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REPUBLIC RPUBLIC CITY MAIL 2 The Arizona Republic British rebiiff Belfast mob at Iiamcade Tuesday, July 4, 1972 X-i 4 -v i I f. 3. end of intense activity by sectarian, execution squads. When the Protestant citizens' army set up the three "no-go" areas earlier yesterday, its leaders threatened instant retaliation if their -Tina folk hero, Gusty Spence, was harmed. The militant Spence is serving a life sentence for murder and was snatched Sunday night while on a brief parole.

The Protestant barricades were erected to spur White-law into tougher action against similar barriers put up by the outlawed IRA in Londonderry, the province's second city. Whitelaw's policy is to seek the end of the Londonderry "no-go" areas by persuasion rather than force. Barricades of steel spikes cemented into the roadway ringed three Protestant areas," housing some 40.000 people along Shankhill Road, Wood-vale and Oldpark. They were manned at key points by uniformed volunteers of the Ulster Defense Association, Protestant army which has mushroomed throughout Northern Ireland over the past four weeks. a meeting with UDA leaders while more of his soldiers arrived, some with telescopic night sights on their rifles.

Ford broke off the talks three times, then announced agreement an hour before midnight. Aides said he consulted with William Whitelaw, Britain's Northern Ireland administrator, at each stage in the parley. Ford said the army would be in control of the area, responsible for law and order, but a number of unarmed UDA patrols also would be used. Army checkpoints would be set up in Ainsworth Avenue and anyone entering would be searched for weapons, he added. After the agreement was announced, the I'D A ranks, lined up in pelting rain, wheeled around in response to commands and marched off into the darkness.

While the confrontation was going on, police headquarters announced the 399th known fatality in Ulster's three years of turmoil. A bullet riddled body was found beside a road at Coalis-land. County Tyrone. The victim was the eighth in a week The immediate issue was the determination of Protestant militants to build a steel barricade across Ainsworth Avenue in West Belfast and extend the "no-go" areas they have been steadily building in the capital. The army denied permission on the grounds the barrier would cut off a Roman Catholic enclave of about 20 families.

An officer of theUDA-the Protestant answer to the Catholic-based Irish Republican Army said: "We will fight the army if we have to all night and all day if necessary." Britain rushed more troops into the area until an estimated 600 men were in position, with reserves in readiness. The Protestants also called In support. UDA leaders said between 6.000 and 8.000 men packed into surrounding streets, armed with clubs, shields, rocks anything they could lay their hands on. At one point, women of the neighborhood formed a line between the two forces to keep them apart. Ford sped up in a jeep with a police escort and went into Associated Presi BELFAST Seven thousand club-wielding Protestant militants bent on sealing off one of their Belfast strongholds backed down last night before a massive display of British military muscle.

The Protestants barricaded off three other areas earlier in the day, but the British drew the line when the masked army advanced on the fourth. Gen. Robert Ford, commander of British forces in Northern Ireland, said, "We have now pulled back from the precipice," when Protestant ranks armed with cudgels and iron bars gave way in the tense confrontation. The British military display before irregulars of the Ulster Defense Association was one of the strongest in some time in the violence-torn six counties of Northern Ireland. Several hundred fully armed soldiers were involved, supported by armored troop carriers, armored cars, jeeps and heavy trucks.

The confrontation lasted four hours. With the contenders lined up within yards of each other, it threatened to develop into a major battle. Bonn talks near accord on policies Associated Press BONN President Georges Pompidou of France and Chancellor Willy Brandt unexpectedly called in their top advisers yesterday for intensified talks on Europe's future, amid signs they could be near agreement on monetary policy and on whether to hold a Common Market summit meeting. "We are on a good road to a good and satisfactory conclusion," a Bonn government spokesman told newsmen after Brandt and Pompidou talked right after the French president's morning arrival. After exchanging optimistic toasts at lunch, the two leaders called in their foreign and finance ministers for more detailed talk, seeking to reconcile differences on Europe's future and America's role in it.

