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Cedar Rapids Gazette (Newspaper) - March 5, 1974, Cedar Rapids, Iowa Weather- Fair lo partly cloudy tonight mid Wcdnes- 1 day. Lows mid to up- i per 30s. Highs Wedues- I day near 55. CITY FINAL 10 CENTS VOLUME 92-NUMBER 54 CEDAH HANDS, IOWA, TUESDAY, MARCH ASSOCIATED PRESS, UPI, NEW YORK TIMES END OF EMBARGO Food Tax Cut Faces Junk Pile DES MOINES (UPI) Gov, Robert Ray said Tuesday lie would rather scrap his entire sales tax exemption package than gamble on possibly placing llie state in a deficit position. The governor, who threatened to use his item veto to hold the budget in line, said he met with legislative leaders Monday eve- ning and concluded that law- makers could easily "end up million in the hole three years from now" if they at- tempt to approve all the money bills they are considering. Cites Limits He said there were "limits to what government can do" ahc said it would be, deceiving the people to over-legislate this year and then face a' possible tax increase in several years. Ray' said he strongly op- posed a tax repeal on home heating fuels and hoped that lawmakers would eliminate that provision from the priori- ty legislation. The original intent of the bill a key plank in Ray's legislaliv program, would repeal the percent, sales tax on food am prescription drugs. He said if, the controversia home heating fuel exemption was not removed he would con sider vetoing the entire propos al. Backs Coal Mine "There is ho way .we can d all of these things responsibl; that they are talking about an arty blamed him for Israel's ack of preparedness for the Arab attack last October. Mrs. Meir's walkout brought a steady stream ,of Labbrites to ler home Monday, pleading that she reconsider; Looking weary but determined, she visited President Ephraim Katzir Mon- day night and told him she had changed her mind and expected ;o present her new cabinet to lira on Wednesday. NEW YORK (AP) The stock market rallied sharply and broadly Tuesday in what analysts described as a re- sponse to a report that authori- lative sources expected the Arab oil embargo lo be lifted Under Tax Probe, Found Shot Fatal GREENSBURG, Pa. (AP) Dislricl Attorney -Robert Dug- gan was found shot to death Tuesday shortly before he was indicted on eight counts of tax fraud. Stale police said a prelimi- n a r y investigation indicated Duggan committed suicide. Duggan, 48, husband of the former Cordelia Scaifc May, an heiress to Ihe Mellon fortune, had steadfastly denied any wrongdoing during the grand jury probe. China Visit WASHINGTON (UPI) Sec- retary of Slate Kissinger plans lo visil China again laler this year, possibly in September, i senior American official sail Monday. Today's Chuckle A broken reputation may perhaps bn repaired, bill the world will watch the spot where the crack was. cwvriohi The 2 p.m. Dow Jones average was up 17.13 at 870.31'and gain- ing issues outdistanced losers about 4-1 on the New York Stock Exchange. Trading was active and nu- merous stocks were delayed in opening because of order imbal- nces. "We've had a neulral markcl Kalzir .Ihen received oppo lion leader Menahem Begin the right-wing Likud bloc, w said: "Mrs. Meir should ha declared that she has failed He said if Mrs. Meir does n present a new cabinet 1 Wednesday after two months Katzir should call for broad coalition government i eluding the Likud. Opposes Likud Mrs. Meir, whose party is si Ihe largest in parliament wi 51 of the 120 seats, opposes su a coalition because the Likud opposed lo Ihe return of any the Arab territories occupied the 1967 war. Mrs. Meir's new cabinet 1 contains six new thcni is Yitzhak Rabin, chief staff during the 1967 war a: then ambassador to the U.! who was named to repla Dayan as defense minister. Mrs. Meir was unable lo foi a majority governmenl becau the National Religious parl Labor's Iradilional coalili partner, made unacceptable c mands for religious legislatio She secured Ihe support seven members of parliame outside her own parly's 51, a the 10 members of Ihe Religio for some lime and it seemed lo party are expected lo-vote w lave been just waiting for some William Nelson. her on all foreign policy issu like said Analyst and all domestic issues exec religious ones. Hearing Wednesday