The Baltimore Sun from Baltimore, Maryland • 1

THE i The Weather Chance of rain or freezing rain today, high 36. Rain likely tonight, low, 30 to 32. Yesterday's high, 54; low, 34. (Details and Map, Page Cll) SUN FINAL Vol. 274 No.

53 BALTIMORE, FRIDAY, JANUARY 18, 1974 Kb Pages 10 Cents Israel. Egypt ree on suez puiiqacK 9 Agent testifies on tapes Nixon aides said to ask if Dean knew ml vr 7 f-v L-MmI- LrLn AP By MURIEL DOBBIN -Washington Bureau of The Sun Washington A White House effort to find out whether John W. Dean 3d, former presidential adviser, knew about the elaborate system of tapes in the executive mansion was disclosed yesterday by a Secret Service agent testifying in United States District Court. According to Louis B. Sims, chief of the technical service branch of the Secret Service, in April, 1973, after a public announcement by Mr.

Dean that he would not le made a "scapegoat" in the Watergate scandal, a White House aide asked questions about the former legal counsel's knowledge of the taping system. This concern on the part of the White House regarding Mr. Dean's awareness that all presidential conversations were recorded arose shortly after the legal aide had been dismissed from his post by President Nixon. Henry A. Kissinger, Secretary of State, leaves the King David Hotel in Jerusalem with Yigal Allon, Israel's deputy prime minister (center) juid Simcha Dinitz, Israel's ambassador to the United States (left).

fpS I 1x2) U.N. force would act as Sinai buffer From Wire Service Israel and Egypt have reached an agreement on disengagement and separation of forces along the Suez Canal, but details of the accord, which was worked out by Henry A. Kissinger, the United States Secretary of State, will not be announced until later today. Announcement of the agreement was made in Washington by President Nixon and simultaneously in Cairo and Jerusa-. lem.

It will be signed at noon today A.M. EDT) at Kilometer 101 on the road from Cairo to Suez city, where the initial talks began. Angry reaction from Syria Syria reacted angrily to the agreement and sources in Damascus said the government was likely to break off diplomatic relations with Egypt. The political leadership of the National Front, which groups the ruling Baath Arab Socialist party and several other parties in Syria and is headed by President Hafez el Assad, was called into immediate session following the announcement of the disengagement accord, the sources The sources said the Syrian authorities regarded the agreement -as a "unique page of treachery against the Syrian people and Army and against the whole Arab nation" and consider that "this unilateral agreement will only lead to the liquidation of Arab interests as a whole and the liquidation of the Palestinian question in the interest of world Zionism." Prime Minister Golda Meir of Israel and President Anwar Sadat of Egypt will sign separate disengagement pacts to confirm the accord, a senior United States official in Jerusalem disclosed. But the official said the Israeli and Egyptian leaders would not meet face to face.

The U.S. official said the text of the Meir-Sadat document-will be in the form of a proposal by the United States. There was no indication when the two leaders would sign. Yesterday's agreement came after the disengagement talks were transferred to Geneva, where they seemingly stalled, and Dr. Kissinger began a week of shuttling between Israel and Egypt a week ago.

This is the first agreement between an Arab government and Israel in 25 years of acrimony and bloodshed including 4 wars in the Middle East. Kissinger settled final details Abba Eban, the Israeli foreign minister, said at a news conference in. Jerusalem yesterday that the final details had been worked out by Dr. Kissinger and. that there is no need for further talks about disengagement in Geneva.

This should clear the way for the broader issues and a full settlement, which is the object of the Geneva negotiations. The military details of the accord will be handled by the commanders of the respective sides at Kilometer 101. Although there were no defined, official details of the agreement that was won by Dr. Kissinger after three trips each to Egypt and Israel, Yigal Allon, Israel's deputy prime minister, who spoke to his nation on television, disclosed the bare outline of the pact. These points emerged from his remarks: Israel will withdraw "a reasonable distance" east of the Suez Canal, relinquishing the southwest shore it captured in the latter stages of the October war and the eastern bank it took in the 1967 fighting.

A United Nations peace force will form a wedge separating the two sides. A National Broadcasting Company report from Tel Aviv said the agreement contained these points: Israel will pull back to the Mitla and Gidi passes, 20 miles east of. the canal in the Sinai desert. 6-mile corridor for U.N. Egypt will be allowed to keep about 3,000 men on the east bank of the canal.