Premier Jacques Chabnn-Delmas of France flew in fr Paris to join the leaders as the pace of their talks quickened. The Bonn spokesman said Ponipid and Uraivlt aln ady had reached agreement on "certain substantive details." He did not elaborate, but indicated the French and West Germans were trying to avoid postponement of an enlarged Common Market summit session planned for October in Paris. P.efore arriving in Bonn for bis two-day visit, Pompidou had threatened to have the Asioclatxl Prt French President Georges Pompidou chats with West German Chancellor Willy Brandt, right, in Brandt's offices in Bonn yesterday. Yugoslav Israel warned to release terrorist monetary unity should be accompanied by steps toward European economic unity, and Bonn's dislike of the French desire to make Europe more financially independent of the United States. In a dinner toast to Pompidou last night, Brandt called for closer ties between Europe and the United States.

"The more responsible and open the attitude shown toward its neighbors by the Eu-r now developing, the more swiftly and willingly ill they accept it as a partner," Brandt said. He called for a close and regular exchange of ideas "with our main Atlantic partner, the United States of America." save the summit by dropping frcm its agenda a proposed Common Market political secretariat. France insists that it be in Paris. Most other Common Market countries, including West Germany, want it in Brussels. Bonn sources said Finance Ministers Valery i a d'Estaing of France and Karl Schiller of West Germany yesterday reaffirmed their support of existing fixed currency exchange rates, including that of the U.S.

dollar. This was seen as. another good omen for Bonn-Paris agreement on monetary policy. But differences apparently remained on Bonn's position that steps toward European lunation summit session postponed if there was no advance agreement assuring that it could achieve concrete results. With moves toward European monetary unity expected to be a key topic, chances for keeping alive the summit timetable were improved by a recent Brandt cabinet decision moving closer to the French posiH and introducing restraints on capital inflows.

He did this amid monetary uncertainty alter Britain floated the pound temporarily cut it from existing exchange rate agreements. Also, according to Bonn sources. Brandt has sought to Israeli authorities expect more than 150.000 Arabs to cross from Jordan this summer to visit relatives in the occupied West Bank and Gaza Strip. The border was opened June 19. "There is a ca'culated ri-k in letting so many people come," said the sources.

"But we do take this upon United Press International The International Air Transport Association reported receiving a message yesterday warning of mass reprisals against world airports used by Israeli airline El Al unless the Japanese terrorist involved in the Lod Airport massacre was freed in 24 hours. The warning came as both Israeli and Palestinian Arab guerrilla spokesmen reported military incidents. A guerrilla spokesman in Cairo said "heavy rockets" were fired against the Israeli settlement of Baiyas in the occupied Golan Heights of Syria yesterday and scored direct hits." No mention of damages or casualties were made. The Israeli military command in Tel Aviv sard Aiab guerrillas ambushed an army truck about 2 miles souih of Hebron in the occupied West Bank of Jordan Sunday night but no casualties or damage were reported. In Tel Aviv, military sources said Israel took a "calculated risk" in opening its border to Arab visitors because guerrillas might shift their activities from bor 'or areas into Israeli territory Dollar weakens in W.

Germany as pound sinks YES we hove liqhtweiqh suits and sport coats by HASPELI JUSTER'S New York Times Service PARIS The West German central bank had to acquire dollars yesterday fur the first time since the June 24 flood of them into Frankfurt following the British decision to float the pound. The pound weakened further, falling 2 cents to $2.42, and appears to be moving fast toward its old pre-De-ccmber value of $2.40. On Dec. 18 the pound was upvalued to $2. til) as part of a multilateral realignment that provided the dollar with an i 71 52 MAIN ST SCOTTSDAlt that would unravel the Dec.

13 Smithsonian agreement was cited by some dealers as a reason lor extreme caution at the present moment. Frankfurt specialists said the amount of dollars acquired by the German central bank was relatively small. The Bundesbank declined to buy dollars in afternoon interbank money exchanges in Frankfurt. As a result, the official buying rate for dollars fell slightly under the 3.15 marks to the dollar rate that is the dollar's lower limit in Frankfurt. This is only a temporary phenomenon, specialists ox-plained.

