April 11, 1978

Transkei breaks diplomatic relations with S Africa, only country that recognizes its existence; ostensible reason for rupture is S Africa's refusal to surrender E Griqualand, which is claimed as historical part of Transkei; other causes include desire to catch attention of world, which has shunned Transkei as creature of S Africa's policy of separate racial development; map (M)

Fed grand jury indicts former FBI officials L Patrick Gray 3d, Edward S Milter and W Mark Felt for conspiracy; accuses 3 of ordering FBI agents to conduct illegal searches for members of Weather Underground in '71-72; Miller said in '76 that Gray, while he was acting FBI Dir, had reinstituted policy of making 'surreptitious entries,' and Felt has said he authorized 2 such break-ins on strength of assurances that Gray would approve them; Gray issues statement saying he never 'knowingly authorized illegal conduct'; Justice Dept dismisses charges against former bur official John J Kearney; Atty Gen Bell says he received evidence after Kearney's indictment that changed his position, an apparent reference to testimony of late FBI official William C Sullivan that he, Sullivan, 'personally' conveyed to Kearney J Edgar Hoover's wishes that break-ins be conducted; Bell says he will initiate 'adm disciplinary proceedings' against Asst Dir J Wallace LaPrade and ask FBI Dir Webster to do same against 68 agents; LaPrade reptdly has refused Bell's request to resign; illus of Bell, Gray, Felt and Miller (L)

Pres Comm on Mil Compensation suggests that pensioned mil veterans who then take civilian jobs in Govt be allowed to credit their mil time toward Civil Service pension, but not be allowed to collect mil pension and Govt paycheck at same time, practice known as 'double-dipping'

Panama reptdly warns US that it will not accept reservation attached to treaty already approved by US Sen; reptdly warns that its patience with handling of pacts is running out; Carter Adm officials concede they are deeply concerned over rising tide of opposition to treaties in Panama, and over reaction of US Sens; reptdly seek some way to meet Panama's objections to DeConcini reservation without losing support in Sen; Sec Vance, speaking before ASNE, urges US and Panama to proceed with calmness (M)

Deputy Mayor Herman Badillo threatens to resign after Mayor Koch takes away some of his authority but agrees to stay on after long talk with Koch; Koch had served notice before meeting with Badillo that he would not alter his order to have Dir of Operations, Lee Oberst, rept to Mayor instead of Badillo; Badillo por (M)