Egypt cannot maintain SAM antiaircraft missile batteries along the canal and will be allowed only 30 tanks. The U.N. will occupy a 6-mile corridor between the Mitla and Gidi passes and the Suez and the Egyptians will hold the bank of the canal up to the U.N. area. Tanjug, the Yugoslav news service, reported from Belgrade that, under the terms of the agreement, Israel would withdraw to the two passes in the Sinai.

Quoting Cairo sources, Tanjug said the area between Israeli and Egyptian forces would be partly a "no-man's land" and partly policed by U.N. forces. In President Nixon's announcement in a nationwide televi-Sce MIDEAST, A4, Col. 5 Coverup scheme Dean had for weeks Mr. Economy slows; inflation rises again AP By ART PINE Washington Bureau of The Sun White House aide questioned him on who knew about the President's taping system.

Louis Sims, of the Secret Service, leaves Court in Washington after testifying that Meanwhile. inflation acceler- Architect says he stopped pay-offs after getting contract county executive, race against Washington The nation's economy, braked partly by the effects of the energy shortage, slowed sharply last quarter, the government reported yesterday, heightening the prospect of a coming recession. U.S. asked to verify energy data By STEPHEN E. NORDLINGER Washington Bureau of The Sun Washington Two top officials of federal regulatory agencies urged Congress yesterday to establish a central agency to gather and verify statistics on the nation's en By ROBERT A.

ERLANDSON Paul L. Gaudreau testified yesterday that he delayed Mr. Anderson, The kickback cash, Mr. Gau political contributions, mostly by check, during the time he passed more than $30,000 'in cash he said constituted kickbacks for Mr. Anderson.

dreau testified, all was given eight months implementing a to William E. Fornoff, then ated even further. Commerce Department figures showed the nation's actual output, or "real" gross national product, grew at a scant 1.3 per cent annual rate between October and December down from the "optimum" 3.4 per cent pace the quarter before. At the same time, the inflation rate, as measured by the comprehensive "GNP deflator" index, soared at a staggering 7.9 per cent pace the fastest since Korean war days up from a 7 per cent rate between July and September. The combination of figures tended to confirm general forecasts that last summer's hopes for a "soft landing" have soured and that the nation is heading into a mild recession this quarter possibly lasting as long as nine months.

The department also reported, separately, that the number of new housing starts company decision to stop paying off Baltimore county offi county administrative officer, Mr. Gaudreau said he sent cials until he felt sure his for Mr. Anderson. Fornoff, 56, has testified he passed the contributions by check, frequently under the names of other family members, to Re cash from consultants to the architectural firm would get a second lucrative design contract for the new courthouse in county executive. publican and Democratic party The only time' Mr.

Gaudreau Towson. linked Mr. Anderson to the kickbacks directly was when he recounted a 1971 meeting in which he said he showed the The 59-year-old architect was testifying in federal court in the corruption trial of Dale Anderson, the county executive, who is accused extorting $46,420 from seven engineering firms and the archi ergy resources. James T. Halverson, the funds, including ones for Spiro T.

Agnew, Governor Mandel and Joseph W. Alton, the Anne Arundel county executive. The only other cash payment beside those for Mr. Anderson, he testified, was $2,500 for E. Scott Moore, in 1968 for debts from his unsuccessful 1966 been the focus of reports regarding high-level White House involvement in a scheme to cover up the Watergate affair.

Mr. Dean's departure from the White House coincided with the resignations of H. R. Haldeman, chief of staff, and John D. Ehrlichman, top domestic aide, whose names had also been linked to the scandal.

However, no expressions of regret regarding Mr. Dean's loss accompanied his leaving, as did those of Mr. Haldeman and Mr. Ehrlichman, whom the President praised as fine public servants. Mr.

Sims said he had been asked by Stephen Bull, a White House aide, whether Mr. Dean knew about the taping system, and had told him he could rest assured that as far as the Secret Service was concerned, neither Mr. Dean nor anyone else, with the exception of those few who transmitted Mr. Nixon's order to- install the system, was aware of it. The White House taping system was apparently one of the administration's best kept secrets until its existence was revealed to the-Senate Watergate hearings by Alexander P.

