October 5, 1977

Sen, 50-46, approves 5-yr phase-out of controls on new offshore gas and 2-yr phase-out of controls on new onshore gas; bill sets initial ceiling prices of $2.03 per thousand cu ft for offshore gas and $2.48 for onshore gas; intrastate mkt will remain uncontrolled; Pres Carter says bill is not acceptable; Sen Bentsen says he may bring before full Sen question of who should serve on conf com if he does not feel leadership's choices reflect Sen support for deregulation; comments by Sen Riegle and Jackson noted (M)

HR Ways and Means Com votes to increase Soc Security taxes in next several yrs that would primarily fall on people earning more than $16,500 annually; legis would raise wage base to $19,900 in '78 and annually until it reaches $27,900 in '81; com votes to increase payroll tax in '81 and later yrs and raise amount of money pensioners may earn without losing any Soc Security benefits; Sens Gaylord Nelson and Carl T Curtis agree to meet to work out compromise proposal on raising employer wage base; HR Ways and Means Com and Sen Finance Com reject Carter Adm proposal to transfer Treas Dept funds to Soc Security trust funds for yrs in which unemployment exceeds 6% avg; Reprs James A Burke, James C Corman and Abner J Mikva and Sen Russell B Long comment (M)

Carter, calling on all governments to share in curbing arms race, says US would cut nuclear arsenal by up to 50% now if USSR would do same, speech to UN Gen Assembly; holds US and USSR near significant SALT accord; expresses hope that accord will lead to better ties with USSR 'in other spheres of influence'; holds US will not use nuclear arms except in event of nuclear or conventional attack on US, its territories, armed forces or allies; his aides say stand is 1st formal US renunciation of right to attack with atomic arms; Carter says US has begun to cut its exports of conventional arms; pledges to work with govts to limit their dependence on more arms; Adm officials say offer to cut arsenal is not meant to produce immediate USSR acceptance; USSR Amb Oleg A Troyanovsky lauds speech; illus (M)

UNITED NATIONS, N.Y., Wednesday, Oct. 5—Foreign Minister Moshe Dayan said early this morning after more than six hours of talks, that he had reached agreement with Pregident Carter and Secretary of State Cyrus R. Vance on “working paper” outlining procedures to govern a new Middle East peace conference in Geneva.

Judge John J Sirica sharply reduces prison sentences of Mitchell, Haldeman and Ehrlichman after hearing tape-recorded statements in which all 3 admit their guilt and feelings of remorse; reduces sentences to 1-4 yrs from original 30 mos-8 yrs, making Mitchell and Haldeman eligible for parole in June '78 and Ehrlichman on Oct 27 '77; because Ehrlichman is also serving concurrent sentence for his involvement in 'plumbers' case he will not actually be eligible until Mar '79; Sirica illus (M)

Indira Gandhi released from police custody less than 24 hrs after her arrest; ct holds police failed to make strong enough preliminary case against her; Home Min Charan Singh, at news conf, defends arrest; Gandhi partisans demonstrate in many parts of nation; some Bombay textile mills closed by strikes; clashes with police reptd in several Uttar Pradesh cities and in New Delhi (M)

murders of 2 more men in NYC diamond dist are disclosed as police resume questioning of Tal; detectives and diamond dealers express belief that many of recent murders and robberies are inside jobs arranged by people who worked in indus, many of them newcomers; 2 new cases are '75 murder-robbery of Leon Schumucher and '76 murder-robbery of Nathan Kleinhaus; Detective Chief John L Keenan comments; robbery statistics for diamond dist noted (M)

Carter, annoyed by Representative Koch's plan to hand him lr criticizing Adm's stand, snubs Koch during visit to UN; Koch gives Carter lr at Wall St heliport; says after being rebuffed that he still has friendly relationship with Carter; mayoral candidate Mario M Cuomo, who had criticized Adm's Middle East policy in lr to Carter, calls Koch's effort clumsy; Barry Farber, Conservative Party candidate, calls Koch's behavior hypocritical; illus of Koch and Carter (L)

Antideregulation Sens predict that tactics used to break up filibuster will hurt both Carter Adm and Sen majority leader Byrd; comments by Sens Abourezk, Gary Hart, Sarbanes and Javits noted; Jody Powell defends Carter; Byrd defends himself (M)

Labor leaders, particularly Communists, appear relieved at leftist alliance split; leaders are most concerned by prospect that they would not be able to satisfy their workers' demands if their parties took over natl govt in '78; map (M)

Smith's trip to Zambia has astonished Western and African diplomats and prompted wave of speculation (M)

Mozambican authorities rept heavy fighting in Tete dist between Mozambican and Rhodesian forces (S)