Govt may lift ban against foreign bank operations; Finance Min Francisco Fernandez Ordonez says ban probably will be lifted 'within short time'; to discuss issue with Treas Sec Blumenthal; approximately 20 US banks reptd interested in opening branches; Spain is 1 of few major Eur nations that still bans foreign banks; opposition of Spanish banks to foreign-bank branches noted (M)

Spain May Admit Foreign Banking

WASHINGTON, March 16 &#8212; Federal bank regulators disagreed today about whether the special privileges many banks give &#8220;insiders&#8221; are necessarily improper or unfair to the public.

Bank Overseers Split On Insider Privileges

Ct of Appeals Judge Jacob D Fuchsberg is censured for trading in city and state securities when crucial appeals on city's finances were coming before ct; is chastised by 5-member panel for failing to disqualify himself from specific cases and for trading in NY securities; says his integrity and 'good intentions' remain unblemished; his dealings in city notes since 75 discussed; illus (M)

Fuchsberg Censured for Trading In New  York  Notes During Appeals

NYS Banking Supt Muriel Siebert and Comr of Taxation James H Tully back legis to allow NYC's commercial banks to transact foreign business unencumbered by high taxes, NYS Assembly hearing, NYC; State Assembly Ways and Means Com chmn Arthur J Kremer sees excellent prospects for approval of Domestic Internatl Banking Facilities; other state and city depts backing proposal noted (M)

State Officials Support Bill to Ease Foreign Operations of City's Banks

article on festivities scheduled in NYC on St Patrick's Day centers on parade, which purportedly is oldest continuous parade in US; Grand Marshal is James Barney Ferguson, homicidesquad detective on city's Police force; drawing (M)

Keeping Step With the Irish On Their Day

Tonight's fashion show at Philipsburg Manor, part of the Sleepy- Hollow Restorations in Tarrytown, N.Y., won't he a trend setter. Instead, it's going to show trends from the past&#8212;formal and informal clothes worn by Americans from 1720 to 1860. The evening's title, &#8220;Whalebone and Willowreed,&#8221; was inspired by the whalebone stays, corsets, caned petticoats and other underpinnings&#8212;figure&#8208;flattering but not especially comfortable&#8212;that yesteryear's woman endured.

WEEKENDER GUIDE

ACTWU initiates new campaign to pressure several corps into severing boardroom ties with Stevens; targets are NY Life Ins Co, Avon Products and Dry Dock Savings Bank; chmn Finley por (M)

Drive to Isolate J.P. Stevens Is Renewed

Problems of overcrowding and staff shortages at Elmhurst City Hosp described; illus (M)

Shortages at Elmhurst Hospital Are Forcing Some Life and Death Decisions; A Killer or Shortages?; 50 More Nurses Authorized

Energy Sec Schlesinger and Repr Walter Flowers, chmn of key HR Science subcom, are negotiating an accord to end impass over Clinch River project by moving toward construction of another, larger nuclear breeder facility using tech that does not yield weapons-grade plutonium; Repr Mike McCormack says compromise is unsatisfactory; Pres Carter will go to Oak Ridge in Apr to meet Clinch River staff (M)

AN ALTERNATIVE PLAN ON BREEDER REACTOR IS BEING NEGOTIATED

CIA reptdly recruited Amer blacks in late '60s and early '70s to spy on members of Party both in US and Africa; details of clandestine activities are considered among agency's most sensitive and closely held information, partly because of fears that disclosures about program would arouse public accusations of racism in intelligence agency; CIA's alleged activities detailed; '70 illus of Eldridge Cleaver (L)

C.I.A. Reportedly Recruited Blacks For Surveillance of Panther Party

News Summary

Fed Reserve Bd repts Indus Production Index rose 0.5% in Feb despite coal strike and severe weather; chart; economists see expansionary econ trend reasserting itself after brief period of sluggishness in Jan; Commerce Dept repts mfrs' inventories rose $2.2 billion in Jan, due almost entirely to decline in sales; chart on sales and inventories (M)