On Secret Jury Report WASHINGTON (AP) U. S. Judge John Sirica will listen to when he made his earlier state- ment that St. Clair planned to Leased Wires LONDON (AP) Newly-in- alled Prime Minister Harold ilson named his cabinet Tues- ay and moved quickly to ecttle e national coal strike that JUUgU uullll all 1LU will uaiuii iu arguments in open with Wednesday before deciding Participation of what lo do with the secrel Wa- ergalc report given to him by a ireatens untry. to paralyze the Expectations of an early set- e m e n I were strenglhened icn strike leader Joe Gormley nnounced he hoped to resume ay negotiations with the stale- un National Coal Board on Wednesday morning. Negotiations broke off Feb. 10 fter former Prime Minister Ed ard Heath's Conservative gov rnment refused the miners' ay demands as loo infla- onary. Gormley, president of the Na- onal Union of .Mineworkers, nef with1 Wilson's new employ- nenl secretary, Michael Foot, ederal grand jury. Afler meeting with" attorneys n his office for more than' an wur, Sirica scheduled the hear- ing for 10 a.m. Wednesday and said thai "all inlerestcd parties may stale their views regarding Ihe dispositiori of the report and recommendation filed last Fri- day by the June, 1972, grand jury." Sirica's office refused to say who had asked for the hearing. Participant in the meeting included James St. Clair and Richard Hauser from the White House; Henry Ruth, deputy spe- cial prosecutor, and Philip La covara, Richard Ben-Veniste and Peter Kreinder of Ihe pros ecutor's office, and John Wilson and Frank Slrickler, attorneys for H. R. Haldeman and John Ehrlichman. nd then told newsmen he oped to resume pay talks. This ould let the miners return to work while a new pay deal is legotialed. Change of Attitude The unions had blamed the miners' strike .on the alleged in ;ransigence of ment. The change attitude with Labor in power was imme- diately apparent in .Gormley's report after seeing Foot. Blocking Move? The surprise announcemen raised the possibility that tht White House planned to oppos release of the report and poss oly its transmission to the hous impeachmenl inquiry. John Doar, special counsel I the house impeachment inquirj was instructed by the judicial- committee Tuesday to ask Sir ca for the report. Sirica had ordered all parti I UUL.----------------- c ji u-f not to discuss either the repo "We had a nice fnendly chat indictments returned t that, you would expect between rand jur Md he reported. 6 B ----i sources said the report co Another key Wilson cabinet tajned the jury-s fjnain went to Denis Healey, 56, on me roie Of president Nix named chancellor'of the exche- m Watergate qlier. He the lask of handing the country .the. severe fiscal medicine needed to pull it out of its deepening economic crisis. James Callaghan, 62, chair- man of the Labor party and a former Labor government chan- cellor of the exchequer and home secretary, was named foreign secretary. Roy Jenkins, 53, widely re- garded as a successful chan- cellor of the exchequer during Wilson's last administration, was named home secretary, a job he also held earlier an Wil- son's last government. Energy Secretary .Eric Varley; 42, a little-known labor party member, was named secretary of state for energy. His job will primarily be to deal with Britain's energy crisis and also with her rich offshore oil 'resources in the North sea. Anthony Wedgwood Benn, a White House Deputy Prcs Secretary Gerald Warre 'said, "Our position will h made known in open court, have nothing further to say a this time." Warren's statement cam only a few hours after he to newsmen "there is no prese intention" on the part of t White House to ask that t report be withheld from the im peachment inquiry. Warren said St. President's chief lawyer, had asked for the mee ing. He said he was unawa prominent left-wing Labor party leader and minister of techno- logy in the last labor govern- ment, was appointed secretary of state for industry. Wilson's office said other ap Clair, t Waterga Wilson and rickler in the meeting indical the prime concern may have en public release of the re rt. As defense counsel for two the men indicted Friday, they ould be concerned that release the report could prejudice the against the former White ouse