LETTER TO ADMIRAL STANSFIELD TURNER FROM MARVIN L. STONE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01554R002700060001-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 119
• Document Creation Date: December 14, 2016
• Document Release Date: August 22, 2001
• Sequence Number: 1
• Publication Date: May 7, 1977
• Content Type: LETTER

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MARVIN L. STONE 2300 N STREET, N. W- ? WASHINGTON, D. C. 20037
EDITOR
May 7, 1977
Admiral Stansfield Turner
Director of Central Intelligence
Washington, D. C. 20505
Dear Stan:
'77-6=36
You and your staff gave us great co-operation in
clearing the interview, and we appreciate it.
A copy of the press release which will be sent
to the wire services, radio and television and major daily-
newspapers is enclosed, and on Monday a quantity of magazines
will be delivered to your offica.
We enjoyed a stimulating session, and appreciated
your taking the time to come over.
MLS:h
Enclosure
AQSL
Approved For Release 2
Sincerely yours,
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EXCLUSIVE FROM
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RELEASED TO THE PRESS, RADIO AND TELEVISION
AT 6:00 P.M., EDT, SUNDAY, MAY 8, 1977
(MONDAY MORNING PAPERS)
2300 N Street, N.W.
Washington, D. C. 20037
[phone]
EDITORS:
Quotation of up to 750 words of this interview is authorized with
credit to "a copyrighted interview in 'U.S .News &World Report.'" Any
use beyond this requires special permission.
U.S .NEWS &WORLD REPORT
Interview With Adm. Stansfield Turner,
Director, Central Intelligence Agency
CARTER'S INTELLIGENCE CHIEF
SIZES UP WORLD'S TROUBLE SPOTS
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Copyright ? 1977, U.S. News & World Report, inc.
9,413,Wefe?oNiMiggliggoocallIEF
SIZES UP WORLD'S TROUBLE SPOTS
Interview With Adm. Stansfield Turner,
Director, Central Intelligence Agency
? On the eve of President Carter's departure on his
first overseas mission?a summit conference with
Allied leaders in London?Admiral Turner took the
editors of U.S. News & World Report on a verbal
tour of danger areas around the globe.
a Admiral Turner, do you agree with the view expressed
by some high officials in recent years that the Soviet Union is
an ascending power and the U.S. is declining?
A The Soviets have their strengths, and they have their
weaknesses. Their weaknesses are in economics and politics.
I don't see the Soviet economy climbing to outdistance us.
Our lead is so great that they cannot hope to overtake us
unless our percentage of growth every year were to be a lot
smaller than theirs. And that is not happening. So, in terms of
raw economic power, we are not a declining power.
As for ideology, the Russians may think it is a strength for
them, but I am sure we would all agree that their ideology is
hamstringing them in many ways. After all, what's left of
pure Marxism? Where is it practiced or believed in? You
have a different brand of Communism in every country in
Europe?and a different brand in Yugoslavia, a different
brand in China. Even in the Soviet Union, they don't hold to
it very carefully. So?no, I don't think the Soviets are on the
ascendancy ideologically.
Q And militarily?
A They have a strong military position. One of the reasons
they are putting such emphasis on their military strength is
that they are trying to convert military power into political
advantage. They have no other strengths that they can
exploit in Africa and elsewhere. Military is all that they have.
a Is the U.S. falling behind Russia in military power?
A In my view, we still have the edge in the strategic
nuclear field as a result of our preponderance of warheads
and the accuracy of our missiles. However, the trends are
" moving in the other direction because of the substantial
effort the Soviets are putting into strategic weapons. If that
continues, they could close the warhead gap and outdistance
us in what is known as throw weight.
The complex equation as to when those trends might give
the Soviets a militarily superior position is very difficult to
state?given the fact that you're balancing numbers of war-
heads, accuracies and throw weight in the same mix.
U Are the Soviets near the point where they could knock
out our land-based missile force with a first-strike attack, as
some strategists claim?
A I don't see a first strike as being anything like a rational
calculation in the years immediately ahead by either side.
What concerns me is the image that is created and the
impact this could have on world opinion if there is a
perceived imbalance in favor of the Soviets in strategic
nuclear power.
So I think that, first, we must understand the nuclear
strategic equation as best we can. And, second, the United
Before joining CIA in Febru-
ary, Stansfield Turner, 53,
had a long Navy career that
included the presidency of
the Naval War College and
command of Allied forces in
Southern Europe. He at-
tended the Naval Academy
with President Carter, and
later was a Rhodes Scholar.
States must not let it get out of balance in fact or in
perception. I don't think that the people of this country are
going to let the Soviets outdistance us in a dangerous way.
But we've got to be vigilant as to that.
O. We've heard a great deal lately about Russia's massive
civil-defense program. Is there any danger that this will give
them a decisive strategic advantage over us?
A Certainly not at the present time. I don't believe that
the Soviets are near the point in civil defense where they
could think that they could absorb a nuclear blow from us
with reasonable loss?that is, a loss they would be willing to
accept.
It doesn't seem to me that the damage to the three
ingredients that civil defense protects?leadership, popula-
tion and productive capacity?could be estimated by the
Soviets to be small enough to make it an acceptable risk for
them to initiate a nuclear war with deliberateness.
Q What truth is there to the report that the Russians have
made a breakthrough in developing a beam that could
destroy all of our missiles?
A The question of Soviet development of a charged- -
particle-beam weapon has been the subject of intensive
analysis for a number of years. All the results of these studies
have been made available to high-level U.S. Government
officials on a continuing basis. The Central Intelligence
Agency does not believe the Soviet Union has achieved a
breakthrough which could lead to a charged-particle-beam
weapon capable of neutralizing ballistic missiles. This ques-
tion is obviously of concern to the U.S. Government, and is
continually under review by all members of the intelligence
community. -
U Aside from the idea of a first strike, are the Soviets
thinking and planning in terms of actually fighting a nuclear
war rather than just deterring one?
A The difference that I note between them and us is this:
The Soviets in their planning start with cold war and think
the process through all the way to a strategic nuclear war?
and even to postwar recovery. We, on the other hand, tend
to think from cold war to deterrence. There's less emphasis
in our thinking on what happens after the nuclear weapons
start going off, because the idea is so abhorrent.
It's a different psychological attitude. Maybe it comes from
the fact that the Russians are from a country that's been
attacked and overrun a number of times in their memory. So
they have more of an inclination to think through the
implications of someone attacking them.
O. Are they more inclined to contemplate resorting to
nuclear war to achieve their political objectives?
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A I think not. I think they have shown a rational, sensible Soviets build the fishing port into a naval base?and on and
approach to hippnotiedriceniRebefssib1290-14094541%4-RDRIARIVAMBRU00060001-0
? for example, to negotiate SALT-type agreements.
a In your opinion, where do the Soviets pose the greatest
threat to the United States today?
A Well, you have to break that down between where our
greatest interest is and where their greatest opportunity is.
We have a vital national interest in Western Europe?in
maintaining the NATO fabric whole and strong. The Soviet
Union is trying hard to build up enough military power in
Europe to give the impression that they can dominate that
area. With an intimidating force on their side, they want to
fracture the NATO Alliance from within by undermining the
resolve of the NATO Allies. That is a serious threat?but not
the most urgent.
The Soviets are pressing hardest at the moment in Africa.
So, in that sense, Africa is the most urgent threat. But clearly
Africa is not as vital a national interest to us as is Europe.
O. What is the Soviet objective in Africa?
A I think that, all over the world, the basically imperialis-
tic thrust of the Soviet Union is one of opportunism. They are
very adroit in the sense of pushing their opportunities
wherever they develop, but not pushing them to the point
where it involves a major commitment of Soviet resources or
prestige if they fail.
They've found that NATO has stymied their imperialistic
expansionism in Western Europe. And so they're probing
each opportunity that comes up anywhere to get a foothold
or friendship.
Somalia is an example of how this works. The Soviets start
with a fishing fleet calling in at a Somali port. Then they offer
aid to the Somali Army. The Army stages a coup, and a
general takes over as President of the country. Then the
Global Dangers Facing U.S.?
Admiral Turner's Assessment
Soviets in Africa: This is the "most urgent threat"
posed by Russia, but the Soviets have been "only
moderately successful" there.
Western Europe: Russia is "stalemated in
Europe" and therefore is trying "to leapfrog out to
gain influence in other areas of the world."
Post-Tito Yugoslavia: "The most fragile point in
the European scene today," where Soviets will
"look for an opportunity and probe without
getting themselves overcommitted."
Revolt in Eastern Europe: Even though there is a
"stirring of thought behind the Iron Curtain ... I
don't see a real possibility of a major fracturing of
the Soviet bloc."
Indian Ocean: Russia has no vital interest there.
The only purpose of her naval presence there is
"gunboat diplomacy."
U.S.-Soviet balance: Russians emphasize military
power because "they have no other strengths that
they can exploit." The Soviets lag in economic
power and ideological appeal.
Pirst-strike threat: Neither superpower can
rationally contemplate first-strike nuclear attack
"in the years immediately ahead."
They look constantly for an opportunity for that first
step?a fishing agreement or a trade agreement?and then
they just keep pushing, but without committing themselves
in a major way.
O. How successful has the Soviet Union been with this
strategy?
A Only moderately successful. They've established three
toe holds that seem to be useful to them in Africa. They've
had a toe hold in Guinea for six years or so, and seem to be
hanging on there. They've had one for a short time in
Angola, and they're doing all right there. There's no major
Soviet presence, but the Angolans are still co-operating with
them. And the Soviets have had a fairly strong position in
Somalia for seven or eight years, and it seems to be holding.
They're beginning to explore other opportunities?for
example, in Southern and Eastern Africa with the visit of
President Podgorny.
On the other hand, the Russians have failed in Egypt.
They've lost a major position there. Outside Africa, they
failed some years ago in Indonesia. Their relations with Syria
are not as warm as they were several years ago. So they are
not always adroit enough to do this well. Basically they lack
the economic foundation to be an imperialistic power.
O. What about Ethiopia? Are the Russians establishing
another toe hold in Africa at the expense of the United
States?
A There is no doubt that Soviet ties with Ethiopia's
present leftist regime are close. At the same time, however,
the apparent Soviet gains in Ethiopia may lead to a deterio-
ration in its formerly close relations with Somalia.
O. Are the Russians using Cubans in black Africa a a
Soviet tool, or are the Cubans there for their own ends?
A I think it's a fine line. The Cubans are anxious to
establish themselves as a leader in the "third world." The
1979 conference of nonaligned nations will be held in
IIavana. Thus the Cubans are anxious to raise their world
image in Africa and elsewhere in the third world. However, I
don't think that they could afford economically to indulge in
these activities without considerable support from the Soviet
Union. The Russians, by operating with a surrogate, get an
opportunity to establish an African foothold without neces-
sarily committing themselves too much.
O. Admiral Turner, why are we so worried about the
Indian Ocean, considering the relative weakness of Soviet
naval strength there?
A I wouldn't say their naval strength is relatively weak
there. At the same time, I wouldn't say that the Soviet naval
presence is formidable compared with ours, which is some-
what smaller. The difference is not overwhelming.
The asymmetry that impresses me is that the United States
as well as Western Europe and Japan have a vital interest in
the Indian Ocean?in the oil route which is vital to our
future prosperity and security?while the Soviet Union does
not have a vital interest there.
O. In that case, why do the Russians maintain a naval force
there?
A I think their presence in the Indian Ocean is symptom-
atic of their desire to leapfrog out to gain influence in other
areas of the world while they're stalemated in Europe.
Now, you can talk about their continuing naval presence in
the Mediterranean as a counter to the U.S. position in the
Mediterranean. You can talk about their continuing naval
presence in the Norwegian Sea and the Sea of Japan as
legitimate defensive concerns close to their homeland. But
you can only look at a continuing Soviet presence off West
Africa and in the Indian Ocean as gunboat diplomacy. I don't
say that this is malicious or bad, but I am saying it's indicative
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U.S NEWS & WORLD REPORT, May 16, 1977
SIZE-UP tiageifirckblim til6 I don't see this as a curve
Afpaglfgr'?j?SVMAk951- IA-RDW
of a change in strategy, dictated by the fact that they are
blocked on land.
O. Do you see any danger that the Russians will be able to
break the stalemate in Europe to their advantage?
'A No, at this point I don't, although I recognize that some
of our allies are facing difficult political and economic
problems today.
"INTERNAL PROBLEMS FOR SOVIETS"-
0. What about the situation in Eastern Europe? How
dangerous is it for the Soviets?
A It varies from country to country. Since Helsinki, there
has been a stirring of thought behind the Iron Curtain. Yet,
basically, one has the feeling that the dictatorial controls in
those countries will be exercised ruthlessly as requirements
dictate. There could be internal problems for the Soviets?as
there have been in Hungary and Poland and Czechoslovakia.
But I don't see a real possibility of a major fracturing of the
Soviet bloc.
0. Do you expect the Soviets to make a grab for Yugoslavia
after Tito's death?
A I think that Yugoslavia is the most fragile point in the
European scene today. I would think that the Soviets would
look for an opportunity and probe without getting them-
selves overcommitted.
Q. Do you anticipate a Russian military move to force
Yugoslavia back iinto the Soviet bloc?
A That would be a very definite commitment by the
Soviets, and it would be taken only as a last resort. They
would try a lot of other things first before they contemplated
that.
0. Turning to Russia's other flank?in the Far East: Are
the Soviets and Chinese likely to patch up their quarrel in
the near future?
A That is always a possibility when you are dealing with
countries that operate on such an expedient basis as the
Soviets did in their relations with Nazi Germany before
World War II. But I don't see it on the immediate horizon.
Even if it happened, I doubt if it would be anything more
than an expedient. The fissure between these two countries
is quite deep.
O. President Carter proposes to withdraw U.S. ground
forces from South Korea. Will that affect China's relations
with Russia or its attitude toward this country?
A Of course, it would have an effect on Chinese attitudes
if that decision were made and executed. How important it
would be will be largely dependent on how and when a
withdrawal takes place?if it does?and what changes occur
on the world scene in the interim. It's pretty difficult to
speculate in the abstract until some policy decision is made
here as to how and when it's going to take place?if it does.
O. Will such a withdrawal be seen as an American retreat
from Asia by Japan and other U.S. allies?
A Again, it depends on how it's done and whether the
preparatory steps can persuade those countries that it's not a
retreat from Asia. Those who are looking to us for a security
function out there would be bound to think of it as some-
thing of a retreat. But the status quo is not always the right
answer. Any time you change something, it's going to be
approved by some and disapproved by others.
0. One further point about the Soviet Union: What is your
reading of Brezhnev's health? Is he about finished, as recent
reports suggest?
A My reading of Brezhnev's health is that it's a sine curve
that goes up and down. Sometimes he wears himself out a bit
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a terminal date that can
be anticipated. It's not such that we have to sit here and plan,
"Well, in 12 months or 24 months we're bound to have
somebody new."
0. Are there any signs of a power struggle for the succes-
sion in the Kremlin?
A No, I don't read the signs that way at this point.
O. Would a leadership change have any significant effect
on Soviet-American relations?
A Yes, it's bound to. With a new Administration here in
Washington beginning to establish an understanding with
the Brezhnev Administration in Moscow, we would have to
start over and feel out a new Administration over there.
There would bound to be some slowdown in the develop-
ment of enough understanding to proceed with things like
SALT.
O. Turning to your own situation at the CIA, Admiral, are
you handicapped in countering Soviet and Cuban activities
in Africa by restrictions on covert operations?
A No, I've not found them a handicap at this point. There
are no new limitations on our covert operations other than
specific prohibitions on assassinations. I would not permit
that kind of activity anyway. The point now is that there
must be presidential approval before any covert action is
undertaken, and Congress must be informed in a timely
manner.
"WE CAN'T ABANDON COVERT ACTION"-
Q. Are covert operations?dirty tricks of that sort?really
necessary?
A We can't abandon covert action. However, in today's
atmosphere, there is less likelihood that we would want to
use this capability for covert action. But I can envisage
circumstances in which the country might demand some
covert action.
Q. What circumstances?
A For instance, let's say a terrorist group appears with a
nuclear weapon and threatens one of our cities and says, "If
you don't give us some money or release some prisoners or
do something, we will blow up Washington, D.C."
I think the country would be incensed if we did not have a
covert-action capability to try to counter that?to go in and
get the weapon or defuse it.
So, although we don't exercise it today, I think we must
retain some capability for covert actions that range from
small paramilitary operations to other actions that will influ-
ence events.
CI There have been recent allegations that you have de-
classified reports on energy to support the President's policy
decisions. Does this represent a new CIA policy of using
intelligence to support White House programs?
A That is definitely not the case. This study was started
over a year ago?before even the election. The President did
not know of it until a few days before he mentioned it in a
press conference.
Let me say, though, that I believe that the intelligence
community should make more information available to the
public on an unclassified basis. The public is paying for our
work and deserves to benefit from it within the necessary
limits of secrecy. Moreover, a well-informed public is the
greatest strength of our nation.
I also believe that declassifying as much information as
possible is a good way to provide better protection for those
secrets we must hold. Excessive classification simply breeds
disrespect for and abuse of all classified data. I intend to
continue to declassify and publish information of value and
interest to our people.
DP80601554R002700060001-0
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25X1A
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OFFICE OF THE DIRECTOR
TO: DCI
FROM: ?
SUBJECT:
/17
REMARKS:
icy)D te: 10 May
US News & World Report has sent you 25
copies of the 16 May issue. I will hold
them out here pending your instruction on
who you wish to send copies to.
Very respectfully,
s
01-0
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AR:IICLE ApPEARLI)
ON PAGE THE WASHINGTON STAR
8 Ma ia27
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Letters to the editor
e C
9
t?st in energy
I would like to correct some of the
. impressions that your readers
might have received from your edi-
torial, "The CIA and the oil short-
age" (April 26). It stated that "it
came as a shock" that the CIA had
"moved into the tricky art of esti-
mating international oil and gas re-
serves." In fact, the CIA report on
the "International Energy Situa-
tion" did not estimate the size of
world oil and gas reserves but
rather projected oil demand and
supply to 1985.
