May 11, 1977

May 11: Saudi Crown Prince Fahd say he believes PLO would agree to recognize Israel as part of settlement that includes establishment of Palestinian state on West Bank and Gaza Strip, int; says it is imperative to find solution in '77; Saudi Foreign Min Prince Saud al-Faisal says failure to find solution this yr would be 'internatl catastrophe'; Fahd, Saud and Oil Min Yamani say Saudis will not use oil pricing or output to force solution (M)

HEW Sec Joseph A Califano Jr says Carter Adm will eventually like to make permanent part of Soc Security system limited transfer of gen revenues from Treas that it proposed for experimental 5-yr period, testimony before HR Soc Security subcom; Carter has sent Cong pkg of proposals that he says will eliminate growing deficits in Soc Security financing; probing and anxious questions by subcom and criticism emerging from business community point to stormy course for Carter pkg; illus (L)

NYS Banking Dept drafts broad program to increase flow of funds into new and existing housing in inner cities; program outlined (M)

signs that Carter is taking more cautious and diplomatic approach to problem of human rights discussed; include statements at London econ and NATO summit confs; Jody Powell denies any policy shift (M)

HR, 261-149, approves amendment that would scuttle new formula meant to funnel increased urban development aid to large older cities; vote comes as HR near final vote on renewal of Community Development Block Grant program; program, which would be expanded to more than $4-billion a yr under bill, is Govt's chief measure to help cities combat physical deterioration and decay, bill's provisions detailed (M)