The buying rate was 3.1405 and the selling rate was 3.1505. yesterday afternoon, against Sunday. Dealers saw the currents in the markets as indications of nervousness over monetary-decisions that, might be taken in Washington over Independence Day and over the summit meeting now in progress between President Georges i of France and Chancellor Willy Brandt of Germany. "There is no fundamental change," said one dealer. "Markets will remain nervous un'il there is sonic good news about the dollar." Again the possibility that the pound, on its longer tether, may tail so far as to touch (iff oilier devaluations The dollar's experience was roughly the same against the Dutch guilder and the Swiss franc.

The Swiss National Bank intervened for the first time since June 23, but later in interbank dealings the dollar was permitted to fall slightly below the lower limits. The Bonn and other Euro-pean administrations have served notice they intend to buy all the dollars necessary to preserve existing parity relationships. The Germans, Swiss and French among others have tightened exchange controls to help combat the surplus dollar inflows that the a threat to their existing parities. The IATA said in Geneva the release of Kozo Okamoto was one of four demands contained in the unsigned message, which was being taken seriously. Warnings were flashed to airlines, airports and the International Police Organization.

Israeli Transport Minister Shimon Peres said in Tel Aviv that Israel will not be "frightened" into releasing Okamoto, sole survivor of the three Japanese terrorises who killed 2f and wounded -bout 80 other persons at the Israeli international airport ne.ir Tel Aviv May 30. The IATA spokesman said the message warned that "if the demands are not met. ooen war will be waged against Jewish industries with El Al being a prime target." It also said airports allowing El Al to use their facilities were accomplices and wouid be treated according- The message said Japanese were not involved in the threats and warned that "to ignore the demands would be fatal." 12 per cent devaiua- average tion. 01111 I 1 I HI 1 uprising contained United Press International BELGRADE Yugoslav forces yesterday sought the last members of a band of Ustashi guerrillas who "infiltrated" from Austria hoping to spark a rebellion against President Tito's Communist government, informed sources said. In a clash with special anti-guerrilla army and police units in the forest lands of Western Bosnia, most of the 20 to 30 Ustashi were either killed or captured, according to the Communist sources.

Three policemen, the sources added, were killed and four wounded in the fighting. The Ustashi is a worldwide exile organization against Tito's government which wants to establish an independent Croatia. The sources said the Ustashi were believed to have come originally from Melbourne, Australia, a center for Yugoslav exile activity. First news of the clash came Sunday, with a terse "announcement" from the Yugoslav government. "A group of Ustashi-Fascist terrorists, some notorious criminals among them, has illegally infiltrated into Yugoslavia," the government said.

"In the first clash with security men and i i a 1 guards, the gang was broken up and the bulk of it destroyed." Sources said the guerrillas had hoped to spark the local population of Western Bosina historically a center for Ustashi support into revolt against Tito. However, the government announcement said "the local population have been doing their utmost, giving a valuable backing to security men and territorial guards in their cracking down on the terrorists." The guerrillas, according to the sources, were all young men apparently trained for guerrilla activity, and armed with telescopic rifles, guns and silencers, and radio equipment. They reportedly entered the country a week ago and held up a truck driver, forcing him to take them 250 miles south to the Bosnian town of Bugojno. Gold rose again, trading at $Ci5. 50 an ounce in Imdon YOU INSTALL WE INSTALL Fischer ivill play chess More; about WEATHER-MASTER PRODUCTS 6853 N.

21st Phoenix, Arizona I Ft 4f with the remainder of his funds going to boost the loser's share. He said another alternative would be to add the entire $130X00 tor 5,000 pounds) to the winner's cut. for a total of $203,125. The Indon investment banker said he made his offer through Dr. Max Euwe, president of FIDE, explaining: "I like chess and have played it for years.

