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Show Mg.frj1" - rT,. I yr $ T y pjymgnj Jrf iffI If ? Vol. 215, No. - Salt Lake City, Utah 22 . f o 4 Friday Morning s . r May (, 1977 Price Fifteen ( cuts For Western Economic Summit Carter Arrives in London Called Challenge By Richard E. Meyer Associated Press Writer LONDON President Carter arrived Thursday night on his first overseas mission since taking office. He said he brought new initiatives for a weekend economic summit of seven of the worlds richest nations. The U.S. president was greeted at London's Heathrow airport by Prime Minister James Callaghan, who welcomed Carter on behalf of Europe and said the summit would attempt "nothing less than to overcome poverty, get people back to work, and our economies in a healthier state." Bareheaded in a drizzling rain. Carter replied that he was very proud to come to London" because of Britains historic ties with the United States and our special and very personal relation- Energy Adviser Explains Aims By William E. Clayton United Press International WASHINGTON President Carters proposal for a standby gasoline tax is more a challenge to Americans than it g is a idea, Presidential Energy Adviser James Schlesinger said Thursday. Schlesinger, testifying at a hearing of the special new House Committee on Energy,, said when the price nearly doubled after the Arab oil embargo, there was some saving of gasoline. He also predicted that if the gasoline tax increases by 35 cents a gallon, which it could do within seven years under Carters plan, 400,000 barrels of oil a day could be saved. Schlesinger acknowledged that is not much in the overall consumption picture. Represents Challenge The gasoline tax is sort of a psychological reminder, an annual test for us to see how well we are doing in meeting our national goals," Schlesinger said. It represents a challenge to the American people to do what we all know we can do. Americans can easily avoid the tax just by cutting their driving, he said. If oil use does not drop, foreign oil eventually will cost $25 to $30 a barrel, twice the current price, Schlesinger warned. The House Government Operations Committee approved by an 6 vote Thursday a proposal by Rep. John for the federal govConyers, ernment to become the only buyers of fuels imported into the United States. Vote Reconsideration? The vote was expected to be challenged with a reconsideration move Friday. Conyers amendment would set up a public energy administration in the Department of Energy to be the imports agent for all fuels brought into the country from abroad. It would then resell the fuels to domestic energy companies. The public energy administration would be in a position to do some bargaining, Conyers said. Meanwhile, the Senate Governmental Affairs Committee neared a solution on the most sensitive part of Carters proposal for a Department of Energy. Fuel Price Control? Carter wanted the secretary of that department intended to be Schlesinger to be able to set oil and gas prices. But committee Chairman Sen. Abhad objected raham Ribicoff, strenuously and proposed instead a board to set prices, with the secretary able to veto them. offered a Sen. Charles Percy, compromise: Ribicoffs board with the President having final say in disputes between the board and the secretary. Ribicoffs and Schle6ingers staffs were working on new language, and the committee planned to settle the matter Friday. In other developments: Edson Case, head of nuclear reactor regulation in the Nuclear Regulatory Commission, said the agency has worked toward a much higher level of protection against the possibility of sabotage and terrorism at nuclear plants. Nuclear Weapons Funds fuel-savin- 18-1- R-Il- l., The House Armed Services Committee approved a $2.6 billion budget for the Energy Research and Development Administration for nuclear weapons and reactor development in fiscal 1978. The Senate refused to go along with d a proposal to bar shipment of Alaska oil to Japan in exchange for Middle East oil delivered to the Atlantic Coast. The Senate Energy Committee approved a $2.2 billion authorization for work in fiscal ERDAs House-approve- non-nucle- 1978. Chuckle Todays The government is strong believer a in ESP extra spending power. Sylvan P. Hopkins borrowed $1.50 for cab fare Thursday, the day after he gave away about $6, (KM) in $20 bills at a pancake house. Hopkins, 54, came back to the pancake house Thursday for a free men! because he was broke and borrowed the money to pay the taxi driver, An employe at the Pig n Pancake Restaurant, Mrs. Shirley Schneider, gave Hopkins his breakfast and cab fare because he had done so much for so many people. g to spend Friday on a Washing- London he had new initiatives, but did not elaborate on them. Carters first act on British soil was to kiss a lady Phyllis Lady Stedman, a baroness who represented Queen Elizabeth II at the ceremony. g Kindom together in a very special relationship. "We have a special mutual commitment to world peace and we shall ho tracing in a courgoous fashion the special problems that affect human beings in the need for bettor education, jobs and inflation," he said Callaghan referred to the economic issues facing the leaders of the summit the United States, participants Britain, West Germany, Japan, France, Italy, Canada and the European Common Market. "The ventures you and I are to be engaged on with the others are nothing los; than to overcome poverty, get people back to work, and our economies in a healthier state than they arc now. This is a great venture," Callaghan said in his welcoming remarks. The ceremony was held in a light drizzle and Carter stood and eoatless. bare-heade- Carter was asked in an interview w ith reporters a ward Air Force One en route to London if he would