September 10, 1977

Koch and Cuomo begin runoff campaigns; both seek backing of Beame, other losers and pol leaders, including Patrick J Cunningham, Meade H Esposito and Donald R Manes; Gov Carey issues statement wishing both well; Koch adviser David Garth cites Repr Mario Biaggi's support for Cuomo in seeking to link Cuomo with ideological right; Cuomo stresses his 'philosophical differences' with Koch, news conf and ints; sees his opposition to capital punishment as key issue; notes he is short of funds for TV ads; Cunningham, Esposito and Manes comment on Beame's defeat; Beame comments; Sen Daniel P Moynihan hails Dem victors; Sen Jacob K Javits says he supports Goodman, but calls 2 Dems 'decent, capable candidates', primary tally; map shows top vote-getters in each AD; other election results noted; Cuomo and Koch illus (M)

IRS describes events leading to halt in investigation of Lance's banking activities prior to his confirmation as Budget Dir; rept, conducted by agency for Comptroller, does not draw conclusions or level charges of wrongdoing; contents detailed (M)

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Percy suggests Lance may have backdated $196,426 worth of checks in '77 to obtain improper tax deduction for '76, Com hearing; checks in question described; Heimann testifies; offers stronger criticism of Lance's banking practices; says overdrafts represented 'serious violations' of Fed law that prohibits bank execs from borrowing more than $5,000 from their own banks, except for mortgages or educ loans; says most severe punishment for such violation is cease-and-desist order; says overdrafts were, in fact, extensions of credit and exceeded legal limits on several occasions; says he does not believe Lance knowingly violated law, but takes issue with Lance's contention that his activities were 'typical' for small rural banks; Agr Sec Bob Bergland reptdly sees need for Lance to resign; Sens Percy, Ribicoff, Roth and Heimann illus (M)

State Dept, despite long-standing opposition by AFL-CIO, grants visas to 4 Soviet trade union reprs to visit US; this is 1st time that US has moved to allow Soviet trade union official to enter country since cold war; action marks end of policy of not opposing AFL-CIO views on matter; dept cites change in Amer law and Carter Adm concern for freer contacts under Helsinki Final Act; AFL-CIO official calls action 'foolhardy'; USSR unionists were invited by Chicago-based Trade Union for Action and Democracy (M)