July 26, 1978

illus of Repr Benjamin S Rosenthal shaking hands with Repr William S Moorhead after HR passes Fed loan legis for NYC

OECD rept, made before Bonn econ summit, says Pres Carter should accept sharp reduction in econ growth in US in '79 and possible rise in unemployment as necessary to reduce inflation and strengthen weakened dollar (M)

HR-Sen conf com agrees on bill to regulate and control offshore oil and gas development; bill mandates that 20-60% of tracts auctioned by Govt be auctioned under new bidding systems, including one that would require oil cos to share at least 30% of profits with Govt and to offer higher shares than that to win leases; does not specifically authorize exploratory drilling by Govt, but makes it clear that it will allow Adm and judicial processes to determine whether '53 law permits such activity; places floor of 2% and ceiling of 37.5% on amount of impact aid that coastal states can receive; other provision noted (S)

EAST HAMPTON. L.I.

Article on Minn businessman Dwayne O Andreas notes that in '73, Justice Dept charged Andreas with making illegal $100,000 corp contribution in form of loan to Sen Humphrey's '68 Pres campaign; Andreas, while agreeing that money he lent Humphrey originated in corp he headed, successfully argued that funds were not really a loan from corp to himself; Andreas was acquitted by Minn judge (S)

article on gathering of about 200 chimney sweeps from US and Canada in Westport, Conn; illus (M)

Sperry Rand Corp chmn J P Lyet says Carter's decision to cancel sale of co computer to Tass was based on misinformation about computer's capabilities; says action also raises question of future export applications; illus (M)

article on growing number of amateur divers searching for sunken treasures in waters off NJ and NY; Eastern Dive Boat Assn pres George Hoffman describes NY Harbor as 'best in the world' for such treasures; John Larson describes his search for rumrunner Lizzie D that sank in '22 midway between NJ and LI; 'treasures' described; Smithsonian Inst diving officer Joseph D Libbey comments; Larson illus (L)

THOSE who have glimpsed the Scottish oatcake can never forget it. Flat, coarse, gray‐beige, pitted like the moon's bleak surface, this triumph of Calvinist cuisine tests the Scotsman's grit and separates the men from the laddies.

correction on July 3 article

Sen, 57-42, repeals embargo on Amer mil assistance for Turkey but tries to link any future aid to progress on negotiated settlement of Cyprus problem; amendment, which allocated $175 million in fiscal '79, is proposed by Sen McGovern and is introduced and strongly backed by Sen Byrd; amendment requires Pres to certify that each new request for mil or econ aid will contribute to achievement of Cyprus settlement and to restoration of stable relationship between Turkey and Greece; adds that US should continue to give high priority to carrying out UN resolutions on Cyprus and to UN efforts to 'restore full Cypriot sovereignty through negotiation of just settlement'; Repr Brademas and Sen Sarbanes comment; State Dept lauds action (M)

Taxes would be waived on capital gains resulting from inflation under a proposal unexpectedly approved by. the House Ways and Means Committee. The vote introduced a new element of confusion into the murky legislative situation surrounding the capital gains issue. [Page A1].