Nixon Backs Tax Reform and Spending Ceiling Plan
President Nixon announced in the State of the Union that he will urge Congress to pass tax reform and to curb spending with a federal ceiling of 209 billion for fiscal 1974. He pledged no new programs requiring broad tax increases and urged internal reforms to enforce spending limits while pursuing targeted measures such as an education tax credit.
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HMOs Face Doubters in Iowa House
In Des Moines the Iowa house debated a bill to authorize health maintenance organizations. After four hours of discussion lawmakers adjourned to Thursday, amid a crippling amendment. Holden urged restraint on further amendments, stressing the bill’s fragile status post senate passage. Lipsky argued HMOs offer prepaid, preventive care for modest incomes, while critics warned of doctor and supplier control. The pending amendment would require one third of a board to be HMO enrollees after 1,000 members sign up.
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U S and China set up liaison offices to speed up ties
Washington and Beijing announced official liaison offices in Washington and Peking to accelerate normalization, broaden trade, and handle all but formal diplomatic matters. Kissinger said the offices will avoid diplomatic privileges and that China will gain formal representation in Washington for the first time while recognizing Taiwan. The plan includes cultural exchanges and future visits by scientists, artists, and officials, with details to be worked out.
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Kissinger Denies Aid To Hanoi Is Not Ransom
Kissinger told reporters after talks in Hanoi that reconstruction aid is not a ransom and will stay under congressional control. He said the joint commission aims to ease normal relations and improve channels for contact, not pay postwar economic claims, with talks focusing on broader ties and peaceful evolution. Two American airmen held by China are to be released soon, while Downey’s sentence review proceeds. Rockefeller to remain in Palm Springs hospital for cancer treatment.
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Sewage Plant Funding Stalled for Cedar Opids Project
Cedar Opids seeks a $2 million federal grant to build a new town river sewage treatment plant. Mayor Donald Canney said prospects look dim as cutbacks bite, with the funding now stalled as of Thursday and the request under review.
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