Many want to see this match if FL-cher does not go to Iceland, many will be disappointed." The Soviet Chess Federation, issuing a protest in Moscow, declared that on the basis of what Fischer has already done failed to appear for the scheduled start of the match on Sunday he merits "unconditional disqualification." Spassky followed up ith a statement in Reykjavik saying he was not satisfied with the decision that allowed Fischer a postponement. That decision was made bv Dr. Euwe and FIDE. Continued from Page 1 reading about it. That's what they've done all along." The sponsors announced restrictions In movc-by-move and photo coverage of the 24-game match because the rights bad been sold.

Slater made his offer after the Icelandic Chess Federation's board rejected Fischer's demands for 30 per cent of the gate receipts. This would have amounted to considerable sums for both Fischer and Spassky because the match could last as long as two months. The original terms call for the winner to receive $78. 125 and the loser $46,875, plus 30 per cent for each of the income trom sale of television and photographic rights. Slater's private enrichment of the pot could be used to up the winner's prize to James D.

Slater More about Koreans take step toward reunification Wul PgiSj Homeowner's Jr 1 Supermarkets L) ImI lBUILDIHG MATERIALS CENTER Continued from Tage 1 be sought above all, transcending differences in ideas, ideologies, and systems." "In order to ease tensions and foster an atmosphere of mutual trust between the South and the North, the two have agreed not to slander or defame each other, not to undertake armed provocations whether on a large or small scale and to take positive measures to prevent inadvertent military incidents," it said. The communique added: The two sides, in order to restore severed national ties, promote mutual understanding and to expedite independent peaceful unification, have agreed to carry out various exchanges in many fields. The two sides have agreed to install a direct telephone line between Seoul and Pyongyang in order to prevent the outbreak of unexpected military incidents and to deal directly, promptly and accurately with problems arising between them. The Arizona Republic Published every morning by Phoenix Newspapers, Inc. (120 East Van Biiren) P.O.

Box 1930 Phoenix, Arizona 85001 Telephone 271-8000 Subscription Prices Carriers or Dealers in Arliona Republic (Morn. Sun.) 90c week Republic (Morning) 55c wk. (Circulation mail rates appear in the Classified sec-tion of each edition.) Second class postage paid at Phoenix, Arbe. Tuesday, July 4, 1972 Vol. 83, No.

49 The two sides have agreed to set up and operate a South-North Coordinating Committee headed by Lee and Kim in a bid to implement the agreement and solve various problems existing between them. The two sides have agreed to cooperate positively to seek early success of the south-north Cross talks now under way to help separated families reunite. The communique pledged that the two sides will faithfully carry out the agreement contained in it. The two Koreas began moves toward reconciliation in August last year when Choi Doo-sun, president of the South Korean Red Cross Society, proposed with government support a plan for reuniting It) million families separated by formation of the two nations. It was the first direct contact between the North and South Korean governments since the peninsula was divided along the 38th parallel when the war ended in 1945.

Officials of the two Red Cross societies held their first preliminary meeting Sept. 20 at Panmunjom truce village. Blast rocks office in Manila Romimitiom PHOENIX GLENDALE Widow rcbuys home to retain gardeners LONDON (AP) A 70-year-old widow sold her home for 80,000 pounds (S2C8.000) and bought it back a couple of weeks later for 86,000 ($223,000) because "I heard the six gardeners might have to go." Mrs. Dorothy i 's mock-Tudor mansion stands in 25 acres near Ipswich. 12'x16 MANILA (AP) An explosion rocked the American Express office here last night, the eve of the Philippine -American Friendship Day.

The explosion, which police believed was caused by a time bomb, shattered the glass panel in front of the office, located in the American controlled Philam Building. Philippine American Friendship Day is celebrated every 4th of July to mark the anniversary of the day in 1064 when the Philippines gained its final independence from the United States. Police said there were no injuries in the explosion but estimated the damage at about $10,000. 2626 East Indian School Road 51st Avenue and Northern Licensed-Bonded -Insured Financing Available PHONE 264-5908 2345 East Indianola BUDGET C0NSTR. CO.

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