August 20, 1976

Uproar caused by Fed Reserve Bd denial of Banker's Trust NY Corp's proposed acquisition of First Natl Bank of Mexico (NY) because of reptd 'financial difficulties' of Bankers Trust; bd later issues statement, following outcry, declaring Banker's Trust financially sound and explaining that decision merely continued existing policy of denying acquisitions by banks that have been under financial pressure; some analysts believe bd blundered in choice of words, others believe bd intended warning to other banks to pursue acquisitions less vigorously; bank chmn Alfred Brittain 3d illus (M)

Comptroller Arthur Levitt and other state officials, commenting on Common Retirement Fund's arrangement to resell $288.6-milliion worth of NYS tax and revenue-anticipation notes at profit to group of banks and brokerage houses, hail terms of sale as proof of state's continued recovery from fiscal crisis (M)

Port Elizabeth, S Africa, police storm 4 factories in 2d day of anti-Govt unrest; death toll at 14 and 28 wounded (M)

many delegates to Repub Natl Conv doubt whether Ford and Dole can win Nov election; Ford, Ronald Reagan and other delegates voice confidence in party unity, while others, especially those in Sunbelt, voice dismay; Ford strategists hope right-wing disaffection with ticket will gradually dissipate; illus of Sen Howard H Baker; illus of Sen Robert J Dole (M)

both N Korea and US announce steps to increase readiness of their mil forces on Korean peninsula in wake of killing of 2 Amers in demilitarized zone but there are no overt signs of increased mil activity; UN mil comdr in Korea, Gen Richard G Stillwell, accuses N Korean Army of deliberate murder in deaths of 2 Amers; UN Command statement, read at Mil Armistice Comm meeting by Rear Adm Mark P Frudden, describes how slayings took place; other developments noted; illus (M)