Cedar Rapids Gazette, November 12, 1974

Cedar Rapids Gazette

November 12, 1974

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Issue date: Tuesday, November 12, 1974

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Publication name: Cedar Rapids Gazette

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Cedar Rapids Gazette (Newspaper) - November 12, 1974, Cedar Rapids, Iowa Partly cloudy (unlglil and Wednesday. Lows tonight mid 20s. Highs Wednesday, upper 30s. VOLUME 92 NUMBUR 307 CITY FINAL 15 CENTS CEDAR KAI'IDS, IOWA, TUESDAY, NOVEMBER 12, 1974 ASSOCIATED PRESS, UPI, NEW YORK TIMES WASHINGTON (AP) Pres- ident Ford agreed Tuesday to abandon Andrew Gibson as his choice to be federal energy ad- ministrator but promised to ap- point him "to another responsi- ble position in government" if FBI checks raise no obstacles. In a letter to Gibson, who asked that his appointment be withdrawn because of con- troversy over his sever- ance agreement with Philadel- phia's Interstate Oil Transport Co., Ford said he intends to an- nounce a new nominee for the Federal Energy Administration post "very soon." In a rather bizarre develop- ment, Press Secretary Ron Nes- sen said While House staff chief Donald Rumsfeld "has volun- teered to take the blame" for Gibson's selection, even though N e s s e n contended Rumsfeld knew nothing at the time about Gibson's 10-year agreemenl with the Philadelphia firm. Pay The problem is that Gibson lias a separation contract with Interstate Oil Transport, Inc., a subsidiary of Cities Service, to pay him over a 10-year period. Gibson has acknowledged the payments, but officials said he hoped to clear himself by show- ing that he could fairly operate ;the FEA despite his lies. He was the White House Monday as he had been all weekend, saying his reputation was at stake and he wanted a chance to clear his name. Deputy Press Secretary John Hushen said Friday that some- one at the White House knew ol Gibson's agreement with the oil company, but did not inform the President before Ford nominat- ed him to succeed John Sawhill .at the FEA. President Included? "We knew orally that he had a separation said Hu- shen. Did "we" include the Pres- ident? "No." said Hushen. Did aides know? was the reply. Was it true lhat the aides did not tell the President before the nomination was announced? "That seems like a conclusion that could 'be Hushen said. In 1972, the Federal Maritime Administration granted a million subsidy to a tanker- building venture which benefit- ted Interstate Oil. Gibson was maritime administrator at the time and the subsidy was signed by his deputy, Robert Black- well. Six months later Gibson became president of Interstate. While he held lhat job, Inter- Slate applied for a new million subsidy from Blackwell, who had moved up to maritime administrator. Gibson left Interstate last May with a guarantee of million for his services of only 14 months, and Interstate got its second subsidy last July. FBI Probe Gibson's scries of connections with the goverment and Inter- 'state reportedly led Sen. Jack- son (D-Wash.) to write Ford requesting the results of a rou- (Continucd: Page 3. Col. 3.) Today's Index Crossword ..................lr> Daily Record ................3 Deaths Editorial Farm ......................12 Finnnclal ..................17 Marlon ......................7 Movies....................1' Sports ...................1-1-15 State Television Want Ads Tight Security Kings Palestinians at NEW YORK (AP) The New York police maintained an ex- traordinary security screen around the Waldorf Astoria hotel and U. N. headquarters following the arrival of the van- guard of guerilla chieftain Yasir Arafat's Palestinian delegation. Arafat, the head of the Pales- tine Liberation Organization, was expected to arrive Tuesday and to speak Wednesday at the start of the U. N. General As- s e m b 1 y s Palestine debate. Meanwhile, 16 members of his delegation arrived Monday and 10 more were reported traveling with Arafat. Because of New York's large Jewish population and Jewish anger over the murder of Israeli citizens by Palestinian terror- ists, the police said they were providing the Palestinians with the tightest security web in the city's history. Large Escorts 'There were heavy police cor- dons around the hotel and U. N. headquarters, police lines be- tween the two points, and large uniformed escorts to accompa- ny the Palestinians back and forth. Police sharpshooters were positioned on rooftops near the hotel and the U. N. building. Coast guard cutters and police launches patrolled the East river alongside the U. N. head- quarters. Police helicopters hov- ered overhead. But a spokesman for the ul- tra-militant Jewish Defense League told a news conference Iowa residents got their first taste of winter late Monday and early Tuesday. Scattered light snow and flur- ries were reported in Northeast Iowa during the night and the National Weather Service said more of the 'brief snows coitld be expected Tuesday. Accumulations, however, were not expected to