Newport Daily News (Newspaper) - July 11, 1975, Newport, Rhode Island Newport Mlu News YEAR 24 PAGES NEWPORT RHODE ISLAND FRIDAY JULY 15 CENTS FELLOW COUNTRYMAN Daniel Ellis of England this morning greets British frigate Argonaut one of five ships of NATO Standing Naval Force that docked here at Pier 1 Daily News Effective says commodore NATO squadron arrives A naval force such as the Standing Naval Force Atlantic affords a more effective defense than can be provided by any one nation the com- modore of that North Atlantic Treaty Organization force said today The NATO squadron comprised of eight ships each from a different nation provides a wider variety of weaponry than provided by any single nation Consequently it is a hell of a lot more said Capt Arie Sigmond of the United States The American naval officer has been in command of the NATO's Standing Naval Force since March Sigmond in a press conference this morning aboard the force's flag ship the American guided missile destroyer MacDonough said the varied cultural backgrounds of the ships crews posed no problem All speak English he said The eight ships have among them 13 different Warfare systems and a number of helicopters with weapon capabilities Each is equipped with a different sonar system all with different frequencies so the force experiences none of the sonar interference that might plague the ships of a single naval force he said Sigmond said the force spends 60 to 65 Jai alai owner raises bid to an acre Jai alai promoter Arthur W Silvester has increased his offer to an acre for about 4.3 acres of the city dump The city Council Wednesday set an acre as the price it wants for the land which SUvester wants for added parking space for a jai alai fronton under con- struction Inside Amusements Classified County News 18 Editorial 4 Features 3 Getting Out 7 Sports State News 19 Television Programs 7 Weather 23 Weather Cloudy chance of showers tonight and Saturday Low in high tonight low tomorrow Saturday Sunset High p.m Low p.m Thursday High 82 Low 67 choir pleasant Page 3 tennis player loses Page 15 Silvester rejected that price but said yesterday he was willing to pay an acre The Council had rejected that price Wednesday on a vote Five votes are necessary to sell city land without an auction Late yesterday Silvester sent a delivered letter to City Manager William A Perry who sent it out to the cilman Mayor Donnelly said today he would be willing to call a special meeting of the Council next week if five members were willing to accept Silvester's latest offer But Councilman James F Ring who supplied the fifth vote for an acre said today he would accept nothing less than That is a good compromise figure between what the city has appraised the land for and what he Ring said We don't know if he has received any offers for the Ring said At first he said he didn't want it Ring said was a good price for the land based on present information If Silvester later sold the land for Ring said he would have no bad felling for selling the land at that price But if the city let it go for less that he would feel he had given it away and SUvester had made money on the city per cent of its time at sea conducting training exercises within the squadron with other nations and participating in all NATO exercises The force is primarily ASW oriented he said Five ships of the Standing Naval Force arrived here at Pier 1 this morning They are the MacDonough the Dutch frigate Van Nes the British frigate Argonaut the Portuguese frigate Gago Coutinho and the Canadian destroyer Iroquois Their combined crews total about The ships will leave Newport Monday for Norfolk Va where they will be joined bya West German ship The Van Nes will proceed to Bermuda where she will be relieved by another Dutch ship that will later join the force in Norfolk Commodore Sigmond said the force does not operate in the western Atlantic with its full complement since the Norwegian and Danish navies because of their limited size do not deploy their ships outside European waters Greetings the ships and crews this morning were Mayor Donnelly of Newport Council President L Paul Pokier of Portsmouth Council Vice Chairman Henry A Sullivan of Mid- Edward F McGrath president of the Navy Newport County Council and Douglas Ward vice chairman of the Newport County Chamber of Commerce's Naval Affairs Council Several sporting and social events have been planned to entertain the crews this weekend The ships will be open to the public Sunday from 1 to 4 p.m Market creeps forward in gain NEW YORK AP The stock market snapped back from a mild early decline today and moved ahead on hopes that a recent uptrend in interest rates would prove only temporary The noon Dow Jones average of 30 industrials was up 5.24 at 877.11 and gainers took a slight lead over losers on the New York Stock Exchange As trading began New York's First National City Bank raised its prime lending rate from 7 to llt per cent Kissinger Gromyko talk Nuclear arms pact closer GENEVA Switzerland AP Secretary of State Henry A Kissinger and Soviet Foreign Minister Andrei A Gromyko wound up nuclear arms talks today Gromyko called the talks con- and Kissinger said they had made progress in narrowing their We will work earnestly and with some optimism toward completing