The Baltimore Sun from Baltimore, Maryland • 1

mi 1 The Weather Windy and cold today, colder tonight. High, 40; low, IS. Yesterday's high, 38; low, 27. (Details and Map, Page D2) Vol. 284-No.

53-F FINAL 64 pages BALTIMORE, THURSDAY, JANUARY 18, 1979 15 Cents mm Hughes Bledges wit h.past New woes dog regime in Iran Minister, deputies quit; troops clash with students inh i i 1 i- i i I is maugura DONALD WMELMAN of The Sun Sun photo Jed Kirschboum the Maryland Court of Appeals, administers City seeks U.S. aid to spur harbor channel dredging By CFRASER SMITH By MICHAEL K. BURNS Sun Staff Correspondent Tehran, Iran-New troubles dogged the government of Iranian Premier Shah-pour Bakhtiar yesterday, a day after the nation celebrated the departure of the shah, as a key cabinet minister resigned, troops clashed with students in the south and parliamentary deputies resigned. Meanwhile, in a move designed to eliminate hard-liners who opposed the departure of Shah Mohammad Reza Pahlavi, the premier dismissed nine Iranian ambassadors, including Arshedir Zahedi, the shah's son-in-law and close counselor, the ambassador to the United States. The justice minister, Yahya Sadiq Va-ziri, resigned because he said he was unable to prosecute officials and prominent citizens charged with graft and corruption.

The prosecution of past corruption Even though the shah has departed, his palace and its staff await his return A6 The shah's departure signals a new phase of uncertainty in Iran AS has been crucial point in Mr. Bakhtiar's program. Mr. Vaziri said he delayed his resignation until the cabinet was approved by parliament this week. The foreign minister, Ahmad Mir-Fen-dereski, is also said by reliable sources to be considering resignation over the premier's strong attacks on foreign Communist infiltrators in the country that have caused diplomatic repercussions in neighboring Afghanistan and the Soviet Union.

Fifteen deputies of the Pan-Iranian party submitted their resignations to the speaker of the lower house, party sources said. The legislators, who voted against the new government, said the present atmosphere was not suitable for fighting the national cause, an authoritative newspaper reported. Another group of nine deputies sent a letter to the speaker, Javad Saeed, asking for a special session of the Majlis (lower house) to decide on collective resignations in response to a call by Ayatollah Ruhol-lah Khomeini, the exiled opposition leader, for the house to dissolve itself. The ayatollah, a Muslim religious leader, said in Paris that he would delay his promised return to Iran until an opportune moment, apparently, dimming hopes that he would fly back by this weekend. But that decision provided the government no respite, as strikes continued to enforce worker demands for the dissolution of the Bakhtiar cabinet.

In the southern oil city of Ahwaz, there were reports yesterday of troops firing on demonstrators on the university campus. See IRAN, A6, Col. 4 the oath of office to Governor Hughes. negotiations have been going on witn tne city. The amount of investment that might be necessary, he said, also will depend on the growth of the port.

He left no doubt that he believes the potential for substantial growth is great. "I look for a 300 to 400 per cent increase in the next 5 to 10 years," he said. "And nowl, we can't handle it. We're sitting here rather frustrated." In 1978, he said, there was an increase of 27 per cent increase over the previous year in the number of containerships arriving in Baltimore. It is these ships, drawing between 26 and 32 feet of water, that comprise the bulk of the ships now out of reach for the Key Highway yard.

With completion of dredging at the Chesapeake and Delaware Canal, Baltimore will become an even more attractive port, he predicted. Ships will be able to cut 12 hours from the 24-hour round-trip up and down the bay, he said. The savings of time is made considerably more attractive by the reduced fuel consumption, he observed. Right now, he said, the Key Highway See BETHLEHEM, A10, Col. 6 Judge Robert C.