be signifi- cant. Skies were clear in the ex- treme west and southwest por- tions of Iowa, but temperatures all across the state were chilly. Early morning readings general- ly were in the 30s at all report- ing points. The inflow of Canadian air was expected to continue Tues- day and Wednesday, with the high Tuesday expected in the upper 30s northeast lo the upper 40s southwest. In Cedar Rapids Tuesday, early risers were greeted with brief snow flurries which later turned to drizzle and intermit- tent [lurries. The low overnight tempera- ture was reported at 38 degrees. The forecast called for colder weather Tuesday and Wednes- day with the possibility of snow. Thursday night and Friday. Monday night: "We have trained men who will make sure that Arafat and his lieutenants do not leave New York alive." Asked to explain his remark, the spokesman said, "We are ready lo assassinate Arafat. This has been carefully planned. Nobody's going to get hurt ex- cept Mr. Arafat, unless some- body gets too close to him." As he spoke there was a caliber revolver on the table in front of him. Police Investigating Police said Tuesday lhat they investigating the threat against Arafat made by the JDL spokesman. And a different league spokes- man said his group was not it- self planning the assassination of Arafat but had been contact- ed by a "group of Jewish mili- tants" that was, "and we as- sured them we were in agree- ment with (hem and that they could depend upon our complete support." Asked if the JDL was not dis- associating itself with the statement made Monday night, the spokesman said, "Yes, we are disassociating ourselves from responsibility but we sup- port any action of this kind against killers of men, women and children unequivocally." He said he could not rule out that some JDL member might bo part of the militant group seeking to carry out an assassi- nation "but the organization it- self will not be responsible for such an action." Several hundred pro-Israeli demonstrators mobbed1 the en- trance to the Waldorf Towers as the first group of Palestinians arrived there Monday. Twenty- Five others invaded the main lobby of the 'hotel, carrying a 'arge Israeli flag and chanting, "The Waldorf is housing mur- derers and terrorists." They were evicted. Burned Effigy At U. N. headquarters Mon- day, 31 members of Betar, a Jewish group, handcuffed them- selves to the main gate and turned an effigy of Arafat. Po- ice arrested them and charged them with disorderly conduct. The U. N. headquarters were closed to the public, and only icrsons with permanent passes ,vere admitted. Officials said :hat on Wednesday, when the Palestine debate begins, every- one would be subject to body searches in the area of the Gen- eral Assembly except delegates (Continued: Page 3, Col. 4.) Recession Indicated, Ford Spokesman Says WASHINGTON (UPI) Pres- ident Ford's chief spokesman said Tuesday that November economic statistics indicate the nation is moving into a rcces- ion. Press Secretary Ron Nesscn said he was basing his state- ment on economic indicators he las seen "as of now." Wlreptiolo GOT A PROBLEM, FELLOWS? U.S. Delegates William Rogers, left, and Robert Ingersoll ap- pear perplexed as they confer in Quito, Ecuador, prior to a session of the Organization of American States conference. New Nixon Papers Deal Assailed WASHINGTON (AP) A new agreement giving the special Watergate prosecutor ready access to tapes and documents of the Nixon administration is "totally says Sen. Gaylord Nelson Nelson, author of senate- passed legislation that would re- tain government custody of the materials, said Monday night the agreement doesn't provide adequate access lo the Ameri- can people. "This is very Nelson said of the agreement, which would not negate Nixon's prop- erly claim, nor make the rials immediately available lo anyone but the prosecutor. Up to Prosecutor The proposed agreement sub- milted Monday to District Judge Charles Richey would jrohibit delivery of the materi- als to Nixon until the prosecutor s satisfied they are not needed in his investigation. "I don't think the issue of ministration and special prose- cutor, Henry Ruth. It is intended to supersede a written understanding an- nounced when Ford pardoned Nixon. That pact provided that the materials were lo be for- warded quickly lo the former President in California, i Nixon Lawyer Objects The original understanding also would have forced the pros- ecutor to resort to court action any time he wanted lo examine a tape or document, if Nixon was not cooperative. Nixon's Washington attorney, Herbert Miller, urged in papers filed Monday that the original agreement be upheld in its en- tirety. He criticized the new pact as "depriving Mr. Nixon of any op- portunity whatsoever to protect what happens to the should be determined tapes by a Nelson said. "The impor- tant point of the tapes is the ivhole history of Watergate." The agreement was signed over the weekend by White House counsel Philip Buchen, he chiefs of the secret service and General Services Ad- See