January 21, 1978

Mayor Koch sets hiring freeze and spending cuts but says city will need state and Fed aid to dose budget gaps starting with $457-million deficit next yr, news conf unveiling 4-yr financial plan; illus; asks continued Fed seasonal loans after June 30 and new Fed-state ins on long-term loans; lauds Pres Carter's State of the Union Message comment on 'extended lending' to NYC; pledges 'parsimonious' spending; hopes to close fiscal 79 gap with 174-million saved through economies and $283-million advanced by NYS and US; will ask NYS to speed aid payments to cut seasonal borrowing needs (M)

700 people are stranded on expressway following 18 inch snowfall (S)

Jan 21: Sec Vance fails to persuade Pres Sadat to send his negotiators back to disrupted peace talks in Jerusalem, but Sadat pledges that 'door to peace is not closed, meeting, Cairo; Sadat thanks Pres Carter and Vance for efforts to bridge differences between Egypt and Israel; says minimum needed to continue peace process must be declaration of principles, embodying Arab demands for Israeli withdrawal from territory occupied in '67 and right of Palestinians to self-determination; accuses Israelis, particularly Prime Min Begin, of 'arrogance'; Vance says his deputy Alfred L Atherton Jr will return to Jerusalem with other US officials (M)

It was as pure as new fallen, as white as driven, as chaste as unsunned. No matter how you sliced it, it was snow. There were snow men and snow women, snow plows and snow shovels, snow balls and snow cones, snow mobiles and snow birds, snow skiers and snow haters. People wore snow boots and snow suits and snow shoes. For some it was no problem, for others no fun.

Econ Message

Abzug's narrow victory is reaffirmed after ct-ordered recount made at request of Burden; Liberal Party exec com endorses Abzug; dispute over nomination takes another bewildering turn when Burden charges that Leonard Rubin, one of county com members voting for Abzug at meeting of Dem panel, is Liberal (M)

LI repts 18 inches of snow over much of area and wind gusts of 60 mph; 700 people are stranded on LI Expressway; 4 storm-related deaths are reptd in Nassau County; other effects of storm described (M)

Govt bans 4 major newspapers but gives no reason for action; speculation that action is connected with press coverage of anti-Govt campaigns by student critics of Suharto (S)

article analyzes 'ambiguity' of current Middle East diplomacy involving Egypt and Israel; says despite well-publicized recriminations, neither Sadat nor Begin seem to want chance for peace to slip away altogether; notes efforts by Vance to keep alive chances for progress toward peace (M)

Many residents head for seaside resorts in Andean valleys and southern lakes for summer vacations; illus (M)

Vietnamese Govt says Cambodia leaves it no choice but to resort to 'legitimate self defense' and 'righteous counteractions' in border conflict; observers say statement presages intensified mil action by Vietnam; radio announcement says Cambodia shelled outskirts of Tay Minh and Chau Doc and areas in Mekong Delta (M)

Rabbi Alexander M Schindler, chmn of Conf of Presidents of Major Amer Jewish Orgns, says he accepted invitation by Pres Sadat to visit Egypt after Sadat withdrew his Foreign Min from pol talks in Jerusalem; says Sadat told him he felt his peace initiative slipping away but that he had done everything possible to fulfill his 'sacred mission'; invitation, 1st to US Jewish leader, will be followed up with another to Synagogue Council of Amer; 15 leading US rabbis and Jewish laymen are scheduled to visit Egypt for interfaith talks (M)