The Guardian from London, Greater London, England • 1

KIDCDE IVoonrtotsseursT cognac PACKAGE DEAL I BUILDIWa 1 FACTORIES. WAREHOUSES I AND DEPOTS I Far nWat Imm Our lind or your Jahn Plnf tl i. r. Manchester Wednesday July 5 1972 Meatli invite to nrffent TUC talks on pay By JOHN TORODE, Labour Correspondent The Prime Minister last night invited TUC chiefs to join Ministers in urgent talks on wage policy and industrial relations. But the Government has no intention of repealing or suspending the Industrial Relations Act as part of a package deal with the unions.

This the message Mr Heath gave the TUC General Council at a tense' session last night. At Downing Street, the union leaders refused to discuss anything except their demands for an end to the Act. This was the reason they had asked to see the Government. Mr Heath made it clear his aim was to establish an effective free collective bargaining system which would not have inflationary repercussions. Failing that, the had been imprisoned there would have been widespread stoppages throughout industry, including motor manufacturing, engineering, and printing, including national newspapers.

The unions were not concerned about picking out some Leaders of the Ulster Defence Association at a press conference in Belfast yesterday. Both are former members of the British army and the man on the right with the rank badges of a Lt Colonel is described as the military commander of the organisation. His cap badge carries the letters UVF Kind the words God save Ulster." The man on the left is a District Leader. Picture, Don McPhee. Report, back page.

country was faced with a decision between a' statu tory incomes policy or confrontation, accompanied by inflatipn. "No eovernment has ever got anything out of a policy of confrontation and the present Government would do its best to avoid it," Mr Heath said. He left the TUC leaders convinced that they had been warned to put their house in order rapidly or face the prospect of the State doing it for them. Ruf owonhiaiiv thov rfid aprpp to discuss "the aSwUMfti IS 5rffr pXnnomio foSL a Mw committee a week today. Among issues which Mr Heath wants thrashed out by a working party of Ministers and trade unionists are improved conciliation machinery, the problem of the lower-paid in dS; ntZ Lnrl of living, and the importance competltlve posltloxl Father defiant over ruling on Caroline From RICHARD SCOTT, VersaUles, July 4 Hll.bank.WMrWfc L.ncasmr., T.I 4211 Tal 4211 Dr Schiller Schiller offers to quit From NORMAN CROSSLAND Bonn, July 4 Professor Karl Schiller, the West German Economic and Finance Minister, has offered to resign -and it is expected that he will leave Herr Brandt's Government at the end of the week.

It was confirmed in Bonn tonight that he had written a letter to the Chancellor several days ago offering his resignation, but it had been hushed up because Professor Schiller still had an important role to play in the French-German talks which ended in Bonn today. Professor Schiller will perform his last official task tomorrow when he is due to sign a trade agreement between West Germany and the Soviet Union. It is expected that Herr Brandt will make an announcement about the resignation at a press' conference on Friday. The immediate reason for Herr Schiller's resignation is a decision taken by the Government last week to introduce a form of exchange control to stop the flow of speculative money into West Germany. He particularly objects to the measure making it' obligatory for' non-residents to 6eek permission before- buying fixed interest bearer bonds.

He regards this as a blow to the free movement of capital." Budget row Professor Schiller has often enough toyed with the idea of resignation. Only a few weeks ago, it was thought he would resign because some of his Cabinet colleagues refused to trim their budget estimates to his liking. His resignation is undoubtedly a setback for Herr Brandt's Government, especially so in view of the coming election. During the campaign of 1969, Professor Schiller was the Social Democratic Party's election locomotive," although his reputation has been tarnished recently by rising prices. Even so, many people still regard him as a defender of economic stability and as an opponent of social experiments.