Global Water Lack ROME (AP) Experts at the already-depleted water supplies, World Food Conference warn that the next global crisis will a water shortage, and it may already have begun. Four water-short nations ndia, Egypt, Bangladesh and Pakistan have introduced a asking international organizations and the more af- luent countries to provide jillion to billion a year over he next decade to find new sources of water and improve conservation of that already available. "The water potential is by no means says Lester Brown, a U. S. economist and adviser lo the conference. "In :he near future Ihe lack of fresh water rather than of land may be Ihe principal constraint on ef- forts to expand world food out- put." experts believe the con- ference goal of increased world production would decrease especially in areas where it is needed most. 40 Times as Much As in the case of food, rich countries have been accused of extravagant use of water. Crit- ics point lo figures showing that residents of Florida use 40 times as much as people in Bengal. The U. N. Food and Agricul- ture Organization figures global demand for fresh water will increase 240 percent by the end of this decade. "The irrigation potential of most of the world's major rivers Nile, Yellow, Indus, (ianges and Colorado has largely been Brown said. Ho said that, rather than in- creasing food production, which would step up consumption of water, countries lhat have plenty of food should eal less. Brown expressed belief that disputes over water could lead to international conflicts and said a world water conference should be held within five years. Soviet Project Another food expert noted hat rainfall in North America may be affected if the Soviet Union goes ahead with a project lo alter the course of some rivers that flow into the Arctic. The expert said this could pro- duce changes in the climate. Meanwhile, oil-exporting countries proposed setting up a fund to develop food production in needy countries. Conference sources said the countries sel no figure for Ihe proposed invest- ment fund and made their par- ticipation in the plan contingent on participation of the industri- alized countries. However, conference officials considered the proposal a major (Continued: Page 10, Col. 4) Judge John Sirica immediate- ly called a 10-minute recess. "Fine Man" The emotional moment began when chief trial prosecutor James Neal asked Kalmbach, who is serving a prison term for lis part in the Watergate scan- dal, if his wife knew what he was gathering money for. He replied, "No, at no time." "In fairness to Mr. Jones, he didn't know Neal asked. "Absolutely Kalmbach said. "I'm glad you asked that question. Mr. Jones is a fine man." Neal then asked in a soft voice, "You felt you betrayed Kalmbach replied tearfully, confidentiality." Richey, who privilege of already has barred shipment of the material pending the resolution of civil suits before him, must approve She new pact before it becomes effective. Extension Asked Meanwhile, Nelson and four other members of congress filed a brief Monday in U. S. district court urging that a temporary order barring shipment of the t e m s be continued until congress has completed- action on legislation. Rep. John Brademas (D-Ind.) said his house administration subcommittee will take up the senate-passed measure on Nov. IS. That bill would allow Nixon ccess to the materials while cccping thorn in government custody. "It would preserve them for listorical purposes and allow mblic access lo them except where national security was in- Nelson said. the Watergate cover-up Nixon's former personal la rial fa w y e r Herbert Kalmbach, >rokc down in tears on the witness stand Tuesday as he recalled betraying a friend to get money to pay off the Water- gate burglars. In Ihe most dramatic moment of Ihe sevcn-week-old trial, Kalmbach struggled unsuccess- fully to contain his emotions as ic told about calling Thomas loncs, board chairman of the Northrop Corp., to get in cash for n "special need" in early August, 1072. Pale and obviously tired after five months in prison for a Wa- tergate-related crime, Kalm- bach testified that he was sworn to "absolute secrecy" about the payments to the burglars and used aliases and covert maneu- vers lo fulfill Jiis mission. But he slopped short of describing the payoffs as "hush money." "It was clear it was lo be for support for Ihe families of these defendants and for Iheir attor- he said. Call from Dean Kalmbach told of receiving an urgent call from then-White House counsel John Dean on June 28, 1972, asking him to fly immediately from his home in Newport Beach. Calif., lo Wash- ington to lake on "a very impor- tant assignment." He said he arrived in Wash- inglon the next morning and met Dean in Lafayette park across from the White House. He remembered Dean's conver- sation this way: "He put his foot up on a QUITO, Ecuador (AP) Hemispheric foreign ministers Tuesday defeated an effort to lift the Organization of Ameri- can States economic and politi- cal sanctions against Cuba. The