have new initiatives for the summit. "We will have, yes, Carter responded 1 Carter, who did not elaborate on the initiatives, listed the aims of the summit in remarks during a departure ceremony at the White House. "Tlie economic discussions will be designed to put people in the world back to work to discourage rampant robbing of people by inflation, to share the proper and fair yields of raw materials and other supplies ..and to share with those less fortunate nations the bounties that God has given the world, Carter said. Goals' At the summit and during private talks Carter said he will pursue "our long range goals of world peace., nuclear disarmament ... and reducing the sale of conventional arms. e Long-Rang- The President said he and foreign will discuss energy, efforts to curb the spread of sensitive nuclear know how and pursue the "sharing of world trade." Ho told reporters en route to London that loans and direct aid for less developed countries" was on the agenda as well as "a mechanism to continue those discussions at a lower level and more regularly. leaders 1 Carter said he was so well briefed and "so crammed with information and advice that it reminds me of the presidential debates Carter predicted he would return to .he United Stales having made a See Page 2, Column 1 Wholesale Price Rise Zooms at Rate Topping 13 a Year By Sara Fritz United Press International WASHINGTON Wholesale prices surged 1.1 per cent for the second straight month in April, the government reported Thursday, setting an inflationary pace similar to the worst months of 1974. The increase, reflecting an annual inflation rate of 13.2 per cent, promised hard times ahead for American consumers. Wholesale trends ultimately affect retail prices. Defense Funds T rimmed in Budget Okay The House WASHINGTON (UPI) Thursday approved a $464.5 billion target budget for 1978, giving President Carter less than he wanted for national defense, but avoiding a breakdown of the congressional budget process. The budget resolution, providing for a $66.4 billion federal deficit, was approved 213 to 179. It includes $117.1 billion in defense budget authority, compared to the $120.1 billion requested by Carter and approved in a Senate budget resolution. Some of this would not be spent until subsequent years. Houses Second Try the Houses second try at was It passing a budget resolution for fiscal year 1978, which begins Oct. 1. A week ago it raised its Budget Committees $116 billion recommendation for defense to Carters full amount. House Democrats thought this was too much, and that entire resolution was voted down 320-8The process threatened to repeat itself Thursday when the committee returned to the House with a $117.1 billion defense proposal and efforts were made again to increase it to Carters amount. Substitute Plan Rejected But this time the House rejected Carters figure It then voted down other defense proposals of $119.1 billion, $118 billion and $116 billion. 233-17- A proposed Republican substitute budget with a 10 per cent income tax cut See Page 2, Column 4 Buddy , Ya ASTORIA, Ore. (UPI) sight-seein- unemployment and curbing the rampant robbing of people by inflaHe told reporters en route to tion. Associated Press Chart Cadil- tour through historic places in northeastern England. U.S. officials said there were no plans for him to seek out his ancestral homes during the trip even though Carter said his family had its roots in England. Carter is to meet with the summit seven Saturday and Sunday and hold private talks Monday with the leaders of Britain, France and West Germany on such issues as Berlin and the spread of nuclear technology. In an arrival speech, Carter said, It is not an accident that this is my first overseas trip, because of the historical ties that have always bound the United States of America and the United ton the summit was aimed at solving Wholesale price index stood at 194.3 in April, meaning goods which cost $100 wholesale in 1967, cost $194.30 last month. armor-plate- Sight-Seein- Carter plans Robbing of People' Carter said before leaving five-ton- , Police with German shepherd dogs specially trained to sniff out explosives searched airport buildings before Carters arrival. Police ami detectives swarmed over the airports VIP section. The President was whisked into the city, where he is staying at Winfield House, official residence of the American ambassador in Regent's Park. Tour Plans ship. Following increases of 0.9 per cent in February and 1.1 per cent in March, the April wholesale price surge indicated administration economists may have underestimated the nations true inflation rate. Budget Director Bert Lance said the administration expected the inflation to continue at an accelerated pace for the next several months, and suggested the 1977 rate could exceed original forecasts of 6 per cent. Have to Wait Well have to wait a while to see if its a trend or when there will be any moderation, Lance said. The problem of inflation isnt solved by flicking your finger and saying its solved. . 