Butterfield, another former White House aide who stressed that very few had known of it. The Butterfield revelation has had far-reaching effects for the White House, since embroiled in a battle over access to those tapes, conducted by the Senate Watergate committee (which is still struggling for them) and the Watergate special prosecutor, who succeeded in subpoenaing a certain number from a reluctant President. Perhaps the most far-reaching development of all in the Watergate case will also hinge on the tapes, stemr ing from Tuesday's disclosure by electronics experts that a mysterious gap on one of the Watergate-related recordings had been manually erased. The FBI called in by the special prosecutor is investi-See TAPES, A5, Col. 1 Index director of the Bureau of Com executive a list of Gaudreau work payments from the county and his payments to Fornoff.

The Gaudreau company had See ANDERSON, A9, Col. 1 petition at the Federal Trade Commission, which is conducting investigations of anticom tect. plummeted more snarpiy in Mr. Gaudreau testified that he gave more than $26,000 in petitive practices in the oil and December than had been ex- natural gas industry, told a falling to an annual congressional committee of his rate of 1.3 million units a frustrations in trying to obtain i weakness that could inhibit re- Seaton dies reliable information independ Nixon data subpoenaed by Common Cause ently verified by the Fred A. Seaton, who was Secretary of the Interior un der President Eisenhower covery next quarter.

In a third report, the department predicted that because of recent increases in world petroleum prices, the U.S. probably would record a substantial trade deficit this year, instead of the surplus previously ex-See ECONOMY, A6, Col. 1 and a prominent Midwest publisher, died in a Minneapolis By DEAN MILLS Washington Bureau of The Sun Mr. Halverson said that a central agency should be able to obtain and authenticate information on the reserves and production levels of individual See ENERGY, A6j Col. 1 hospital at 64.

Details on Page A13 Washington Common Cause, the citizens' lobby group, set the stage yesterday for another possible confrontation over White House materials by i issuine a subpoena on Presi dent Nixon demanding that he A. Gesell, lawyers for the President said the court still has no jurisdiction to enforce the committee's request for White House materials. The 52-page document cited seven "defenses" against the committee's contention that the White House should be forced to hand over the tapes. The White House lawyers asserted that the battle between the committee and the White House is a political one in which the courts have no constitutional power to interfere and that "this court lacks jurisdiction over the person of Richard M. Nixon in this action, either individually or as President of the United States." Chief Judge John J.

Sirica had dismissed the committee's See LEGAL, A5, Col. 1 produce documents related to Republican fund-raising. The subpoena, filed in United States District Court here, requires the President or his representative to appear in court January 31 with the documents. Meanwhile, the White House made the next move in its fight with the Senate Watergate committee over five Watergate-related tapes the committee has subpoenaed for the second time. In a petition filed with District Court Judge Gerhard.

Lottery C5 Movies B4 Obituaries Shipping TV-Radio B5 Bridge B2 Comics B7 Crossword B7 Editorial Alt Financial Gardner Bl Weather U.S. plans global satellite system with 30-foot navigational accuracy approved plans in December, jvithout any public announce 24 navigation satellites in orbits 10,000 miles above the earth, as well as all the receiving' equipment necessary for land, sea and air forces to fix OPI their positions: These forces would be able to determine By CHARLES W. CORDDRY Washington Bureau of The Sun Washington The Air Force has been authorized to develop a revolutionary navigation system with earth satellites designed to tell military forces-troop units, ships and aircraft their positions anywhere in the world within an accuracy of 30 feet. William P. Clements', the deputy secretary of defense, Danish freighter capsizes in the English Channel latitude, longitude and height ment, to go ahead with the first-stage development of th unique worldwide grid system for accurate three-dimensional position-fixing.

The cost has been projected at $150 million. Success of this undertaking, which will take about four years, would lead to the deployment in the early 1980's of a fully operational system of above sea level almost instaa taneously. Present expectations, based drowned and three were presumed drowned. Gusts up to 100 miles an hour whipped giant waves in the English Channel and swept onto the European mainland, leaving 31 dead and a trail of destruction. (Dispatch on Tage Sea King helicopters from the Royal Navy station at Culdrose, Cornwall, England, hovered over the capsized Danish freighter Merc Enterprise before it sank in stormy seas off the south Devon coast Wednesday.

Seven men were rescued, five were' on Air Force and Navy re-See SATELLITE, A8, Col. 4 3 Sect Today .1.