a pact Kissinger told newsmen before ing to Bonn for critical Middle East talks with Israeli Prime Minuter Yitzhak Rabin Gromyko agreed that the exchange of views on that subject was constructive and hinted that the Soviet Union may agree to on-site inspection of its nuclear testing He said Moscow believes national means of verification are quite but Of course other countries have their own considerations in UBS regard The United States has consistently for inspection and has by the Soviet Union Privately a senior American official told newsmen that the Soviets might now be ready to agree so far as assuring com- with an understanding that un- nuclear weapons tests be restricted to certain areas and not to exceed 150 kilotons On another issue they got word from the European security conference a mile away that tiny Malta was holding up agreement on holding a summit July 30 to formally approve the work of the nation gathering Sources at the security conference said Maltese Prime Minister Dom Mintoff wants the conference to issue a special Mediterranean declaration listing as an objective a reduction of U.S and Soviet naval forces in that sea Western delegates said there was no chance of compromising over such a formula because the two superpowers have vital interests in the Mediterranean Kissinger and Gromyko who both favor winding up the security conference with the July 30 summit made no im- mediate comment on the impaste Despite Kissinger's assurances of progress on nuclear questions a senior U.S official said earlier that the planned visit by Soviet leader Leonid I Brezhnev to Washington this year may be postponed or a summit meeting held without the signing of a new strategic arms limitation treaty For their second round of talks Kissinger was host to Gromyko in his hotel suite But lack of air conditioning in unusually warm weather for Geneva prompted them to move across the floor to a large bar room where Kissinger and Gromyko flanked by a aids each faced each other along a green felt covered table The secretary of state and the foreign minister met for seven hours Thursday night discussing the agreement limiting underground nuclear weapon tests issues blocking a new treaty to limit the two nations stock of offensive nuclear weapons and the bombers and missiles that can deliver them and the security conference CIA contact exposed Nixon taping system WASHINGTON AP Former presidential aide Alexander Butterfield who revealed the existence of former President Nixon's taping system was a contact officer for the Central Intelligence Agency while he served in the White House a former CIA liaison of- ficer for the Air Force said today Retired Col Fletcher Prouty described Butterfield in a telephone in- as the person in the White House whom the CIA would have contacted if the agency needed White House assistance with sensitive operations But Prouty said Butterfield would not have acted as a CIA spy in the White House An informed source said Prouty had given his information to the House in- committee in recent days Prouty was called to appear before committee investigators again today In the interview Prouty said top White House officials in the administration of former President Richard M Nixon may have been aware of Butterfield's role as the person the CIA would contact to get things done However Prouty said he was not certain administration officials knew about this role Neither Prouty said did he know for certain whether Butterfield was on the CIA payroll at the time You never can Prouty said adding that salary could have been paid by the White House the CIA or the Air Force Butterfield like Prouty is a re- tired colonel Unless somebody comes clean with the precise documents nobody's going to know Prouty said about the matter of pay That's the name of the game But Prouty He Butterfield was the agency contact officer Butterfield gained national prominence nearly two years ago when he disclosed to Senate Watergate investigators the existence of Nixon's White House tape recording system Tapes from the system which recorded Nixon's con- with his top aides were in- strumental in forcing his resignation on Aug 9 1974 Before the telephone interview Prouty appeared on the CBS-TV Morning where he told Correspondent Daniel Schorr he doubted that Nixon or anyone else at the White House really knew about Butterfield's CIA con- NBC News said it also had learned of the Butterfield connections A congressional source told The Associated Press that Prouty disclosed Butterfield's CIA role to investigators for the House intelligence committee The committee is investigating the CIA and other intelligence agencies But the source said the investigators have no documentary evidence to support Prouty's assertion Butterfield who was named head of the Federal Aviation administration after he left the White House was not available for comment But his wife called Prouty's description of her husband's role absolutely false ia ludicrous allegation She It would be absolutely laughable Prouty's comments came just one day after CIA Director William E Colby denied as outrageous nonsense earlier statements by Reps Robert W Kasten and Ronald V Dellums that there was evidence of CIA tration of the White House the Office of Management and Budget and the