Also, it should not be a "shock"
that CIA is involved in the strategic
considerations of the world energy
situation as part of its intelligence
mission. The Central Intelligence
Agency has been studying interna-
tional energy problems since its
? establishment some 30 years ago.
Originally the concentration was
on Communist nations, but as the
world energy shortage and higher
prices developed in the 1970s, our
analytical work in this area was ex-
tended to cover other parts of the
world. We would be derelict if we
did not do so.
CIA's role in analyzing world
energy trends is well known by U.S.
industry, the trade press and inter-
national agencies concerned with
this subject. Indeed, every other
week the CIA issues a widely dis-
tributed, unclassified statistical
ADMIRAL TURNER
Nothing shocking
survey, 'International Oil Develop-
ments," through the Document
Expediting Project of the Library of
Congress.
It is simply not true that the CIA
analysis is "almost alone." Most
private and institutional projections
of energy supply and demand are
quite pessimistic, and in light of our
analysis of the USSR and China
situations, we would expect them to
evidence greater pessimism. -
We take exception to the remark
that CIA has a "tattered credibil-
ity" and is "an easy mark for White
House manipulation." Our analysts
jealously protect their objectivity,
and neither they nor I would accept
manipulation, from any!source, in-
cluding the White House. There is
no evidence to the contrary.
I am concerned that at a time
when I am trying to make as much
of our material available to the pub-
lic as possible, you raise the ques-
tion of motives and credibility. The
public should have as much objec-
tive information as possible on
issues such as the energy situation,
and we will continue to declassify ]
such reports on a variety of sub-
jects whenever possible.
Stansfield Turner,.
Adrnirei. U.S. 14a.or.,
09f ector, Control 1?Mq4tivenc4i? Awocr
Washington.D.C.
1 -
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$1.00 MAY 16,1977
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U.S.News
& WORLD REPORT
The Only News Magazine
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Copyright @ 1977, by U.S. News & World
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VOL. LXXX11 NO. 19 MAY 16, 1977
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Index to Newsletters
2
What Inflation Is Doing
Letters to Editor
4
to the World of Sports
53
Business Around the World
59
Tomorrow
11
Smoke Detectors for the Home ..
63
Washington Whispers
14
New Look at America Today?
Will Europe Follow Carter?
19
Official Census Finding
64
Carter's Intelligence Chief
How Griffin Bell
Sizes Up World Trouble Spots?
Sees His Role as
Interview With CIA Director ..
24
Attorney General?Interview
67
Why Nixon Went on
Bad News at the Supermarket
71
the "Witness Stand"
27
Trend of American Business ....
73
An All-Out Race to
When Bill Collectors Play Rough
75
Find More Oil
30
Cities Where Business Is Best ...
76
White House Aides:
What They Do, How
The Latest Tax Changes
81
Much They're Paid
32
Tax Rulings
84
Republican Strategy:
News You Can Use
87
Back to Grass Roots
34
To Artist Jamie Wyeth,
Worldgram
35
U.S. "Is Moving Again"
90
Report From Lebanon
38
Iraq: Determined to Upset
U.S. Plan for Mideast Peace ....
93
Taming a 148-Billion-
Dollar Federal Giant:
Railroads vs. Labor?What's
Will Anything Work?
42
at Stake in Crucial Talks
97
Tough Road Ahead for
News-Lines
99
Carter's Welfare Reform
48
Editor's Page
100
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SYMBOL MDA NYSE ? IVIWSE ? PSE
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U.S. NEWS & WORLD REPORT, May 16, 1977
1
R
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cunderna;id Lawrence 1888-1973
WHAT THE NEWS MEANS
Tomorrow
Page 11
Beyond the London Summit, a reading on the world leaders
Carter faces now... What to expect from Washington's ethics
binge.. . A look at 1985 prices if today's inflation continues.
As auto sales level off, prospects for other retailers.
Worldgram Page 35
Carter's negotiators: on the move now all over the place . .
After a fast start, look for sticky going ahead in Vietnam talks.
What Castro wants next ... Spain's moderates breathe easier. .
Russia pulls out all stops in blasting CIA.
Business Around the World Page 59
Why Swiss bankers are worried about their image abroad At
the minisummit in Vienna ... Welcome for U.S. investors in
Spain ... Japan's plant exports rush ahead?but not fast enough
Venezuela borrows heavily despite hefty oil income.
Trend of American Business Page 7:3
liesurging fears of inflation from big jump in wholesale prices
. Fresh signs of soaring optimism among businessmen ...
What latest business indicators show ... Effect of Carter's
cnergy proposals on factory projects . .. Experts size up stocks.
News You Can Use
Page 87
llow to get federal help to install a solar-powered water heater
. If you were audited last year, relax?maybe... Bigger fines
now for CB violations... Minigarden guide.
r---
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May 16, 1977, Vol. LXXXII?No. 19
THE UNITED STATES NEWS?
WORLD REPORT? U.S, WEEKLY(.
Published at Washington. D.C. News Department and Executive
Offices, United States News Building, 2300 N Street, N.W., Washington,
D.C. 20037 (2021 333.7400. Copyright 1977, by 11.9. News 8
World Report, Inc., for entire contents of this publication. All rights
reserved.
^JEWS DEPARTMENT
Editor: Marvin L. Stone
Executive Editor Managing Editor
Joni i- Adams Lester Tamer
Art Director: Walter 0. 3retschel
Deputy Editors
Bryant. Joseph Fromm, George E Jones
Assistant Executive Editor: Clair Johnscn
Assstant Managing Editors: John R. Gibson
: M. Haller Ben F Phlegar, Don Reeder
'Executive Assistant: Sybil M. Graves
NATIONAL STAFF
Senior Editors: William MacDougall, Gerald Parshall, ?au! L
Martin, Political Editor
Associate Editors: Tomorrow: David L. Barnett Finance:
Charles M Plat. Labor: Fred W. Frailey. Business: J. Frank
Diggs, Warner Ragsdale, Jr., Walter S. Wingo, Lawrence D.
Maloney, Caroline E. Mayer. Health: Abigail Trafford Brett.
Legal Affairs: Orr Kelly Military: Wendell S. Merick, Bern
Price. Science: Jack McWethy Energy: Kenneth H. Sheets.
Social Trends: Alex Kucheroy, Jeannye Thornton. Education:
James Mann, Stanley N. Wellborn. Special Reports: Donald C.
Bacon, Charles E. Whiling News-Lines: Richard S. Ross,
News You Can Use: Donald E. Smith. White House: John W.
Mashek, j Michael Wright, Patricia A. Avery. Congress:
Thomas J. F )ley, John P Sutherland, Bonner Day, Robert Barr.
Harold R. Kennedy.
Economic Unit: Thomas H. Hughes Director Charles H.
Davey, Ricardo Elbo, Marshall Hoffman, Timothy F. 0 Leary.
Jr., Robert J Morse.
Regional Bureaus?James C. Killpatrick, Chief. New York:
Donald L. Battle, Pat Lynch, Matthew Cahill; San Francisco:
Edwin J. Drectsel, Thomas York; Los Angeles: Juanita R.
Hogue; Chicago: W. Robert Shoup, Peggy Schmidt; Detroit:
Lowell McKirgan, Anita Pyzik; Atlanta: James R Wooten,
Linda K. Lanier, Houston: Paul Recer, Sarah A. Peterson;
Washington D.C.: Bonne E. Nance.
NTERNATIONAL STAFF
Directing Editor: Robert P. Martin
bcputy Directing Editor' LeRoy J. Hansen
Dep?cy tor Admin,stration: Mary Ann Lovenstem
Editor, Business Around the World: Kenneth S. Smith;
Editor, Wordgram: Gerson Yalowitz; Diplomatic Editors:
Howard Handleman, Niza, Jwaideh, Carl J. Migdail.
Bureaus: London, Moscow, Bonn, Geneva, Pans, Pomo,
Beirut, Tokyo Ottawa, Buenos Aires. Editors Abroad: Europe:
Robert A. Haeger, Alfred Zenker; Mediterranean-Afrea: David
8. Richardson; Middle East: Dennis Mullin; Soviet Union: Robin
Knight; Asia James N. Wallace; Western HernispherF- Joseph
Benham, K. M. Chrysler
NWS DESK
Chief :stews Desk Production Editor
David E. Pollard LeRoy Mattingly
Deputy Chief: Richard Corum; Production Deputy: Carol
White; General Editor: Robert G. Smith; News Editors:
Robert C. Wilson, Nathan J. Margolin, Pauline Jenni,gs, Fred
Shaw, Stroube Smith, Louis Silver, Donald H. Lund, Mary
Leimbach, John Collins. Lauraine F. Miller. Makeup Chief:
Vera C. Hughes. Text Desk: Donald Becker, Chie? Roland
Brown, Patricia Saunders
ART STAFF
Associate Art Director Assistant Art Director
Edward H. Castens n,Jane McKenna
Special Proiects: John T Bledsoe, Jr.; 'Design: Carl Vansag,
G. Arthur Rosser. Artists: Christopher Worsley James
Trautman, Joseph Gibbs. Harold Smelcer, Morris Jackson,
Suzanne Van der Leur. Production: Barbara Prior. Photos:
George Bloortgood, Del R. Truitt, Thomas Simonton, Mark
McMackin, Thomas P. C.:arolan, Wally Horne, Monroe E.
Pinckard. Photographers: Thomas J. O'Halloran, Chef; War-
ren K. Leffler. Malan S. Trikosko. Photo Lab: Charles Moroney.
SERVICE DIVISION
Librarian: Luther A. Dawson; Research: Michael K SlevieS;
Data Communications: Michael D. McDonald, Manager'
Administration: Robert J. Ames, Marybel L. Patrick, William F.
Deeck; Reader Service: Audrey Forbes, Manager; Editorial
Assistants: Jane E. Kuppinger, Anne M. Giacofci, Lucinda
Tyson Jones. Cathy E. Roberts, Joel Chineson, Susann M.
Mick, Terry W Randolph.
PUBLISHING DEPARTMENT
2300 N Street. N.W. Washington, D.C, 20037
.,chn H. Sweet, President 8 Publisher
William 0. Dunn, Vice President?Advertising
S J. Keker, Vice President?Circulation
Bert N. Padrutt, Treasurer J. R. Osmond, Secretary
Walter E. Marek, Associate Publishing Director
ADVERTISING HEADQUARTERS
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iirmo imos? woris 'immob
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S NE V/ S & WC)RE D REPORT. Mire 16 1 9 7 7
FreeeafiranDFShell001-0
How some people can save up
to $600 a year by carpooling
How vanpooling works and what
it's done for companies
What the federal government,
some states and cities are
oing to encourage ridesharing
How Americans could save
around five billion gallons
of gasoline each year
How to find a carpool or
tart one where you work
Free Shell Answer Books
The Rush Hour Book is one in a series
of various Shell Answer Books. If you'd
like a copy, mark the appropriate line.
110v: Title
1. Early Warning Book
_ 1. Breakdown Book
_ 3. Gasoline Mileage Book
_ 4. Car Buying and Selling Book
5. 100,000 Mile Book
6. Rush Hour Book
_ 7. Driving Emergency Book
8. Car Repair Shopping Book
Mail to: Shell Answer Books, Shell Oil
Company, P.O. Box 61609, Houston,
Texas 77208
City
Nan
(limp
Mitres,
State
Zip
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iMERS
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Praise for ABC's
71-1,.? 20-page special section, "ABC's of
low Your Government Works- May 9
is a valuable public service and
doserves our thanks and praise. I have
urdered copies to supply to our local
..,ehools. If this comprehensive summary
,loesn't get through to the children,
oothing will. What's easier than ARC?
HOSE SOMA
Miler Place.
Back to Merit System
'lite article on minority hiring by the
new Administration [April 25 issue] re-
nal-ids me again just how boring has
become the practice of nose counting by
and ethnic background. Is it not time
Jr curtail this madness and to direct our
--forts to hiring or appointing people
.imply on the basis of merit?
fouN E. TEVNAN
Boston
Keep the Panama Canal
was very much disappointed in the
a.cticle "As U.S. and Panama Head For
owdown Over Canal- and the editori-
' "Peace With Panama" in the May 2
erue It is hard to conceive of a great
.ind powerful nation like the U.S. surren-
tering legal possessions or renegotiating
treaties for fear of an uprising or a re-
eoit. The U.S. should never have agreed
?o renegotiate the Panama Canal Treaty.
- paid a fair price when the canal was
eenstructed and made an honorable
agreement with Panama. If we are try-
' to admit that we obtained the treaty
enfairly, then why not renegotiate the
.daskan Treaty with Russia and the Lou-
l?aana Purchase with France?
tiodEtt A. WIELIAms
Apopka. Fla
look around the world reveals "hos-
environments" aplenty which cow-
idly surrenders have never improved.
'Thus, Marvin Stone's editorial conclu-
sems are absolutely incorrect. Chaos is
noi a predictable alternative in Panama:
it is a present fact. And we will never
have to lose the canal if we wish to keep
. Sabotage can be repaired and Pana-
manian aspirations (translation: tin-horn
dictators' ambitions) can be dealt with
hortorably?if "honor- is still in our dip-
lernatic and military lexicon.
witaaAm A. SOMMF.TIMENEH
.Arroyo Grande, Calif
economy and the arisi lig energy risis.
Strikes, increased fees slowdowes, or
worse, under Panamanian opesation
would result in increased cost of iizoods,
to say nothing of national defense r the
cost of a two-ocean Navy. If we c...nnot
defend the Canal Zone when we ay in
control, how can we hope to deferi our
interests when the Communists a ry in
c(aeitrol?
I.) liNE
1 he solution to the canal pre hem
does not call for an abandonmetA of
historic U.S. responsibilities on the Isth-
mus of Panama, but rather a firm torn-
mitment to a reaffirmation of our
authority in the Canal Zone, increased
capacity and efficiency of the pr -sent
canal, and greater recognition of the
aspirations and efforts of our citizens on
the Isthmus.
do agree wholeheartedly with he
closing phrase of Mr. Stone's editerial
When "the facts are laid out, the correct
decision will be made.- The correc de-
cision will be a rejection of any canal
treaty along the lines of the unfortu rate
Kissinger-Tack Agreement.
JOHN M. MUIWIIV, Cliai);000
Committee on lierchant
and Fisk ries
(IS. House liepresenta!ire,
Getting the Right Education
You paint too rosy a picture concern-
ing a liberal-arts major meeting the
needs of an employer ("Behind the Fish
to Revive the Liberal Arts,- May`?'. is-
sue). I have found most employers tca al-
ly bewildered on discovering that I hold
a degree in classics. Classical knowledge
is nice, but so is a job that pays for three
meals a day. I do have a job, but I. rt :1st
issue this caveat to those who plan to
study the liberal arts: In school, liberal
arts are most interesting and stimuat-
ing, in the outside world, they are diffi-
cult to explain?to anyone
' .siEs E. Bur: ss
/111/14.,,
It good to learn that hat_ academics
have decided to turn their vo-tech fac-
tories back into colleges. Perhaps "hi0-
er education" will mean somethieg
besides price.
TENR1 HAI.LMA
citri/i)
Squeezing the Middle Class
.).TO THE EDITOR
middle-class fa inilies featured ill your
May 2 issue [-Special Report: Squeeze
on the Middle Class"]. Granted, prices
are high and z,overnment is w.isteful,
but let's shape our personal attitudes
and goals more carefully. Happiness
comes from doing and being, not from
buying and getting.
If our children cannot go to college,
they'll do something else. If ws.- ,sannot
have everything we want so what? Why
on earth should we?
ElICK
riirless itils Pa.
The middle c ass has been sciiii..ezed,
prodded and ramrodded; even tram npled
to the point of utter desperation. Nlost of
us have lost ground during the laA live
years, and we're fed up. Government is
"killing the goose that lays the golden
egg" by disregarding and financially
punishing the real producers in on: soci-
ety. When this group finally decides
"the hell with it,- the U.S. no longer will
be a viable entity, and its final collapse
will be almost predictably certain.
MY.I.Es GLENN
Dignity of Labor
Congratulations on your excellent arti-
cle "Lunch Pails and Safety Shoes"'
[April 25 issue]. Being both a laborer
and college grad. I can only agree with
the article, and acid that it points out a
big pitfall in the American attitud., to-
ward a major problem?the dignity of
labor in the U.S. t )(lay.
JOEL Ai. Nict,OuNALn
Ear!, mm, Pa
Whose Environment?
The editorial " X Call to All Ameri-
cans" [April 25 issue], says: 'Hydroelec-
tric dams must be built. .. Human
survival comes first.- Surely with a little
more conservation we could do Wia1011t
new dams. We most think not in terms
of mere survival, hut in balancing needs
for energy and raw materials against
needs for access to unspoiled nature.
Over the course of human history, man
has changed the environment to suit his
physical needs, leaving little in a pris-
tine, unchanged condition. It is tune to
redress the balance
DEAN W G113134 )NS
fintroit
The time is long past when we shoald
have realized what misguided em ir
me 70 per cent canal tonnage is Frogality is bad? Entaq-taining t mentalists and courts are doing to this
Jr or from P.S. ports, and is vital to our home is sad'? I cannot treylbi=ob.1
..a.
r55414131627600BOOTtiog the building ot
4
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ii S NEW', & INORI ) RPPORT May 1 , (.77
Bad roacisse 2001/09/05 : CIA-RDP806015
don't come cheap.
When money is "saved" by delaying
essential maintenance and preservation
work, you pay for it. Not only through
the loss of your tax investment in our
great road system, but through danger-
ous driving conditions, greater road
maintenance costs, extra repair bills, and
shortened life for your car.
