Kingsport News (Newspaper) - December 15, 1971, Kingsport, Tennessee Devaluation Brings European Confusion VOLUME XXXIV NO 247 PHONE 4 SECTIONS 24 PAGES KINGSPORT TENNESSEE 37660 WEDNESDAY DECEMBER 15 1971 Donates Old Building To City Night City Editor With the prospect of a Sheraton Motor Hotel and convention center for the Church Circle Parking Lot site reported again steadily the city is in the process of acquiring another downtown business property At a short called session Tuesday night the Board of Mayor and Aldermen voted unanimously to accept an offer from the Publishing Corporation to donate to the city the former building on East Market Street The offer was made in a letter from E G Heiberger vice president and publisher to Mayor John J Cole which City Manager Charles K Marsh said the mayor received Friday A resolution accepting it thanked the newspaper firm for its generous offer and agreed to accept the deed formally when it is presented by emergency ordinance so that the full transaction can be completed by Dec 31 Preliminary action on the building offer and a status report on the Sheraton project were the only business at the special meeting Lakeshore Investments Inc had been asked to present the progress report It came in the form of a letter from Willis B Payne president of the firm to the council which Lakeshore Investments Inc is pleased to inform you that progress by it on a Sheraton Facility for Kingsport is steadily proceeding We have again been in More On Page LONDON UPI President Nixon's an- that the United States will consider devaluing the dollar as part of a package to solve the global money crisis drove the dollar's value down sharply and spread confusion in European currency centers Tuesday Swiss banks immediately suspended dollar trading West German dealers reported the dollar's value slipped by a huge margin in a final hectic 20 minutes of trading in Frankfurt In Paris the Bank of France withdrew from the currency exchange market and the dollar found no buyers in the final hour of trading British exchanges reacted calmly but the Bank of England intervened to buy the dollar to prevent any fall in its price and a corresponding revaluation of the pound The West German Bundesbank also stepped in to control the mark which is expected to revalue in any generally agreed realignment of currency rates The word of Nixon's announcement made in a joint communique with French President Georges Pompidou after the two leaders concluded a meeting in the Azores reached Asia in the middle of the night There was no immediate official reaction in Japan or other areas but the decision was ex- to be reflected in currency exchange markets Wednesday in Tokyo Hong Kong and other major Asian cities In Latin America foreign exchange markets in Uruguay closed immediately after the an- and officials said they would remain LAWMAKERS WILLING TO RAISE GOLD PRICE WASHINGTON UPI Most leading lawmakers indicated Tuesday they were willing If not eager to go along with President Nixon in devaluing the dollar by speeding legislation through Congress raising the official price of gold Agreement with the move was expressed or implied by Senate Democratic Leader Mike Mansfield and Republican Leader Hugh Scott and such key committee chairmen as Rep Wright Patman of the House Banking Committee and Sen William Proxmire of the Joint Economic Committee Rep Wilbur D Mills of the House Ways and Means Committee while declining immediate comment has favored a gold price increase in the recent past and was expected to give his assent to Nixon Rep Henry Reuss an authority in in- monetary affairs who has introduced legislation with Sen Jacob X Javits authorizing devaluation by as much as 10 per cent said he was confident Congress would permit devaluation before it adjourns for the year If we tail to act the international money markets are doomed to more weeks of uncertainty until Congress can he said Mansfield who said a modest devaluation in con- junction with an upward revaluation of other currencies would do no harm and probably would do some said Congress probably would wait until January before considering such legislation More On Page G-A Col 1 closed indefinitely Exchange houses also closed in Argentina In Venezuela Latin America's richest nation and the world's third largest exporter of oil Central Bank President Alfredo Laffee Nixon's decision was a positive step for world trade The dollar tumbled from 3.2730 West German marks to 3.2580 marks in the last minutes of trading in Frankfurt and closed the day still lower at 3.2575 marks Dealers called the late slide huge In such a short period It meant a 12.4 per cent revaluation of the mark The value of the U.S currency however was still above its post-war low of 3.2345 marks in West Germany set last Tuesday The Bundesbank spent about million Tuesday shoring up the U.S currency dealers said It had taken similar action in recent days Dealers in London saw the Azores accord as improving the prospects for monetary peace Banks hoped to see fixed exchange rates soon restored for a period after the long months of floating They said they expect longer term moves over the next few months to secure a thorough reform of the whole global monetary system This would remove the dollar from the scene as a key reserve currency and its replacement probably by special drawing rights or paper gold created by the International Monetary Fund Chancellor of the Exchequer Anthony Barber flies Wednesday to Washington for the top level money talks starting Friday He told Parliament he was optimistic about an early settlement of the world currency problems Nixon Not Restudying Moscow Ziegler YANKEE SHIP GO HOME Indian bank employes hold an effigy of President Richard Nixon with on its chest and a Nixon Dead sign outside the First City Bank in downtown New Delhi The Indian