| OCR Text |
Show - . .,1 u Vol. 217. No. to: r Salt Lake City, Utah 7 r t i 3. L vv VI . ' 5 W April 21. Price Twenty Cents 197N Gold Sale Serves Dual Role &, t Friday Morning , ? ' r To BoUlr l)(kll;ir. Gomhat Inflation Rolicrt G. Kai'oi and Don Onerdorfer Washington Post Writers WASHINGTON The Soviet Union apparently forced down a South Korean commercial jet carrying 113 Thursday in a remote corner of Russia near Finland and the Arctic Circle, U S. officials said Thursday night Soviet military planes scrambled to meet the Boeing 707 as il approached Soviet air space. There were some reports that shots were fired, the officials said. There was no immediate explanation of why the Korean aircraft was so far off its scheduled commercial route. Its flight plan was to take a polar course from Paris to Anchorage, Alaska, on its way to Seoul, South Korea. None of these routes would hav e taken the plant-ovethe Soviet Union, By Tribune Wire Services WASHINGTON The administration said Thursday its decision to conduct gold auctions for the first time to in three years has a dual purjxise relieve pressure on the sagging dollar and to fight inflation. The announcement Wednesday night that the Inited States will dip into its Fort Knox stockpile to sell 300,000 ounces of gold for six consecutive months, beginning May 23, had an and positive efiect immediate throughout the world. The dollar rebounded sharply on virtually all European and Japanese monetary markets while the price of gold tumbled in both Zurich and London. Wall Street investors also were aged. Slock market prices were sharply higher and trading was heavy in response to the announcement by the Treasury Department. Gold was last sold by the United States on June 30, 1975. Assistant Treasury Secretary Fred Bergsten told a news conference Thursday the sale was "one of a number of steps we are taking to fight inflation. Effects of Decline The recent steep decline of the dollar raised the prices of products imported into the United States, and thus increased inflationary pressure. If the dollar is strengthened, theoretically inflation will he eased. r ine official theory was that the pilot had made "a tremendous navigational error. Another was the aircraft had engine trouble that forced it oli course Whatever tlte cause, there seemed to lie little doubt that the 707 was eseoited to its landing plaee hv Sov iet jets, officials said 111 Pans. Korean Airlines officials said then- were 16 passengers oil the plane who did not have Oriental surnames It was not known whether any of those with Oriental surname' was an American citizen tlu-or- - Anchorage Stop U.S. officials were called to the White House shortly after 6 p.m. to consider the situation. President Carter did not take part, according to participants Because the plane had a scheduled the officials piv sinned that Americans might lx- on board. An official also said the United stop in Anchorage, en-nn- n Associated Press. Laserphovo jury to answer charge Former acting FBI Director I.. Patrick Gray goes before grand of civil rights violations. Chief Gray, Other Officials, Ex-F- BI Profess Innocence Harry F. Rosenthal Associated Press Writer By - Five blocks from where J. Edgar Hoover reigned so long over the FBI, his short-tersuccessor pleaded innocent Thursday to charges of trampling the civil rights of Aineri cans while searching for radii;. bombers. "Not guilty," said L. Patrick Gray 111 to the accusation that he conspired with two other top FBI officials to injure and oppress citizens of the United States "Not guilty, said W. Mark Felt, a former acting associate director. Not guilty, said Edward S. Miller, former assistant director of the domestic intelligence division. Later, the former G Men were taken to the U.S. marshals office for processing. Mug shots were made, front and side, each man was assigned a number and fingerprints were taken to he sent later to the FBIs central files WASHINGTON I A' the three were arraigned before U.S. District Judge Charles R. Richey, about 500 current and former FBI agents massed in front of the courthouse to show supiwirt tor their former chieftains. They displayed no signs ami there were only