Our nation's roads are deteriorating
50% faster than we are maintaining
them. We're taking chances and beating
up our cars by driving on broken pave-
ments, crumbling shoulders, outdated
bridges and worse. And we'll end up by
paying for costly rebuilding programs
that could have been averted with timely,
lower-cost maintenance work.
We've invested $425 billion in the
greatest transportation system the world
has ever seen. But we're letting it die
from simple neglect. Someone should
continue to remind our legislators that
stinting on road maintenance is
costing far more than it saves.
Bad roads cost you more than
good roads every time.
ROAD PRESERVATION...
A TRANSPORTATION BARGAIN
As a motorist, shouldn't you take a stand on this
vital issue now? Remember?when the roads go,
we won't.
For an informative free booklet on the
problem, write to The Asphalt Institute,
College Park, MD 20740.
4R002700060001-0
additional energy capability. The Alaska
pipeline was delayed some five years,
and we will pay for this for years to
come. Translate such inaction into off-
shore drilling, nuclear energy, the
breeder reactor, coal development, hy-
droelectric dams, and we are going to
pay far more?possibly more than we
can stand.
GEORGE W. CHRISTOPHER
El Paso
Illegal Aliens
I read with great interest your special
report on the illegal-alien problem
[April 25 issue]. In 1971, I authored
legislation, subsequently passed and
signed by the Governor, which subjects
an employer "who knowingly hires an
illegal alien whose employment would
have an adverse effect on lawful resi-
dent workers" to a maximum fine of
$500 for each violation.
Following several legal challenges, the
U.S. Supreme Court last year upheld
California's authority to enact this legis-
lation. It is now hoped that California
will soon begin to enforce this law, lead-
ing the way to a national solution of this
most serious problem.
DIXON ARNETT, Assemblyman
California Legislature
Sacramento
Your exposition of the illegal-alien
problem is impressive. Imagine the dis-
tress of Mexico's politicians when, and if,
confronted with the need to really tax
their wealthy, reduce the runaway birth
rate and stop dumping their poor on the
necks of U.S. taxpayers. You quoted a
San Diego police sergeant as saying,
"We just feel so sorry for those poor
people." Too bad Mexico's Government
doesn't feel sorry.
CATHERINE STODDARD
Los Angeles
Energy Goals and Methods
As manager and owner of a small
business in a highly competitive industry
which is a major energy consumer, I
look upon Government devotion to the
cause of energy as belated as all get out
["Energy: Will Americans Pay the
Price?"?May 2 issue].
Our area has already been through
three winters of curtailment. We have
been attacked as wastrels by consumers,
Congressmen and Presidents. But I'll
bet many industries across the country
can match or better our company's 35
per cent reduction in gas consumption.
We have done this without the threat of
Government intervention, Government
help, the threat of higher taxes and
comments from the likes of Ralph Na-
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IBM Reports
information: there's growing agreement
Human history has long been described in terms of Ages whose
names reflect the stages of development through which mankind has passed:
the Stone Age, the Bronze Age, the Iron Age and so ea ?down to the Industrial
Age which established the foundations of our modem society.
Today, there is growing agreement that we have entered a new era, a
post-industrial stage of development in which the ability to put information to
use has become critical, not only to the essential production of goods but to
efforts to provide a better life for the individual, as wifl I.
i his new era is heing referred to with increasing frequency as the
ormation Age.
Information in the Information Age
Changes in our perception of information itself?its nature as well as
Us scope?have accompanied this profound shift of emphasis in our society.
Much has been written about the so-called "information explosion." It
has neen pointed out, for example, that the number of technical iournals
published throughout the world today exceeds 10ft000, and that the total
body of technical information is now doubling every ten years.
At the same time as the volume of information has been increasing
dramatically, our understanding of the meaning of the term information itself
has also broadened?to encompass a wide variety of timely data relating to
"how things really are" across the whole spectrum of human activity.
A heartbeat, for example, can be extremely meaningful information
when recorded and analyzed on sophisticated electrocardiogram equipment.
So can electrical impulses reflecting the load level in a power network, or
numeric digits representing the availability of a seat for you on an air-
plane?when processed by a modern computer.
these and a wide range of similar types of da.f are clearly recognized
tociav as information, the kind of information on which we increasingly de-
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Advertisement
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that it's the name of the age we live in.
pend for the growth and health of our economy, the smooth functioning of our
institutions?and, even more important, for the quality of our individual lives.
Information?an inexhaustible resource
Information is one of the few resources not in danger of exhaustion on
this shrinking planet. It is unique because the supply is limitless, because it
actually becomes more valuable with use and because?when properly man-
aged and applied?it can greatly enhance our use of all our other resources,
natural, human and economic.
One reason, of course, that information has proved to be such a
dynamic resource is the fact that there exists today a remarkable technological
capacity for dealing with it rapidly and effectively.
Through a vast array of electronic tools and techniques, mankind is
able to accumulate, organize, store, interpret, retrieve and transmit informa-
tion on a worldwide scale, in a volume, at a speed, and with an accuracy that
would have been impossible barely two decades ago.
It is also a technology that continues to grow and that has proved to be
amazingly efficient in economic terms. As advance has followed advance, the
cost of processing information has steadily declined. Since the 1950's, the cost
of performing 100,000 calculations on an IBM computer has fallen from $1.26
to less than one cent?and the downward trend continues.
Putting information to work for people
IBM makes many different products?from computers to copiers?
hut clearly, the essence of our business is information.
As a company, we are committed to exploring the limits of technology
to find better, more imaginative and more productive
ways to help put the benefits of this uniquely valuable
?
resource to work for people.
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Ler Artur, Tarn 6C.-d Roge:
tell you how to improve your grip:
'Armstrong Tires.
rip tne road!"
1554R002700060001-0
LETTERS [cor nueal
der. We did it with the help of every
man in the plant and in response to the
market?higher costs and lower supplies
of natural gas.
Please, let us try the free-market ap-
proach and not talk about "Government
subsidies." That is m money and that if
-every working citizen of this country.
1,et us call subsidie what they are--
taxpayers' money.
Obviously I support President Carter s
14oais but not his methods.
Tie At AS D. BREI/IVN, Vice Presiele,d
Bv,01.4 Steel Galvanizing
Columbu.s. (Aro
Carter's energy program is an ai,.)-
oroach similar to the one our leaders
took in Vietnam when they deliberately
:those defeat rather than victory. Here
we are choosing to humble ourselves,
iacrifice, shackle our industries, increase
taxes and expand bureaucratic surved-
lance over citizens. instead of permit-
ting free enterprise to apply science,
management and capital expertise to
work out problems in a constructive
manner.
MELVIN W. BusTEn
Chevy Chase. :111.
Who Causes Inflation?
The article -How Government itself
Keeps Prices Rising- [April 18 issue] was
most enlightening. In view of recent
eriticism of Government's contributicn
to inflation, it is interesting to note that
:business in many cases pressures tLe
Federal Government to initiate infla-
tionary policies.
Why should the Government protect
Industries that are unable to compete
with foreign firms under normal market
,amditions? Such a policy infringes cn
the consumer's right to purchase goods
that give the most for the moire],
whether foreign or domestic.
GARY SC.[ILACIITEII
Traverse City,
A Cheer for Postal Service
Your April 25 article, "U.S. Postal Ser-
vice?Troubled Giant Heading for
Change," was well worth the time to
read. What people so easily forget is that
the present services provided by our
Postal Service are still superior to those
iffered by any other country,
F.oRGI.: M. ( :OS'I'0
A thuquermv.?
_etters to the Editor should be sent to: Letters
Lditor, U.S. News & World Report. 2300 N St.. N W.,
.Nashington, D.0 20037. Al letters subject to editing.
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S NEWS 8. WORLD REPORT. May 16 1977
A i ? yti 1 t Go
ve o I s oi 5' I - o 5 4 WO
A
1 0 if
A
R
moRE pREcious 7,14AN GRocERE
Any station wagon can take a load of stuff from one place to another.
The Volvo wagon, on the other hand,was designed to take a load off your mind,as a
' one e h eep both eyeS on the ioad
you have to keep ye on t e back seat. I
Volvo realies, for example, that it's impossible
So to keep the kids in place, we provide yoti with things likechild-proof door locks on
all the rear doors. Including the back one.
And to virtually guarantee that you can focus your
all times, we give you defrosters
for the front side
windows,
and the
rear wind
comes
its ow
washer, a
defros
no
that's our answer to people who say
that the American Worker isn't as good as he
used to be.
He's good enough to work at Zenith.
And Zenith is good enough to be
picked ?for six consecutive years?as the
color TV having the highest quality and
needing the fewest repairs.
And that's not us talking. That's the
opinion of independent IV service technicians
across the country. They're the ones who
singled out Zenith more than any
other brand.
The American Worker? He's as good
as they come.
or more Information about the service technidans opinions
mentioned above write to Vice President Consumer Affairs, Zenith
Radio Corporation. 1900 It AustinAve., Chicago, III. 60639.
The qua '
the name
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
Tomorrow?
A LOOK AHEAD FROM THE NATION'S CAPITAL
agoNyoginuo
2300 N Street, N.W.
Washington, D.C. 20037
On the world stage, Carter is mingling with a mixed cast of characters.
Lasting results from London Summit depend on co-operation by these men--
Callaghan of Great Britain: No intellectual giant, but a shrewd man of the
people. His future depends on ability to get unions to hold down wage demands.
Giscard d'Estaing of France: Aristocratic, brilliant technocrat, but
remote. Losing grip on political situation as Socialists and Communists gain.
Schmidt of West Germany: Cocky, confident and willing to take tough stands
for German interests. Expert on economic and defense issues.
Andreotti of Italy: Courting Communists to keep his minority party in
power. Needs outside economic help, or austerity program will end in chaos.
TrudeaU of Canada: A charmer, but the threat of Quebec separatists and his
highly publicized personal problems are eroding his popularity.
Fukuda of Japan: Walking a tightrope as economic conditions slide, other
countries fight Japanese exports. Power of opposition parties is growing.
Then there are the giants of the Communist world . . .
Brezhnev of the Soviet Union: Vain, but a team player. Gets Politburo
backing before he moves. Old for his 70 years and ailing--heart and painful
jaw troubles--but keeps coming back. Loves fast cars add gadgets.
Hua Kuo-feng of China: Cautious, shrewd. Concerned more with order and
economic growth than with ideology. Least-known of world leaders.
In working for a Mideast settlement, Carter must deal with . . .
Peres of Israel: Arrogant, articulate, able administrator. Hard-liner on
defense. Expected to turn more flexible if he wins May 17 election.
Sadat of Egypt: Clever moderate. Concentrates on international affairs,
but is constantly in hot water because of volatile domestic situation.
Assad of Syria: Wily, skillful diplomat. Becoming a key figure in Arab
politics. Faces serious but manageable economic problems.
Hussein of Jordan: Written off a dozen times, he always bounces back.
Personally courageous. His big worry is more the Palestinians than Israel.
Khalid of Saudi Arabia: Using oil money to modernize the country. But he
is seriously ill. A power struggle over his successor is almost certaLn.
All over the world Carter finds leaders whose ideas of human rights are
primitive, to say the least. For example:
Park of South Korea: Politically inflexible. Keeps the economy booming,
but maintains his grip by waves of crackdowns on domestic opponents.
Idi Amin of Uganda: Unpredictable dictator with high potential for
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001:0
US. NEWS & WORLD REPORT, May 16, 1977
(over)
11
Tomorro& proOn ved ForRelease 2001/09/05 : CIA-RDP801301554R002700060001-0
, C tin tied/
violence and mass killings. Mismanagement is wrecking Uganda's coffee economy.
As Carter is finding out, the world is a complicated place. In many
areas, neither life nor simple virtue is worth much.
And a strong democratic leader with majority control is rare indeed.
If the Washington ethics binge continues, as many as 40,000 top Government
employes will be forced to make annual public reports on income and net worth.
Congress has approved an ethics code for its members.
Next will come action on Carter's proposal requiring high-level career
bureaucrats and political appointees to unveil personal information on this:
Amounts and sources of income of more than $100.
Expensive gifts received from all but close friends or relatives.
Most property and securities worth more than $1,000.
Also possible: creation of a special prosecutor's office to investigate
charges against top federal officials, including the ?resident. Outlook?
Good. What is good enough for Congressmen is good enough for bureaucrats.
What kind of fix will you be in if prices rise by an average of 6% per
cent a year for the next eight years as they have in the past eight?
Look behind the percentages. The 1985 price tags will not be modest--
Week's food for four: $115, up from $75 today, $49 in 1969.
Hospital room per day: $233, up from $100 today, $43 eight years ago.
Year in a private college: $5,790, compared with $3,667 today.
Cigarettes: 75 cents a pack, up from 50 cents.
Maid service a day: $48, up from $25.
Permanent wave: $35 for what now costs $25.
The effect on persons with fixed income would be drastic. The real buying
power of a 4500-a-month pension in 1969 would shrink to $184 by 1985.
Sound farfetched? Not at all. Wholesale prices rocketed up at a rate of
14 per cent a year in April, sign of big hikes ahead in tabs consumers pay.
Congress will try to lift the veil from the financial operations of
charitable organizations. The proposal would force charities to tell where the
money goes when they ask for contributions, would take effect in three years.
Big money is involved. Some 29 billions a year are given to charity.
Congressional passage is no cinch. Some bi bus are fighting the bill.
Carter's proposed changes in Social Security would mean big jumps in
payroll taxes for workers, mammoth increases for employers.
For employees, new jumps in the wage base on which they pay tax--from
$16,500 now to an estimated $24,000 by 1982.
For business, the increases would be bigger and come faster. By 1981
employers would pay Social Security taxes on every dollar paid in wages.
General tax revenues would be tapped for the first time. They would make
up fund shortages caused when the jobless rate hits 6 per cent or more.
Inflation-pushed jumps in benefits won't be as large.
Prospects in Congress: rough, although something will be done.
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
12 .; NEWS & WORLD REPORT May 16 1,477
OB01554R002 k00060001-0
We can't do all she's done for you.
But at The Equitable, our whole
approach to life insurance is built
around the same idea of caring.
We call it NObody Else Like You
Service.
When an Equitable Agent plans
your insurance program, he or she
plans it around your specific needs
and goals.
Nobody else's.
And when you buy insurance
from, The Equitable, you know
Il always have fah
quitable gent available to
answer your questions. And
to plan for your family's needs.
Wherever you are.
We call that a lifetime of Equitable
service: Nobody Else Like You
Service. And we think it's a
sound, sensible idea.
But why not? Look who
we stole it from.
Approved For Release 2001/09/05: CIA-RDP80601554R002700060001-0
Washington Whispers ?
Carter to Peking. . . Patricia Harris First
To Go?. . . Why Jerry Brown Worries White House
?I?????=111111.0111=11.4%
iarnng late hitches, President Carter
will visit Peking in 1978. Planning
:ill-early is under way.
* * *
ail-Alt-tidal Republican leaders are wor-
,ied that Richard Nixon's TV appear-
ince, by raising the specter of
Watergate all over again, will do seri-
:An, damage to the party just as it was
stalling to pull itself off the floor.
* * *
If ,iisiders at the Department of Hous-
ing and Urban Development are right,
Secretary Patricia Roberts Harris
could be the first Cabinet member to
leave the Administration. She is de-
scribed as having a quick temper and a
low tolerance for bureaucratic ways.
* * *
....in-American officials are passing the
vo,rci that Rosalynn Carter's June trip
to their region for 'substantive discus-
- will be considered a slight to the
pride of the nations she visits. Snorted
one diplomat: "No Latin leader would
send his wife to Washington to carry
on substantive discussion with Presi-
fir Carter.
* * *
,ernor State Department official
n,ies this change now that Cyrus
has succeeded Henry Kissinger
a-, Secretary: les wonderful?I had
,rgotten what it is to have a Secretary
s iv good morning' to me.
* * *
c presence of Hamilton Jordan,
nd White House political adviser, in
Pie Carter entourage to the London
mmit irritated many Administration
experts involved in this country's di-
macy. The President had cut 28
n)reign-policy officials from the origi-
' list of participants because of the
mb cost of transporting them.
grain-storage facilities despite its owa:.
disappointing crops are feeding specu
lation that the Kremlin will enter thc
world market in a big way to build r
strategic reserve of food.
* * *
A new California Poll is adding n,
White House worry over Govern?,
Jerry Brown as a threat to Carter in the
1980 presidential primaries. Democrar
Brown outruns his potential Repub1!
can rivals for the 1978 Governor's rac:
by ratios of 2 to I or more, capturing
third of the Republican vote.
* * *
Several Congressmen back from a trip
to China are grousing openly about
"White House penny pinching" on tEit
plane made available. Their complain
Though there was plenty of emplii
space on the jet, they were not allow(
to take their wives.
* * *
Look for the Justice Department
shift tactics in its drive against smut a
tougher crackdown on interstate traf
tickers, especially those connecn-d
with organized crime, but less empha-
.sis prosecuting actors and othcr
participants in pornographic works.
* * *
With a May 18 date to open bids, at
least 75 offers have been made to buy
the presidential yacht Sequoia, one of
the frills Carter wants eliminated ft% m
the White House. The Government
put the craft up for auction after
other federal agency claimed her.
* * *
110
Top presidential aides are grow:ag
sensitive over newspaper and magaz,ne
articles critical of Carter, with angr..L'st
reactions reserved for gossip-colu,nn
items considered "cheap shots" at .'he
President and his staff
celligence reports that the Soviet Politicai analysts believe that itOl aid
mon is on a crasrAPWOmed)
ForoRfile&seA2001409I0151?. roik kdrigottitilS5441)M68g000112abke them simpler.
S NEy7S & WO AA) HEPOR I May 16 1977
tor Jesse Helms as his eventual sucLes-
sor to lead the Republican Party's
conservative wing. Reagan is conduct-
ing a nationwide letter-writing drive to
raise money for Helms in his 1978 t.,:-
tlection bid.
