The Baltimore Sun from Baltimore, Maryland • 1

1,1411 The Weather Mostly sunny and warm today, high 87. Chance of thunderstorms this evening and tonight, low 60. Yesterday's high, 86; low, 58. (Details and Map, Page B2) Vol. 77-No.

23-D THE Pyrolysis plant breaks air rules, EPA says: Bl 336 faes BALTIMORE, SUNDAY, JUNE 5, 1977 50 Cents i Governor cites his illness Will stand aside until 'fully able' to resume duties Foreign investment in U.S. up Instability abroad stirs new interest in American market Hi1 llf 1 AP AP Governor Mandel and bis wife, Jeanne, Lee, aristocrat and staunch Mandel ally, comes into power on political tightrope By STEVEN M. LUXENBERG Governor Mandel turned over the powers of the state's highest office yesterday to Lt. Gov. Blair Lee 3d, relinquishing control of the job he has resolutely retained through his political corruption trial and his recent illness, described by doctors as probably a "small stroke." In a letter to Mr.

Lee, the Governor said he was yielding the reins of government for "an unspecified period of time Text of Mandel's letter to Lee A 12 1 until I am pronounced fully able to resume the duties and obligations of my office." Mr. Mandel's letter stressed that his decision was prompted by his doctors, and that the decision as to when he will resume office "is solely that of my physicians." The letter gave no indication when Mr. Mandel, 57, would be well enough to resume the governorship, nor did it mention' his retrial as a factor in stepping aside. The second trial, which began Wednesday in federal court, continued yesterday with the fourth day of jury selection. Mr.

Mandel walked slowly and chatted wearily with reporters when he appeared in court yesterday for the unusual Saturday session, but he looked less fatigued than earlier in the week. Although the letter avoided discussing the retrial, Mr. Mandel has mentioned it as a factor over the past few days. Last Tuesday, he told reporters during an informal news conference that he might designate Mr. Lee as his temporary replacement if the trial proved too much of a strain.

"It would only be fair to myself and everyone else that I do that," he said, noting that a full trial schedule of five days a week would leave him little time to govern the state and recover from his illness. Since Mr. Mandel entered Prince Georges General Hospital April 5, complaining of fatigue and headaches, Mr. Lee has taken over as acting governor on a number of occasions primarily to sign bills approved by the General Assembly or to chair the Board of Public Works. Until Mr.

Mandel's recent illness, Mr. Lee's service as acting governor has been limited to times when Mr. Mandel has gone out of the state. Throughout his first trial, Mr. Mandel shrugged off all suggestions that he was unable to fight the corruption charges against him and still cope with the day-today rigors of governing Maryland.

After he entered the hospital, his wife, Jeanne, said, "We aren't even thinking about that right now," whenever a reporter brought up the subject of transferring power. Mr. Lee, 61, is himself a candidate for governor in 1978, when the state's voters will pick a successor to Mr. Mandel, who is serving his second term. The Montgomery county Democrat See MANDEL, A12, Col.

1 By GILBERT A. LEWTHWA1TE Washington Bureau of The Sun Washington A series of international political and economic developments is bringing a surge of foreign investment into the United States, now widely considered abroad as "the last bastion of free enterprise." "Right now, we are just about moving into a big crest of investment! in direct manufacturing," says Richard S. Roberts, a senior international investment specialist at the Department of Commerce. The increasing flow of foreign money into this country provides new jobs, increases local community tax bases, substitutes home production for imports and transfers technology to the U.S. "Once the money's invested, it stays here," says Mr.

Roberts. Foreigners already own 2,500 manufacturing plants involving 1.5 million jobs in the U.S., but this still represents only a tiny percentage of the commercial activity of the nation's 320,710 manufacturing enterprises, and the scope for expansion is virtually limitless. The Conference Board, a New York-based economic research organization, counted 66 announcements of new foreign investments here in the first quarter of this year, compared with 52 in the last quarter of 1976. Official federal figures for the first quarter will not be published until later this month, but George Kruer, of the Commerce Department's Bureau of Economic Statistics, said, "In terms of investment activity, new acquisitions, new announcements, things of that nature, it does seem to be rising." Economists agree that several factors are behind the increasing interest in the U.S. market, including comparatively lower costs, readily available resources and basic economic confidence.

The economically smooth transfer of power between the Ford and Carter administrations coincided with the following developments abroad to intensify foreign investment interest: The economic crisis in Britain, which has persuaded British businessmen to look for opportunities abroad (Electrical Musical Industries, a British record company, acquired Malco Plastics, of Baltimore county, this year). The increasing power of the Communists in both Italy and France, which has made the political stability of the U.S. more attractive. The achievement by the West German labor movement of the right to appoint workers' representatives on company boards, which has alienated many German executives, The threat of the separation of Quebec from the rest of Canada, which has increased the already established southern flow of Canadian dollars. One major foreign initiative was announced last week when Occidental Petro- See INVESTMENT, A4, Col.

