January 8, 1977

Munic Assistance Corp Chmn Felix G Rohatyn advises top city and state officials to reject, at least for time being, latest demands laid down by banks as condition for helping city balance budget and pay off short-term notes; Mayor Beame formally submits to Emergency Financial Control Bd program to close budget deficit of between $585- and $725-million by July 1; bd holds 1st meeting open to public under state's new 'sunshine law' (S)

Analysis of Pres-elect Carter's program to stimulate econ finds it embodies some aspect of nearly every plan offered to him. with exception of business investment tax credit; middle ground seen in such aspects as tax rebate, permanent tax cut and such job-creating programs as public works and direct Govt spending; tax credit for business, which would in effect reduce by 5% Soc Security tax payments made by business, is said to be only part of pkg not firmly fixed (M)

Pres Ford reptdly will deny blanket amnesty to evaders (M)

accord expected between central bankers of US and other major indus nations on novel solution to long-standing problem surrounding GB's sterling balances, which stems from holdings of pounds by foreign govts and central banks, currently totaling $4-billion, which have placed downward pressure on pound; some possible solutions discussed (M)

Manhattan Boro Pres Percy E Sutton tells Mayor Beame and fellow Estimate Bd members that he will announce candidacy for Dem mayoral nomination later in Jan; would be 1st Dem to challenge Beame's expected bid for renomination and also 1st major black contender for mayoral nomination; Sutton tells Beame, who has been close pol ally, at Gracie Mansion breakfast meeting at which only they are present; Beame spokesman says Beame wished Sutton 'good luck'; Beame tells Sutton only that he is 'considering' seeking re-election (M)