July 4, 1978

Whitney tells Soviet judge Lev Almazov he has decided not to participate in any ct hearing on libel charge (S)

Shah of Iran forbids members of royal family to make business deals in which they stand to benefit (M)

Sadat formally accepts US invitation to send Foreign Min Kamel to London in late July to meet with Israeli Foreign Min Dayan and State Sec Vance, meeting with Mondale in Alexandria; provides Mondale with newproposal under which Israel and Egypt could negotiate final status of West Bank and Gaza Strip; illus (M)

State Comptroller Arthur Levitt rejects $153 million budget, on ground that city had illegally increased its utility tax to 3% from 1% so it could repay $6 million loan from state to avert layoffs of 300 employees; Mayor Angelo Martinelli comments (M)

Sup O, 5-4, rules that free speech protection of 1st Amendment does not bar Govt from prohibiting radio broadcasting of words that are 'patently offensive' but fall short of Const definition of obscenity; decision affirms FCC reprimand to WBAI-FM for broadcasting selection from comedian George Carlin album and extends rationale used to justify more limited 1st Amendment protection for broadcasters than for print journalism; Assoc Justice Stevens writes majority opinion; Assoc Justice Brennan dissents; Carlin por (M)