April 26, 1976

Portuguese Socialist Party leads in returns but centrists and conservative parties make stronger showings than had been expected; returns noted; Azevedo to be candidate in Pres elections (L)

Kissinger meets with Kenyatta; conversations reptdly center on Kenyan problems; Kenyatta reptdly expresses concern with build‐up of USSR‐supplied arms in Somalia and Uganda (S)

Key officials involved in task of restoring balance to NYC's fiscal affairs hold city's current austerity plan eventually may have to be bolstered by as much as $500‐million in additional financing; financing estimate is being offered privately by some of officials pondering Mayor Beame's latest revision of 3‐yr austerity plan; some find weaknesses in future assumptions, others cite slippage in current econ steps and most express increasingly grave uncertainty about city's econ (L)

Lebanon's barely visible pres election campaign shifts into 2d gear following Franjieh's decision to sign amendment; Speaker Assad cools hopes for quick election by stressing need for tight security arrangements; Pres Assad is believed to support Sarkis, but reptdly has softened opposition to Edde; Beirut is relatively quiet (M)

Pres Council of Wage and Price Stability says monopoly‐like control by physicians of med services and frequently ‘passive’ role by patients in purchasing med care are helping to push health costs up at record speed; says health costs reached $118.5‐billion in ‘75, 40% of it paid for by Fed, state and local govts; says Consumer Price Index for services other than health rose 7.7%, while index for health costs rose 10.3%; says avg Amer family must spend 10% of its income on such costs; says increased cost of doing business, such as rises in labor costs and prices, do not account for health price rises; council dir Dr Michael H Moskow says rept was prepared in response to orgn's concern about inflationary effect of rising health care costs on gen econ (M)