aides. Haldeman and Ehrlichman ere charged with conspiracy, bstruction of justice and perju- y stemming frOm an alleged fort lo block the investigation the Watergate breakin. Five her Nixon associates also ere indicted. Monday, Haldeman called a ews conference on the fron awn of his Los Angeles home nd predicted he would be ex- nerated of the .conspiracy, ob- (Continued: Page 3, Col. 6.) By Phyllis Fleming If everything goes as planned eleclricily will be generated on Irial basis- at the Duane Ar nold Nuclear' Energy cente near Palo late next month. Commercial generation o electricity is expected to begi in May, Arnold, chairman of th board and presidenl of low Electric Light arid Power, said. The loading of nuclear fuel started last Wednesday at 5-30 a.m. Proceeding on: a 24-hour-a day loading is expect- ed lo be eompleted later this Arab Talks Sunday To Hold Key WASHINGTON (AP) Com- plete removal of the oil embar- go against the U.S. with sup- plies at pre-October-war levels is the optimistic expectation of authoritative sources in ad- vance of next Sunday's meeting of Arab oil ministers in Libya. Prices are likely to drop to about a barrel from the cur- rent it was learned as Secretary of State Kissinger re- turned from an eight-day trip to the Middle East and Europe. Restoration o f production, coupled with conservation mea- sures taken during the recent squeeze, will bring about a plen- tiful supply of oil for Ameri- ans, according to estimates. Yamani: End It In Riyadh, Saudi Arabia, heik Ahmed Zaki Yamani, Saudi Arabian oil minister. and a key spokesman for.the petro- eum producing states of. the Middle East, called for an end to he Arab oil embargo, Street Journal. reported Tues- day. Yamani said the Arab cut- week. Chain Reaction Early next week radioactive device which will start the reac- tor safely will be moved into place and the first chain reac- tion will take place. An Atomic Energy commission crew will be on hand for that. After going "critical" for the first time, the reactor will be shut down and power level tests will be completed. Iowa's first nuclear generat- ing station received a full-term, (Continued: Page 3, Col. 5.) Soy Attempt on Life Escaped by Kissinger WASHINGTON (AP) Henry Kissinger escaped an apparent assassination attempt in Syria because his talks with President Hafez Assad ran late and kept him from sightseeing al a famous mosque, U.S. officials said. (In Damascus, a Syrian gov- pointments will be announced ernment source denied the plot later Tuesday. Calls Unions His familiar pipe clenched be report.) Kissinger had a visil lo the Omayad mosque on his schedule mo luiuiiiui Wednesday in Damascus, tween his leelh, Wilson arrived but hc was up unlil 4 at the prime minister's resi- a m contclTjng with Assad dence at No. 10 Downing St. about a djscngagcmenl (Continued: Page 3, Col. 8.) with Israel and then returned to Setback Spotlights Brandt Plight BONN (AP) A stunning setback for Chancellor Willy Brandt in a key state election has added new fuel lo talk that hc is losing his grip on West Germany's political life. The Nobel Peace laureate who gave his country a new standing in world affairs by promoting East-Wcsl under- standing admitted n "severe setback" after his Social Democratic parly lost its ma- jority ill Ihe Hamburg cily- stalc legislature last weekend. Only two weeks afler Brandt was forced lo deny publicly (hut domestic policy worries have caused him to consider resigning, his declin- ing popularity was demon- strated by his party's massive 20 percent slide in the Ham- burg election. The Social Democrats man- aged to cling to power there only with the help of the Free Democrats, Ihe small liberal party which has shared a rul- ing coalition with Brandt's men in the federal govern- menl since 1969. The Social Democrats lost 14 of their 70 seats in Ihe 120- legislature. The Free Democrats gained four for a total of 13, and Ihe big win- ners were the conservative Christian Democrats, w h o gained 10 and now have 51, or 18 less than the ruling coali- tion. The Hamburg voting was the first stale election since the socialist-liberal coalition won a sweeping victory in the 1972 federal elections, mainly on the strength of Brandt'fc, foreign policy triumphs. But since then Ihe gloss has