Murphy, chief judge of Carter warns Hanoi, Soviet on Thailand By HENRY L. TREWHITT Washmylon Bureau of The Sun Washington-President Carter yester- day warned Vietnam and the Soviet Union away from Thailand and appealed to an exiled religious leader to support the fragile new government in Iran. There is no evidence that Vietnam, which is supported by Moscow, intends to threaten Thailand following its conquest of Cambodia, the President said. But gen- eral concern that Vietnam will dominate Indochina strategically, with or without direct pressure on Thailand, is growing here. Regarding Iran, Mr.

Carter urged Ayatollah Ruhollah Khomeini, exiled in France, to give the government of Shah-pour Bakhtiar a chance following the departure of Shah Mohammad Reza Pahlavi. The ayatollah the word is a Muslim title -has declared that the Bakhtiar government must fall to permit creation of an Islamic state. The administration privately encouraged the shah to leave Tuesday on what was formally called a vacation, hoping that would end the turmoil of recent See CARTER. A7, Col. 1 By TIMOTHY M.

PHELPS ud Annapolis Bureau Annapolis-Promising to break com- pletely from the state's corrupt past and replace it with honest and independent leadership, Harry Roe Hughes confidently assumed office yesterday as Maryland's 57th elected Governor. Chief Judge Robert C. Murphy, of the Court of Appeals, administered the oath of office to Mr. Hughes and his lieutenant governor, Samuel W. Bogley 3d, in the marble-walled chambers of the state Sen- Mayor's unit with to meet Hoffberger By S.EN MICRO Mayor Schaefer's ad hoc committee to buy the Orioles has decided to move swiftly in the race with William E.

Simon for the franchise. The committee will meet with Jerold C. Hoffberger, the Orioles' board chairman, this morning, and the parties are expected to get down to specifics of the $12 Baltimore Baseball Club, isn't selling much stock these days All million proposal that was outlined in The Sun yesterday. Under the proposal, Max Fisher and Alfred Taubman, a pair of millionaire Detroit businessmen, would reportedly emerge as the principal owners of the Orioles. The two men apparently are committed to keeping the team in Baltimore for a minimum of five years.

Mr. Simon, a former secretary of the treasury, whose bid for the club seemed temporarily stalled yesterday, has indicated that he would schedule 13 Oriole games in Washington in the coming season. Sources close to the negotiations say the two Detroit men would put up approximately $6 million and Mr. Hoffberger and two or three other Baltimoreans would contribute $2 million. The remaining $4 million would come from about 30 members of the local group that was formed two weeks ago.

Both Mr. Fisher and Mr. Taubman were out of their offices yesterday and did not return reporters' phone calls. Neither is expected to attend today's meeting. While the meeting indicates that local See ORIOLES, A8, Col.

1 creases for health care is essential to controlling inflation as a whole, the White House insists. In the last 27 years, the nation's hospital bill has jumped from $3.8 billion to $55.4 billion-a 15-fold increase-while the gross national product increased only 6-fold. With hospital costs doubling every five years, the growth rate if unchecked could lead to hospital expenditures of $220 billion in 1985, according to a report released by Senator Gaylord Nelson In the last two years, the increase in hospital costs was nearly double that for other necessities of life, including food and shelter, the report said. But while repeating these arguments, White House aides concede that hospital cost containment has no chance unless it is more flexible than the 9 per cent mandatory cap which has been killed in Congress two years in a row. Although the White House is still draw-, ing up its new cost containment measure, a Carter aide said the bill will probably give hospitals a limited period of time in ical.

The Conservative opposition is not rushing in eagerly to push over Mr. Callaghan even if they could. They are standing back and sniping, letting Labor ministers try to handle the institutional power of the trade unions that are no longer under economic, legal Analysis or political control. Or for that matter, neither is union power in the control of the leaders of the movement from the evidence of the past several weeks. Neither major party has come up with any feasible or effective set of proposals to control runaway union power.

Whether Britain is ready to spring into uncontrollable inflation is still questionable. Denis Healey, the chancellor of the exchequer, has promised the most stringent financial controls and possible tax increases. What is certain is that Mr. Cal- ate. At 12.05 P.M., Judge Murphy told Mr.