1 confer with Lt. Gov. Blair Lee 3d (left), now the million Baltimore subway were "tainted" by a political friend of Mr. Mandel. As chairman of the Board of Public Worksan assignment he was given by the ailing Mr.

Mandel the lieutenant governor had to make important decisions on the controversial subway, including whether to hire a manager to oversee construction of the rapid-transit system. Victor Frenkil, the political ally accused by Mr. Hughes, wanted a share of the managerial contract. Last week, the Board Of Public Works decided to use state employees to handle the work, thus sidestepping the issue. But Mr.

Lee has had plenty of practice in dealing with controversial subjects. Mr. Mandel has often asked Mr. Lee to act as the Mandel administration's trouble-shooter, sending the lieutenant governor as the "bearer of bad news" to numerous state officials and citizens' groups. In the past, Mr.

Lee has described himself as "Mandel's man," a phrase born of political reality as well as a genuine respect for the Governor. Why is it a political reality? Because Mr. Lee has no power. Maryland's Constitution says that the lieutenant governor "shall have only duties delegated to him by the Governor." And Mr. Lee prides himself on the fact that unlike the situation in many state governments around the country there is a good working relationship between Maryland's top two elected officials.

The white academies acting governor, in Annapolis Tuesday But there is a world of difference between the political backgrounds of Mr. Mandel and Mr. Lee. The Governor came out of Baltimore's Fifth Legislative district, a stepchild of organizational politics controlled by men like Jack Pollack, Samuel Friedel anH Irvin Kovens. Mr.

Lee, by contrast, is a political aristocrat with physical features to match. He is a descendant of Richard Henry Lee, a signer of the Declaration of Independence, and his paternal grandfather was the first senator in Maryland elected by popular vote. His father, Col. E. Brooke Lee, was a See PROFILE, A12, Col.

2 Would-be robber breaks in, apologizes Unterpfaffenhofen, West Germany (AP) A holdup at a textile shop here ended when the would-be robber changed his mind, stammered an apology and fled. Police said the man forced his way into the shop late Friday, brandished a gun and demanded money from the 63-year-old storekeeper. The storekeeper opened his till, pointed to the $80 it contained and said: "Help yourself. But do you think it's worth it?" The robber mumbled, "Forgive me, please," jumped on his bicycle and pedaled away. I Britain's Prince Charles takes part in the final rehearsal of the Trooping of the Color ceremony in London, wearing his uniform as a colonel of the Welsh Guards.

still thrives By PETER J. KUMPA London Bureau of The Sun London This old and rambling city on the Thames has dolled itself up in flags, banners, pennants, in a haze of red, white and blue to honor Queen Elizabeth II in her Silver Jubilee Week. It is a carnival atmosphere with hotels stuffed full of tourists, the streets and parks crowded with the curious and thousands straining such facilities that are open on a four-day holiday weekend. In the residential districts, rich and poor, there are street parties by the thousands, giving an air of a continuous country fair. The occasional critics of the monarchy used to mumble that the main reason for having a queen or a king was that it helped promote tourism.

Whether they are Americans or Dutch, Germans or Japanese, tourists here must see Buckingham Palace, the red-coated troopers with their funny, fuzzy hats standing guard. They must do London Tower, or Windsor Castle, or some palace. Certainly one of them. With an estimated 5 million visitors here this week, royalty certainly does not harm commercial trade. But the outpouring of enthusiasm for the jubilee proves that the Queen is something far larger than simply the centerpiece for a tourist trade that is so successful that it is threatening to make London very unpleasant for the residents.

The monarchy is a necessary part of See MONARCHY, At, Col. 1 Moscow residents inspect newspaper Analysis Monarchy Britain HI I ftp Lt. Gov. Blair Lee 3d, who was named yesterday as acting governor, has been walking a political tightrope since Governor Mandel was indicted by a federal grand jury November 24, 1975. Although the Montgomery county Democrat is an unabashed candidate for the governorship-which will become vacant in 1978 whether Mr.

Mandel is convicted or acquitted Mr. Lee has tried to maintain a low profile for the last two years. His friends say Mr. Lee has no desire to appear eager at the expense of the Cover nor, who will be prohibited from running for a third term in 1978. But two months ago, when Governor Mandel was confined to a hospital bed with what doctors termed "a small stroke," the 61-year-old Mr.

Lee was thrust into the spotlight. Last week, after Mr. Mandel announced that he was considering a transfer of power, Mr. Lee told a reporter that he has ambivalent feelings about taking over as governor on the eve of the 1978 campaign. He admitted that he will gain additional exposure as he prepares to run, but he said, "When you're No.

