August 7, 1976

Sen 49-22, passes '76 tax bill, described as longest and most complicated tax bill in 2 decades; bill extends temporary tax cuts enacted in '75 for individuals and businesses, reduces estate tax, and provides tax credit against cost of higher educ of $100 per student in '77 that would rise in stages to $250 in '80; revenue loss if bill is enacted as passed by Sen put at $17.2-billion in '77, $16.4-billion in '78, $13.9-billion in '79, $14.5-billion in '80, and $15.5-billion in '81; Sen rejects 2 provisions that were backed by Ford Adm; 1st, proposed by Sen Robert Dole, that would raise personal exemption, now $750, to $1,000, is defeated 57 to 29; 2d, that would reduce capital gains tax on property held for more than 5 yrs, is defeated 43 to 39; Sen Russell B Long, floor mgr of bill, feared inclusion of capital gains tax provision would endanger entire bill (L)

Shah of Iran says US must continue to sell arms to his country or risk instability and war in area, news conf for reporters traveling with Sec Kissinger; Kissinger says US attaches 'great importance to relations with Iran' as well as to role Iran plays in security and balance of area (M)

Police open fire in Soweto to disperse youths attacking transporation systems in continuing effort to keep black workers from jobs; official toll from 3 days of rioting is 4 dead and 30 wounded; officials comment; illus (L)

Piatigorsky, Gregor

BLS repts nationwide unemployment rate rose substantially in July '76 from 7.5% to 7.8% of labor force despite big increase in number of persons with jobs; most of jobless rate increase was among persons who have been out of work for less than 5 wks, which includes new job seekers; number of jobs increased by 400,000 during mo, with total employed rising by 3.8-million to 87.9-million; number of jobless workers in July was 7.4-million, up 280,000 from June; White House press sec Ron Nessen concedes 'disappointment' at July figures; AFL-CIO pres George Meany and United Steelworkers head I W Abel comment; Abel urges immediate passage of Humphrey-Hawkins full employment bill; BLS Comr Julius Shiskin, testifying before Cong Joint Econ Com, says recession recovery, including creation of new jobs has been 'about avg' compared with earlier recoveries; Shiskin illus; graphs show seasonally adjusted unemployment rate, July '73-July '75, total unemployment, Aug '75-July '76 and total employed, Aug '75-July '76 (M)

Death toll to 25; Fed epidemiologists reduce number of nonfatal cases to 112; Dr Leonard Bachman defines symptoms of disease; says there is no reason for travelers to cancel visits to Pa; researchers continue to pursue virus, other than influenza, as possible cause; fail to detect viral particles in microscopic samples of human tissues; Bachman says slower-growing viruses nave not been ruled out, but that emphasis is being shifted toward toxins; toxicological experts begin screening tests to determine whether herbicides, fungicides or pesticides might have contaminated food legionnaires ate; NYC Deputy Chief Med Examiner Dr Michael C Baden suggests possibility of paraquat (herbicide) poisoning; chem can produce lung damage as delayed effect days after it has been swallowed; Pa environmental experts begin investigation of 9 Phila hotels in which legionnaires stayed; illus of Fed epidemiologist Dr William Kaplan studying tissues at Center for Disease Control, Atlanta (L)

84-yr-old Abercrombie & Fitch Co will file Chap XI bankruptcy petition; will continue to operate its stores while seeking ct protection from creditors; recent study indicates that only losses in co's stores come from those in Chicago and NYC; illus (L)

Vietnam and Thailand, in action completing Vietnam's diplomatic reconciliation with non-Communist SE Asia, agree to establish diplomatic relations, Aug 6; move marks what Vietnamese leaders hope will be beginning of closer relationship with West, particularly US; specific commitments noted (M)

Strike negotiators face hurdle of added layoffs necessitated by Medicaid rate cuts; union leader Victor Gotbaum says upset might have been avoided if rates were ready 2 mos ago; NYS Deputy Budget Dir Paul Elston defends delay; Health and Hosps Corp pres Holloman says rates will definitely force new layoffs; Health Systems Agency of NYC exec dir Joseph T Lynaugh holds munic hosps face 5% cut while voluntary and proprietary hosps have gotten avg 6.5% Medicaid increase, lr to Carey; warns rates threaten corp's viability; Com of Interns and Residents pres Dr Jay Dobkin scores cuts (M)

Internatl Com of Red Cross breaks off its evacuation of Tell Zaatar Palestinian camp on Aug 6 after at least 4 of wounded are shot by snipers from Christian positions; Christian comdr in area Maj Fuad Malek acknowledges that sniper fire came from Christian lines; calls snipers 'renegades' who are ignoring orders; Beirut airport is shelled as chartered Red Cross plane was getting ready to leave; shells also fall on residential qrs of Moslem-controlled west Beirut; fighting continues around Tell Zaatar; Christians say they have conquered Nabaa area; Palestinian command denies rept; illus; map (M)

37 persons injured when cable cars collide at Mt Kitzsteinhorn, Austria (S)

Aug 7-9: Rabin says fighting in Lebanon has impeded chances for renewed negotiations between Israel and Arabs but has lessened prospects of united Arab clash with Israel, int with newspaper Davar; foresees continuation of Lebanese conflict; says Israel is pursuing policy of 'deterrence' regarding Lebanese situation; says he does not see any threat to Israel's security in near future; says central mil factor in Lebanon today is Syrian Army; says PIo wrecked harmony between Christians and Moslems in only secular Arab state; Agr Min dir gen Reuven Eiland announces Israel's readiness to send agr experts to aid Lebanese farmers, providing safety of Israelis can be assured; Defense Min Peres instructs army med clinic on Lebanese border to immunize Lebanese children against polio, cases of which have been reptd in southern Lebanon (M)