Hughes, "You are now the Governor." Following that ceremony, Mr. Hughes and his official party moved to a covered platform on the back lawn of the State House, where he delivered his inaugural speech to a crowd of more than 1,000 supporters bundled against the damp cold. The speech, stressing his philosophical ideals more than his concrete promises, borrowed heavily from the rhetoric of reform that characterized his insurgent gubernatorial campaign. "This ceremony marks more than a transition," the 52-year-old Governor, dressed in a formal morning coat, silk as- Marvin Mandel, shrugging off his ostracism from the inauguration, has "no Dl Text of Governor Hughes's inauguration speech D8 cot and striped trousers, told the audience. "This administration will be different." "Our approach, our actions, our attitude will be different.

The atmosphere of our government and our state will be different." Mr. Hughes vowed that "the people of Maryland have had enough political manipulation; enough unfulfilled promises; enough scandal, shock and shame." Hughes's predecessor, Marvin Mandel, whose political corruption conviction was overturned by a federal appeals court last week, was not present to hear the new Governor's indictment of the past. Uninvited to the inauguration, he quietly slipped out of the State House a few minutes before the ceremonies began. Joined by his wife, daughter and a couple of reporters, he went to the nearby Hilton Hotel, where he toasted the end of his term with a cup of coffee and a glass of champagne. With Blair Lee 3d, the former acting governor, sitting a few feet behind him on the tent-covered platform, Mr.

Hughes bade a final farewell to the Mandel era, telling the audience that "there is nothing to be gained by continuing under the shadow of collective guilt. There is everything to be gained through positive leadership." He then went on to pledge that the Hughes administration would set "an example of moral conduct which is beyond reproach. The highest standard of ethical conduct will begin with the Governor and permeate throughout the state service," he promised. The day began for the Hughes family with a quiet breakfast in the Governor's Mansion, which Mrs. Hughes now insists be called by its proper name, Government See INAUGURATION, A15, Col.

4 which to reduce their costs voluntarily, with the threat of stand-by controls if they fail. The White House is taking over chief lobbying responsibility from the Department of Health, Education and Welfare, under the direction of Secretary Joseph A. Califano. Last year members of Congress and their staffs complained strenuously about Mr. Califano's lobbying efforts, which they regarded as strident and inflexible.

But even with the administration's new awareness of the political realities it faces, chances for passage of a hospital cost containment bill still must be considered slim, many observers say. "The White House is better organized, and I think it has a better sense of how important it is to be open to some sort of compromise," said a congressional aide. "But they are facing a powerful lobby, which has been engaged in a continuous process of influencing members." The giant health care industry, which employs 2.4 million workers, has already started See HOSPITALS, A8, Col. 1 Britain laghan's guidelines of 5 per cent are dead. Even hints that the government might agree to 10 per cent are not seriously considered in bargaining sessions.

The truck drivers have already rejected offers of 15 per cent and privately many trucking firms have shown a willingness to settle for 22 per cent. Tuesday night, Mr. Callaghan pleaded with the truckers to accept what they had already rejected. "You have had a better deal than could have been expected, and you should now go back to work," he said. Settlements of over 20 per cent will mean by the end of the year that Mr.

Callaghan's goal of keeping Britain in single-figure inflation is all but dead as well. "Wage settlements of 20, 25 or 30 per cent are the road to inflationary ruin," he said. If the truckers win better than a 20 per cent claim, then there are equally powerful unions that are unlikely to sev See BRITAIN, A4, Col. 1 To save his bill, Carter may soften his demand for hospital cost controls ft a- II tl i 7 fM If t- (y, ofv I i '--r -r if y-Ayi i lit vtNi! tf k.J --rwinirir rt. f-- a.

afifTr-r vMiiiiWiinWirrn 1 tmrwimiii m. -mm A potential $15 million government- business partnership which could double the flow of work to the Bethelehem 5teel Company's Key Highway Repair Yard and increase employment there by 700 persons was announced yesterday by Mayor Schaefer. Mayor Schaefer said the city will ask the federal Department of Housing and Urban Development for a $3 million Urban Development Action Grant which would lead to -a further investment of about $12 million by the giant steelmaker. The money would be used to deepen the approach channel to the Key Highway facility and expand the yard's repair capabilities. Bernard Berkowitz, the Mayor's physical development coordinator, said the company's local management has given its general assent to the project but must obtain final, official approval from its headquarters.