Western diplomats in Moscow predict
that the Soviet Union will not agree to
Carter's proposals on strategic-arms
limitations?dooming the mid-May
SALT negotiations in Geneva.
* * *
What worries Detroit more than any
Carter energy-saving proposal an-
nounced so far is a tentative plan to
change the way the Government tests
mileage on new cars. The new method
would reduce present figures by as
much as 3 miles per gallon?forcing
more autos into the gas-guzzler catego
ry, subject to heavy taxes.
* * *
A Government insider oilers this ex-
planation of why the Administration
failed to come up with a detailed plan
for welfare reform, yet managed to
present a complicated but complete:
energy package: "You had one man?
James Schlesinger?putting the energy
program together With welfare, you
had representatives from half a dozen
agencies in charge,"
* * *
Cited as an example of loopholes in the
federal campaign-finance law: Demo-
crat Gale McGee, who lost a re-elec-
tion bid as Senator from Wyoming last
November, had $113,880 left ovc r in
unused campaign funds and can legally
spend all the money as long as he pays
taxes on it.
* * *
Speech writers in Government agencies
who prepare drafts for Carter have
been told to keep them basic enough
to be understood by ninth-grade stu-
dents. Even then, the President tdirs
Approved For Release 2001/09/05 : CIA-
Warning The Surgeon General Has Determined
That Cigarette Smoking Is Dangerous to Your Health.
ft coupons on every pack of.
- -er'iory Be!air carton.
bluatirtwon--791:
?t
ith Double Coupons.
one
a bohu of eight, riste4d.p.
e veeit)Ogiet-?-Y.N6iv you not
7,9 frFe
Name
aff, kr. years al age Or Ovey
Address'
State? ?
xe2b
Louisville; Ky. 40201
Kings,15 mg. "tar," 1 .41:1101514640FRAB Reitillige32001/09i05et cCIALOUP180 1.554R002700060001-0
Sincel9dagiirClieici5f '7-01 ?
Canadian Club have been
hidden and never found.
Here's where you can find them:
Mt. Kilimanjaro. Your driver will
take you from Nairobi Airport
240 miles southeast to the slopes
of Kilimanjaro. You'll climb
through the Giant Heath Forest to
Mandara Hut, 9,000 feet up. The
following morning you'll stumble
t,ntside to stare straight up at your real work?over 10,000 feet of
'Cling rock, hidden crevasses, and ice avalanches In addition to
Loots, ropes and ice axes, you'll need a sound heart, strong lungs,
lowerful legs and plenty of luck. But somewhere 14,340 feet over
I ,1:latorial Africa, a case ot Canadian Club is still waiting tor you.
Great Barrier Reef. When you reach calm
..iters between Litte Hope and Big Hope 1-
Ltinds you'll need all your courage bet are tacin.;
-tie deep. Beneath the warm, soothing waves
he Coral Sea lurks the world's most treacherout.
.mass of twisted coral and rock, the Great Barrier
'yet. As your captain tosses the dinghy over the
tde, someone wt11 shout "Dabargo warkigo"
toad luck). And you'll need it. You'll be exploit-
the eerie world where 200-pound clams
the clear watt'- Where giant man-eating sharks patrol. And
where we submerge a case of Canadian Club on August 14, 196.
filter
Death Valley. Head south out of Furnace
Creek. You'll pass Badwater, d brackish pool
280 feet below sea level and as close to Hell as
man on earth can get. As you cross the bound-
dry' of Death Valley National Monument turn
right and look loran old road that leaos straight to the
hills.The road torks and becomes a wast. to the right. As
you glance around, notice an ancient rock through
which centuries of relentless erosion have aryecl a natural
hole. 144 paces up Iron) that rock turn west tor 13 more steps. caves that
where tiuriace jACt 1 ig-As al?S t to
)11 r shoes, 12 bottles151We' etrm mfis tr-ro."11:0 bii0w#8 ?A.
obinson Crusoe Island. Fly to Santidge
Hite, then on to Robinson Crusoe. Cnce then
I . nen who rur 7he radio shac k wil, help vo.t
, ( 1, sour gear down the Hide of a steep chit O.,
, :teach. There. one Of the island's hdndmade
,t. press fishing boats will be waiting to take N,oi i
tit the long trip to the other side. Sever,' I
a msand six-foo waves tater. vou'll pull into
.'. t y4a1 Bay. Bunco somewnere inside (me (AIM.
spot the -. wistl ice, beneath one at the boulders thrown
ilii ijii 1 5 >A4,4.1 6,,,tiffitidtkibi Ltd, as beeti
r rla s'1' ( en-VgIrr171 .57-_..
waitm .:
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
Loch Ness. Fly to Inverness and then drive the
few miles to Loch Ness along General Wades
Military Road until you get to the tiny hamlet,
Dores. You will be at the northeastern tip of the
24-mile Loch. There's a small inn in town where
you can enjoy a Canadian Club and get a good
description of the monster from the owner. He
and the lady who works with him have actually
sighted the beast. In back of the inn, about 250
yards straight out from the dock looking toward Tar Point and about
30 yards off the perpendicular shore to your right, we dropped a
sealed, watertight case of Canadian Club.
IMPORTED
_
Bigfoot's feeding ground. Deep into the Cascade
Mountains in America's Pacific Northwest lurks a
massive 8-foot-tall, 500-pound humanoid they call
Bigfoot. The buried case lies smack in the middle of his
feeding ground, about the same number of miles south
of Canada's Good Hope Mountain as it is north of Bluff
Creek in California. Somewhere between 6 and 9 miles
from the peak of a dormant volcano you'll find an un-
natural pile of broken green rocks. From the top of this pile
walk 65 paces east to a stream. Turn and walk 70 paces south.
Exactly 11 inches below the virgin forest floor at your feet lies that
case of Canadian clApproved For Release 2001/09/05 : CIA-RDPOsalaild444F1110.2171009600013-0 lands.
Every year courageous men and women respond to the
Canadian Club challenge and follow its invitation to new ex-
periences in exotic places. But the flavor of those exotic places
can be sipped from a glass, comfortably, at home or in the local
tavern. Taste the smooth, light flavor of Canadian Club and taste
the spirit of adventure.
AT3OrcniaTii-r-ReTease 2-061/09/05 : CIA-RDP80B01554R0-02700060001-0
The New Chevrolet.
Moir of the things you want in a wagon.
Mote mileage:
Compared 10 1976 full isize
:?rievrolet wagons. EPA estimates
with the new standard V8 and
,lutomatic transmission
Convenient door-gate.
Opens out like a door for people.
Drops down like a gate for cargo.
Roomy cargo compartment. Quick, easy seat conversions.
Takes loads up to 4 feet wide A fever releases the folding third
through a rear openirg tin, .:rs wider seat back. A button high on
at beltline, higher overall. the side ganef lets the second
seat back fold forward.
Lockable storage under the floor.
8.0 cubic feet on 2-seat model.
Less on 3-seat model (shown).
Lockable storage in the side.
Over 2 cubic feet. Handy storage
trays hold things that usually
clutter seats and floor
More manageable in city traffic.
Compared to 4976 full-size
Chevrolet wagons. Turning 3ircle,
curb to curt is 3 feet short
Ellininates excess inches
and ounces.
Uses space more efficiently.
Something to appreciate as you
slip into tight parking spaces.
197 7 Chevrolet Caprice Classic Wagon with available Estate equipment.
" le mileage you get will vary depending on your type of driving, driving habits, oar's condition ?:ind available equipment. Mileage ratings
, ire lower in California 554R002700060001
554R002700060001-0
Approved For Releas
U.S.News
&WORLD REPORT
WILL
EUROPE
FOLLOW
CARTER?
For the President, the Sum-
mit was a critical test?
whether he would emerge as
leader of Alliance as well as
U.S. He had a lot to overcome.
Reported from
LONDON and WASHINGTON
President Carter, trying to stamp his
own brand of leadership on the Western
Alliance, finds the going is not easy.
The suspicion with which he is viewed
by many abroad was fixed in the Presi-
dent's mind when he arrived in London
on May 6 for a four-day round of Summit
meetings with leaders of West Europe
and Japan.
These Allied leaders implicitly ac-
knowledge their dependence on the
United States for the security of their
countries and the success of common
economic policies.
At the same time, in private talks they
say this: The President cannot count on
automatic Allied support for his policies
or endorsement of his particular style of
leadership.
The message takes three forms?
? Demands by the two most powerful
Allies?West Germany and japan?that
the White House pay greater heed to
the interests and sensitivities of its part-
ners overseas.
? Doubts that the President can deliv-
er on commitments to his Allies, given
the penchant of the U.S. Congress to
defy the White House and overturn its
policies.
? Warnings that the political and eco-
nomic weakness of the major Allies may
undermine the cohesion of the North
Atlantic Treaty Organization and ham-
per more-active co-operation with the
U.S. NEWS & WORLIWSpyed For ReItta
At Newcastle, England, Carter is welcomed by mayor and
UPI
Prime Minister Callaghan.
op,
The President visits American-owned glass factory during his tour of northeast England.
Prime Minister Callaghan greets Carter on arrival in London on first overseas mission.
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
NY ALLIES
LOOK TO U.S.
WOR LEADERSHIP
Heading into a time of
economic and military jit-
ters, Western Europe once
-
again is turning to America
for support.
For a picture of how the
U.S. stands...
COMPARING
ECONOMIES
TOTAL OUTPUT
- ?4 76 gross national product)
U.S.
$1.7 TRILLION
12 EUROPEAN NATO ALLIES
$1.6 TRILLION
PRICE RISES
! S. has curbed inflation bet-
tc has most of Europe.
Compared to four largest Euro-
pi-tan allies ?
BRITAIN
(consumer price
increases, 1967-76)
95%
51%
FRANCE ITALY
WEST
GERMANY
TRADE
.ropeans rely on U.S. as
m Or market, key supplier ?
(1976)
U.S. SALES TO
EUROPEAN ALLIES
$27.1 BILLION
EUROPEANS' SALES TO U.S.
$19.0 BILLION
Sr_ ni Oroanizalion tot tounconit fAuptianon
Deiieionment. S S Dept of Coinroeice
?
S. ? - s
EUROPE AND CARTER
(cor,'inued from preceding pagei
VS. The prospect of Communist par-
ticipation in the French and Italian
governments poses the most serious
threat to Alliance unity: under a new
Carter leadership.
Lessons for Carter. European dip-
lomats described the London summit
.is "a learning process" for the Ameri-
can President. They complained that
in his first 100 days in the White House
Carter was excessively active in foreign
affairs despite his conspicuous inexpe-
rience in this field.
The result, in their view: potentially
dangerous strains in U.S.-European re-
ations. especially in the American-
West f :erman linkage that the real
t?ornerstone or tire W esterit Alliance
The prestigious British weekly "The
Economist" says that the Washington
Bonn relationship "is in worse shape
than it has been for 30 years."
West Germany's Chancellor Helmut
Schmidt has made little attempt to
nide his resentment oxer what he re-
gards as the Carter Administration's
strong-arm tactics and inept diplomacx
Hie outspoken anti self-confident
'A est German leader -has defied deter-
mined White House attempts to force.
nun to reflate his country's econorm
:a ter than he deems prudent and to
r'ancel the sale to Brazil of a nuclear-
reprocessing plant that could bo used
to manufacture weapons lie also has
mplained of Carter'; aggresst, e hu-
COST OF DEFENSE-
FOR AMERICANS AND FOR EUROPEANS
U.S.
European NATO Allies
-976
Defensu Spending
$102.7 BILLION
$ 54.1 BILLION
Americans paid $477 PER PERSON,
on the average, for defense ir
1976, including the cost of
maintaining large forces in Etrope.
OJrce Fri,ridtIondi irsotute for strategic Stuart!
Percentage of Total
National Output
5.9%
3.6%
E ..rooeans paid $169 PER PERSON,
0- the average, for defense in
1 76 ? just over ore thir-1 of
tt s U.S. per capita cost.
MILITARY BUDGETS
OF NATO ALLIES
1976
Defense Outlays
Percentage of
Total National Output
Spending
Per Person
WEST GERMANY
$15,220,000,000
3.7%
$242
FRANCE
$12,857.000,000
3.9%
$241
BRITAIN
$10,734,000,000
4.9%
$190
ITALY
$ 3,821.000,000
2.6%
$ 68
CANADA
$ 3,231.000,000
2.2%
$140
NETHERLANDS
$ 2,825,000,000
3.6%
$205
TURKEY
$ 2,800,000,000
9.0%
$ 70
BELGIUM
$ 2,013,000,000
3.0%
$204
GREECE
$ 1,249.000,000
6.9%
$138
NORWAY
$ 902,000,000
3.1%
$223
DENMARK
$ 861,000,000
2.2%
$168
PORTUGAL
$ 748,000,000
6.0%
$ 85
LUXEMBOURG
$ 23.000,000
1.1%
$ 68
Snoire I ,rnational rn,laute Stratearc Sir,/
.;I
-II 111.1
00
-0
', NEWS & V\ ? 115t HE'-'ORT May 1 s, 1
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
man-rights policy, which he fears could
damage his own attempts to improve
conditions in Communist East Germany.
In the wake of the London summit,
Carter's first order of business is clear?
if he hopes to exercise effective Ameri-
can leadership. What is needed, in the
judgment of diplomatic observers, is a
concerted White House effort to repair
the damage in American-West German
relations and to develop close co-oper-
ation between the President and
Schmidt.
Soothing some feelings. Even be-
fore he left for London, Carter appeared
to be moving to defuse the feud with
Bonn. In an interview with European
television reporters, he seemed to be
reconciled to West Germany's sale of a
nuclear-reprocessing plant to Brazil.
The President is bent on blocking such
sales, because the installations can be
used to produce nuclear weapons as well
as fuel for nuclear reactors.
In the TV interview, Carter said: "We
are not going to try to impose our will on
other countries." He expressed the hope
that "our objection to this sale . . . will
curb or prevent future sales of this kind
being consummated."
Another bone of contention between
the U.S. and West Germany may be
removed if an apparent shift in the Ad-
ministration's human-rights policy con-
tinues. The White House now seems to
be avoiding intervention in individual
human-rights cases in the Soviet Union
and moving toward a more low-key ap-
proach to the whole problem.
Yet to be seen is whether Carter is
willing and able to rehabilitate the spe-
cial Bonn-Washington relationship that a
British commentator describes as "the
crossbeam of the Western Alliance."
"A curious disregard." Diplomats in
Washington have been puzzled by Car-
ter's decision, apparently for sentimen-
tal reasons, to give priority to the special
relationship with Britain, one of the
weakest members of the Alliance, while
relegating West Germany, America's
strongest European partner, to a subor-
dinate status.
In the words of one knowledgeable
diplomat: "Carter pointedly placed the
British Ambassador at the head of the
queue of White House visitors while the
West German was well behind. And
Britain's Prime Minister Callaghan was
among the first to be invited for a meet-
MEN AND WOMEN IN UNIFORM,
COUNTRY BY COUNTRY
U.S.
European NATO
Allies
Population
215,120,000
319,960,000
Armed
Forces
2,086,700
2,698,200
Share of
Total Population
in Armed Forces
1.0%
0.8%
Army
Draft Term
No draft
WEST GERMANY
62,790,000
495,000
0.8%
15 months
BRITAIN
56,440,000
344,200
0.6%
No draft
ITALY
56,250,000
352,000
0.6%
12 months
FRANCE
53,350,000
512,900
1.0%
12 months
TURKEY
40,130,000
460,000
1.1%
20 months
NETHERLANDS
13,810,000
112,200
0.8%
14 months
BELGIUM
9,880,000
88,300
0.9%
9-11 months
GREECE
9,050,000
199,500
2.2%
28-32 months
PORTUGAL
8,770,000
59,800
0.7%
15 months
DENMARK
5,110,000
34,700
0.7%
9 months
NORWAY
4,040,000
39,000
1.0%
12 months
LUXEMBOURG
340,000
600
1.8%
No draft
Source international Institute tor Strategic Studies
U.S. AID TO ALLIES
IN EUROPE-
$52.9 E3ILLION
SINCE WORLD WAR II
BRITAIN
FRANCE $ 9.9 BILLION
TURKEY $ 7.6 BILLION
ITALY $ 6.7 BILLION
WEST GERMANY $ 5.2 BILLION
GREECE $ 5.0 BILLION
NETHERLANDS $ 2.8 BILLION
BELGIUM-
LUXEMBOURG $ 2.1 BILLION
NORWAY $ 1.7 BILLION
DENMARK $ 1.0 BILLION
PORTUGAL $ .7 BILLION
Received From U.S.
1946-76
$10.2 BILLION
TOTAL ECONOMIC AND
MILITARY AID $52.9 BILLION
TODAY the U.S. sends little direct
aid to Europe, but Europeans rely on
American military and economic
power for protection and financial
stability.
Note Years ended June 30.
Sr Agency or International fleveloVw
U S NEWS & W0RTREW44/1f9r6 Rase 2001/09/05 : CIA-RDP80601554R002700060001-0
21
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
CARTER'S BLUEPRINT
FOR EUROPE
/n Jiterviews with Allied report-
? on the eve of the Summit, the
esident spelled out his views on
re:ationc with Europe. Key points:
NATO. -The NATO militar)
e is it alli-
cornerstone of MIT own
nadetiai security. . . . We have
adlong the American people an al-
1;1116110MS belief that NATO is
? beneficial commitment to us.
-;ee o danger of a deterioration
Nr? l'O Alliance."
West Berlin. "I_ don't anticipate any
?:haiige in our policy" of guarantee-
halependence, as the U.S. has
tine for the past 25 years.