treasury and commerce departments Head-on crash kills two women Two Newport women were killed and six nursery workers were injured in a collision between a car and a Rhode Island Nurseries truck today at on East Main Road in Portsmouth The driver of the car Carol A Come 29 of 7 Cowie St and a passenger Mary Louise Smith 31 of 21 Cowie St were pronounced dead at Newport Hospital by Dr John R Fox shortly after 7 The only person in the accident who was not injured was Jose Carvalho 26 of Fall River driver of the nursery truck State Police said the women in the car were driving north and the truck was headed south The truck was taking six workers employed by the Nurseries on East Main Road in Middletown to work there Police said they believe the two vehicles collided head-on near Sandy Point Avenue State Police said they are still investigating the cause of the The injured nursery employes all from Fall River were taken to Newport Hospital in the Portsmouth and Mid- Fire Departments rescue wagons Two of the men were admitted to the hospital They were John Torres with fractured ribs and pelvis and a cut forehead and Manuel Coelho 65 with a fractured collarbone Others injured were Arthur Ferreira 48 a cut and bruised face Anterio Raposa 40 a cut forehead Eduardo Arruda 39 a bruised leg and chest and Joao Sousa 61 who suffered chest pains Mrs Corne and Mrs Smith were employed at Electronics in Portsmouth and were on their way to work when they were killed Mrs Corne left a son and Mrs Smith left a son and a daughter Loan guarantee may cost state Deal reported near for hotel sale By BRUCE SHERMAN Industrial National Bank and the state Recreational Building Authority appear to be close to making a deal for the sale of the Hotel Viking and Convention Center but they are keeping a lid on the specifics of the deal until it is final The man who is trying to buy the hotel is Joseph A Squeo who according to local sources would share ownership with a group of California investors The new owners of the hotel reportedly now are involved in a California based operation that owns six hotels Squeo a contractor who has relatives on this Island but comes from the Palm Springs Calif area reportedly would carry out extensive repairs on the main building of the hotel complex a reliable source said An associate with whom Squeo is staying here at the Islander Inn is experienced in the hotel business and would manage the facility The source said plans call for operation of the old hotel building as an apartment complex which would offer hotel vices to tenants The motel and con- vention center would be run as a hotel and the possibility has been mentioned that a new restaurant could be built to service the convention center Several reliable sources said this week that the deal on the complex was sealed but the Industrial National Bank denied these reports and said it was still negotiating The bank referred queries on the sale of the hotel to the Recreational Building Authority but declined comment on a report that the bank had finished its part of the deal and was awaiting action by the Recreational Building Authority on the offer that Squeo reportedly has made The only statement by a principal on a timetable for the actual sale was made by James E Sullivan Jr acting manager of the Recreational Building Authority Sullivan reportedly said he expected a decision within a week Real estate and legal personnel who are working on the deal have declined comment but a local source indicated the imminence of the deal with Squeo by saying that an additional prospect was discouraged by the realtor The Recreational Building Authority must pass on any deal because legally it shares ownership of the hotel complex with Industrial National The building authority made a guarantee on the mortgage of the convention center and according to Sullivan would have to make good on part of its guarantee if current offer is accepted Squeo formerly lived hi the Providence Congress plans rollback as part of oil price ceiling WASHINGTON AP Senate and House conferees have voted to impose price ceilings on all U.S oil production including a rollback in the price of called new oil to a barrel The price rollback to the level prevailing Jan 1 was part of a com- promise reached Thursday by the con- between Senate and House sions of a extending the Emergency Petroleum Allocation Act it was disclosed today The Federal Energy Administration has imposed a price limit averaging a barrel on so-called old oil the amount of oil produced in 1972 That amounts to about two-thirds of current production Domestic oil producers are free at present to charge prevailing world prices for the remaining third of their tion or new oil The world market price is now more than per barrel The compromise approved by the conferees would require that the price of new oil produced in the United States be limited to per barrel The Ford Administrations wants to phase out all price controls on domestic oil production arguing that the price re- straints are inhibiting the search for new sources of oil in the United States U.S DELEGATION left led by Secretary of State Heary aad Soviet ted ky Gromyko meet ia today ia search for strategic arms er ea to Weit Mid US and USSR are making progress toward aew SALT treaty