Express which claims to be India's largest paper said Tuesday the dispatch of the US nuclear carrier Enterprise to the war zone was old fashioned gunboat diplomacy and that President Nixon was at the wrong end of the 20th century UPI Photo WASHINGTON Russian support of any attempt by India to conquer West Pakistan could impair U.S relations with the Soviet Union the White House said Tuesday But President Nixon's press secretary Ronald L Ziegler told reporters no attempted conquest of West Pakistan by India was anticipated with or without Russian support Ziegler seeking to quell an impression generated among newsmen by ad- ministration sources that Nixon's planned Moscow summit trip was being re-examined said there had been no consideration of cancelling the trip By stressing that he was speaking of Indian military action against West Pakistan Ziegler appeared to imply that the Indian offensive in East Pakistan did not necessarily hazard relations Ziegler's comments came in the wake of Russia's third veto of a Security Council cease-fire resolution concerning the Pakistan war and shortly after his return from the Azores where Nixon met with French President Georges Pompidou Newsmen were told earlier that the ad- ministration was apprehensive that developments in India and Pakistan might jeopardize the Moscow summit planned for May and Nixon's scheduled visit to Mainland China in February A high administration official referred with sarcasm to the Soviet effort to restrain India two vetoes of United Nations Security Council resolutions calling for a cease-fire and a mutual troop withdrawal Nixon is known to be worried that the war might spread and also threaten his trip to Peking in February The official said the United States had been working on many fronts to try to halt the war but he declined to say whether Nixon had been in direct contact with Soviet leaders More On Page Col 1 India Reports Part Of Dacca Surrenders As Troops Advance TOUGH L A WASHINGTON Tn o CONGRESS APPROVES By United Press International Indian planes troops and artillery advancing from all directions opened the battle for the East Pakistani capital of Dacca Tuesday and India said part of the city's defending garrison had surrendered Pakistan claimed to have killed 570 Indian troops in a major operation on the western front Top East Pakistani officials in Dacca resigned and asked for Red Cross protection A government spokesman in the former West Pakistani capital of Rawalpindi charged that Indian warplanes had conducted indiscriminate bombings of civilian areas in East Pakistan including Dacca where an orphanage was bombed last week A government statement issued in the West Pakistani capital TWO BOUND OVER IN MURDER CASE Two Kingsport men were bound over to Grand Jury Tuesday on charges of murder and assault with intent to commit murder Robert Lee Jenkins 47 1609 North Eastman Rd is charged with the alleged murder of Newman Tiny Christian 25 Cloud Apartments His older brother Harvey E Jenkins 54 is charged with assault with intent to commit murder The shooting which occurred on Sunday Nov 28 took place at Robert Jenkins home which has been identified by police as a bootleg joint Roy Morelock 19 1171 Dorothy St said that he and Robert Jenkins had argued the day before over some beer and Jenkins had hit Morelock in the head with a pistol The following day he and Christian went to the Jenkins place to purchase some beer and whisky and another argument erupted Christian went to the car and Robert and Harvey Jenkins allegedly pulled a shotgun and pistol on Morelock and ordered him to leave More On Page Col 1 of Islamabad said Pakistani forces killed 540 Indian troops in the Poonch area of northern Kashmir in a major operation on the western front It said a large number of Indian soldiers were wounded in the encounter It did not mention Pakistani casualties Pakistan said its troops raided another position in the same area killing 30 Indian soldiers including the commanding of- ficer of the 18th Punjab Regiment Lt Col S A Joshi and three other officers The government said that in the sector 70 miles farther south Indian and Pakistani troops exchanged heavy artillery and mortar fire all along the border It indicated that Pakistani troops had lost some ground in the More On Page Col 1 WASHINGTON UPI In a surprise maneuver Congress approved and sent to President Nixon Tuesday legislation that would require most welfare recipients to sign up for work or job training or lose their benefits The tough measure which covers mothers of children aged 6 or older could affect more than 2 million adult welfare recipients Congress sent the proposal to the White House with practically no debate and little notice in the rush toward adjournment Both the House and the Senate approved it Tuesday on voice votes with virtually no opposition Sen Herman Talmadge proposed the plan and the Senate quietly approved it Saturday as an amendment to a More On Page Col 1 New Wiretapping Cases To Be Put On Supreme Court Agenda WASHINGTON UPI The Supreme Court agreed Tuesday to decide later this term whether witnesses can balk at testifying before a grand jury on grounds the panel is acting on evidence obtained from alleged illegal government wiretapping Two separate appeals were accepted by the Court for oral arguments and then a written opinion One case involved a Catholic nun and a former nun who refused to testify before a grand jury investigating the ment's case against Father Philip Berrigan and others on charges of plotting to kidnap White House aide Henry Kissinger and to blow up heating tunnels in federal buildings The other involved two Californians who claimed they were questioned by a grand jury in a gambling investigation because of information obtained by the wiretap of a third person's phone A federal appeals court ruled in favor