March 8, 1976

US Treas Sec William E Simon praises Pres Sadat, news conf after 3-day visit, Cairo; says US will give Egypt $1.85-billion in econ and financial assistance in this and next fiscal yrs; says US assistance during fiscal '76 would be $940-million, including food aid, and for fiscal '77 about $915-million; says he and Sadat discussed idea of 'private-sector Marshall Plan'; says stimulation of private sector is only way Egypt can raise production and standard of living of its people; project reptdly has been held up because Egyptians have received bids for similar plants from Michelin of France and Dunlop of GB; pharmaceutical co Squibb and unidentified US chemical co have been on final stages of negotiations for several mos; sources say Simon urged Egyptian officials to clear way for 1 major US project that would 'prove to the world' that Western industries can function in Egypt; illus of Simon with Sadat and Vice Pres Husni Mubarak (M)

WASHINGTON, March 7—Postal service in the United States must be reshaped to conform to new “economic reality” or the vast system will be destroyed, Postmaster General Benjamin F. Bailar says in a speech he is to make tomorrow.

Survey on cos that cancelled pension plans in wake of '74 Fed Pension Reform Act, which set up complex new rules for plans to end widely reptd abuses; Fed Pension Benefit Guarantee Corp repts over 5,500 private plans have been dropped in last 18 mos, affecting at least 100,000 workers; employees of small businesses and 'closely held' corps seen suffering disproportionately from effects of law, with more than 80% of recently cancelled plans reptdly involving cos with fewer than 30 workers; pension actuary Daniel F McGinn notes most of smaller plans were set up to benefit chief exec and owner of business; sees these people now providing for retirement with deferred compensation plans; predicts more cancellations in '76 than in '75; employees comment on losing plans (M)

Citizens Budget Com urges cutting $400-million in NYC spending for CUNY and other areas rather than making across-the-bd cuts in pss and several other city agencies (S)

Bjork describes conditions after recent visit (M)