February 4, 1976

Leonid Plyushch describes authorities attempts to break down his pol beliefs, news conf, Paris, France; attacks Soviet treatment of pol prisoners; says it is coincidence that news conf comes day before opening of 22d cong of French Communist Party; denies suggestions that he is being used by French Socialists to embarrass Communists; illus (L)

Office of Mgt and Budget memorandum charges Defense Dept's $112.7‐billion fiscal '77 budget is padded by $3‐billion as cushion against expected Cong cuts; Dept spokesman denies it (M)

Sec Kissinger says failure to achieve new Soviet‐US arms agreement could result in US spending as much as $20‐billion over next 5 yrs to build up strategic forces, including production of Trident submarine, M‐X and cruise missiles (S)

In a report highly critical of existing procedures, a committee of the Association of the Bar of the City of New York recommended yesterday that major changes be made in the way lawyers in Manhattan and the Bronx are disciplined.

Fed Reserve official Brenton C Leavitt says more than 63 holding cos are under more than supervisory attention and 65 banks under special surveillance, Feb 3 testimony before HR Commerce Subcom; feels term ‘problem banks’ is misleading because it overstates seriousness of situation; is optimistic that continued econ improvement will result in cut in number of holding cos needing supervision; other testimony (M)

NYC officials say they will halt construction on 8 financially ailing housing projects on Feb 4 if bill allowing continuation of work remains stalled in NYS Sen; problem with housing bill is provision that would prohibit rent increases for tenants already occupying some of 29 projects; specifically, bill would amend NYS Housing Law to allow city to subordinate its lien on income generated by projects and give 1st lien to private investors; list of projects on which construction may be halted (M)

Small group of NYC bureaucrats and borrowed experts, working under intense pressure, is rushing to create what may be most undramatic yet revolutionary changes wrought by fiscal crisis‐unified modern acctg system; city does not have sort of single data‐based budgeting and acctg system that businessmen have but only contradictory fragments controlled by 2 often politically competitive offices, Mayor and Comptroller; mission of specialists is to build system for city in no less than 18 mos to replace decades of disjointed methods and questionable habits that have scandalized city's attempts to restore its credit rating; such a task would take 4‐5 yrs in private business; 3 consulting firms and cadre of 35 acctg and data specialists are poring over ledgers and agencies, mapping blueprint that will see thousands of city workers retrained in next yr (L)

Chrysler Corp will buy 4‐cylinder engines and axle‐transmissions from Volkswagen Co for its '78 subcompact car; deal allows Chrysler to buy up to 300,000 engines and 120,000 axle‐transmissions a yr; will save Chrysler about $100‐million since it will not have to build plants to produce parts; UAW expresses concern about effect of such agreements on employment in US; Chrysler's new sub‐compact will be based on vehicle introduced in fall of '75 by its French subsidiary, Simca, and will be 1st US sub‐compact to have engine mounted sideways; deal with Volkswagen was largely negotiated by Chrysler pres Eugene A Cafiero; Chrysler's action is 1 of many taken by US auto mfrs who have turned to their foreign subsidies for small cars and major parts (M)

Iranian Min Dr Abdol Majid Majidi hopes actual gas and oil revenues will exceed $20.3‐billion; Prime Min Amir Abbas Hoveida accuses Western oil cos of ‘flagrant breach’ of commitments to Iran in not making expected investments and in failing to maintain adequate levels of production and export (M)

Natl Center for Health Statistics reveals that US had lower death rate in '74 than in any other yr since records were begun in 1900; attributes decline primarily to decrease in death rates from heart disease, stroke and accidents; fact that US was largely free of influenza in '74 also helped; cancer, suicide and homicide death rates were highest ever recorded; nation's crude death rate was 9.2 per 1,000 population in '74; graph indicating crude death rates in US between '30 and '74 (M)

10 persons reptd dead, 1 missing in tenement fire at 311 W 94th St, NYC (S)

Fire destroys NYC seaport bldg dating to 1772; is believed to have started accidentally by derelicts living on ground floor; bldg was constructed for sea capt; illus (L)