two short speeches, but igorous applause greeted each of the defendants as he entered and left the building. God Bless Everyone " All I can say is God bless everyone." said Felt, his eyes misting, after he and his wife made their way through the crowd. The bald, craggy-faceGray, who was acting director of the FBI for only a year, appeared moved, but he said nothing. d In court, the three stood mute, except tor proclaiming their innocence in firm voice. As their lawyers spoke with the judge, the defendants stood with their hands clasped behind their backs. "We come not in bitterness, but in profound sorrow that this day has come to pass," Ed Morgan, speaking for the Society of Former Special Agents, said outside. "Your lifetime of dedication to law enforcement, to the cause of justiee and to the security of this land your character " The defendant' were released without bond No trial date was set They will next apear in court May 12 tor pretrial motions Order Break-in- s Felt and Miller arc charged Gray. v-of unlawfully ordering break-in- s private homes while the bureau was the radical Irving to locate memlx-rWeather Underground between De 072 and May 1973. cemlx-- a former submariner, was appointed art inn director of Ihe FBI by Richard M Nixon after Hoover's death in May 1072. Gray first man ollici than Hoover to head tin bureau Gray, 2 " vf ,, 2 k - '! traffic-contro- Price Plunges May. "Sale' of gold for Deutschmarks will lie an additional means of acquiring Deutschmarks." Bergsten said Inside The Tribune Tribune Telephone Numbers, Page A-- 2 Page National National Obituaries Regional Sports Star Gazer Television Valentine Washington Washington 5 l - The big loser was the gold price, which dropped more than $6 an ounce in Iyvndon. Thursday, to $108.55 an ounce at the afternoon fixing, compared w ith $171.65. Wednesday. Among London dealers there was some concern at the ambiguous language used in the U.S. gold sale announcement, which leaves open the possibility of further sales after the six planned auctions are over. Rut generally, most Ijondon dealers think that for a variety of reasons, hofh economic and political, the gold price is unlikely to fall very much further. Bergsten said the admiiiistrathm also is considering accepting German marks as legal tender in the gold auctions after the initial offering in In Solid Information Lawmakers were told that there was "some information that leads us to believe that the plane could Ik- - in the Soviet Union." However, informed officials indicated that solid information was on hand that the aircraft was down in Soviet territory near an airstrip. White House press secretary Jody Powell said Thursday evening that. "Based on radar trackings and its last reported xisition, we do have reason to that the plane may lie in the - 2.0-13- A l t. 15 enmark and tlie Sov iet Union. The White House, in comments to the press and telephone calls to key member' of Congress, gave a calm view of (he incident in an apparent attempt to head off an air of crisis d West German marks against The British pound dropped from $1.8441 to $1.8245, while in Zurich the dollar rose from 1.9165 to 1.9745. D--7 s United Press International Anchorage, a Federal Aviation Administration sixikesman said the in at 11:51 a.m. plane last rexirtc-EMC At that time the crew gave no indication of trouble, he- - said. The plane was due to arrive in Anchorage at 3:22 p in EST, he said. 11uplanes last position report was over l.ixlo, Norway, when the pilot said he was estimating he would reach Mouldc. off the Canadian coast, at 1 :08 p.m. EST, said FAA spokesman Clifford Cernic-- in Anchorage. Under U.S. regulations, not necessarily applicable to the Korean jetliner, a plane- - must carry enough fuel to he able to change from its planned destination to an alternate airport and to stay in the air for 45 minutes aftc-- r reaching the alternate. Jetliners making polar flights over the Arctic are nol tracked by air radar, as planes are over Europe and the United States, and long range radio communications over the ocean and tlx- ice cap. often arc 2.0t;55 Amuscm Bridge Business Classified Comics Editorials Foreign Foreign Lifestyle