The Left-wing of the Social Democratic Party, however, will not be sorry to see him go, as they considered that his policies had little in common with socialism. Mark Arnold-Forster adds At the time of the disagreement over the Budget it seemed that Professor Schiller had been defeated in Cabinet by his colleagues in a classic confrontation between the man in charge of the exchequer and the men in charge of the spending departments. This rift was of value to the Opposition, led by Herr Barzel, which holds a commanding position in the Bundestag because Herr Brandt's coalition no longer; commands an 1 absolute majority. The Government was thus unable, and still is not able, to gain parliamentary approval for this year's As Finance' Minister of the wealthiest; and in economic terms 4he most important member of the EEC, Professor Schiller's influence on European monetary and economic policies has been' considerable. It is unlikely, 'however, that Professor'Schiller's.

resignation will change radically the general of West German monetary policy in the international field. is ior uie oeueni oi me country The Confederation of British Government and unions. ana indeed the unions." It Industry has been' invited to Mr Feather was a tough would not be-repealed or sus-meet the Prime Minister on mood. He said that he had pended. But at the appropriate juonaay 10 aiscuss uie economic ioiu uie rrime uiai situation and.

if the TUC even- the aockers of Chobham Farm Turn to hack page, col. 4 France asks Britain to fix the pound From our own Correspondent, Bonn, July 4 minutes. Judge Nerault simply read- rapidly, and partly maudibly, the decisions he had reached. These were that Caroline should live with her mother in Newcastle, but that she should spend the first half of the summer, holiday and all the short holidays at Christmas and Easter with her father, who is obliged to contribute 500 francs a month for her upkeep while with her mother. Linda Desramault, who flew to France last night, remained today at Bethune, where her husband lives.

She declined to say anything to the press but, according to her lawyer, spoke to friends who were with her, that she was very moved by today's ruling. For the next few weeks, however, it changes nothing for Linda and she will have to return to Newcastle alone. Caroline will legally remain with Rene Desramault since the summer holidays officially started last Saturday. On August 7 Desramault will be legally obliged to send the child to her mother. He has the right to appeal and has said that he would certainly do so if today's ruling went against him.

The case would go to the Court of Appeal in Paris. It may be months therefore until mother and daughter are reunited. The British Government has been asked to make a contribution to the 'legal costs incurred by Mrs Desramault in her efforts to regain custody of Caroline. TV and radio Arts 8 Crosswords Finance Home 3-7 Leaders 10 Overseas Parliament ...16 Sport 19-21 Women 9 Theatre guide 16 Miners' new pay claim 5 Key issues for NIRC 6 CB1 on price restraint 13 Parliament 16 nt hrPak off 5iiJmJ7. iation with the SSlt Imnloyer S5fiw ar like to be f' orkme oartv asked t0 30m working party.

Meanwhile, discussions be- tween the two sides of industry ove' a system ef free from government interfer- ence wi connue- Mr Feather yesterday had talks on the subject with Mr Campbell Adamson. director-general of the Confederation of British Industry. After the Ministerial meeting yesterday, Both Mr Maurice he or Employment, and Mr Feather Pressed that there be instance, tentatively planned for mid-October in Paris is still in the balance. It. was agreed that at their meeting later this month, the Foreign Ministers of the Ten the six present members of the Community and the four, including Britain, who are due to join next year should prepare a realistic agenda for the conference, one which promised success.

Many observers had imagined that the meeting between Herr Brandt and M. Pompidou would determine whether the summit was to go ahead as planned. In the event, M. Pompidouu retains his veto, although he and the Chancellor agreed that summit conference was desirable. After his departure for Paris, there is a growing feeling here that if the summit does take place, the October date will not be met: No agreement Similarly there has been no agreement oh the problem of the location of the political secretariat of the enlarged Community.

The French want this to be Paris, the Germans Brussels. The West German Government spokesman. Herr von Wechmar, said vaguely that the secretariat remained an aim, but the present phase of political cooperation called for no drastic decisions. From this was concluded that the question was hot even discussed. Nor has anything been said about the.

proposed negotiations on a mutual balanced reduction-of forces. Clearly, the French remain sceptical about ftwn "eipiui io mem. mere is 9uest'n of anty horse-trading herf We want tnf ct re" or com- pietely," said. Mr Feather insisted that the unions were concerned with the national interest and not with the effect of the Act on them- selves. "Nobody can do any- thing to the trade unions that the trade union don't want them to do," he said firmly, BUt Mr Feather insisted that the umons recognised that there were problems.