Standardized NATO arms. -I have
concerned about the need for
,,- more fair sharing of military sup-
ins weapons among the coun-
. involved. It ought to be a two-
street, and to the extent that 11
iii have common understand-
about standardizing weapons
sy!ti i believe that we will in-
hr portion that does come
the European suppliers.-
Euro-Communism. "The first prem-
. on which we function is that
l'uropean citizens are perfectly Ca-
oi making their own decisions
dr iigh the free-election process.
ecif ntily, we prefer that the go\ -
ctimients involved [France and It-
tIe to be democratic and
1.1 nit no totalitarian elements be-
vozhe chiller influential or dominant.
AndI would hope that the demo-
ore :IC parties would prevail during
the coming years in the struggle for
pilitical authority.
-1 believe that the best way we
t.:an prevent the enhancement of
Jnimist political strength in Eu-
-i is ht show that democratically
trolled governments can func-
tn and openly. and
with humaneness and a genuine
iwt1 continuing comprehension of
wh.at people need and expect from
!tt.,,;e-rti merit. "
West European unity. "We have a
' Thalia(' reticence about trying to
.rfere. but I will do everything I
on wit inn the bounds of propriety
t 4rengthen those natural ties .
it: do exist now among the court-
-, of l'airope, and to strengthen
thu-un in the future.''
,co. from precedrirg page j
ing with the President, while Schmidt
has to call yet at the White House. That's
nice for Britain but demonstrates a cur-
ious disregard of power realities.
Even if Carter changes his priorities
and his diplomatic style to cultivate a
special relationship with the Wetit Ger-
man Chancellor, he still faces a credibil-
ity problem among European leaders.
That stems from the continuing effort
by Congress to control foreign policy?
even with a Democratic President in the
White House.
"If it is seen that Congress is so power-
ful that no agreement concluded by the
executive branch is sacrosanct,- says a
knowledgeable British diplomat, "then
it will be difficult for the President to
win confidence among Europeans or to
assert his leadership.-
How Europeans judge the President's
credibility as leader of the Western Alli-
ance will depend on his success or -fail-
ure in securing congressional co-
operation on three issues that vitally
affect Allied interests:
I. Energy policy. Carter's plan for oil
conservation in the U.S. is seen in Eu-
rope and japan as an indispensable con-
tribution to long-term economic stability
for all and insurance against a divisive
scramble for shrinking oil supplies. The
issue was high on the agenda of the
London summit. Defeat of major fea-
tures of the President's plan in Congress
would reinforce doubts about his ability
to deliver on commitments to U.S. allies.
2. Protectionism. Carter Le reaf-
firmed his commitment to free trade. As
evidence of his determination ti..1 resist
pressures For protectionism, he can cite
his recent decisions rejecting higher tar-
iffs on imported shoes and tighter quotas
on foreign sugar. The real test, however,
will come if Congress overrules the
President. European leaders say that if
Carter loses in a showdown on trade
protectionism they, with their weaker
economies, will be forced into ii quick
surrender to protectionism pr(-ssures,
too.
3. Standardization of weapons. For
years, the most serious source of friction
between the U.S. and its European allies
has centered on weapons procurement.
The U.S. has paid lip service to the idea
of standardizing weapons and equip-
ment to reduce costs by of dol-
lars and to increase combat
effectiveness. But the Europeans com-
plain that this actually has been a one-
way street, with the U.S. selling vast
quantities of aircraft and other military
equipment to Europe while buying vir-
tually nothing in return. As the latest
example of this "Buy American policy.
they cite U.S. repudiation of an agree--
erman montage of Carter wrestling
chmidt. They hold key to NATO future.
.:.tent with Germany to buy a common
attle tank?the German Leopard or an
'e-nerican model not yet completed.
At the NATO summit in London, Car-
or was in a position to announce a new
'entagon directive aimed at promoting
, tandardization and increased purchases
European-made weapons. But Euro-
peans wonder skeptically whether the
President can implement this policy in
he face of inevitable opposition from
lie armed services and powerful ele-
r.nents in Congress.
Aside from the weapons-standardiza-
ion policy, observers feel that Carter
.Lands little chance of persuading Euro-
peans to follow him in moves to
Arengthen NATO?especially moves:
hat cost more money or require more.
manpower.
In fact, they point out, acute economic.
lifficulties have forced Britain's Prime
.',Iirtister James Callaghan into deep de-
hmse cuts that are beginning to affect:
his country's commitments to NATO.
and a combination of Gaullist and Corn-
eunist pressures in France are compel-
ling President Valery Ciscard d'Estaing
in move more cautiously in co-operating
,nith NATO and the U.S.
The pluses. Despite the difficulties
.1arter still has a lot going for him.
Most important: Western Europe and
apan, too, are dependent on the U.S. for
heir security. A 295,000-man U.S. force
ortins one of the most effective elements
;r1 NATO at a time when European
-tatesmen are acutely concerned about
he steady build-up of Warsaw Pact ar-
;hies in Eastern Europe
Carter has demonstrated his commit-
merit to a strong NATO by increasing
.,pending on American forces in Europe.
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Approved For Release 2001/
Above all, America's strategic nuclear
power provides an indispensable under-
pinning for Western Europe's defense.
Allied leaders are loath to take any
action that might weaken the vital U.S.
commitment to their security?the West
Germans above all. This provides a
strong incentive to co-operate with the
U.S., whoever is in the White House, and
to avoid pushing differences too far.
Another thing working for Carter in
Europe: The unparalleled economic
strength of the U.S. remains vital to
Western Europe despite the emergence
of West Germany as an industrial and
financial superpower.
America still makes the biggest single
contribution to efforts to bail out weak
economies in Britain and Italy?either
indirectly through the International
Monetary Fund or directly through
swap arrangements.
Politically, too, Carter has important
assets in his dealings with Europe. Of all
Allied leaders, he alone has a strong
political base, solid popular support and
the certainty of nearly four more years
in power.
By contrast, Britain's Callaghan, Fran-
ce's Giscard and Italy's Andreotti all are
surviving in office on borrowed time.
Even West Germany's Schmidt heads a
coalition that is shaky.
Sense of confidence. America's ap-
peal among its European Allies is en-
hanced further by this fact: The Carter
Administration has brought a new sense
of confidence to Washington.
Top leaders in the White House, State
Department and Pentagon reject the
thesis propagated in the nation's capital
in recent years that Russia is an ascen-
dant power while the U.S. is in decline
and that America must settle for the best
terms it can get from the Kremlin.
The Carter team takes a different
line?maintaining that it is the U.S. that
is ascendant and the Soviet system that
is in decay.
This change is reflected in a more-
confident Washington assessment of the
Soviet-American strategic balance and
the conviction that the U.S. can handily
counter the Soviet build-up if there is no
new strategic-arms agreement.
All in all, Jimmy Carter is operating
from the strongest base that an Ameri-
can President has enjoyed in more than
a decade. Still, say Allied diplomats, this
is not enough to insure U.S. leadership.
For that, they say, Carter will have to
prove two things to Allied statesmen:
First, that he is prepared to tailor his
policies and his diplomatic style to take
their essential interests and sensitivities
into account.
Second, that he can secure endorse-
ment of his foreign commitments from a
rebellious Congress.
WIDE Woft
Carter on way to London Summit on Air Force One consults with top advisers.
GETTING THERE IS HALF THE FUN-
For his mission to Europe, Presi-
dent Carter traveled on one of the
fanciest, best-run airlines in the
world?his own.
Carter and his top advisers rode
in style aboard Air Force One, the
President's luxuriously outfitted
personal airplane.
The jet craft, a 5-year-old Boeing
707, and 31 other airplanes are part
of a special Air Force unit stationed
at Andrews Air Force Base in the
Maryland suburbs of Washington.
The unit is in business to cater to
VIP's. At a moment's notice, some
of the military's best pilots can
whisk top Government officials
away on flights all over the world.
I land-picked Air Force mechan-
ics work around the clock to main-
tain the unit's array of aircraft.
Many of the planes have been ex-
tensively redecorated to suit the
tastes of their powerful passengers.
The VIP air fleet used to be
much bigger. But in early March,
the White house announced that
15 airplanes would be reassigned or
taken out of service, and nearly a
third of the 1,800-man unit would
be shifted to other duties. The
move will so', e nearly 7 million dol-
lars a year, Administration spokes-
men said.
Even after recently ordered cuts
are made, the unit will still be left
with six other Boeing 707 passen-
ger planes, including a backup craft
for Air Force One, six Lockheed
JetStars, three new DC-9s and 14
Sabreliners.
Additionally, 13 helicopters could
be pressed into service for ferrying
the top brass.
Air Force officials say that duty
in the special unit is hotly -sought.
Most of the pilots and mechanics
are volunteers. All undergo careful
screening before assignment.
The care pays off: Since the unit
was formed 28 years ago, it has not
been involved in a single fatality or
serious accident.
The current Air Force One has
spent nearly 1,400 hours in the air
since being assigned to the White
house in 1972. It cruises at a top
speed of 540 miles an hour and has
a range of 7,000 miles.
Air Force One's passengers are
not cramped for space. Along with
its crew of 18, it has seats for 54
passengers?usually consisting of
presidential aides, Secret Service
agents and a handful of reporters
that forms a "pool- to report to the
full complement of newsmen who
fly in chartered commercial aircraft
for which their organizations pay.
Attentive enlisted stewards man
a well-stocked galley that serves up
food and, for those who want them,
mixed drinks.
Coffee cups, ashtrays and match-
books stamped with an Air Force
One seal are plentiful and are often
pocketed by passengers as souve-
nirs of their flight.
If he chooses, Carter can catch a
nap on long trips such as the one to
Europe. One of his two private
compartments features a pair of
twin beds. Another section is
eq lipped with a desk and sofa.
Other compartments are set
aside for Carter's staff and for the
sophisticated communications
equipment that keeps the airborne
White House in touch with the rest
of the world.
The present pilot is Col. Les
McClelland, 44. Ile took over Aug.
18, 1974, shortly after former Presi-
dent Ford was sworn in.
Carter may or may not have
been satisfied by the outcome of his
first overseas journey as President.
But in the luxury of the flagship of
his personal air fleet, he could not
help but have enjoyed the ride.
U.S. NEWS & WORLD REPOARRNY,qq7or Release 2001/09/05 : CIA-RDP80B01554R002rouubu -
23
Approved For Release 2001/09/05: CIA-RDP80601554R002700060001-0
CARTER'S INTELLIGENCE CHIEF
SIZES UP WORLD'S TROUBLE SPOTS
interview With Adm. Stansfield Turner,
Director, Central Intelligence Agency
On the eve of President Carter's departure on his
first overseas mission?a summit conference with
Allied leaders in London?Admiral Turner took the
editors of U.S. News & World Report on a verbal
tour of danger areas around the globe.
O. Admiral Turner, do you agree with the view expressed
by some high officials in recent years that the Soviet Union is
an ascending power and the U.S. is declining?
A The Soviets have their strengths, and they have their
vvnaknesses. Their weaknesses are in economics and politics.
I (lon't see the Soviet -economy climbing to outdistance us.
Oar lead is so great that they cannot hope to overtake us
triess our percentage of growth every year were to be a lot
so nailer than theirs. And that is not happening. So, in terms of
1-_,tVb economic power, we are not a declining power.
ks for ideology, the Russians may think it is a strength for
tbeni, but I am sure we would all agree that their ideology is
iatnistringing them in many ways. After all, what's left of
pore Marxism? Where is it practiced or believed in? You
c a different brand of Communism in every country in
ope?and a different brand in Yugoslavia, a different
tesend in China. Even in the Soviet Union, they don't hold to
ery carefully. So?no, 1 don't think the Soviets are on the
a :S. ndancy ideologically.
O. And militarily?
A They have a strong military position. One irf the reasons
y are putting such emphasis on their military strength is
they are trying to convert military power into political
antage. They have no other strengths that they can
xpioit in Africa and elsewhere. Military is all that they have.
a Is the U.S. falling behind Russia in military power?
A In my view, we still have the edge in the strategic
endear field as a result of our preponderance of warheads
;i the accuracy of our missiles. However, the trends are
noving in the other direction because of the substantial
'IjOrt the Soviets are putting into strategic weapons. If that
eatatinues, they could close the warhead gap and outdistance
..t, in what is known as throw weight.
Ile complex equation as to when those trends might give
.be Soviets a militarily superior position is very difficult to
;tate?given the fact that you're balancing numbers of war-
ads, accuracies and throw weight in the same mix.
CI Are the Soviets near the point where they could knock
;nit our land-based missile force with a first-strike attack, as
amne strategists claim?
A don't see a first strike as being anything like a rational
eniculation in the years immediately ahead by either side.
What concerns me is the image that is created and the
1Y?ipact this could have on world opinion if there is a
-eerceived imbalance in favor of the Soviets in strategic
aciear power.
So think that, first, we must understand the nuclear
sirategic equation ApilrilwedcFbriR0e4SW11081f/Mtd:
'24 Copyright ;c, 1977, U.S.
States must nt, jet it get ouc of balance in fact or in
perception. I d n't think that the people of this country are
going to let di( Soviets outdistance us in a dangerous way.
But we've got to be vigilant as to that.
0. We've heard a great deal lately about Russia's massive
civil-defense program. Is there any danger that this will give
them a decisive strategic advantage over us?
A Certainly not at the present time. I don't believe that
the Soviets arc near the point in civil defense where ttie:
could think th it they could absorb a nuclear blow from us
with reasonabl, loss?that is, a loss they would be willing to
accept.
It doesn't seem to me that the damage to the three
ingredients th..t civil defense protects?leadership, popula-
tion and productive capacity?could be estimated by the
Soviets to be small enough to make it an acceptable risk for
them to initiat a nuclear war with deliberateness.
0. What truth is there to the report that the Russians have
made a breakthrough in developing a beam that could
destroy all of 44ur missiles?
A The qute,tion of Soviet development of a charged-
particle-beam weapon has been the subject of intensive
analysis for a I ;amber of years. All the results of these studies
have been mtcle available to high-level U.S. Government
officials on a continuing basis The Central Intelligence
Agency does .lot believe the Soviet Union has achieved a
breakthrough which could lead to a charged-particle-bearn
weapon capable of neutralizing ballistic missiles. This ques-
tion is obviously of concern to the U.S. Government, arid is
continually uttder review by all members of the intelligence
community.
O. Aside from the idea of a first strike, are the Soviets
thinking and planning in terms of actually fighting a nuclear
war rather thin just deterring one?
A The difference that I note between them and us is this:
The Soviets ie their planning start with cold war and think
the process terough all the way to a strategic nuclear war?
and even to postwar recovery. We, on the other hand, tend
to think front cold war to deterrence. There's less emphasis
our thinking on what happens after the nuclear weapons
start going o, because the idea is so abhorrent.
It's a differ .nt psychological attitude. Maybe it comes from
the fact thai the Russians are from a country that's been
attacked and overrun a number of times in their memory. So
they have more of an inclination to think througa the
it-snlications someone attacking them.
CIAIAlab Are tht-y more inclined to contemplate resorting to
Ir66vigro it_o5a5c4hRie0v0e 2thAiroopo6loitoicoall -oobjectives?
News 8t Worid keport, Inc.
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
A I think not. I think they have shown a rational, sensible
approach to the nuclear-weapons problem?a willingness,
for example, to negotiate SALT-type agreements.
Q In your opinion, where do the Soviets pose the greatest
threat to the United States today?
A Well, you have to break that down between where our
greatest interest is and where their greatest opportunity is.
We have a vital national interest in Western Europe?in
maintaining the NATO fabric whole and strong. The Soviet
Union is trying hard to build up enough military power in
Europe to give the impression that they can dominate that
area. With an intimidating force on their side, they want to
fracture the NATO Alliance from within by undermining the
resolve of the NATO Allies. That is a serious threat?but not
the most urgent.
The Soviets are pressing hardest at the moment in Africa.
So, in that sense, Africa is the most urgent threat. But clearly
Africa is not as vital a national interest to us as is Europe.
0. What is the Soviet objective in Africa?
A I think that, all over the world, the basically imperialis-
tic thrust of the Soviet Union is one of opportunism. They are
very adroit in the sense of pushing their opportunities
wherever they develop, but not pushing them to the point
where it involves a major commitment of Soviet resources or
prestige if they fail.
They've found that NATO has stymied their imperialistic
expansionism in Western Europe. And so they're probing
each opportunity that comes up anywhere to get a foothold
or friendship.
Somalia is an example of how this works. The Soviets start
with a fishing fleet calling in at a Somali port. Then they offer
aid to the Somali Army. The Army stages a coup, and a
general takes over as President of the country. Then the
Global Dangers Facing U.S.
Admiral Turner's Assessment
Soviets in Africa: This is the "most urgent threat"
posed by Russia, but the Soviets have been "only
moderately successful" there.
Western Europe: Russia is "stalemated in
Europe" and therefore is trying "to leapfrog out to
gain influence in other areas of the world."
Post-Tito Yugoslavia: "The most fragile point in
the European scene today," where Soviets will
"look for an opportunity and probe without
getting themselves overcommitted."
Revolt in Eastern Europe: Even though there is a
"stirring of thought behind the Iron Curtain ... I
don't see a real possibility of a major fracturing of
the Soviet bloc."
Indian Ocean: Russia has no vital interest there.
The only purpose of her naval presence there is
"gunboat diplomacy."
U.S.-Soviet balance: Russians emphasize military
power because "they have no other strengths that
they can exploit." The Soviets lag in economic
power and ideological appeal.
First-strike threat: Neither superpower can
rationally contemplate first-strike nuclear attack
"in the years immediately ahead."
U.S. NEWS & WORLD REPORT, May 16, 1977
Soviets build the fishing port into a naval base?and on and
on in gradual steps.
They look constantly for an opportunity for that first
step?a fishing agreement or a trade agreement?and then
they just keep pushing, but without committing themselves
in a major way.
0. How successful has the Soviet Union been with this
strategy?
