September 22, 1976

Munic Assistance Corp chmn Felix G Rohatyn proposes that NYC ‘stretch’ out payment on more than $10‐million in long‐term bonds as way of softening need for drastic new budget cuts in fiscal '78, speech, NYC Chamber of Commerce; asserts that program would allow city to delay retirement of bonds over period of 20 to 25 yrs, instead of 5 to 10 yrs currently required; holds plan would mean that city could save enough money—perhaps $200‐million a yr—to achieve balanced budget next yr without resorting to ‘counterproductive’ cutbacks in vital city services, which might cause ‘major damage’ to local econ (M)

PLAINS, Ga., Sept. 21—Jimmy Carter proposed today that Federal Government agencies and bodies involved in making policy about energy, regulating the energy industries, and fostering research in the field be combined into a new “cabinet level” government department as the first step in developing a new national energy program.

Pres Ford press sec Ron Nessen asserts that Ford does not need to be defended in connection with inquiry into Repub fund‐raising in Mich because ‘nobody has said there has been any wrongdoing’ in case, news briefing; makes remarks when asked to comment on Wall St Journal rept that Watergate special prosecutor Charles H Ruff is investigating campaign contributions that ‘may involve’ Ford's campaigns when he was Repr from Mich; Kent County (Mich) Repub Chmn Paul Henry says records have been subpoenaed by Watergate prosecutor; Journal repts Ruff had issued subpoena calling on Kent County Repub Com to produce all records from '64 to present; Ruff also issued subpoena for financial records of MEBA, which was Ford's biggest reptd financial contributor in '72, his last Cong race; article quotes Jesse M Calhoon, union head, as saying that to disclose purpose of investigation ‘would put me right in the middle of the natl election’ (L)

Lt Gov Mary Anne Krupsak unsuccessfully tries to talk Weiss into stepping aside so that Abzug could regain Dem nomination for her HR seat; Krupsak describes call as no more than friendly query; says she told Weiss there is growing concern that women, minorities and liberal wing might not vote in Sept ‘because of what happened to Bella’; Weiss says he also had inquiries from Gov Carey, ex‐Mayor Wagner and Deputy Mayor Stanley M Friedman (L)

Labor Dept repts Consumer Price Index rose 0.5% in Aug to 171.9 (1967 equals 100); inflation, at annual rate of 6.2%, maintained level of past 5 mos; Nessen comments; Labor Dept says purchasing power of avg worker's paycheck in Aug was 0.3% lower than in July, and 0.6% lower than in Aug '75; charts showing inflation rate and Consumer Price Index (M)