v In In Tokyo, the dollar climbed to 225.25 yen. compared to 221 .00 yen Wednesday. In Frankfurt, the dollar was worth t as quickly decided to send official inquiries through diplomatic channels a' well as through international avia lion agencies, which have proec-durefor obtaining information in the event of aircrait incidents and accidents. All nation' with territory near the route reeeivisi inquiries, including Swc den Canada. Norway, Finland. DIt Asked if the plane had been forced down, lu said, If it is in the Soviet Union, we have no way to know at this . jxiini luiw it got then-- The officials have consistently maintained that the mammoth size of the deficit has been a major reason for the plunging dollar. At the current market price of about $17n per ounce, the U.S. gold sale would more than $300 million by raise the cod of October. Gold had an important role to play m the incident there are no relations between South chploinatie Korea and the Soviet Union Soviet Union V 1 Conviction on the single count of conspiracy to violate the civil rights of citiens of the United States carries a maximum penalty of 10 years in prison and tlO.ooO. gfia Other administration officials said the sales were a U S. effort to convince foreign trading partners the, United States is serious about trimming its $27 '.0. billion trade deficit- - J The indictment listed eight persons in the New York area, relatives and acquaintances of Weatherman mem-Ikts- . whose homes were burglarized. Xx WXV State' Page 1 A-- A 12 24 E-l-- D 7 B-t- i B-- l poor. Aviation officials said it would he possible for a plane to crash or make an emergency landing without its pn-'ems being learned by the outside l As$OC Idmtograph of the kidnapped former Italian Prrmier Aldo By Henry Tanner New York Times Writer reec-ive- by a Home d newspaper from Hed Brigades Short of La copy of the Rome newspax-Ropuhliea with a banner headline asking: Moro Assassinated pointed nut that Moros hands did not show in the picture and that therefore he could not lx- - seen holding the They concluded that the picture could be a montage. Italian officials reacted with a mixture of relief and foreboding. Relict days ROME The Red Brigades urban guerrillas Thursday issued a photograph purported to show that former Frontier Aldo Moro was alive and apparently in good health Wednesday, at the- - very time that frogmen plumbed a remote mountain lake for his body In a new message distributed simultaneously in four cities, the terrorists nave the authorities 48 hours to save Moros life by releasing an unspecified Communist prisoners" number of from Italian prisons. The terrorists accused the Italian government, notably Premier Giulio Andreotti and Interior Minister Francesco Cossiga. of having issued announcement Tuesday that Moro had been "executed" and his txxiy thrown into Dike Dtiehessa That announcement, though is'inxl in their name, did not come from the Rod Brigade' but was a government "provoeat lou. Thursday s statement s Active Market Revives Rally YORK NEW I lu- - ( shewed More iron! the Up. n and apparently relaxed, w ith the ironic half smile that is tv pie a id him In Iront op him was Wednes It clean-shave- I stock-marke- t foreign-exchang- fumi'h-m- clv.-'- recent AIi The revived its rally with another jump in extremely heavy trading Thursday, helped by the dm lar's sharp rise in trading The Dow Jones average of 3u nidus'l stix ks rose (75(1 to 814.5 t. il' 1rixif photograph fell 'hurt of full proof Moro is still alive Tlx- Sail Lake City and vicinity f'i4d r vvilh occasional rain or snow showers. Clearing up by night Weal her details on Page (' 3 Morn was Idled Press Laserphoto a Korean Airlines spokessaid alxnil 15 Japanese were believed to lx- among the 97 passengers and crew of 16 In Tokyo, man - Reds Send Photo, Claim Moro Lives said. Kritl ;iys Kon cast world ...yNNUUvC liml lao- - F- - I '1 because many them had reached the Moro was dead Foreboding, because the terrorists ultimatum raised once more the agoniz mg issue of a "deal" w ith the terrorists Party Position Up till now the leaders of Moros own Christian Democratic party have taken the position that there can lx- - no