May 13, 1978

Illus of tornado sweeping across northern Okla (M)

Schultze, noting econ generally and employment and unemployment in particular have been stronger than anticipated in Jan, announces Pres Carter has abandoned his plan for tax cut on Oct 1 in favor of smaller cut beginning Jan 1, '79, statement; decision is regarded as belated acceptance by Pres of inevitable following resolutions by both HR and Sen which contemplate both smaller tax cuts and smaller deficits next yr; Schultze says trimming tax cut and budget deficit will strengthen credibility of Adm's anti-inflation program; statement also broadly hints that Adm is responding to plea for fiscal restraint by Fed Reserve chmn Miller (L)

15 persons reptd killed and millions of dollars of property destroyed in anti-Govt riots in 25 cities since May 11; illus (S)

May 13: Israel signs secret agreement with US renewing pledge not to use US-supplied cluster bombs except under special wartime conditions; State Dept sends Repr McCloskey, who opposes use of cluster bombs, lr disclosing agreement (M)

Fed Govt agrees to provide financial guarantees needed to construct 1st 6 bldgs if project meets certain conditions; project officials say they expect to meet conditions, and Gov Carey says construction could begin this summer; bldgs are to contain 1,642 upper-income apts; map (M)

Terrorists shoot Christian Dem dist office sec Tito Berardino in leg, Milan; Red Brigades leaflet holds orgn will continue attacks, especially on Christian Dems, as part of drive to follow up on Moro slaying; bomb explodes in front of Justice Min office bldg, Rome, causing no injuries; terrorists shoot at barracks housing members of Carabinieri police unit, Turin, and set bomb blast there; set fire at warehouse owned by Honeywell, Segrate, and at home of Natl Labor Bank Cosenza branch mgr Dante Longo; send death threat to Tonadico Mayor Gianfranco Gadenz; other incidents noted; Interior Min officials cite difficulty of protecting many lower- and middle-level officials who are potential targets (M)

Article on conditions in Cambodia as related by recently escaped refugees says country is suffering continuing bloodletting, even among factions of ruling Communist party, and starvation, nationwide forced labor and regimentation; one Eur journalist, among Communist reporters from Yugoslavia who toured country, says group was appalled by much of what they saw; absence of French-speaking people and generally peasant character of refugees lends credence to repts that Communist regime is methodically killing educ classes and that great majority of people driven from cities and town in '75 withstood rigors of new life less well than rural people; other severe conditions, including food shortages, described; illus of children in rice fields taken by visiting Yugoslav journalist (L)

Article on rejection of funds from NYC by Community Planning Bd 18 for creation of new pk; Pks Comr Gordon Davis says city will try to shift funds to other pks but fears city could lose $365,000 Fed matching grant (M)

NYC's effort to meet May 20 deadline for resolving fiscal issues that have held up renewed Fed aid suffers setback when munic pension funds refuse to commit themselves to future lending and State Atty Gen Louis Lefkowitz attacks legis that would increase borrowing auth of Munic Assistance Corp; MAC chmn Felix G Rohatyn meets with union reprs Jack Bigel and William T Scott; fails to obtain their commitment to participate in financing pkg after July 1 (L)

Yuri Orlov's wife reptdly has been informed by her husband's state-apptd lawyer Yevgeny Shalman that Orlov will go on trial May 15 on charges of anti-Soviet agitation and propaganda (S)

Antonio Alvarez-Solis, editor of Spanish magazine Interviu, which has circulation of 1,120,000, int; explains why magazine is popular; illus; drawing (M)

In Washington yesterday, a spokesman for Representative Gradison said that the Congressman and his colleague, Mr. Luken, had written a letter urging Leonid I. Brezhnev, the Soviet leader, to use his “influence either to locate expert medical care within the Soviet Union or to allow Jessica to travel to the United States, where necessary medical treatment can be obtained.”