"We have never refused to discuss them." Mr Macmillan commented after the talks The Govern- ft Evinced that the Art its prospects, while the West Germans wish to get a move on with preparations for negotiation. Summing up. President Pompidou said that they had had frank and honest talks and. this was something quite natural between two countries which were bound by the close ties of the treaty of cooperation. John Palmer writes The pound yesterday had one of its quietest days since the decision to float sterling on the international foreign exchange markets.

There was some selling of sterling both in London and in Europe in the morning, but the rate recovered in the afternoon and closed barely down on the day at $2.4190 a devaluation rate of just over 7 per cent One factor which was thought to have helped sterling was the June gold and currency reserves, which fell by $185 millions to $6,965 millions. This was less than had been feared, after the 1,000 millions Central Bank support operation for the pound mounted in the week before sterling was floated. But most of the cost of this operation will not be felt until the July figures are published early next month. The. dollar continued to meet substantial selling in West German and other currency centres in Europe.

The-East German Central Bank is believed to have spent about $600 millions in the past two days 'to hold the dollar rate against the mark. Richard -Norton-Taylor, page 2. Leading article, page 10. making any arrangements. other special The Vice-Chancellor confirmed that there, were no constraints on numbers of.

students aged more than 21," apart from demand which appears now to be flattening5 out at around 28,000 applications, a year and financial which would soon have to be negotiated for 1974-77. The university, which is expecting to take 16.500 students next January, will nave a population of nearly 40,000 next ApriL The agreement with Mrs Thatcher's department marks Under doctors' orders JACKIE STEWART, reigning world motor racing champion, will cut his racing programme by half for the rest of this season on medical advice, it was announced last night. Stewart will concentrate on driving the Tyr ell-Ford in his world championship battle with Emerson Fittipaldi. Eric Dymock, page 20 ANGRY motorists are claiming compensation after more than 30 cars got. stack in melting tar while driving over newly surfaced sections of road in Caverswall, near Stoke-on-Trent.

Staffordshire County Council closed the road yesterday and took samples of the bitumen for analysis. INGRID KRAUSE, aged 34, a West German visitor to Ragusa, Sicily, has been fined 10,000 li.ra (6.67) for "sitting in a "public place in' an attitude contrary to publfc decency by having legs crossed so as to show, the left thigh entirely nude." THE ROY AE COLLEGE of Psychiatrists s'sdd yesterday it hoped the' Graham Young case would not lead to "undue modification" in the treatment of mentally disturbed offenders. The college said it- would discuss the ma'tter, and present its views to the committees', set up by Mr Maudling, but emphasised that Mr Young's case was one of "extreme. rarity." WEMBLEY. STADIUM is to be used for a major pop concert.

A spectaeular" is being staged next month' by Ron and Ray Foulk, who ran the two Isle of Wight pop festivals. The -concert will -start at noon on August 5, and' end at midnight. RIO TINTO-ZINC has completed Its copper drilling in Snowdonla national park. A company spokesman said 'last night that mineral samples were being 'analysed; they had been devaluated no-decisions about further applications for drilling; consent could be taken. the end of one phase of a well-publicised debate on the pur-, poses and future 'of the' Open University which -was instituted by newly-elected Conservative Government 'tw o.

years ago. By insisting that one half of the experimental group consist of those iwho may have left -school without any qualifications, the university can claim to have kept faith -with its radical, second-chance 'aims. Referring possibility of unemployed teenagers joining, Dr Perry( said "1 think that many local authorities dealing with: unemployed 18-year-olds accepted, by Us would be sympathetic to giving them a grant" Mrs Linda Desramault was awarded conditional custody of her 27-inonth-old daughter, Caroline, today by Judge Francois Nerault of the Versailles court. But her husband, with whom the child has been living, said later that he would never give her up. This is the third custody award in the 18 months, during which the Frencli father, Rene Desramault and the English mother have been contesting the case before the courts in England and France.