Gains Made in Production And Housing Last Month

Aldo Moro, one of Italy's most influential politicians, is kidnapped by urban guerrilla group Red Brigades; they demand that 15 brigade leaders on trial in Turin be freed within 48 hrs; Andreotti reptdly will not yield to demands; terrorists kill 5 of Moro's bodyguards; unions call gen strike to protest kidnapping; demonstrations reptd in 39 cities; Pres Leone, Christian Dem Party sec Benigno Zaccagnini, Communist Party head Berlinguer, dist atty Giovanni de Matteo and ex-Pres Giuseppe Saragat denounce action; illus of slain bodyguard; Moro por (L)

LEFTISTS KIDNAP ITALIAN LEADER;

When the St. Patrick's Day parade is drawing to a close, what better way to cap it off than with an Irish ccffee? With its chill crown of freshly whipped cream creating a thin moustache as its robust, heartwarming liquid crosses one's lips, an Irish coffee is a special occasion it itself.

St. Patrick's Day Guide to the Best Irish Coffee Spas

Sen, 68-32, approves Panama Canal neutrality treaty, giving Carter Adm and Sen leadership crucial victory; Carter hails vote; is confident Sen will approve 2d treaty turning canal over to Panamanians; treaty foes vow to fight; Sen Byrd casts 68th and final vote after passing when his name was 1st called; Sens Byrd and Randolph comment; Carter phones his chief Cong lobbyist Frank Moore, Sens Byrd and Baker and ex-Pres Ford after vote; Sen votes, 75-23, to adopt reservation to treaty specifying that US troops could be used in Panama to forestall any threat to canal's operation after yr 2000; reservation is price supporters paid for votes of Sens DeConcini and Hatfield; Sen Metzenbaum denounces reservation; various Sens and Vice Pres Mondale comment; few Sens and Carter illus (L)

SENATE, 68‐32, APPROVES FIRST OF 2 PANAMA PACTS; CARTER HAILS ‘COURAGE’

dollar declines sharply on world monetary mkts on Mar 16 as latest Carter Adm support efforts fail; currency dealers cite variety of pol and econ factors; currency falls to new low against Japanese yen, closing at 232.40 on Tokyo exch; some prices on internatl exchs cited (M)

DOLLAR DOWN AGAIN AS SUPPORT EFFORTS HAVE LITTLE EFFECT

Residents of Willimantic hail local police for arrest of 54 pupils for possession and sale of marijuana; Police Chief John P Hussey comments; map (M)

Willimantic Hails Arrest of 54 Pupils In Marijuana Case

Easter Music Season Debuts Tomorrow

Israeli mil forces engage in mopping-up operations in southern Lebanon; many Lebanese Christians support Israeli raid; Begin says troops will remain until Palestinians are no longer able to use area for raids into Israel; Lt Gen Mordecnai Gur comments; illus; map (M)

Israelis Mop Up in Lebanon, Meet Some Resistance

continuing slide of dollar revives talk among oil-producing nations of raising their prices or abandoning currency as basis for pricing oil; drawing (M)

For Oil Pricing, a Basket Of Currencies in Offing?; Pricing of Crude Oil; A Buyer's Oil Market

Thomas E. Mullaney discusses the rekindled debate on the need for an incomes policy to battle the pressures of increasing inflation. Page D3.

The Economic Scene

Mar 17: State Dept spokesman Hodding Carter 3d says Carter Adm expects Israel to withdraw from Lebanon; suggests that internatl peacekeeping force replace Israeli forces (M)

U.S. ADVISES ISRAEL IT EXPECTS TROOPS TO LEAVE LEBANON

The stock market .reg.stereu a mode.ate advance yesterday uesp:te investors&#8217; continued wariness over Middle Last developments and the decline of the dollar in foreign exchange markets.

March 17, 1978

Headlines from March 17, 1978

Spain May Admit Foreign Banking

Bank Overseers Split On Insider Privileges

Fuchsberg Censured for Trading In New York Notes During Appeals

State Officials Support Bill to Ease Foreign Operations of City's Banks

Keeping Step With the Irish On Their Day

Billboard 200

Saturday Night Fever

The Stranger

Slowhand

Running On Empty

Aja

Notable Births

Historical Context for March 17, 1978