July 7, 1977

Bailar proposes increase in 1st class postage rates to 16c allowing individuals to continue paying 13c in effort to erase $1-billion deficit in '77; describes criteria for 'citizen rate' lrs; makes no recommendation on ending Sat mail deliveries to cut costs; comments on proposal for new special rate for pre-sorted 2d-class mail; says he is considering further closings of small post offices (M)

NYC submits plan to NYS based on stricter enforcement of existing parking regulations and relying on auto indus and Fed Govt to produce cleaner cars; environmentalists call plan a sham (S)

NY Nets, intent on moving to NJ, sue NY Knicks, challenging key part in structure of pro sports that allocates franchises and protects 'territories'(M)

Carter's advisers on reorgn suggest that White House staff be restructured and cut 30% by Sept 30; plan would climinate Office of Telecommunications Policy and Council on Internatl Econ Policy, and drastically reduce size of Council on Environmental Quality; would create new 'policy staff mgt system' in domestic policy; other details of plan (M)

NYS audit finds auth officials took expense-paid out-of-town trips at econ rates, but were reimbursed at 1st-class rates; procedure, apparently used to defray private travel cost of accompanying family members, has turned up as 'rather common practice' according to audit officials; instance involving dir Guy F Tozzoli cited; Tozzoli comments (M)