After today's announcement, Mrs Desramault's lawyer claimed that it represented a major step, even, if it was not the end of the case. Not only is it assumed that Desramault will appeal against today's decision, but Judge Nerault postponed a decision on the couple's ddvorce until further inquiries have been made here and in England. Neither of the parents nor any member of their families was in court this afternoon. The whole affair lasted only a few Spassky's turn to object From MICHAEL LAKE Reykjavik, July 4 There was further delav in the start of the World Chess Championship here tonight, but there is every likelihood that the match will start on Thurs-' day evening, five days late. After this morning's belated arrival by the American challenger, Bobby Fischer he spent the rest of the day sleeping in a private-villa the Soviet champion, sup ported by the Soviet Chess Federation, accused Fischer and the president of the International Chess- Federation, Dr Max Euwe.

of wreckih the match. This evening, however, Dr Euwe announced that both sides were willing to play. He also said that he would be readv to intervene on Thursday if either man refuses to play without a medical The rules. governing the; start of the battle have been abandoned so that Fischer could be persuaded with more money to come to Iceland. The Russians have now shown their disapproval of this.

Their statement at lunohtime today had all the earmarks of Soviet propaganda. It said that unless the rules were again being obeyed by noon everything was off. It appeared that Spassky who is on a very-tight rein from Moscow had been told to await -Fischer's arrival before threatening to walk out or actually leaving. The Russians blamed Dr Euwe for failing to disqualify Fischer when he did not arrive on Sunday and they apparently, asked that be be disciplined although hov this exercise should be carried out was not made clear. Fawn in a panto, page 11 We'lltake good care of you to Chicago.

President Pompidou today made an implied but clear demand that the pound be returned to a fixed exchange rate before Britain joins the Common Market on January 1. In a brief statement at the end of the talks here, the President said that "our" basic aim. remained European economic and currency union, and the doctrine for this was established in the agreement of March 21 (whereby the EEC countries undertook not to allow fluctuations in exchange rates of more than 2.25 per cent. That naturally meant, he said, that fixed exchange rates must be maintained and those countries which had departed from fixed rates must return to them. This was the indispensable basis for the establishment of economic and currency union, and this basis must be created before the enlargement of the Community could finally take place.

President Pompidou made his statement as he stood oh the terrace of the Chancellery beside Herr Brandt. The Chancellor had said that there was reason to be satisfied with- the outcome of their meeting. This time, be added, they had devoted particular attention to the building of Europe. As to the difficult questions concerning currencies, there had been close agreement. In spite of public statements of satisfaction, there is little evidence that the meeting had been an.

unqualified success. The-fate of the proposed EEC summit conference, for By RICHARD The Vice-Chancellpr of the university, Or Walter, Perry, denied yesterday that it was compromising its role for students by taking part in this project. There isn't any wedge in doing an experiment, and If is not fair, to assume that it will he Department of Education and Science will grant 40,000 in addition to its annual grant of some 8.5 millions to enable' the university to take these- students, and it will finance a monitoring study to see how they fare. A debate has already begun witJiui Uie university on. bow a it Ounxm-stop 7471eaves at University at 1 8 without O-Ievels 2pm.

Everyday. BOURNE, Education Correspondent Unemployed 18-year-olds with no levels will have the chance to study part-time, for a degree through the Open University, under the terms of its--long-awaited agreement with Government. for an experiment with students under5 the age of 21. A pilot project, starting in January 1974; was.accepted yesterday, by the university's' council- and Places'' wiH, be made available for 250 students aged ,18 to 21 who conven-tional; A level qualifications, and for; another 230:. without.

Another 500 'students' are likely to join in 1975 on the same basis. the experiment should be set up those aged 18 to 21 may all come frtmV one area, for instance, and among the A level entry there may be an attempt to balance those with A and E. 1 Dr Perry, emphasised; that this experiment was 'an tunitv to test whether a significant demand existed- for part-time degree facilities among the under' 21s the university has had some inquiries-in the past and to" see whether the Open systems were, suitable for them. The University is not. offering any financial discounts to the under 21s, nor if it ISO AC.