worn off his East-Wcsl peace drive. The decline in Brandt's leadership and prcslige was made apparent two weeks ago when hc suffered a defeat in a confrontation with labor unions that normally support him. Striking public service workers forced him to break a pledge not to fan inflation by permitting wage increases above 10 percent The 11 percent hike he re- luctantly sanctioned led lo re- ports he was considering quit- ling. He angrily asserted that he would not be "edged into resigning." All this comes amid mount- ing domestic and foreign trou- bles thai include: Energy crisis repercussions threatening prosperous West Germany with zero economic- growth, record 9 percent infla- tion, increased unemployment and labor trouble. Stagnation in Brandt's ef- forl.s to normalize relations with East Germany and in- crease personal contacts be- tween the West Germans and the people of the Soviet Bloc. Lagging progress toward West European unification and a continuing gap belwccn a badly-split Common Market and the U. S., increasing Ger- man fears that the American guarantee of security and de- fense is threatened. ec the Syrian leader after a ew hours' sleep. As a result, the officials said, lissinger canceled the slop at he Eighth-cenlury shrine near (Pltoto on Picture Page; he hearl of a crowded markel area. Instead he drove lo Ihe airporl and flew lo keep an ap- loinlment with Israeli leaders n Jerusalem. But he planned to visit the mosque Saturday morning when ic returned to Syria with srael's proposals. Kissinger was flying back to Damascus Friday nighl when vord first came lo him about he plot, Ihe officials said. Hc lecided to play it safe and avoid he shrine. Palestinian terrorists were ap- parently behind the reported at .crnpt. Today's Index Comics 21 Crossword................. 21 Daily Record............... 3 Deaths 3 Editorial Features G Farm ......................15 Financial.................. 22 Mnrion 1 Movies 20 Sports ...................17-lfl Television ..................11 Want Ads............... 24-27 off of oil to the U.S. no longer served any useful purpose, The president of the Baltex Oil and Gas Corp. of Mala- koff, said Monday :lhat delivery of petroleum prod- nets sold by Saudi Arabia to his firm could begin in about three weeks when contracts are signed. said he has received clearance for the Saudi Arabian pelroleum lo be shipped to the U.S. The contract involves 30 mil- lion barrels a month for five years, the Baltex president said. Baitex imports 'oil and gasoline and has some domestic produc- tion in East Texas. Gas, Crude .Included in the agreement are both crude oil and refined gaso- line, Ballard said. Cost of the irude will be between and a barrel, he said. The price of oil before the Arab-Israeli war was. about 3.01 a barrel. U.S. experts con- sider a barrel somewhat ligh, but they also are con- cerned thai a lower price: could discourage development of al- ernative sources of energy. Kissinger and his aides will say nothing publicly about the Tri- poli meeting. But Egypt, Saudi Arabia, Syria, Algeria and other Arab states are now understood to be united in wanting to have the embargo removed and full pro- duction resumed. Until now, here have been reports of a ihased step-up of production once the embargo is lifted. Shortened Lines Meanwhile, federal energy chief William Simon said emer- gency allocations to fuel-short stales have shortened lines at service stations. "We have succeeded without emergency Simon ;old reporters. "We've seen the alleviation of the lines al all the :iard-hit areas." Simon Tuesday appeared optimistic that the gas situa- tion would nol become critical as warmer weather arrives. "We have many experts today, instant exports If you Simon said on CBS-TV's Morning News, and we're seeing them again today pre- dicting all the doom that's going lo come this spring and sum- mer." Simon said the same kinds of forecasts of people "freezing in Ihcir of utility brown- outs and blackouts by Febru- ary and of unemployment reaching 10 percent, were made last fall. "Well, (ltd it he asked, and answered himself, "No, it didn't" because, hc said, the government devised a cons- cious policy o! accelerating Continued: Page 3, Col. 3.)
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