August 19, 1977

Pres Carter says investigation into Lance's finances reconfirmed his 'faith in the character and competence' of Lance, press conf; claims Lance will remain in office; Lance says he plans to remain in office; Carter aide Hamilton Jordan discounts possibility that prolongation of case might drive Lance from office conf (M)

Aug 19: Carter Adm denounces Begin Govt's approval of 3 additional settlements on West Bank; scores plan to extend Israeli public services to Arabs living on West Bank; Adm's views are conveyed by Under Sec Philip C Habib to Amb Simcha Dinitz; State Dept spokesman Hodding Carter 3d comments; Israeli Embassy says Israel does not view settlements as obstacles to peace because all subjects are open to negotiations; Vance confers with Soviet Amb Dobrynin (M)

The promoter of a million‐dollar Las Vegas backgammon tournament scheduled. or December has solicited and collected what his associates say could be as much as $400,000 in entry fees that he had promised to keep in an escrow account, but bank officials said yesterday that the account never existed.

NYC and Fed Govt agree on new clean-air plan for Manhattan relying less on banning parking and more on bolstering mass transit and enforcing traffic laws; plan subject to approval by Fed ct; maps (M)

Currency Comptroller Heimann says he finds no ground for prosecution of Lance, but scores Lance's banking practices, lr to Sen Ribicoff accompanying rept to Sen Governmental Affairs Com; says Lance's recurring pattern of shifting bank relationships and practice of borrowing money from banks where Calhoun First Natl Bank had accts 'raises unresolved questions as to what constitutes acceptable banking practice'; says 3 areas of inquiry remain open, including failure of Comptroller's office to follow internal rules or to properly perform their responsibilities; also cites allegations that Natl Bank of Ga may not have adequately controlled accts of its leased or owned aircraft, and certain 'unspecified' matters involving periods before '75; revs Lance's relationships with First Natl Bank of Chicago, Mfrs Hanover Trust Co, Calhoun Bank and other insts; practice of Calhoun Bank, in allowing officers and members of their families to overdraw their personal accts, represented unsound and unsafe banking practices and amounted to violation of Fed law; Lance maintains rept is favorable; pledges to remain in Govt; Pres Carter interrupts vacation; meets with Lance and wife; tells news conf Heimann's rept has answered questions raised against Lance; Sen Governmental Affairs Com to hold additional hearings on Lance's activities; Sen Banking Com to monitor Heimann's continuing inquiry; expected to hold hearings; Heimann reptdly to determine conditions under which Lance used plane belonging to Natl Bank of Ga since becoming OMB Dir; findings of Heimann rept detailed; Lance illus with Carter (M)