July 13, 1979

The Carter Administration conceded that a recession is unfolding. In a midyear economic review, the White House forecast that the slump would be mild and brief but would nevertheless raise unemployment by 1.3 million people by the November 1980 Presidential election. The risk of a deeper recession and higher unemployment is greater than the likelihood of a milder downturn, acknowledged Lyle E. Gramley, economic adviser to the President. [Page A1.]

Galante, Carmine

NY Times/CBS News Poll finds growing doubt if even an 'effective President' could solve US energy problems; while there is increase, compared with '77 poll, in public willingness to support energy production at expense of environment, the 2 sides are about evenly divided (M)

Federal grand jury indicts Firestone Tire & Rubber Co on charges of filing false income tax returns in '72 and '73 and conspiring to defraud IRS; Firestone spokesman Jim Strandberg says co has tentatively agreed to plead guilty to filing false tax returns; says conspiracy charge will be dismissed; indictment alleges that between '66 and '72, Firestone created special accounts for $12.6 million in unreported income and that in Sept '72 it reported $9.1 million as income without stating that money was earned in previous years; US Attorney James R Williams says grand jury was convened to probe allegations raised by IRS and Robert P Beasley, former chief financial officer of Firestone serving 4‐year prison sentence for mail fraud (M)

Office of Management and Budget Director James T McIntyre Jr suggests that if Carter Administration recommends antirecession tax relief to Congress for '80, it might prefer reduction of Social Security payroll tax to a general income-tax cut (S)

Bundesbank lifts key interest rates to highest levels since May '75, rejecting warning; Emminger says discount rate will rise to 5% from 4% and Lombard rate to 6% from 5.5%; stresses priority is fighting domestic inflation (M)

University of South Carolina archeologists, led by Dr Stanley South, uncover site of long-lost 16-century colony of Santa Elena, once capital of Spanish Florida, as they dig in rough at edge of a golf course on Parris Island, South Carolina; find quantities of Spanish pottery and discover moat and traces of 2 bastions of fort believed to be one known as San Felipe II, one of 3 forts protecting settlement of Santa Elena, which was founded in 1566 and abandoned in 1587; Dr Robert Drs Robert Stephenson and Paul Hoffman comment; South Carolina University financed initial exploration, but additional work will be partly financed by society in cooperation with US Marine Corps, map of Santa Elena (M)

ICC, in move to provide more seats on intercity bus routes and save fuel, grants temporary permission to interstate bus companies to serve additional communities without Government approval; ruling, which was sought by Trailways Inc, is effective until Sept 25; Trailways spokesman Ted Knappen voices disappointment at limited scope of order; says it will not give Trailways intrastate operating authority; Greyhound Lines president Frank L Nageotte and American Bus Assn oppose order (M)

NYS Energy Comr James L Larocca says additional reserve supplies of gasoline are being made available in NYC metropolitan area; says NYS will release 7.5 million gallons of gasoline from its 'set-aside' reservoir for distribution in NYC and 5 neighboring counties during final 10 days of July; urges US Energy Dept to compel 28 major petroleum distributors in NYS to deliver to stations 12.5 million gallons that state released from its reserves at beginning of month; Larocca and NYC Mayor Koch reject request from number of gasoline retailers that odd-even rationing be suspended on weekends (M)

NYC deputy director of operations Paul Trautman announces revised emergency power-failure response plan, City Hall briefing; under plan, community information centers would be established in each of city's community districts; there would be early-warning system under which Consolidated Edison Co would give police advance notice while it is trying to prevent possible power failure; there would be revamped police deployment and plans to cope with looting and mass arrests; Deputy Police Chief Patrick J Murphy and City Council Pres Carol Bellamy comment; illus (M)

Alicia Alonso, the Havana‐born ballerina who danced in this country for many years with American Ballet Theater, has just returned to New York with her own company, the Ballet Nacional de Cuba. The troupe has been touring the United States the last two months and has just moved into the Metropolitan Opera House for a threeweek stay. Tonight's program at 8 P. M. is Miss Alonso's new production of “Swan Lake.” Tomorrow at 2 and 8 P. M. the company will dance a new full‐length work, “Night of the Guitar” — danced entirely to guitar music —with Miss Alonso herself appearing at both performances. Tickets range from $6 to $30, available at the box office or by calling 580‐9830 for charge reservations.

NJ Superior Court Judge Morton I Greenberg orders State Employees Assn to pay $25,000 a day in fines to state unless union officials make effort to persuade union members to end their strike against state government by July 14; illus (M)