vote was 12 in favor, three against and six abstaining. Sponsors of the measure had conceded they were two votes short of the two-thirds majority needed to end the decade-old quarantine against Fidel Cas- tro's Communist regime. The proposal was sponsored by Venezuela, Costa Rica and Colombia. Chile, Paraguay and Uruguay came to Quito committed to op- posing repeal of the embargo. Nicaragua, Brazil and the U. S. announced early in the meeting that they would abstain. "Still Meddling" Cuba's supporters kept saying they were sure of victory until Monday; then Haiti and Guate- mala announced they would also abstain because they felt Castro was still meddling in the do- mestic affairs of his neighbors. When the vote came, Bolivia abstained too. Brazil, Chile and Uruguay proposed a recess "until such a time as the situation ripened a more." Diplomatic sources said they suggested another meeting in three months. I The repeal proposal's three sponsors asked the abstaining nations to try to draft a resolu- tion satisfactory to themselves which would still enable the bench and said 'Herb, as for these Watergate defendants, we've got to help these fellows It's important we provide them attorney fees and family support. It's the humanitarian thing for us to do.' He said Dean described it as "one-shot operation" that would require raising to and stressed that it was (Continued: Page 10, Col. 7) Cool Strike Begins WASHINGTON (AP) I- The nationwide coal strike, another blow lo a batleredi economy, began Tuesday with union and management representatives continuing their efforts lo agree on a new contract for the United Mine Workers. (Photos on Picture Page) ''The gut problems coal miners and their families face remain UMW Pres- ident Arnold Miller said after Ihe 83rd meeting with industry representatives broke up Mon- :lay night. Talks resumed Tues- lay. The strike, expected lo last at least two to three weeks, could idle lens of thousands in the railroad, slcel and other basic industries. "By End of Week" Tlie coal industry's chief ne- gotiator, Guy F a r m e r, ex- ircsscd disappointment but said some progress was made to- ward ,1 new conlract. "Every day of progress brings t closer to an he ;aid. "I believe definitely we can have it by ,lhc end of the week." After negotiators reach a set- tlement. UMW members must ratify the proposed conlract, a process Ihe union' says will take 10 days. However, sources on both sides indicated they were still sanctions to be lifted. But noth- ing could be worked out. The OAS called on its mem- bers to break diplomatic and trade relations with Cuba in 1904 after finding Castro guilty of fomenting revolution in Ve- nezuela. But the sanctions failed o bring down his regime. U. S. Criticized More and more nations in the icmisphere have been moving toward normal relations with Havana, and Venezuela 'and its allies contend that Castro is no longer trying to export revolu- tion. The United Stales insisted on staying on Ihe conference side- lines. This drew criticism from some Latin Americans, includ- ing Costa Rica Foreign Minister Sonzalo Facio. He said that, when the U. S. 'is interested in a formula, al- though its interest is not shared the majority, they work with all the specific weight of a great )ower. However, in this case where there is 'an initiative by a najority of Latin American countries, they have taken an attitude of indifference that is so negative it is incomprehensi- ble." A U. S. spokesman comment- ed: "It's time the Latin Amer- eans take their own positions without being led by the hand." far apart on a number of key issues, including wages and various oilier benefits. A union source said another j! hangup involves the union's ju- r i s d i cIi o n and the subcon- tracting of work lo non-union contractors. The source com- mented that the definition of its jurisdiction is "Ihe heart and soul" of the union. Less Optimistic Miller was not as optimistic as Farmer. He summarized the nine weeks of negotiations: "We talked and the industry listened. But apparently they did not hear. So now coal miners have been forced lo re- sort to the only language the coal industry seems to under- stand a strike. 'As Ihe strike goes on, in- dustry knows, public pressure for intervention by the govern- in cut will mount. Striking (Continued: Page 10, Col. Refuses Appeal To Bar Finch JEFFERSON CITY, Mo. (AP) The Missouri supreme court refused to hear an appeal Tues- day on the controversial licens- ing case of convicted wife slayer R. Bernard Finch, who is struggling to obtain a license to practice medicine in Missouri. The high court declined to ac- the appeal of the state Hoard of Healing Arts, which had sought a reversal of a slate appellate decision ordering the board lo license Finch. Ho was convicted of killing his wife in California 15 years ago. "We will abide by the deci- healing board director John llailcy said. Today's Chuckle Wife to sleepy husband (jet- ting up to another day's work: "Think of it this a day closer lo Social Kc- curily." cwrigiit ;