1974 Not since October-Novembewhen Americans were suffering the worst siege of inflation since World War r, f Inflation has been running at an annual rate of about 9 per cent in wholesale markets over the past eight months. Administration officials blamed some of the increases on food crop damage caused by severe weather. i Beyond Control had not had drought in California and cold weather in other parts of the country, there might not be near as much pressure from inflation as we have had, Lance noted. I hate to say its an aberration, but it has been caused by circumstances beyond the control of us. If we Processed food prices rose 2.5 per cent in April and farm prices were up 3.3 per cent, the biggest jump in a year. Farm prices have exceeded 1 per cent for the past five months. Coffee prices rose 7.3 per cent in April after a nearly 31 per cent hike in March. Industrial prices rose a moderate 0.6 per cent in April, providing a sign for many administration economists that inflation can still be contained this year. Industrial goods are a better measure of price trends than food. But fuel and power costs jumped a substantial 1.4 per cent and Lance indicated he was concerned that impending steel price hikes might cause a resurgence of industrial price inflation. Associated Press Wireohoto monies Thursday at Londons Heathrow Airport. Carter is in London to attend Economic Summit. President Carter, British Prime Minister James are ail smiles during arrival cere Callaghan Nixon, Buckling Under Stress, Got Time Out Mid-Intervie- w I think Nixon has convinced himself By David Nagy that he did not violate the law, Carter United Press International said. It was an interesting discussion Richard Nixons aides asked for time but I doubt if the American people were out when he seemed to be buckling it. by enlightened under stress in the David Frost interColson Reacts view, giving him a breather just before his dramatic final monologue, program First reaction from any Nixon aide aide James Reston Jr. said Thursday. trials convicted in Watergate-relateIn Los Angeles, Frost responded by came from former White House counsel Charles Colson, who said he thought his stating he or his producer not Nixons called the breaks in the taped former boss took his share of the people interview telecast Wednesday. He said 'Watergate blame for the first time. Nixon himself never asked for respite It was a great deal more than he had ever said before, Colson said in San although his aides might have. President Carter, meantime, told Francisco. reporters aboard Air Force One In Chapel Hill, N.C., Reston, who to London that he watched the Frost prepare for the interview, helped segments of the said the sudden first and last difference in texture interview, and found Nixon in the program which shifted marto lied the he that frank in saying in Nixons favor in the last kedly of some the on American people stemmed from the fad that half hour statements he made. the former President got a 10 minute breather from Frost's grilling just before the momentum shifted "The Nixon eople said this was the toughest moment m Nixon's hie and asked that the intense interrogation Reston said "That's why there's a difference in texture." Not Nixon's Idea At a Ixis Angeles news conference. Frost said, "All the decisions about $30 traffic fine, to pay family bills when to start and stop were mine and and buy a bicycle. Now, everything my producers. There was indeed a seems to be working out all right, break on that second day of the Lee had told Hopkins. but it was not Watergate tape Seven to nine other persons in the ordained by Mr. Nixon and it would he restaurant were recipients of money-rangin- very unfair to him to suggest it was. from $500 to $2,200 during a Asked alxrnt Reston s report, period of several hours as Hopkins said, I dont kiuW what his :Nixon :i drunk milkshakes and oilier beveraides were doing, but any decision on a ages as he gave his money away. break came from us, not from him." A young couple who received sumNixons misty eyed, close-ouS2,200 and were not identified, told mation on the rigors of his presidency in which he admitted "1 let the country Hopkins they were going to California to start a new life. down" with "mistakes of the heart," d Got Any Spare Change ? He even gave his said. v II has the Labor Department reported wholesale price increases exceeding 1 per cent for two consecutive months. The Wholesale Price Index was 194.3 in April, reflecting an annual increase of 7.2 per cent. This means that goods costing $100 in 1967, now cost $194.30 a near doubling of prices over the past decade. Big Spender Suddenly Broke Hey Carter's lac stood on the tarmac awaiting him. It was flown from Washington in advance as purt of the tight security precautions. car away," she Wants to Help People As he handed out money Wednesday, Hopkins said he merely wanted to help people to do something out." He was a very sweet looking person, Mrs. Schneider said. Hopkins was just beginning to eat Thursday morning when police came and told him his sister was looking for him. Hopkins left. Police said Hopkins family apparently was upset over the publicity about the giveaway. "No crime was committed so far as we know, said a police spokesman, and his family had not heard from him for a while and asked us to help locate him. which we did. Gets $500 Keith Astoria, a Clatsop Community College student, was a recipient of $500 from Hopkins. Lee said he used the money for a Lee, . . although not among old enemies. Former Senate Watergate panel chairman Sam Ervin, former Watergate prosecutor James Neal, Washington Post Editor Ben Bradlee and others offered some gentle comments on the former Presidents performance. That reaction was not widespread, however. Sen. Barry Goldwater, said Nixon is "as dead as lie can be. 1 don't know any Republican in his rigid mind who would want him back I have no sympathy for him at all. Frost Comments Frost, himself, however, said the interview experience gave him a deeper understanding" of Nixon, ami stirred some sympathy much See I iiitJ lage 1. Coin inn hr Tribune I Tribune Telephone Numbers, Page A-- 2 Arnusem't Bridge Business Classified Comics Editorials Page Forn m C-- 9 9 t 2 C-- 8 2 1 Lifestyle AND MORE Section. Natnl Page A-- Obituaries Regional Sports Star Gazer Television Wash. Youth . la-vit- 1,13.18 I)-- 5 C-- 9 8 12,15 6 Furniture Friday's Forecast t Salt Lake City and vicinity Stormy conditions to continue, with occasional gusty w aids Weather details, Pag.e I)-5 I |