of the two women Sister Jogues Egan and Anne Elizabeth Walsh who refused to testify before the federal grand jury in Harrisburg Pa which indicted Berrigan They contended that the jury's use of illegal wiretap evidence violated the constitutional right to be free of search and seizure In appealing to the Supreme Court the Justice Department argued that a witness before a grand jury is not in the same position as some one accused of a crime and therefore has no right to question the source of the government's evidence The government brief also noted that the two had been promised full immunity from prosecution In the case of the two Californians David Gelbard and Sidney Parnas a federal appeals court ruled that they did have to testify This opinion was in direct conflict with the cuit court opinion involving the two women The Court a move by United Airlines to quash a Chicago proceeding in which the airline was accused of a civil rights violation for requiring until 1968 that its stewardesses remain unmarried Mrs Mary Burke Sprogis has sued in federal court in Chicago for back pay a challenge against the right of a state college to forbid student demonstrations inside a college building An More On Page Mid-East War In Two Weeks Predicted SHOPPING DAYS TO CHRISTMAS READ OUR ADS By United Press International An Israeli English language newspaper Tuesday predicted a new Middle East war with Egypt will erupt within two weeks The defense ministry and army circles are ready for such a said the Jerusalem Post With only 17 more days left of Egyptian President Anwar Sadat's year of decision ob- servers believe that a resumption of hostilities is likely before or around the year's end Sadat repeatedly has said the Middle East crisis must be settled before the end of the year either by negotiation or by force In Beirut the French language newspaper Jour said Egypt was ready to resume hostilities in the form of a limited war of attrition The military role would be limited to a series of commando raids across the Suez Canal Another Israeli newspaper said in a front page report Tuesday the General Assembly Middle East resolution adopted Monday night on a vote with 36 abstentions was an invitation to Egypt to resume hostilities said the resolution would perpetuate the diplomatic Impasse and encourage the militants and extremists in Egypt to open fire soon All practical preparations for this have been com- The resolution backed by Egypt calls for an Israeli commitment to withdraw from Arab territory occupied since the 1967 Middle East war It also urges resumption of the mediating efforts of Swedish Ambassador Gunnar V Jarring which were broken off by Israel in February Government officials In Tel Aviv said Israel was not likely to heed the resolution At the United Nations Mahmoud Ahmed Amr press spokesman for the Egyptian delegation said Israel has either to comply with it or be made to comply with It DEATH ROW Charles Alanson stares from the window of a bus as he arrives at San Quentin Prison late Monday He will probably spend the rest of his life on death row for minding nine murders UPI Photo Nixon Still Wants SST LAJES AIR BASE Azores UPI President Nixon in- spected French President Georges Pompidou's supersonic Concorde jetliner Tuesday and vowed the United States would build a SST some day We'll start late but we'll catch Nixon said The President inspected the sleek Jet built jointly by the French and British at this U S base just before flying home in his own plush but slower 707 jetliner after two days of talks with Pompidou Cease-Fire Formula Sought UNITED NATIONS UPI Britain worked Tuesday night on a new Security Council cease-fire formula designed to end the war The council suspended its session indefinitely until accord on a truce resolution could be reached behind the scenes British sources said they thought the council stymied by three Soviet vetoes of cease-fire resolutions in nine days would not be reconvened until Flight To West Costs Legs HANOVER Germany UPI Exploding mines cost a year-old East German woman both legs Tuesday after she and her husband attempted to flee with their baby daughter to the West A customs spokesman said the woman was taken to a hospital where surgeons amputated both of her legs one above and one below the knee He said the husband suffered facial injuries and only the couple's daughter escaped unhurt K Honest Cop Threatened NEW YORK UPI The cop who blew the whistle on corruption within the New York City Police Department testified Tuesday a superior officer once told him he might be he persisted in his own investigation of crooked cops Del Frank Serpico told a Knagg Commission hearing he went to the city investigations commission in the summer of 1966 with details of a bribe from a gambler and was told by a police captain in the office if he did not keep quiet Serpico would be dragged before a grand jury and before it was all over I might be found floating in the river Car Prices Go Down DETROIT UPI The sticker prices of 1972 model automobiles changed once again Tuesday as automakers an- reductions as much as in one case to reflect the repeal of the 7 per cent federal excise tax The cuts brought the American car back to dealer showrooms as the Ford Pinto and American Motors Gremlin were given price tags at or near 1971 models bought before Aug 15 In the case of the Chevrolet Vega the new 1972 price was lower than the 1971 model compared with cuts were the latest in a series of price adjustments since President Nixon announced the wage-price freeze on Aug 15 forecast Partly cloudy and warm oday cloudiness and mild tonight Considerable cloudiness and warm Thursday with a chance of showers High today near 70 Low tonight In tow High Thursday In he low 60s Winds southeasterly and light High Tuesday 68 Low 39 No rain with a total for tne month 1 4 Inches
