November 13, 1976

US Army selects Chrysler to develop and build 3,312 Abrams tanks at estimated cost of $4.9-billion; Defense Sec Donald H Rumsfeld refused to accept Army's original recommendation to award contract to GM, and ordered it to reopen competition between 2 cos so that they could modify proposals to incorporate standard components of Leopard 2 tank being built by W Ger; 2d Chrysler proposal would allow US and Ger tanks to use essentially same fuel, ammunition, guns, tracks and power plants; Army Sec Martin R Hoffmann says new tank, called Abrams in hon of late Gen Creighton W Abrams, has greater battlefield effectiveness, less operating costs, easier maintenance and lower price than GM version; Lycoming Div of Avco is awarded $60-million contract for gas turbine engine to be used in Chrysler design; illus of Abrams and Leopard tanks (M)

United Parcel and teamsters reach tentative agreement; union is said to have achieved major objectives; PROD, group of dissident teamsters, files suit in Washington Superior Ct, charging Fitzsimmons and Schoessling with depriving strikers of estimated $1.3-million in strike benefits; impact of strike on retail, construction and mail order businesses and on postal service revd (M)

Nov 13: US diplomats say US decision to join in Security Council's criticism of Israel was part of what might be final effort by Sec Kissinger to enhance US influence among moderate Arabs, including Egypt, Syria and Saudi Arabia, in expectation of possible Middle East peace talks early in Carter Adm; move marks shift in diplomatic tactics by US, without changing substance of policy; US officials express confidence that possible strains in Israeli-US relationship will be short-lived; illus of Foreign Min Yigal Allon at meeting in Tel Aviv with US Amb Malcolm Toon and Repr Walter Flowers (M)

Office of Mgt and Budget estimates Govt spending in fiscal '78 at around $450-billion, with 10% increase in outlays; notes spending for fiscal '77 will range between $412- and $412.9-billion, with budget deficit of between $54.2- and $59.3-billion; lays out 4 different sets of econ assumptions yielding different budget estimates for '78; '78 projections do not include any new programs Carter Adm may propose; HR Budget Com staff member notes projections omit $625-million cost of program of antirecession aid to local govts if unemploymenet rate remains high; OMB deputy dir Paul H O'Neill says '77 figures may also be too low, by $2.5-billion, if Cong votes funds for programs still pending in Cong; says failure of Govt to spend as much as was expected in Jan-Oct period was taken into acct in developing estimates (M)

Angolan refugees in S-W Africa, part of refugee exodus of more than 9,000 that has crossed border since latest round of fighting, say they fled on foot across border when Angolan Govt forces, supported by Cubans and guerrillas belonging to S-W African People's Orgn, attacked their villages; S African mil spokesmen believe latest offensive was ordered in attempt to wipe out Natl Union before 1st anniv of country's independence, or at least before rainy season starts; immediate problem for S Africans is coping with refugees; map (M)