The Honolulu Advertiser from Honolulu, Hawaii • 1

Atfwraser The Hawaii's Prizewinning Newspaper Today is Friday, Feb. 25, 977 Honolulu "'j' 4 f' tJLntx j. it, to Zf" Zs. rTf (T 4 Hawaii Coffer prices climb, In this week's survey of the cost of food at supermarkets Pages A-8, 9 Two men alleged to' be hiding out on on Kahoolawe are spotted on Kauai by police PigeA-11 Gambling charges against 39-persons playing bingo at Kai-muki Cue have been dropped PageA-11 Political contributions and the awarding of government contracts in Hawaii have a considerable link, legislators are told Pge A-13 Only the stern of the Hawaiian Patriot was visible through a thick cloud of black smoke when Advertiser photographer David Yamada took this shot yesterday. dies 1 ameer in agony ot tire The Nation Plane rams Into home in.

Pennsylvania and kills nine, including a state official and a Republican leader Page C-l E. Howard Hunt, bitter after 32 months in prison for masterminding Watergate burglaries, calls Nixon a "very lucky man" Page B-7 Washington Public works amounting to $4 billion, which sponsors say will create 600,000 jobs, receive approval of House PageC-6 Atty. Gen. Bell would like to question James Earl Ray about the murder of Martin Luther King Jr. Page D-l The World Letter to Willy Brandt from Carter attacks reports linking the former West German chancellor to CIA financial deals Page B-4 Soviets denounce exiled dissident Vladimir Bukovsky as "scum" and accuse Americans of feeling a need to "court-imported criminals" Page D-l Editorial Carter's budget calls for increases that worry some in business circles Page A-14 Money Matters Annual bond borrowing will be restricted by the State Administration Tage D-3 The Index 6 sections, 64 pages due west of Honolulu yesterday.

The 39th crew member reportedly jumped into the blazing oil slick and is presumed dead. Others received minor injuries as they abandoned the ship and were rescued by the vessel Philippine Bataan. The Hawaiian Patriot had been carrying 30 million gallons of light crude oil from Indonesia to the Hawaiian Independent Refinery at Barbers Point on Oahu. Lt. Cmdr.

F. N. "Rick" Gallien, pilot of the C130, compared the scene to photographs he has seen of Pearl Harbor. "Flames were shooting about 5,000 feet when he received a radio call from the Philippine Bataan that "the crew of the Hawaiian Patriot had all gone overboard and the vessel was in flames." The pilot looked down and saw black smoke billowing from the ship. "The smoke was so thick we couldn't even see the ship, just the bow portion," he said.

Jones said that after an hour of searching only two men were missing and that nearly two hours were spent finding the final crewman, who was clinging to a partly inflated life raft dropped from the aircraft. As soon as the first survivors were spotted, the back ramp of the C130 was opened and life-saving gear tossed out. Gallien said his crew "started throwing things out of the airplane rafts (six of them), flotation gear, anything that floats." The pilot said crew members could feel heat from the burning ship, which had 25 million gallons aboard when it caught fire. Five million gallons had already spilled. Jones said the skipper of the Philippine Bataan, which reportedly See BLAST on Page A-4 Medicare and Catch-22 into the air and smoke was billowing.

Fire engulfed the entire vessel," he said. Bob Jones, a Coast Guard public vjnformation officer making the flight, said, "It was the biggest fire I ever saw." Jones said the C130 immediately started down from a climb it was making to reach an altitude where the plane could conserve fuel. He said there was "heavy black smoke, thousands of feet up. Then someone saw a life boat, and then other bodies in the water." Gallien said the plane was at and Ernst, an auditing firm, put the overpayments at $656,921. But a May 14, 1975, letter from HMSA treasurer E.C.

Yue said an Arthur Young audit conducted later "indicates lack of supporting documentation for the Ernst and Ernst report," Amemiya said. He added that HMSA supported the Arthur Young assessment that $356,000 was a reasonable amount to settle on. The Advertiser has learned, however, that the Arthur Young report was commissioned by Pack and provided to HMSA. In addition, among those listed as bogus employes of Hale Nani in the original Ernst and Ernst audit was Alice Kadawaki, wife of Gordon By BRUCE BENSON and JAKE WILLIAMS Advertiser Staff "Ship's on fire! Ship's on fire!" yelled a crewman aboard a Coast Guard C130 monitoring the laborious progress of the disabled oil tanker Hawaiian Patriot. Those words launched a three-hour rescue effort in the sea surrounding the fiercely burning vessel.

