March 25, 1977

Laurence N Woodworth, Asst Sec of Treas for Tax Policy, in briefing for newsmen, outlines principles Carter Adm hopes to incorporate in tax reform proposals next fall; all income--personal, corp and capital gains--should be taxed at same rate; divds should be taxed only as corp profits, not also as personal income; persons with comparable incomes should bear equal tax burden; Repr Ullman comments; Woodworth says no final decisions have been made (M)

Carter says State Sec Vance, who is in USSR, will express US concern over Africa's future and ask USSR to join in prohibiting outside interference that might contribute to warfare in Africa, news conf (S)

WASHINGTON, March 24 — Former President Ford came back to Washington today, riding in a sleek black limousine but obgerving at least part of the style of the Carter White House by carrying his own heavy briefcase.

Desai is sworn in by Acting Pres B D Jatti as Prime Min; pledges to 'drive fear out of the society'; is chosen by Narayan and colleague J B Kripalani, in move to avoid clash or open vote between Desai and Ram; says Govt will begin immediately to revoke some of legis of period of emergency rule, including press-censorship laws and changes in Const; promises to insure ind judiciary; Ram says his party, Cong for Democracy, will remain apart from Janata, although allied with it; some of his principal backers, including George Fernandes, express resentment at way in which Desai was chosen; Janata gen sec Ram Dhan resigns in protest; Gandhi sends Desai note of congratulations; Narayan visits Gandhi; illus of Desai, Narayan and Ram (L)

HR Dem leadership reptdly recognized last wk that bill would be defeated but labor leaders insisted on vote (S)