October 6, 1976

both illus

Stock prices tumbled along a broa?? front yesterday, the Dow Jones industria?? average dropping more than 11 points t?? close at 966.76. This brought the bell?? wether indicator's drop in the last sever trading sessions to 42.55 points.

Lawrence S Eagleburger, exec asst to Kissinger, sees release of rept criticizing Mayaguez operation as attempt to embarrass Ford prior to his foreign policy debate with Carter (S)

Yolanda Sarmiento, Argentine natl awaiting trial as major distributor of cocaine and heroin in US, is foiled in escape attempt from Met Correction Center, NYC; 2 Fed guards, inmate and 3 other persons are arrested and charged with conspiring to set Sarmiento free for $25,000; defendants listed (M)

NYS Gov Hugh Carey announces program to curb abuses in so‐called Medicaid mills that could save state and local govts $50‐million over next yr; program involves stepped‐up investigations of controversial clinics, during which state health inspectors will pose as patients in order to test adequacy of and need for care provided, and stricter controls on state reimbursements to physicians who engage in questionable practices associated with Medicaid mills; Carey reveals 50 auditors of State Soc Services Dept have been investigating abuses in NYC and have been working closely with Dist Atty Robert M Morgenthau to speed criminal prosecution of physicians found to be submitting duplicate bills or defrauding Medicaid program in other ways; says new fraud and abuse unit is being formed within Soc Services Dept to aid investigative work in NYC and upstate counties; says dept will establish statewide data exch system, enabling local officials and dist attys to share information; steps by Carey to curb Medicaid abuses listed (M)

Dem Vice Pres candidate Walter F Mondale charges Ford Adm with ‘fundamental failure to heed the lessons of Watergate,’ starting with pardon of ex‐Pres Nixon and continuing in its present approach to govt, speech to students at Univ of Mo‐Kansas City Law School; accuses Ford of making ‘mockery of the notion that in Amer, there is no sovereign who stands above the law’; says Ford ‘strongly defended’ Nixon long after it was obvious that Nixon Adm was obstructing justice; recalls Ford calling HR Judiciary Com impeachment proceedings a ‘travesty’ claims Ford's ‘weakness of leadership’ became clear when he agreed to allow Nixon to take White House tapes and documents to San Clemente, and when he pardoned Nixon; says since pardon, Ford Adm has ‘shown its insensitivity’ to lessons of past; cites Adm opposition to Watergate reform legis; makes 4 proposals for changes to prevent repetition of abuses; Mondale illus with Sen Thomas F Eagleton (M)

Allied Chemical Corp is fined maximum $13,375,000 by Fed Dist Judge Merhige for polluting James River for nearly 4 yrs with Kepone, highly toxic insecticide; Merhige scores co for not contesting 940 counts of dumping Kepone‐laden process water and other chem discharges into river; acquits co of conspiracy charge but sentences co, and cites former officials Vergil A Hundtofte and William P Moore for their roles in operating Life Science Products Co, an Allied contractor; promises to mitigate sentence if Allied takes some voluntary action to help some 80 Life Science employees and scores of James River fishermen who suffered neurological and other disturbances as result of exposure to chem (M)

US Energy Research and Development Adm repts fallout from recent Chinese nuclear test has been detected in high levels in rain‐soaked areas of E Penna, NJ, SC and NYS, but at levels far below danger mark; evidence taken from rain and milk samples by Brookhaven Natl Lab and various state environmental and health agencies; radioactive iodine in milk found up; Andre P Hull, of lab, Thomas Gerusky, of Penna Bur of Radiation Health, and John Matusek, of NYS Radiological Sciences Lab, comment; William Hahn, Penna aide, illus (M)

Assembly addressed by Chinese Min Chiao Kuan‐hua and Brit Sec Anthony Crosland; Chiao illus (M)

Ford and Jimmy Carter to hold TV debate on foreign policy Oct 6, Palace of Fine Arts, San Francisco; debate format discussed; League of Women Voters announces 3d and final debate will be held Oct 22 on campus of William and Mary Coll, Williamsburg, Va; illus of Carter preparing for debate and Ford with Sen candidate S I Hayakawa (L)

Bangladesh calls use of Farraka Dam to divert water to flush silt out of Calcutta port ‘aggression’ on its 'econ sovereignty; will take case to UN; dispute is reflection on how India‐Bangladesh relationship has deteriorated; dispute revd; map (M)

Phoune Sipraseuth charges ‘Thai reactionaries’ infiltrate Laos to spur acts of provocation on border aimed at creating econ and financial problems for Laos, speech, UN Gen Assembly (S)