A merchant vessel picked up 38 survivors of the supertanker Hawaiian Patriot after the Liberian vessel exploded, burned and sank 370 miles Ronald Amemiya $356,000 proper" Why State didn't prosecute Pack course of developments: The State first became aware of the Hale Nani situation "early in 1972," when it learned that the U.S. Department of Health, Education and Welfare and the U.S. Attorney's Office were investigating. Because both agencies were already involved, he said, "we didn't feel it necessary to pursue a criminal investigation. We had no reason to believe they wouldn't take appropriate action when it became necessary." Then, Amemiya went on, "in mid to late '74" the office learned the Federal agencies were having a See WHY on Page AS Kadawaki, a ranking executive at Arthur Young.

That audit found that $2,400 had been received by the home for payment to a "registered nurse" named Alice Kadawaki. When asked why his office accepted the $356,000 figure from HMSA, Amemiya said he "didn't realize" that a possible conflict of interest existed between the Kadawaki payments, Arthur Young Co. and Pack. "We would have looked at it with a jaundiced eye," Amemiya said. "Definitely." In justifying his office's decision not to seek prosecution of Pack, Amemiya traced the following 1 ii 1 mi 1 1 miiiiniM Hansen silent at Council By JOHN C.

GIVEN Advertiser Staff Writer A statute of limitations problem was cited by Atty. Ronald Amemiya yesterday as one reason the State did not prosecute Woon Yoon "Bill" Pack for Medicare Medicaid abuses at Hale Nani Nursing Home between 1968 and 1971. Rather, the State decided to "settle" with Pack for about $356,000 in back payments, a figure recommended by the Hawaii Medical Service Association (HMSA), the fiscal intermediary for Medicaid and the State. An earlier audit of the Hale Nani home conducted for HMSA by Ernst those involving Hansen's identity or address. At the outset of the hearing the first since last November Hoddick asked the committee to delay the proceedings until a related legal issue is resolved by the State Supreme Court.

That Supreme Court case was spawned by Hansen's refusal to answer the questions the first time he appeared before the Council committee May 20. 1976. At that time Hoddick questioned the Council's authority to conduct an investigation into the City-sponsored Kukui Plaza urban renewal project. The Council took Hansen and Hoddick to Circuit Court over that issue and won, but Hansen has appealed to the Supreme Court, which has yet to decide the case. Yesterday Hansen refused to answer a handful of questions, centering on the original selection of his Ann Landers E2 Bridge C8 Capitol Calendar A13 Classified ads D7-16 Comics C8 Crossword puzzle C8 Editorials A14 Entertainment E4-7 George Daacon A3 Horoscope C8 Letters to the editor A15 Money Matters D2-4 Ms.

Fixit A6 Obituaries E8 People El-3 Sports Fl-7 Stocks D2 Television'log C3 Tides A6 Wayne Harada E4 Weather A6 By JAMES DOOLEY Advertiser Government Bureau Some nine months after his first appearance before the City Council, Kukui Plaza developer Hal J. Hansen reappeared yesterday, but again declined to answer questions, invoking the Fifth Amendment. On the advice of his attorney, Howard Hoddick, Hansen invoked the constitutional right against self-incrimination, guaranteed under the Fifth Amendment to the U.S. Constitution. He invoked that right even in response to the question: "When did you come to Hawaii?" put to him by Council attorney James Leavitt.

Hoddick told members of the Council's Kukui Plaza investigating committee he had instructed his client to cite the Fifth Amendment in response to all questions except firm as Kukui Plaza developer by Mayor Frank F. Fasi's Administration in 1971. When the Council realized that no answers would be forthcoming, Hoddick and chief Council attorney Brook Hart agreed during a recess that the Council would submit the questions in writing to Hoddick and Hansen. If Hansen finds all the questions objectionable, he will inform the Council and the Council may then take the issue to court if necessary. Hansen was accompanied to the hearing yesterday by two employes of the State Attorney General's Office, Lyle Dupont and Logan Ng.

They have been providing bodyguard services for him since he began negotiating with the State last month for immunity from prosecution in return for his testimony before the Oahu grand jury. i The scene was reminiscent of Council hearings last year when chief witnesses Joe Zbin and Elea-nore Shinno were accompanied into the committee room by burly bodyguards hired by the Council. Hansen founded the firm that developed Kukui Plaza, Oceanside Properties, in the 1960s and served as its president until April 1976. Kukui Plaza, a 908-unit condominium commerical mall project in downtown Honolulu, has been the subject of intense scrutiny since early last year. The City Council began hearings on the project last May.

Federal grand jury proceedings involving Kukui Plaza and Hansen began last November. Grand jury proceedings related to a separate State inquiry are scheduled to begin, in mid-March. v- tday's chuckle This is a land of great opportunity wMcfc is why we bave so much trouble finding public servants with no conflicts of interest. Hal J. Hansen Takes the Sth.