negotiations with the Red Brigades because this waxild destroy the authority and the prestige of the state and umiiil he counterproductive in the long of conclusion that mu. "We have a sense of complete impotence," a high official said privately after the terrorists message was el. I was eid the It a day of ing drama the initiative la't-mo- terrorists held lermi-.iin- t 7 a m the deputy commander oi the San Vittore prisixi in Milan. Fran o 18- Cataldo. was shot and killed men as lie by a commando of thu-i v I'M-the street in front of he home on his way to work The attackers fled ' - e car Minutes in a since the 817.74 ol Jan. 3. Big Board volume reached 43 At million shares, the fourth largest ever, .4 though well short of Monday'' day high ol i: .51 nullum close sai-.d- ; laer the Ret Brigades for tue killing m cal! to in-- killing oifiee VLIrt; ilaio .d unce the a ef !ui' WS s a tea-- a took phone the r.drmn! u a - lie ninth the Red by it el 'ate U.S., Russia Voice Hopes for Arms Treaty Prog ?OQQ Jeffrey Antevi! Writer MOSCOW Secretary o( State Cyrus Vance and Soviet Foreign Minister Andrei Gromyko held intensive talks on Thursday on a new strategic arms treaty, with Ixith rides voicing public hopes for progress But the divisive Issue of human rights continued in dishurh Du- atmosphere of j.ixxlwill Two m p. irate dramas were played out he, e dot ing the day as Vance and Gromyko met for more than eight hours mi tin liategn arms limitation treaty, while outside the US enilKissv a woman Soviet citizen was arrested by Soviet rs bee Hsc woman was protesting hi ause she said that he had ixx-By New York News Associated Pre cial. faces grand Lastrotato FBI offijury charge. W. Mark Felt, former I barred for nearly four years from husband Wixxlford MoC'ellan. a professor of Russian at (ho Univcr'ily of joining her American husband whom she married in Moscow Virginia, U.S. of the short stopix-Although 1974 m lodging a formal protest about the incident. Vance's spokesman. Ilodding U.S officials said that these effort' Carter HI. said. "We deeply regret the would include the presentation to Soviet forcible actions taken" against the authorities of a ll'i of lb "hardship woman, Mrs Irina McClellan, who was eases including the vase ol Mrs seized hv x!iee as six- attempted to McClellan and that of Charles luka, an chain herself to (hi- embassy fence. barred tneriean citizen who has from returning to the U S. after he It clearly is a continuing refusal nt tlx- Soviet uni limit to grant exit IxTiiiissiiin which led her to attempt to - - 'x-e- ' x-- s lx-- Twhivs Elmcklo efuily in front oi expres' tier views US embassy. Carter said Hi New mother, to husband paying the said that tlx- US would coni lime hospital bill. "Six hundred dollars is a effort' to secure a visa so lot for a baiiv Ixit lixik how Ion; thev )x-a- i the - , that Mrs McClellan. 38, ran )mn her last " visited relatives in the Soviet Union where he was bom S years ago The list will lx- presented to the Soviets during Vance's visit Mrs McClellan and a young woman, believed to he her daughter, and detained by x!ue for about three hours. Memtx-rof Vance's delegation have made a determined effort In play down tlx- human rights issue, which was a major irritant in US Soviet when Vance was here on his l.r-- t mi'iiei quest for a new SAIT treaty just over a year ago l S officials fhai Die issue would lxraised during Vance's talks with Gromyko but would not lm assigned a n. i tor priontv wen-arreste- s - im-.- No substantive ini"rn..i,i n was reko talks leased oi: Uii Thursday. They took pi.o e in a confer-- i of nee room at 'he Soviet eorr-iMinisters Budding the ki.mlin walls and at a two hour working lunch hosted by the Soviets Soviet leader I Rrehnev whom tlte Americans had exix-i-teto parDeip.de in some of the negotiating sessions, was not present mi Thursday but Vance repnrtdly was confident he would how up lx fore the talks ended co Saturday Tin- eight member Soviet delegation an ludisl :t uuiiiary man. Gen Nikolai V Ogarkov. for the fu st time in more r, than thrm- years, indicating that the soviets may lx- expecting hard lectMte- ,Y e.d decisions on a new arms pact anc-G-'om- l -- , |