A Only moderately successful. They've established three
toe holds that seem to be useful to them in Africa. They've
had a toe hold in Guinea for six years or so, and seem to be
hanging on there. They've had one for a short time in
Angola, and they're doing all right there. There's no major
Soviet presence, but the Angolans are still co-operating with
them. And the Soviets have had a fairly strong position in
Somalia for seven or eight years, and it seems to be holding.
They're beginning to explore other opportunities?for
example, in Southern and Eastern Africa with the visit of
President Podgorny.
On the other hand, the Russians have failed in Egypt.
They've lost a major position there. Outside Africa, they
failed some years ago in Indonesia. Their relations with Syria
are not as warm as they were several years ago. So they are
not always adroit enough to do this well. Basically they lack
the economic foundation to be an imperialistic power.
a What about Ethiopia? Are the Russians establishing
another toe hold in Africa at the expense of the United
States?
A There is no doubt that Soviet ties with Ethiopia's
present leftist regime are close. At the same time, however,
the apparent Soviet gains in Ethiopia may lead to a deterio-
ration in its formerly close relations with Somalia.
a Are the Russians using Cubans in black Africa as a
Soviet tool, or are the Cubans there for their own ends?
A I think it's a fine line. The Cubans are anxious to
establish themselves as a leader in the "third world." The
1979 conference of nonaligned nations will be held in
Havana. Thus the Cubans are anxious to raise their world
image in Africa and elsewhere in the third world. However, I
don't think that they could afford economically to indulge in
these activities without considerable support from the Soviet
Union. The Russians, by operating with a surrogate, get an
opportunity to establish an African foothold without neces-
sarily committing themselves too much.
O. Admiral Turner, why are we so worried about the
Indian Ocean, considering the relative weakness of Soviet
naval strength there?
A I wouldn't say their naval strength is relatively weak
there. At the same time, I wouldn't say that the Soviet naval
presence is formidable compared with ours, which is some-
what smaller. The difference is not overwhelming.
The asymmetry that impresses me is that the United States
as well as Western Europe and Japan have a vital interest in
the Indian Ocean?in the oil route which is vital to our
future prosperity and security?while the Soviet Union does
not have a vital interest there.
a In that case, why do the Russians maintain a naval force
there?
A I think their presence in the Indian Ocean is symptom-
atic of their desire to leapfrog out to gain influence in other
areas of the world while they're stalemated in Europe.
Now, you can talk about their continuing naval presence in
the Mediterranean as a counter to the U.S. position in the
Mediterranean. You can talk about their continuing naval
presence in the Norwegian Sea and the Sea of Japan as
legitimate defensive concerns close to their homeland. But
you can only look at a continuing Soviet presence off West
Africa and in the Indian Ocean as gunboat diplomacy. I don't
CIA-Roottftimntymdbledoithitirt saying it's indicative
25
Approved For Release 2001/09/05
,IZE-UP OF WORLD'S TROUBLE SPOTS
[interview continued from preceding panel
(ie ehange in strategy, dictated by the fact that they are
ieked on land_
Do you see any danger that the Russians will be able to
break the stalemate in Europe to their advantage?
A No, at this point I don't, although I recognize that some
anor allies are facing difficult political and economic
or ohlems today.
INTERNAL PROBLEMS FOR SOVIETS"?
(,.1 What about the situation in Eastern Europe? How
dangerous is it for the Soviets?
A It varies from country to country. Since Helsinki, there
la:, been a stirring of thought behind the Iron Curtain. Yet,
one has the feeling that the dictatorial controls in
those countries will he exercised ruthlessly as requirements
di tare. There could be internal problems for the Soviets?as
there have been in Hungary and Poland and Czechoslovakia.
Ike I don't see a real possibility of a major fracturing of the
et bloc.
Do you expect the Soviets to make a grab for Yugoslavia
,:fter Tito's death?
A I think that Yugoslavia is the most fragile point in the
ii;urooean scene today. I would think that the Soviets would
iook for an opportunity and probe without getting them-
i.tiiees overcommitted.
. Du you anticipate a Russian military move to force
Yugoslavia back into the Soviet bloc?
A That would be a very definite commitment by the
,iovals, and it would be taken only as a last resort. They
Old try a lot of other things first before they contemplated
urning to Russia's other flank?in the Far East: Are
ibie Soviets and Chinese likely to patch up their quarrel in
lie near future?
A That is always a possibility when you are dealing with
r r)untnes that operate on such an expedient basis as the
'anti:as did in their relations with Nazi Germany before
World War IL But I don't see it on the immediate horizon.
=n if it happened, I doubt if it would he anything more
an expedient. The fissure between these two countries
quite deep
0. President Carter proposes to withdraw U.S. ground
ces from South Korea. Will that affect China's relations
Russia or its attitude toward this country?
A (ti course, it would have an effect on Chinese attitudes
deo decision were made and executed. How important it
ouiti oe will be largely dependent on how and when a
ithdrawal takes place?if it does?and what changes occur
world scene in the interim. It's pretty difficult to
_ re in the abstract until some policy decision is made
? re.ts to how and when it's going to take place?if it does.
a ill such a withdrawal be seen as an American retreat
ens Asia by Japan and other U.S. allies?
A kgain, it depends on how it's done and whether the
-tory steps can persuade those countries that it's not a
t from Asia. Those who are looking to us for a security
inction out there would be bound to think of it as some-
0: a retreat. But the status quo is not always the right
Any time you change something, it's going to be
ed by some and disapproved by others.
e further point about the Soviet Union: What is your
vading of Brezhnev's health? Is he about finished as recent
ports suggest?
A Via reading of 13re7hnev's health is that it's a sine curve
'at- goes up and down, Sometimes he wears himself out a bit
Approved For Release 2001/09/
: CIA-RDP80601554R002700060001-0
or he has a oar! ular problem, Out I de n't see this as a eurve
that s constant h declining and has a terminal date that ,:tan
he anticipated. it's not such that we have to sit here and pion.,
"WeN, in 12 taionths or 24 months we're bound to have
sotto i)ody new
? ,tre there any signs of a power struggle for the succes-
sion in the Kremlin?
A No, I don' read the signs that way at this point.
O Would a leadership change have any significant effect
on Soviet-Amer Lean relations?
A Yes, it's be find to. With a new Administration here in
Washington he inning to establish an understanding with
the LO-ezhnev Administration in Moscow:, we would have to
start over and reel out a new Administration ever there
Then would beiand to be some slowdown in the develop-
ment of enougl: understanding to proceed with things like
SALT
? Turning to your own situation at the CIA, Admiral, are
you handicapped in countering Soviet and Cuban activities
in Africa by restrictions on covert operations?
A No, I've net found them a handicap at this point. There
are no new limitations on our covert operations other than
specific prohibieons on assassinations. I would not permit
that kind of activity anyway. The point now is that there
must be presiderdial approval before anyi covert action is
undertaken, and Congress must be informed in a timely
matnier.
"WE CAN'T ABANDON COVERT ACTION"?
CI k re covert perations--dirty tricks of that sort?really
necessary?
A We can't a: andon covert action. However, in today s
atmosohere. the ? is less likelihood that we would want to
use this capabiEry for covert action. But I can envisage
circumstances ir which the country might demand some
covert action.
a What circumstances?
A For instanci , let's say a terrorist group appears with a
nuclear weapon and threatens one of our cities and says, -If
you don't give ut some money or release some prisoners or
do something, we will blow up Washington, D.C."
I think the cowl try would be incensed if we did not have .1
covert-action cap.ibility to try to counter that?to go in and
get the weapon Or defuse it.
So, although w don't exercise it today, I think we must
retain some capalality for covert actions that range from
small paramilitar operations to other actions that will influ-
ence events.
Q There have been recent allegations that you have de-
classified reports on energy to support the President's policy
decisions. Does this represent a new CIA policy of using
intelligence to support White House programs?
A TI fit is defir Oely not the case. This study was started
over a '"air ago?la-fore even the election. The President did
not know of it tin I a few days before he mentioned it in a
press cm)nference.
Let toe say, du tgh, that I believe that the intelligence
community should. make more information available to the
public on an uncLosified basis. The public is paying for our
work and deserve, to benefit from it within the necessary
limits of secrecy. kloreover, a well-informed public is the
greatest strength : our nation.
I also believe tli it declassifying as much information as
possible is a good ii. ay to provide better protection for those
secrets we must ir Id. Excessive classification simply breeds
disrespect for and abuse of all classified data. I intend to
continue to deelas fly and publish information of value and
05VCR-tliDP8Olflb1554R002700060001-0
5 NEWS & WORLD RE PORT May 6 1 (17 7
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
WHY NIXON WENT ON
THE "WITNESS STAND"
The ex-President got one
thing he needed from his TV
interview?money. But he is
not faring so well in his bid
for rehabilitation.
It was, to many, a puzzling move that
Richard Nixon made by putting himself
on a televised witness stand to answer
questions about Watergate before a na-
tionwide audience.
Why did he do it, after almost three
years of post-Watergate silence? Why
stir up half-forgotten bitterness at this
time?
From his friends and close associates
come these answers:
? Nixon needed money?desperately
and quickly. He is expected to net about
a million dollars from his scheduled se-
ries of five TV interviews.
? He wanted the national-TV expo-
sure as a chance to rehabilitate his pub-
lic image?to win "a decent place in
history," as one friend put it.
Initial reaction to the Watergate inter-
view on May 4 suggests that Nixon's
gamble on rehabilitating his image did
not pay off.
Polls of public opinion indicate that
the former President changed few, if
any, minds about his guilt or innocence
of trying to cover up White House in-
volvement in the Watergate affair.
Those who had defended him in the
past tended to accept his
explanations on TV. The
big majority who had
thought he was guilty still
thought so. Even among
Republican members of
Congress who had tried to
defend Nixon against im-
peachment, Nixon's TV
arguments appeared to
have little effect.
Nixon presented "something less than
a legal defense" to the charges against
him, said Representative Charles Wig-
gins (Rep.), of California, who had
changed his mind after voting against
impeachment.
Representative Robert McClory
(Rep.), of Illinois, who voted for two of
the three impeachment charges adopted
by the House Judiciary Committee, said
after watching the telecast: "I didn't
have any change of heart. I don't think it
helped Nixon at all?or helped the coun-
try. I felt depressed at the end."
Opinion surveys suggested, however,
Nixon may have won some sympathy
and a better understanding of his travail
during those two years between the Wa-
tergate break-in of June 17, 1972, and
his resignation on Aug. 9, 1974.
"I feel sorry for him," even though
"he's still covering up," said former Sen-
ator Sam J. Ervin (Dein.), of North Caro-
lina, who headed the Senate Committee
whose televised hearings in 1973
spurred the drive to impeach Nixon.
But "I felt sorry for America," said
"I let the
American people
down, and I
have to carry
that burden with
me for the rest
of my life."
?
pprove or Release 2001/09/05: CIA:RDWB01654R002700060001-0
U.S. NEWS & WORLD REPORT, May 16, 1977
House Speaker Thomas ("Tip") O'Neill,
Jr. (Dem.), of Massachusetts. "It would
have been better not to have been on
television."
"I have no sympathy for him at all,"
said Senator Barry M. Goldwater (Rep.),
of Arizona.
Republican Representative Tom Rails-
back of Illinois, who voted for impeach-
ment, commented that nothing Nixon
said on TV changed his opinion but:
"For the last 15 minutes, Nixon became
very human, very revealing."
Watching the interview was "an ago-
nizing experience for me," said Senator
Jacob Javits (Rep.), of New York. But he
added: "It should shatter any illusions
that a President was made to resign
when he shouldn't have."
"The spectacle." Many people ob-
jected to the idea of a former President
subjecting himself to grilling in such a
forum?especially doing it for money.
"There's something unsettling about
the spectacle of Richard M. Nixon hold-
ing forth on Watergate for a profit,"
editorialized the Bergen, N.J., Record.
The Houston Chronicle said: "It would
have been better had Nixon not agreed
to those television interviews. They will
change nothing in the minds of hate-
mongers whose feelings still run high."
A nationwide Harris Poll of 1,506 per-
sons found 557 of them had watched the
Nixon telecast. Among the watchers: a
51-27 majority thought Nixon lied sever-
al times, 45 per cent felt sorry for him
but a 58-36 majority was not more sym-
pathetic to him as a result of the telecast
and a 51-41 majority was resentful of the
money he got.
The May 4 interview produced very
little information that had not been
brought out before in the long investiga-
tion that followed the break-in at the
Democratic Party headquarters in
Washington's Watergate building.
Under the insistent probing of his
British interrogator, David Frost, Nixon
made a few new concessions.
He confessed he had "said things that
27
Approve
'1 said things that
were not true....
For all those
things I have a
very deep
regret."
WITNESS STAND"'
:lcontinued from preceding page]
o not true" in previous statements.
)oped his earlier claim that he
our of concern for "national sects-
in his early attempts to curb the
"Ai ,tergate investigations. His explana-
..ifei to Frost was that he was trying to
'rautam it politically- and to prevent
ia- en to his close associates whom he, at
tune believed to be innocent.
iit Nixon insisted he did not commit
::.erie or an impeachable offense, and
bat ois motives were not criminal.
people want me to get down and
yin on the floor," he said, "no, never,
ause I don't believe I should."
t the end, however, he did make an
?ir admission.
Ot down my friends,- he said. "I let
WATERGATE
KEY DATES
971
September 3: Three men break into
of a Los Angeles psychiatrist,
;Inking for records of Daniel Ells-
g. who was accused of giving the
s secret Pentagon papers on the
letenam War_ Three White House
.ioos are later found guilty of plotting
i)reak-in.
1972
June 17: Five men are caught by
lice in Democratic Party headquar-
iers in Washington's Watergate build-
Chen aim, it turned out later.
io photograph documents and
n electronic listening devices.
June 23: Nixon says: "The White
Huse has had no involvement what-
: ".
or in this particular 1973incident.-
January 30: Trial of seven accused
Watergate break-in ends, with five
leading guilty, two convicted.
;/larch 19: James W. McCord, Jr.,
had been convicted of the break-
iharges there had been perjury at
1/09/05 : CIA-RDP80B01
"If they
want me to get
down and
grovel on the
floor?
no, never.
down the country. I let dm', I( our systc
of government ... I let th,, Americee
people down, and I have h) carry th t
burden with me for the rey.:1 of my Hi,.
My political life is over"
Financially, if not politicAy, the 1
interviews are profitable to Nixon.
addition to a flat fee of $600,000, he
understood to be getting a share of ti
profits. With the interview s appearne.
on 155 stations in the U.S and 14 st
tions Abroad, and ads selling as high
$125.000 a minute, estimates are th:.
Nixon's total take could roil up pi,
possibly above a million dollars.
Friends say he badly need, that MOr
ey because he is deeply in debt. Lege
fees and other costs of his long defensiv,
battle have "drained him dry," as on,
friend put it. Estimates are that he owe,
hundrc:ds of thousands of dollars.
Nixon already has sold his home
the trial, with pressure to keep defen-
dants silent about the cormilicity of
"higher-ups.-
April 17: Nixon announces he has
ordered "intensive new inquiries- as
a result of major developments that
came to his attention on March 21.
That.. it turns out, was when White
House Counsel John W. Dean III told
Nixon "we are being blackmailed- by
Watergate defendants. Ni von later
claimed that was the first time he
he'ard about "hush money- to keep
defer dants quiet
April 30: Nixon fires Dear, White
House aides H. B. Haldeman and
John D. Ehrlichman resign.
May 17: The Senate's special Wa-
tergate investigating committee be-
gins weeks of public televised
hearings that produce alleg.itions
White House involvement in Water-
gate cover-up.
.July 16: A presidential 'dirk' tells
Senate investigators that ah White
House conversations have been re-
corded on tape since 1970.
October 20: In so-called Saturday -
night massacre, Nixon forces lir-Mg of
Special Prosecutor Archibald Cox
1-0
"I made so many
bad judgments?
the worst ones
mistakes of the
heart rather
than the head
Key Biscayne. Ela., .ind some say he
in danger rf having to sell his estate
San Clemerte, Calif., as well
Nixon is hoping or another financia.
windfall frcrn his memoirs that he is
writing and expects to publish next !, car
Starting in August, Nixon is said to be
planning to take off at bast three
months for rest, swimming and golf.Ee
now "breaks 80- occasionally on the golf
course. Despite his 1974 illness %.vith
phlebitis and Mrs. Nixon's mill stroke in
1976, both ere now describe d as enjoy-
ing better health.
Nixon's medium. Explaining why
Nixon chose television for his first return
to public life, one close associate sa;d:
"Nixon has Always regarded TV as his
medium. As President, Nixon used TV
and radio extensive'',.
"He feels that with a book you reach
only a limited audience, while with TV
ho was de mandieg the White
House tapes.
October 30: 'louse ,tudiciary 1.,:orn-
inittee begins consideration of possi-
ble impeachment proceedings.
November 1: Leon Jaworski suc-
ceeds Cox as special prosecutor.
1974
March 1: Seven Nixon appointees
are indicted, charged with conspiring
to hinder Watergate investigation.
Nixon, as later revealed, was named
is an unindicted co-conspirator.
July 27-30: House judiciary Com-
mittee adopts three articles of im-
peachment charging Nixon with
obstructing justice, misusing his pow-
ers and unconstitutionally defying
Committee subpoenas.
August 5: Nixon releases tapes?the
'u-called smoking pistol?showing he
tried to halt FBI investigation of Wa-
-erg,ate as early as June 23, 1972. He
idrnits he had withheld that evidence
n-om investigaters
August 9: INxon resigns. Gerald
Ford succeeds him.
September 8: Ford pardons Nixon
Lor any federal crime he might have
..ommitted while President
Approved For Rerease2001/09/05 : CIA-RDP80B01554R002700060001-0
NEWS Pa WORlD PPPORT
6 iqi
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
"I brought myself
down. I gave
them a sword, and
they stuck it in
and twisted it
with relish."
you can reach a mass audience with an
emotional impact.