2, you can be nice to everyone. When you're No. 1, you got to say no." Mr. Lee takes over as acting governor at a difficult time. Harry R.

Hughes, until recently Governor Mandel's transportation secretary, resigned that post and charged that contracts involving the $721 UPI seeks 'unity' dom of speech, press and organization -are subordinated to the social duty to contribute to a state purpose that is fully spelled out and enshrined in fundamental law. And, in the change that caught immediate attention, an organizational modification seemed to provide an opportunity for the Communist party, in the person of its See SOVIET, A2, Col. 4 mkji 4 I I 'T rK'h Court ruling has little impact By jim mann liberal Southern study group, placed the white supremacists in the South, William Washington Bureau of The Sun enrollment of the all-white academies in Simmons, the longtime president of the Washington-Last June, a ruling by the the South at 750,000. Citizens Councils of America-its motto is United States Supreme Court made it ille- Earl Edwards, the executive secretary "Racial Integrity States Rights" gal for private schools to exclude black of the Mississippi Private School Associa- says of the court ruling, "The practical ef- sturients solely because of their race. tion, a group of about 101 private institu- feet is practically nil." The ruling was the leading article on tions, says all the schools "now have open Essentially, there are two reasons that the frQnt page of almost every major admissions policies as a result of that the decision has had no impact.

First, the newspaper in the country. At the time, it courtl decision." When pressed, however, ruling contained several important loop-seemed that the decision might affect Mr. Edwards freely concedes, "I don't holes. And second, black parents, for un-hundreds of all-white private schools that know of any that are integrated. I haven't derstandable reasons, have been reluctant were established throughout the South in heard of any." to enter their children in all-white schools, the wake of the Supreme Court's 1954 or- in Alabama, Ken Mitchell, who heads a The court decision, written by Justice der to desegregate public schools.

similar private school association in that Potter Stewart, was extremely cautious. Those white parents who did not want state, told a reporter, "The court order The court was not ordering private their children to attend integrated schools didn't affect us one way or another I schools to admit black students, he em- admittedly were scared and outraged, don't think it's changed the outlook or phasized; it was merely holding that an "They really thought that this was it," course of our schools in any way." all-white school could not refuse to admit confides one Southern observer. in South Carolina, one education offi- a black student solely because of his race. One year later, it turns out that their cial reports that the all-white academies Thus, the court left open the possibility fears were unjustified. So far as can be de- "are bumping along In many places, that black applicants might be excluded termined, the court's ruling has had vir- they're a permanent part of the scene." on the basis of admissions exams, inter- tually no impact at all.

one of the most prominent remaining views, or similar requirements. The two small Northern Virginia pri- Furthermore, Justice Stewart made vate schools that were directly involved in I ndex clear that the private schools retained the the Supreme Court case have a few First Amendment right to teach whatever black students this year Bat interviews Art they wanted-including, he said, "the be- with numerous school officials, lawyers, Books D4.5 lief that racial segregation is desirable educators and avowed segregationists Bridge D18 (This part of the ruling clearly puzzled across the Deep South over the past two D13 Mr. Simmons, the avowed segregationist. months have uncovered not a single other Crossword. D13 "In other words," he says, "you can teach instance in which any segregated private Dance D3.12.1 6 it but you can't school has admitted even a single black Editorials K4 Finally, Justice Stewart wrote in a student as a result of the court ruling.

Financial K7 brief footnote that the court was setting Hundreds, perhaps thousands, of all- Lotteries aside for a later date the question of white Southern academies remain in exis- whether a private school might exclude tence. While precise figures are difficult Music blacks for religious reasons, such as the to obtain the number of students being ed- Obituaries A8.9 belief that the Bible teaches the notion ucated these schools is believed to be in Theater D6.I61 that blacks are inferior. the hundreds of thousands. One recent TV-radio That one footnote produced a flurry of study published by, the Lamar Society, a See SCHOOLS, A7 Col 1 i i i 19 Sections stand after publication of new Soviet Constitution, which replaces the 1936 version. New Soviet Constitution By HAL PIPER Moscow Bureau of The Sun Moscow Soviet ideologists long have spoken of the "monolithic unity" of the country.

Now, in the new Constitution published yesterday, they have tried to legislate it. Not only are class and social distinctions abolished, but also blurred are distinctions between governmental and social activity, between state and Commu nist party, and between party and society. The significance of national identity and the fictions of independent sovereign-: ty in the constituent republics have been played down in the elaboration of a stronger federal structure and a "new his-; toric community of people, the Soviet people." Social rights-such as employment, housing, medical care and others are extended; but civil liberties such as free-.