Milton H. Leubecker, manager of the Key Highway yard, said last night that he could not comment on the exact amount of investment reportedly being contemplated by his company but he confirmed that over Syria ened their SAM antiaircraft missiles by about 30 per cent in recent years but, in the meantime, the Israeli forces are thought to have been sharpening their tactics for punching through the ring of Soviet-built SAM's to provide a safe corridor through which their planes could pour. The Syrian Army suffers from having many of its tanks, trucks and other equip-: mcnt in rundown condition, having not been well maintained and showing it. "If you cannot maintain a six-cylinder truck See SYRIA, A2, Col. 2 Index Bridge C3 Movies C18 Business All Obituaries A10 Comics C19 Shipping Crossword C19 Bl A16 C15 Lotteries B6 Weather 4 sections By LYNNE OLSON Washington Bureau of The Sun Washington-President Carter is expected to weaken his earlier demands for mandatory controls on soaring hospital costs in order to boost the chances of new legislation, White House aides acknowledge.

At the same time, the White House has decided to take the lead in the fight for a new hospital cost containment measure, still considered a crucial part of the President's anti-inflation package. "It's going to be a real battle, so we decided to bring it in here," said a presidential assistant. "Given the degree of difficulty we're facing, it's going to take everything we have." With those decisions, the White House has begun preparing for the next round of its long, bruising fight with the powerful hospital industry over cost containment. Since the struggle began in April, 1977, when Mr. Carter first proposed a 9 per cent lid on hospital costs, the industry has won almost every point.

Reducing the rate of runaway price in Joyful crowd rides on an Army truck In Tehran, Iran, on the second day of demonstrations following the shah's departure. Israel i spy flights Reported Ghost of '74 haunts point to decline of Damascus as a threat By PETER J. KUMPA London Bureau of The Sun London -In 1974, the power of Britain's trade unions was turned on to cripple the country's economy, send its work force into a three-day week and led to the defeat of a Conservative government. High wage settlements piled on to an easy money policy of the Tories then touched a spiraling inflation of more than 25 per cent a year. The ghost of 1974 has returned.

Once again, the power of the trade unions is being used to strangle the economy. Five years ago, it was the miners who flexed their muscles, now it is the turn of the truck drivers of the giant Transport Workers Union. The national strike of the drivers, made effective by extensive picketing and made annoying by secondary boycotts, is slowly closing industry down. Whether this strike brings down the minority Labor government of Prime Minister James Callaghan is problemat By DOUGLAS WATSON Sun Staff Correspondent Damascus, Syria-Israeli military air-, planes regularly fly over Syrian territory, according to a well-informed and neutral diplomatic source here. The Syrian government is aware of the frequent overflights by Israeli Phantom jets equipped with highly sophisticated cameras that film this country's ports and military bases, the diplomatic source said, but it does not attempt to shoot the planes down for fear of setting off a war This is but one example among extensive evidence that drspite official pronouncements made both here and in Israel, Syria in recent years has declined as a military threat to Israel and is trying hard to avoid any conflict, knowing it would be the loser This is not the impression either of these bitter enemies are seeking publicly to convey.

Syria is proclaiming its inten tion to create a unified military command with neighobring Iraq that, theoretically, would more than double the forces that sometime in the future could be hurled at Israel across the Golan Heights. Israel, on the other hand, recently has been warning that even if Egypt is neu-tralized through a peace treaty, the threat on its northern frontier has increased because Syria, Jordan and Iraq between them can, on paper at least, muster the equivalent of 16 divisions and 4,500 tanks. Contrary to such claims, neutral diplomatic analysts here say, is the reality of a Syrian Army that has neither improved qualitatively or quantitatively since its loss of territory in the 1973 Arab-Israeli "There has been no really new technology of any significance introduced since 1973" to add punch to the Syrian forces, one diplomat said. The Syrians are believed to have thick- it' sect.