"Nixon was very anxious to put his
Administration in perspective and give
his side of Watergate. The TV interviews
are seen as a way of answering questions
that are on the minds of a lot of people."
Blunt queries. Many of those ques-
tions on people's minds were put bluntly
to Nixon by his interrogator, Frost. The
answers seldom varied much from those
that Nixon had given in the past.
Nixon continued to maintain that he
had not known about "hush money"
demands by Watergate defendants until
he was told by his counsel, John W. Dean
III, on March 21, 1973. He denied he
endorsed or ratified the $75,000 pay-
ment made that same evening to E.
Howard Hunt, one of the defendants.
One of the three impeachment
charges voted against Nixon by the
House Judiciary Committee was that he
obstructed justice by trying to impede
investigations. On this, Nixon said "I did
not... commit the crime of obstruction
of justice because I did not have the
(criminal) motive required."
On the question of whether he tried
to cover up facts, Nixon conceded "in
some cases going right to the edge of the
law" in advising his aides?"because I
thought they were legally innocent"?
and "under the circumstances I would
have to say that a reasonable person
could call that a cover-up." But, he add-
ed: "I didn't think of it as a cover-up. I
didn't intend it to cover up."
Nixon gave this explanation: "My mo-
tive . .. was not to try to cover up a
criminal act" but to ensure against "any
slop-over in a way that would damage
innocent people or blow it into political
proportions."
Much of the interview was taken up by
sparring between Nixon and Frost over
interpretations of tape-recorded conver-
sations between Nixon and his White
House aides. After one such session in-
volving talks with Dean, H. R. Haldeman
and John D. Ehrlichman on March 21,
1973, Frost exploded in anger:
"What I don't understand about
March 21 is ... why you didn't pick up
the phone and tell the cops.... When
you found out about the things that
Haldeman and Ehrlichman had done,
U.S. NEWS & WORLDAPIWASI
there is no evidence anywhere of a re-
buke. . . . Nowhere do you say to lIalde-
man and Ehrlichman, 'This is disgraceful
conduct.'"
Nixon then launched into a long dis-
cussion of the "very difficult period" he
had gone through. He described his
emotions when he finally decided he
had to ask for the resignations of his old
friends, Haldeman and Ehrlichman.
"Maybe I defended them too long,"
he said. "Maybe I tried to help them too
much. But I was concerned about
them.... I felt that they in their hearts
felt they were not guilty. I felt they
ought to have a chance, at least, to prove
that they were not guilty."
Nixon quoted a former British Prime
Minister, William Gladstone, as saying
"that the first requirement for a Prime
Minister is to be a good butcher." Nixon
called that a "summary" of Watergate,
and said:
"I did some of the big things rather
well. I screwed up terribly on what was
a little thing and became a big thing.
But I will have to admit I wasn't a good
butcher."
Nixon disclosed that he had consid-
ered resigning the Presidency when he
announced the resignations of Halde-
HE PRESIDENT'
WHERE ARE THEY NOW?
Among those found guilty in Water
gate or related oases were these fiv
Men dose to Richard
John N Mitchell,
former Attorney Gener-
I. Convicted
Jan.
,
1975sofc?nspirecy'ob-
struction of
justice
and
iyiogtoiovesiigatotsih
watergatecover.UP .
Gm/ 2? to o years. Free
whi,0appea1ingoaset0
Supreme Court.
John D. Ehrlichman,
Nixon's domestic coun-
sFlor. Convicted
with h
"ItobeltQn81itarcov-
er-up charges.Q-ive n
same sentence, which
was made concurrent
withprev0ussen"
nc?f2?ie
1nth81?r6rdetiIg-1br?akn?
rifle
ePsYchiatr1stls reeards?fP0n'agon
Papers figure E1i8berg..wrote
novel.,nt to Jai Oct. 28,1
976,with_
waiting ruling on
appeal
man and Ehrlichman. But he hung on
until the House Judiciary Committee
had voted to impeach him and the so-
called smoking-pistol tape had revealed
his attempts to curb the FBI's investiga-
tion as early as June 23, 1972.
Self impeachment. "I brought my-
self down," Nixon told Frost and the TV
audience. "I gave them a sword, and
they stuck it in and they twisted it with
relish. And I guess if I'd been in their
position I would have done the same
thing."
In the end, Nixon said, "I have im-
peached myself . .. by resigning. That
was a voluntary impeachment."
Originally, four interviews were
scheduled, the last three to deal with
less controversial aspects of Nixon's Ad-
ministration. After the Watergate inter-
view drew an audience of more than 45
million, the largest ever to watch a news
interview, it was announced a fifth inter-
view would be added.
The subject: The mysteries of what
happened to the 181/2-minute gap in one
key White House tape and of why Nixon
did not burn those tapes before they
proved so damaging to him.
The American people still have not
heard the last of Watergate.
Haldeman,
mer chief of Whte
House staff.as Mitchel lYern
and Ehrlichman for con
spiracy, obstructing iu
ice, perjury in cover-up
Free on Appeal to Su
preme Court.
John W. Dean
for-
mer White House cou
el. Pleaded guilty o
conspiracy to obstruct
Justice in Watergate
cover-up. Sentenced to
1 to 4 years in prison,
Released Jan. 8, 1975
ter 4 months. He
made nieneY by 'lecture tour and
ing a book about Watergate
Charles W. Colson,
former White Huse
special counsel Plead-
ed guilty to obstructing
justice in Ellsberg cos
yearsRSeeniet ae snaecndedd January$
t5?'(1 ?l?t f?1 r e
1975, after 5% mon
Wrote a batik on his White H'
religious and prison
Epr9Relepse 2001/09/05 : CIA-RDP80601554R002700060001-0
29
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
From Coast to Coast, an All-Out
Race to Find More Oil
Higher prices are opening
new frontiers for exploration
and reviving old fields. But fu-
ture is clouded by fears about
Carter's energy program.
ti a time when President Carter says
the U.S. is running out of oil and gas, the
petroleum industry is in the midst of its
ereatest search in years to find more.
innin the Rocky Mountains to the
(Juif Coast and the hills of Appalachia,
he action is hot and heavy. Virtually
every drilling rig has been pressed into
,ervice. Companies that evaluate geo-
logical formations for oil and gas poten-
iial are working at capacity.
The pace would be even more frenet-
e: if a weren't for shortages of drill pipe,
casing and skilled workers in some areas.
Oil and gas fields that were consid-
ered dead or dying are being brought
Pack to life with new recovery tech-
:agues. Wildcatters are drilling deeper
.eid deeper to seek out elusive pockets
if and gas. Geological formations that
Had been overlooked or ignored in the
days of plenty and low prices suddenly
iLtve become hot prospects.
Experts warn, however, that the spurt
a.: drilling should not be
interpreted as a sign that
the LHS. has plenty of oil
as and the energy
erisis is not real. They see
it m term.s of fighting a
holding action against the
inevitable day when finite
?eipplies of fossil fuel are
i-hausted.
'Companies are drilling
ere and deeper to find
and less," comments
ti earl Savit of Western
:ophysical, a Houston
ea:apart}, involved in seis-
ij'EW surveys.
ihe only soft spot in the
!pacitn Is offshore. This is
liecause of a slowdown of
leasing in federal waters
))i the Carter Administra-
I ein and court action that
teis nailed drilling in the
Aaiantic off the coast of
Nee. jersey
couraged by rela-
:eh prices now
7he prospect of even
higher prices in the future, oil and gas
companies have budgeted a record 26 5
billion dollars for capital spending in
1977 In contrast to the past, most of tie
money will be spent on projects with a
the U.S.
Sacs fohn E. Swearingen chairman I
Standard Oil Company (Indiana): "Whi
much has been said about the decline in
oil and gas production?and reserves--
in the United States, we believe theri
are many opportunities for profitabli
exploration and production remaining
this country."
Meeting demand. Independent ex
ploration firms also have stepped up
their spending plans for this. year. "bade
pendents are coming out of the wood
work," says Robert Parker, president ce
Tulsa-based Parker Drilling Company
-This is the busiest year in 10 years for
us and we are building new rigs as fast as
we can to meet a backlog of orders."
Individual investors and natural-gas
pipelines are pouring additional money-
into the search for more oil and gas.
The Oil & Gas Journal, a trade publi-
cation, reports that five major pipeline
companies plan to spend an estimated
358 million dollars in 1977 for leases,
drilling and development ventures. A
survey by Resource Programs, Inc., an
industry consulting firm, notes that 45
I and Ga
in Chie!a: e
Wearry7s;feragej_
independent oil companies raised 359
million from investors in 1976, an 11 per
cent increase over 1975.
With ample funds available, drilling,
activity is at a 16-year high. The Hughes
Tool Company, which keeps track of
such things, reports that 1,942 drilling
rigs were operating in the U.S. in eitily
May, the most since December, 1961. .kt
the same time last year 1,457, rigs were
at work. Drilling in the U.S. hit a peak in
1955, but low prices for domestic oil and
gas sent the industry into a tailspin in
the 1960s.
Drilling started its latest surge in 1972
when intrastate prices for natural gas :in
Texas, Oklahoma and Louisiana started
rising. An additional boost came from
higher U.S. oil prices after the Organiza-
tion of Petroleum Exporting Countries
(OPEC) quadrupled prices for their oil
in 1973.
Oilmen attribute the current high les, -
el of activity to two factors: Federal
Power Commission action in late 1976
that almost tripled the price of natural
gas sold in interstate commerce and the
prospect of higher oil and gas prices that
prevailed evenbefore President Cartel
unveiled his energy program.
Taking more chances. Says Don
Covey, senior vice president, produc-
tion, for Mitchell Energy & Develop-
ment Company in Houston: "We're
looking at prospects now that we could
not afford to look at before. With $11 oil,
you can take higher risks than with $3
oil. And you will do a lot of things for
$1.50 and $2 [per 1,000 cubic feet] gas
that you wouldn't do for 30 cent gas."
Houston Oil & Mineral Company has
reased its budget for drilling expert-
eve wildcat wells by 142 per cent in
1977. The company also is buying old
Ilields from major oil companies, rework-
ing them and increasing production bj.
.is much as 43 per cent. "It costs you to
iita this stuff out,' ? says Robert D. Pat
-ick, III, vice president of operations,
but because of the new prices, you can
iTord to put in the facilities."
W H. (Bill) Doran, president of XRG.
ale., says higher prices are enabling his
7 rm to harvest -forgotten gas." He adds:
' We are drilling in areas where there is
at: production, iri fields that were aban-
e aned. There's enough gas there to
t: ke it worthwhile at the new price."
One such gas well in Texas was shut
e awn when it, production fell to
200,000 cubic feet a day At the time,
was priced at 16 cents a thousand
Approved For Release 2001/09/05 : 0 CIA-RDP80601554R002,7000,600111I., PT May 16 1977
Approved For Release 2001/09/05 : CIA-RDP80B01554R0 27000600014
SCHEDULEYOUR
BUSINESS
WITH FLYING COLORS.
NEW YORK-NEWARK
TO
DALLAS-FORT WORTH
WASHINGTON. D.C.
TO
DALLAS-PORT WORTH
NEW YORK-NEWARK
TO
HOUSTON
MOST
NON-STOPS
LEAVE ARRIVE
LaGuardia
9:00 a.m. Non-stop 11:20 a.m.
11:00 a.m. Non-stop 1:20 p.m.
2:00 p.m. Non-stop 4:20 p.m.
5:00 p.m. Non-stop 7:25 p.m.
Kennedy
9:10 a.m. One-stop 12:25 p.m.
3:00 p.m. Two-stop 7:08 p.m.
5:40 p.m. Non-stop 8:10 p.m.
7:30 p.m. Non-stop 10:05 p.m.
Newark
7:00 a.m. Two-stop 10:45 a.m.
9:00 a.m. Non-stop 11:20 a.m.
2:00 p.m. Non-stop 4:20 p.m.
4:00 p.m. Non-stop 6:20 p.m.
6:00 p.m. Non-stop (Ex. sat) 8:20 p.m.
MOST ONE-STOPS
FROM NATIONAL
LEAVE
National
8:20 a.m. One-stop
9:30 a.m. One-stop
1:05 p.m. One-stop
4:30 p.m. One-stop
5:45 p.m. One-stop
7:15 p.m. One-stop (Ex. Sat.)
Dulles
10:25 a.m. Non-stop 12:25 p.m.
3:25 p.m. Non-stop 5:25 p.m.
6:30 p.m. Connect (Ex. sat.) 9:20 p.m.
6:30 p.m. Connect (Eat. only) 11:35 p.m.
ARRIVE
10:45 a.m.
12:05 p.m.
3:30 p.m.
7:08 p.m.
8:10 p.m.
9:48 p.m.
12 WEEKDAY
DEPARTURES
LEAVE ARRIVE
LaGuardia
9:00 a.m. * 12:50 p.m.
11:00 a.m. One-stop 2:50 p.m.
2:00 p.m. a5:50 p.m.
5:00 p.m. 8:50 p.m.
Kennedy
9:10 a.m. , 1:50 p.m.
3:00 p.m. Three-stop 8:50 p.m.
5:40 p.m. * (Ex Sat.) 9:50 p.m.
7:30 p.m. a 11:35 p.m.
Newark
9:00 a.m. One-stop 12:50 p.m.
2:00 p.m. * 5:50 p.m.
4:00 p.m. One-stop 7:45 p.m.
6:00 p.m. One-stop (a. sat.) 9:50 p.m.
*Braniff Connection
FOR RESERVATIONS CALL YOUR TRAVEL AGENT OR BRANIFF.
BRANIFF
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
Apro For Release 20 09B 1d
IA-RDP80B0150060001-0t
oesret have to
be high in cholesterol
11-ie proof is in the Soe-Tial K Breakfast.*
A one-ounce serving of Special K
with 1/2 cup of skin._ milk gives you
10 graris of protein** to start
,.)ff your morning. Yet a
servir_ 1- of Special K with
L:kim mi is low in cholesterol.
Mak. a bowl of Special K
ct part of a ( ...--)mplete breakfast.
And c-1,9t a good breakfast
without a lot of
cholesterol.
*The Special K
Breakfast
rnqr: ICe. Or tomato mire
I e . oz Kellogg's'
v.-1h protom ce.rea
' ry-fit3t- .-x-31?1 sugar .
muk 1,
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.4 11., + :Tilt
Approved For Release 2001/09/05 : CIA-RDP80B01554R002700060001-0
The Electric Economy requires
four vital resources.
Technology's one.
America is on its way to the Electric
Economy. And The Southern
Company has the resources
needed to get there.
The fuel. The management. The
investors. And the technology
Our technological experts are at
work pioneering a process called
solvent refining? removing
pollutants from coal before it's
burned. This could be the best way
to make full use of the country's
most abundant fossil fuel.
The Southern Company has the
other three resources, too.
The fuel: Coal already generates
more than 80 percent of the
electricity produced by the four
operating companies in the
Southern electric system.
The management: The system's
management is continually looking
for new cost- and energy-saving
techniques, like introducing
energy-efficient home building
concepts to help customers reduce
their electric costs.
The investors: The Southern
Company has over 294,000
common stockholders. Investment
dollars like theirs help build the
facilities for the operating
companies' customers.
The Southern Company: The
company with the resources to
meet the demands of the
Electric Economy
The Southern Company
P.O. Box 720071
Atlanta, Georgia 30346
Southern Company k
the southern electric system
Alabama Power Company
Georgia Power Company
Gulf Power Company
Mississippi Power Company
Southern Company Services, Inc.
54R002700060001-0
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
...-(,),ADBLOCK. TO PEACE
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inent wiltt Ii rhe itt (I r 11131)1)5
WHY IRAQ WON'T DEAL WITH ISRAEL
'nterview With Saddam Husayn,
Iraq's Strong Man
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Approved For Release 2001/09/05 : Clk-R15086B01554R002700060001-0
1: py?-?,11;?' ; 19/f, 0 S News -...--. -V9ria .-er- -' 'r1C
LABOR
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
FOR RAILROADS, LABOR--
SOME CRUCIAL BARGAINING
Key issue in talks between
rail managements and unions:
cuts in size of train crews
that could save the industry
750 million dollars a year.
America's railroads are wrestling with
this half-billion-dollar question: Can they
and the largest rail union agree amicably
to cut the size of train crews?
An answer of "Yes" in these negotia-
tions would provide this profit-starved
industry with badly needed funds to
rebuild tracks and buy new equipment.
Or the savings could be used to run
more, but shorter, trains on faster and
more reliable schedules.
A "No" reply could set off a bargain-
ing-table confrontation when the union
meets the railroads late this year to seek
wage increases. In either case, the out-
come will have broad significance for
future railroad-labor bargaining.
Low-key talks. The United Transpor-
tation Union and two railroads in the
Southeast have been talking quietly dur-
ing the past few months about reducing
the standard freight-train crew from
four persons to three. This would be
done by eliminating a brakeman's job,
leaving an engineer, conductor and one
brakeman on each crew.
If agreement can be achieved soon on
these two railroads, the pattern would
be copied quickly by others.
These talks are being conducted sepa-
rately from this year's round of wage
bargaining in the rail industry. But key
railroad officials say privately that they
will be reluctant to agree to a new wage
contract if they are given no relief on
the size of train crews.
"We'll go to the mat if we have to,"
says one rail official well briefed on the
crew-size negotiations. "We can't afford
to wait another three years."
For both sides, much is at stake. Wil-
liam Dempsey, chief negotiator for the
railroads until his recent promotion to
the presidency of the Association of
American Railroads, says that three in-
stead of four-man crews on all U.S.
freight trains would save the industry
750 million dollars a year. That is almost
three times as much money as the net
profits of all railroads in 1976.
"We wouldn't want to drop the sec-
,Hou,
Radio communications may have lessened
need for extra brakemen on freight trains.
some situations. I'd guess we could
eliminate about 75 per cent of them. So
we're talking about savings of half a
billion dollars, at a minimum."
