Maj Gen Hanna Saed disobeyed Karami in ordering attack; Palestinians and Druses say Chamoun ordered strikes; Wafa charges Govt troops fight alongside Chamoun's militia; army denies charge; state radio repts continued fighting in Damur area, in Beirut and eastern suburbs, in Zahle and outside Tripoli and Zgharta; Moslem leaders, including Karami and Arafat, meet to discuss situation; casualty toll mounts; map (L)

Ronald Reagan, in campaign swing through NH, says that needy people who live in states that fail to substitute adequate welfare programs for Fed ones he would like to eliminate can ‘vote with your feet’ by moving to another state; says this may apply to blacks living in South; claims Repubs, not Dems, made breakthrough in dismantling barriers of racial discrimination in South; says he would not order troops into Boston to implement court desegregation order that involves ‘forced busing'; concedes he has not formulated plan to meet challenge of crisis in Social Security; attracts good, enthusiastic crowds; Reagan illus (M)

Chase Manhattan pres Willard C Butcher and First Natl City pres William I Spencer decline request to appear before House Monetary Affairs subcom to discuss circumstances that led to inclusion of 2 banks on problem list; score what they term unauthorized release of examiners’ findings; aide to subcom chmn Benjamin S Rosenthal sees no legal impediment to banks’ testifying; says Comptroller James E Smith, who acknowleged that banks are on ‘problem list,’ has promised to send repr to hearing; subcom seeks to determine what the list is, what criteria are used in designating banks for closer supervision and what remedial steps are proposed by Comptroller to restore such troubled insts to health; has no legis jurisdiction over US banking system; Sen William Proxmire and Repr Henry Reuss, chairmen of responsible coms, have introduced legis that would consolidate and streamline Fed regulatory procedures (M)