February 14, 1977

Non‐Inst Com for NY Note & Bond Holders, group of private holders of NYC short‐term notes, meets for advice on what to do with notes in light of NYS Appeals Ct ruling widely interpreted as imposing 30‐day deadline on city for full payment to private holders of notes; noteholders are told to await further guidelines on ct decision (M)

Gifford, branding city's school‐custodian operation ‘corrupt’ and ‘sick to its core,’ says he will remove Hudson and call in NYS Investigation Comm to conduct a thorough inquiry into $100‐million‐a‐yr program, rept to Educ Bd; criticizes admrs and calls for tighter control; other findings and recommendations noted; Educ Bd to discuss school custodian setup at private session on Feb 13 (M)

Lillian Carter illus at service, New Delhi

State officials, forced by Calif Sup Ct to reduce disparities between rich and poor school dists, hope to use spirit of reform to relinquish control over schools on scale unprecedented for state; parents and teachers under decentralization plan being considered, would gain significant control of school system; plan detailed; Gov Edmund G Brown supports School Supt Wilson Riles on decentralization issue, but is less confident that state can provide $300‐400‐million needed to implement plan; illus (L)

It was balmy weather for Sunday afternoon footing, and hardly anybody went away empty‐handed yesterday from a row of burned‐out warehouses on West 30th Street near 12th Avenue.

Czech police order NY Times reporter Paul Hofmann off Prague‐Vienna express on Feb 12, hold him incommunicado and confiscate notebooks, other papers and unused stationery; Hofmann was ending wk‐long Czech visit; is released on Feb 13 (M)

Fed Energy Admr O'Leary says Carter Adm energy policy will call for higher prices, ABC's Issues and Answers program; says gas‐deregulation plan applies only to gas newly committed to interstate sales; scores withholding of supplies to interstate mkt in anticipation of deregulation; FPC Chmn Dunham, on same program, links shortage to other factors; Fed energy planners reptdly weigh steps to keep price of intrastate gas from soaring when Cong removes ceilings on interstate sales (M)

NY Times survey finds that increasing number of states are taking steps to scrutinize, and in some cases control, budgetary practices of their municipalities in attempt to avoid credit problems that have plagued NYC; Fed Advisory Comm on Intergovt Relations asst dir John Shannon holds NY situation has generally strengthened hands of fiscal conservatives (M)

article on Rhodesian civil war; illus (L)

returns to Washington

Article on controversy in Ga Legis over Sen James L Paulk resolution to change state's official designation from Peach State to Peanut State; some state Sens comment

Lopez Portillo flies to US on Feb 13 for 4‐day official visit during which he will seek US assistance to ease his country's econ ills; to meet with Pres Carter on Feb 14; Mex reptdly is willing to give priority to selling oil and natural gas to US in exch for US financing and tech to accelerate exploitation of its hydrocarbon reserves; illus of Pres and Mrs Lopez Portillo (L)