As for the United Transportation
Union, any reduction in crew sizes
would cut into its membership rolls, at
least in the short run. The UTU bargains
for 175,000 brakemen, conductors and
engineers?more than a third of all rail-
road employes in the U.S. Another
union, the Brotherhood of Locomotive
Engineers, also represents engineers.
Significant truce. A danger for both
sides is that angry confrontation over
crew sizes, if it comes to that, could
poison healthy labor-management rela-
tionships which have sprouted in recent
years after decades of ill will.
To some observers, however, it is sig-
nificant that the UTU and the railroads
are able to negotiate at all over crew
sizes. When the industry last sought to
reduce freight-train crews in 1959?
from five persons to four, by eliminating
firemen?a 13-year battle ensued. Na-
tional strikes were threatened. Presi-
dents appointed boards to investigate,
and Congress ordered binding arbitra-
tion at one point. When the dust finally
settled in 1972, the firemen were gone
from freight trains, by agreement of
both labor and management.
Since those bitter years, much has
changed. At the national level, railroad
and union presidents are meeting regu-
larly on an informal basis to discuss their
ment and labor have ended generations
of harassment and petty squabbling. The
Brotherhood of Locomotive Engineers
recently reprinted in its weekly newspa-
per a speech made by Dempsey. In few
other industries do unions quote man-
agement at length in their membership
publications.
On Capitol Hill, where the rail unions
once stood opposed to almost everything
that the railroads wanted, there now is
unanimity on virtually every issue. "The
railroads wouldn't have gotten to first
base in Congress without us," says UTU
President Al Chesser. -We have done
more for the railroads the last four to
eight years than they have done for
themselves."
What all these developments signal is
an awareness on both sides that railroads
have little hope of improving their
weakened competitive position against
other modes of transportation if workers
and bosses continue to exhaust them-
selves fighting each other. As the vice
president for operations of one Western
railroad puts it: "We now understand
the unions' problems, and they under-
stand ours."
One pressing problem, in the eyes of
railroad management, is the cost of op-
erating freight trains. Is it really neces-
sary, the railroads are asking, for four
persons to be aboard every freight train?
Portable radios, now widely used, mean
that several crew members are no long-
er needed to pass along signals to the
engineer while switching a long string of
cars. Other technological advances also
lessen the need for four persons aboard
each freight train, rail negotiators claim.
Fred Hardin, the UTU's chief negotia-
tor, says "exploratory discussions" on
crew size were begun recently with the
Southern and Seaboard Coast Line rail-
roads after these two carriers indicated
that they wanted to approach the sub-
ject "with the well-being and interest of
employes in mind, rather than solely
their own economic interests."
Management's challenge in these talks
is to offer a package that will appeal to
the rank and file of the UTU despite the
loss of jobs that is sure to occur. These
railroads reportedly are prepared to
share a portion of the savings, for a
period of years, with the conductors and
remaining brakemen. They also are will-
ing to cut the work force by attrition
alone.
ond brakeman on every crew," Demp- common concerns about the industry. "Given a chance,- vows one manage-
soy adds. "It's better to have him in On many individual railroads, manage- ment negotiator, "we can make this so
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
US.NEWS & WORLD REPORT, May 16, 1977 97
Approved For Release 2001/09/05 : CIA-RDP80601554R002700060001-0
IAL BARGAINING
Ifflei
competition. thi. ,!,ttahoaro
oat rease-: tr, discuss smaller
L'AI fit -/IL-/% SOOth ol lad%
1-/ iten1(111 thasi
000 in tit
i trot ay,
nilt.vtigr.
tel(LI oast is ;t roar t ross
LII 'I'll t: I. 1111
1)1 /I I Ilt? St'LL
/.%III11.11//ont,
' 40 % _if 4:111f /
rititrortri 11,1111''
rith"ed or, sIll
I II .1.11% "II' /I Ill, It
t 11
at ,11%( 0 tr
.11.a. I arlers si.t.it .
ii.ti lin oi ac f. 1 i. k 10-
-a1: Chess; 1. %%, 11.11 %111LtiL
/Ii, SOnVIC1../. SIIII 11111' % it % I,
2.5t cit./ t itO au!' r ?0"
too ror Or (II) the. iv I, short I
tirai tart, (cams!' 1 t tij i III I II IS / :Li
c I :/.2'14, 1.//1S111. 11 t. 1.11 It 1 %
II I L'11e1
ILLIILL'41/111C111' lea. I. tII' 11 I%111
dot/ 4,- tit arkis I tie\ s i.,1
III! bet oi 10,11101 i i
t h.111(11,-iii.,2.
1'1M III! Till IT I I lull "1 II
VE't ,CIIIPIlili" V1.0ii Vcf
011 HIleit ..2(I1,(11 !III", I 114,, III
91.11' /1 taster transportatir. o
? se,. to al ram oat is air,. trit
rips ernisented II, isso dart, fI
S hIT I kpertolt?ot, /III (I III g .1
III a traffic But theso agr, merits tp ri
1/111` 1_0 a spt 'elite tram or r Ti''' h
otii, it railroad
itethet the 1-1111 Ii Lahti; a oho ;01
deight ti anis 'add
rail 111/15 1,, shill their or , pi
;tee riot le, ',ibis 15? et% tr, S.
i/hat a Way to Run a Railroad?
NO CABOOSES, NO BRAKEMEN, BUT
ON-TIME TRAINS AND PROFITS
.
i laka
fLIII 0111. reetdIt.
01 e111/ '1VI1/11111 .349 milt'.
M11 (Hi ant,
II IA 't% a/VIC11%
/Of/ i:/e/Clirrt-r ho
.-2.01 trains oh irmst railroads
I h.- tram Haar rairieit riot tile P. pica
as, 25 'Y tq II thati,
ut9
utt-tt hrtitothtat thhi It
.11 enttritt.er and col -
lir the 1/%. 1)11.10t1% 1I 101ich Ve:111
A/Jae: Li/ nIII 1111' tot/ /I
same crew. the train dui not
eit ,I111, Ill change cress,.
vothd be expected on a convert-
i rah trip ta more than :300
sank two stayed aboard .ttt
Mitt itt And le hen they got
stii, wore not through
III :.1)ntaiiii till high o,
k trailers, were immediately post-
td tor unloading?a task reserved
?L'11 Int ?%V% 011 1,111t21- roll-
011 two railroaders hill
..tork biat h othri have reouired
tot, -tit th
t. ,rs ago
, hey ',sunk leg tilt' 1
151 lialowat irossabl\
tit rat-11.'11d in tlic
oh-ration wt, 1. 00, /
[attar ta,t,
. ..ft
the Ist e
S its I -I--
1it- it. AN'llItled I,. 1 thuril, II, is h
I if or railroads urearn of .[ ts trig.
rota"' overhaul. the
stit-cesquits res, '1 II,'
11 /US III I % (1551! terms 11111 II
.1 titan strike in 1.96:1 tht
revoiiitiontted its 5. ,s tit don
tat aness. Ihe total pa oil sh si
it.. in 2,1:29 in pretrikt. Ob:3 II 91.
10 in (P.-rani-road % ant' at
is the' i-o)ur?S7.;;i:i II I 0114111,tO
"1 Oh tor conductors?ir tcaii t
nult?s thes of.X'r,.ttL' I.? ? sas LII ,s
or IA' cost, riot only inatrtt tnis rain ort
it ifitablt for the lirst drtic 12
k:? 11'S hut pato tor a I I t-tol-hou to,
re nailtini t. of tts III 'Ii It. ht-ti Oro. ?ic
ail int.
?rootre Lilo 01)1'1 11/4 Lit', q1.1
,Apeeted Iii t. lii low
I)? -harm III liartiJOS 011111 Vt`t'%%/it' V.
dist..atelier and a sr tLA
tot itxainpie, recentls riptc-ti.0 ti
I'll I :A one treigitt train v nilst,
detght nit is h. IjI '.t Iii Si tin 5
hnornton. n' 'side ,t of the loricia
t._:oast, ten ,Es putt., savtinvs 1)101 I,
when col lo[tred rdrh all me rct n
'wetted in ?tiris rt. 's and pa" Art
have,- ht s three awn
inefficient work, it ,t, 'ad of tor
Other problems. Ze. ,,I ?Ii
the only c usc of a high osts 9 It 1-11H
lung a r. 11 11(1. nak r torrent ..0[
tg,reemen -rt tad 1/ // 1 II/
NWItCh car rt, ten, in .1111 sara C n?t.
ire not v.-I-mine' t ) tam tevork
limits of hi, 91 ten' n rts
In add' :on, tit. o 11111/ tppii,
aildnanity?airt.iit
that a tra- I 1 'r --1s.
iperating iust
grained is ft s
ale railro [titre"
.tte a new ..sit?in.
is ,
a Ti II tit). s 1).),II I
ritilt's but
.n
oattnits '1,1 II aot
IL ttive I I ago., on
rational c iT on eass
fhis will t to ut tor th, Whir,
At the .0: nient ad eyes aro ot
(Tew-stZe thliu, t
both sides 'not sot'', wig ('III / be is, ILI
nit. -Our eit-th fief SaVS no r ()LI
Ion Hardt . aro [1,, r ater,r
I hange.
-row had r .01 hed u 2-11), it liar
working it a
SUCh prat 'k os ax sec' tai [,11.
,.1- railroad:- In TI f tn.& .rh's pint,
pay oi. teir -or
Before tr o SI' '51' 10,1
many ears 0, wt.I uid III I
minimize Lout cos. sas fit)
was traditi 1101, In-A-mons- nem.,
railroading With -fr-frran crews, 0.
call be en,fotner-?,dent"41 )Ve pc,
three times is [nail' tr tins as tve hal
III, run tho ri taste, mil rim thou t
more reliatty We ? to coindetko.,
with truck tow . ta: [he trucker
ramie to u go i Ureic trait-tits
-south Hort ta---.and 3[30 mile. is to,
optimum d[ dance I ,r truck nuns,
Some of tire engh ?tt. rs and ,?orkii
tors today tro ertiplot.,
who returi,,?ri 011-1. staying Out !
strike for :::roatlis r Soars. One
diem, enigtrit-,?r CA te, t hhorti
burgh, corn:ninth I ciond .-uppose
its so bad this way. hav'e to Lo thre,
tunes as ta.? each ay nut irwa or'
don't get at, [he d 'lays we used ?
have, picking Op and setting out 12A2 ?
ai every station.
fhornbut li s col t, luctor, Robert
.stricklancl, ? ei ailed trio CEC .titer
months on drike -trteause I houldn
save any In' ,ricy am this was the one,
work I loat-,v to do ? fit. adds. -Ilk,
kind of rani ,ailing hoesn 1 bra 111 tr
Ws a way t, wake its trig.
Approved For Release 2001/09/05 : CIA-RDP80601554R0027100060001-0,,---4,
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TRENDS IN LABOR
It. Wage gains fall?and rise. The
average first-year wage increase
negotiated in the first three
months of 1977 was 7.6 per cent,
or somewhat less than the 8.4 per
cent for the same period of 1976,
the Labor Department reported.
But most labor agreements are
for three-year periods, and the
average wage hike for the life of
contracts bargained in the first
qtiarter of 1977 was 6.5 per cent
each year. The comparable fig-
ure in 1976 was 6.4 per cent.
These figures do not take into
account other raises that result
from increases in cost of living.
b. Not too old to fly. A federal
court of appeals in Kansas City
ruled that McDonnell Douglas
Corporation violated the Age
Discrimination in Employment
Act when it fired its 52-year-old
chief production test pilot. The
pilot had been taken out of flying
status six years ago. The court
decided the discharge was not
based on a "bona fide occupa-
tional qualification" and ordered
the pilot reinstated with back
pay and damages if he is found to
be in good physical condition.
0. Promotion rejected. A manu-
facturing company in Maryland
told a unionized employe that he
would be temporarily reassigned
to a supervisory position, and
threatened to fire him when he
refused the promotion. Arbitra-
tor Ogden Fields ruled that the
man was entitled to reject the
promotion and retain his present
job. Fields said that a clause in
the labor agreement, allowing
the firm to "select" workers
within the bargaining unit for
temporary reassignment in a
management role, did not imply
that the workers could be com-
pelled to accept the change.
low Lawyers and NLRB. Reversing
a 1973 decision, the National La-
bor Relations Board has asserted
jurisdiction over labor disputes in
law firms. Previously, law offices
and their employes had been de-
clared exempt, on the grounds
that they did not have sufficient
impact on interstate commerce.
NEWS-LINES.
WHAT YOU CAN AND CANNOT DO
IF YOU RUN A BUSINESS
as a result of recent court and government decisions
? REAL-ESTATE BROKERS and
home-owners cannot be prohibited
by an ordinance from posting "for
sale" or "sold" signs in front of
houses in an effort to prevent
"white flight" from a racially inte-
grated neighborhood. The Supreme
Court rules that such a ban violates
the First Amendment's free-speech
guarantee. The Court said that a
town cannot deprive residents of
information that "may bear on one
of the most important decisions
they have a right to make: where to
live and raise their families."
? EXECUTIVE PERQUISITES in-
cluding personal use of company
planes, autos and condominiums,
are coming under the eye of the
Government. A Securities and Ex-
change Commission official has an-
nounced that the agency will bring
a number of cases charging firms
with violations of securities laws for
failing to tell shareholders that ex-
ecutives are drawing "perquisite
compensation" on top of salaries.
? FIRING WORKERS for sleeping
on the job can be unlawful. One
firm discharged a known union ac-
tivist, ostensibly for sleeping at
work. The National Labor Relations
Board, however, found that the
company had fired the employe
without an investigation, knowing
that its physician had given the
worker a painkiller. The Board held
that the firing was actually motivat-
ed by the worker's union activity
and, thus, was illegal.
? SERVICE STATIONS hit with
higher rents will get more leeway to
raise gasoline prices if a proposal of
the Federal Energy Administration
is adopted. The agency wants to
change its rules to permit retail gas-
oline dealers to pass through in-
creased service-station rents
without regard to the maximum
markup of 3 cents a gallon allowed
to reflect higher rents, wages or
other nonproduct costs. Deadline is
June 20 for sending comments to:
FEA, Box ME, 2000 M Street, N.W.,
Washington, D.C. 20461.
? SEX DISCRIMINATION in em-
ployment results when an employer
insists that a married woman use
her husband's last name on person-
nel forms and then suspends her for
refusing to comply. That is a ruling
of a U.S. court of appeals. The court
held that such a name-change policy
amounts to illegal sex discrimination
under the 1964 Civil Rights Act.
? PENSION PLANS will lose tax
benefits if they do not cover essen-
tially all full-time employes, as two
professional corporations have been
reminded. The corporations hired
office workers, determined their sal-
aries and controlled their work. An-
other company kept the workers'
personnel records and issued their
paychecks. The Tax Court held that
the workers were employes of the
two professional firms and disquali-
fied the pension plans because the
workers had been excluded.
? IT IS ILLEGAL for an employer
to fire a union representative for
trying to assist and represent fellow
employes at a disciplinary inter-
view. The National Labor Relations
Board so rules, finding that such
conduct by one firm constituted an
unfair labor practice.
? EMERGENCY MEASURES have
been taken by the Government to
reduce workers' exposure to ben-
zene. The Labor Department issued
temporary emergency standards ef-
fective May 21, calling for a number
of protective measures, including
sharp reduction in exposure to the
chemical, which is believed to cause
leukemia. Benzene is used in the
rubber, detergent, pesticide and
varnish industries.
Conclusions expressed are based on decisions of courts, government agencies and
Congress. For reasons of space, these decisions cannot be set forth in detail. On
written request, U.S. News & World Report will refer readers to the basic material.
US NEWS & WORLD REApporPvedi For Release 2001/09/05 : CIA-RDP80601554R002700060001-0 99
Approved For Release 2001/09/05 : CIA-RDP80601554R0027
/ijJ!f)
AN UNWORTHY IDEA
AY 'MARVIN STONE
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Two cars on
an aluminum diet.
THE POUNDS
TAKEN OFF
CAN DRIVE Y4'43U
THOUSANDS it:of"
MILES FREE.
Making these cars lighter does conserve energy. And Reynolds
is pioneering the weight-saving aluminum it takes.
Today, cars average about 100 pounds of aluminum.
Which replaces nearly 250 pounds of heavy steel.
And since estimates indicate that every pound elim-
inated saves up to three gallons of fuel in a car's life...the
average car today saves enough precious gasoline to drive
over 8,000 highway miles:'
What about tomorrow?
Thanks to bumpers, trim, engines, body panels, and other
parts of Reynolds
Aluminum?future cars
will conserve even more.
`Baseri or 1977 FRA a.erarjo of
,3.6 i'.2.Soigces and energy
Aft1413
'"eztigi
REYNOLDS
//there new idc,:as take shape in
ALUMINUM
a ng a eB 2 o ?:6III0
4-61 den
m A rover/For Release 2001/09/05 : CI " -R 01'4 is -
Meet the a
When it comes to heavy ec _Iipment, it's not hard to imagine
which name you think of first.
But perhaps you should sh,0 and think about TEREN
for a second.
Because we've engineered ,t lot of firsts.
'rake articulated loaders. V\ e were a pioneer in the concept.
The rest of the industry followed.
We also pioneered all-whec[ drive scrapers. ley're now
the standard of the industry
'VISION OF GENERAL MOTORS. HUDSON. OHIO 44236
andsedarrallemi
ternatives.
Four years ago, we introduced a new line of off-highway
haulers. It's fast becoming the industry standard.
In crawler tractor sales, the other guy has definitely had the
edge. But we're pushing strongly into the picture.
So when you stop and think about it, the picture looks
like this.
The other guy has a lot to offer. But we believe that what we
have to offer can give him a pretty good run for your money.
TEREX-GENERAL MOTORS. We're out to change
your thinking and buying habits.
TEREX
GM
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