December 18, 1976

analysis of diplomatic consequences of Saudi decision to hold down oil price increase; Saudis now seen telling US that they are putting their prestige and influence on line for negotiated settlement, that they will put pressure on Egypt, Syria, Jordan and PLO to be flexible in exch for US pressure on Israel (M)

Transportation Sec William T Coleman Jr approves bldg in Gulf of Mex of 1st 2 US deepwater ports, overriding objections of environmentalists and some antitrust experts; authorizes Loop Inc, group of 6 oil cos, to develop port 18 mi south of Grand Isle, La, and authorizes Seadock Inc, group of 8 oil cos and chem co, to build 26 mi south of Freeport, Tex; cites environmental and safety benefits and econ efficiency; Energy Action Com repr Thomas E Girard and other critics score some aspects of proposal; map (M)

Carter will ask Cong to create Energy and Resources Dept to consolidate functions of Fed Energy Adm and Energy Research and Development Adm and similar functions of Interior Dept; will nominate James R Schlesinger as its 1st Sec; Sen Henry M Jackson has reptdly approved reorgn; Critical Mass, a Ralph Nader pub, several environmental leaders, Repr John F Seiberling and 8 other Congressmen oppose Schlesinger apptmt (S)

Mass Sup Judicial Ct unanimously overturns manslaughter conviction of Dr Kenneth C Edelin in 1 of nation's most famous abortion cases; rules dr commits manslaughter only if he ends life of fetus that is definitely alive outside woman's body; case revd; Edelin por (M)

Oil economists say business has been thrown into chaos by 2-tier pricing structure estab by OPEC; expect increases to raise world crude oil costs by $10-billion a yr, with burden felt less harshly in US than elsewhere; see surge in demand for Saudi Arabian and Abu Dhabi oil; some, like Walter J Levy, doubt Saudi decision to limit price increase to 5% and expand production will force other producers to lower price; find it more likely that Saudi oil prices will be bid up to 10%; see $2-billion annual windfall for Arabian Amer Oil; those predicting success for Saudi move note that other producers are under strong financial pressure; Gulf Oil spokesman William C King says co will have to press for better price from its suppliers; pressure of Saudi move is expected to be felt most sharply by Iran, Kuwait and Venezuela; oil stockpiled by oil cos in anticipation of increase is also expected to put producers under pressure; Asst Fed Energy Admr Clement B Malin comments (M)