The Baltimore Sun from Baltimore, Maryland • 1

rm TT TV 1 FINAL hi. A tHJKld! IJiillutt III him fulfill oriln BALTIMORE. WEDNESDAY. JAXUAIIY 8, 1900 48 Pages 10 Cents The Wcallier Increasing cloudiness and cold today. Cloudy and not so cold tonight with a chance of snow.

(Details and Map, Page 15) Vol. 201 No; 44 LONDON TALK Mandel Wins Race For Governor Czech Parly Moves To Oust Smrkovsky BIG BANKS PIE IE PUT AT7 With Large Margin In Assembly; Vows Vigorous Administration lecommends That Liberal Take Second Place nitial Ballot Gives 41 ySX i I ft 1 -wm lit 1 of office to Marvin Mandel, who was elected THE MOMENT Chief Judge Hall Hammond of the Court of Appeals administers the oath governor earljpr in the day. Rogers Asks Time In Paris; Finch Scores By Colotka, A Slovak threats by some unions that they would strike if Mr. Smrkovsky was demoted. Making him depu ty chairman would remove him from the big four the party chief, Alexander Dubeck, Presi dent Ludvik Svoboda and Pre mier Oldrich Cernik.

But Mr. Smrkovsky has said he would accept the party decision and begged that there be no strikes. Mr. Colotka has served as deputy premier. Reform Plan Pressed Public fears about Mr Smrkovsky's possible ouster grew last month into a broader drive for continuation of reform policies that the Soviet tanks were sent in to crush last August.

In the face of printed and broadcast demands, the Presidi-1 um Saturday issued a warning that a dangerous situation was building up and pointedly reminded the mass media of their "political responsibility." Official concern was even reflected at the statue of St. Wen-ceslas in Prague's major, square today. Last night there were three pictures of Mr. Smrkovsky at the statue, which has become (Continued, Page A 2, Col. 4) LEBANON PREMIER OFFERS TO RESIGN Move Is Result Of Airport's Defenseless State In Raid Lebanon, Jan.

7 The Lebanese-Israeli phase of the Middle East crisis led Pre mier Abdullah Yafi to submit his resignation today to Presi dent Charles Helou. Mr. Helou delayed action on the resignation, an aftermath of criticism of Dr. Yafi's regime for the undefended state of Bei rut's International Airport when Israeli commandos destroyed 13 Lebanese planes in a raid De cember28. Mr.

Yafi, 67, is a French-edu cated lawyer and one of the founders of the League of Arab States. He has been chief of this half-Arab, half-Christian na tion's government several times, the first 1938-1939. Coalition Favored Beirut newspapers said legis lators favored a national coalition to replace him and his four-man cabinet. There was speculation Dr. Yafi might be succeeded by Rashid Karami, a pro-Egyptian former premier.

Mr. Karami led a Nasserite revolt against President Camille Chamoun in 1958 United States marines, moved in by request of Mr. Chamoun, helped put down the civil war Dr. Yafi submitted his resig nation because he believes new situation demands a new (Continued. Page A 2, Col.

6) In Assembly Headed Prague, Jan. 7 LD The Presi dium of the Communist party's Central Committee recommend ed a downgrading today for Josef Smrkovsky, one of Czech oslovakia's most outspoken pro gressives. The Russians want him out of office. The Presidium announced it had recommended that Mr. Smrkovsky, who heads the pres ent National Assembly, take the second-ranking post of depu ty chairman of the new federal assembly and that the top post of president go to Petr Colotka.

From Slovakia Mr. Colotka is a Slovak. His selection would fulfill demands that one of the three top posts in the government go to a Slovak. The Presidium is the country's top ruling body and while the decision was announced only as recommendation, it would be hard to overturn when the new federal houses meet later this month to elect the leaders. The recommendation was an nounced on Prague television as a communique of the Presidium.

here had been no announce ment tnat tne Presidium was meeting. The question of Mr. Smrkov sky 's political future has led to ARABS BLOW UP A JORDAN BRIDGE Gaza Terrorist Wounds 10; Historic Monastery Hit By William F. Schmick 3d Sun Stall Correspondent Jerusalem, Jan. 7 One of the wo bridges linking the east bank of the Jordan River with the Israeli-occupied West Bank was blown up today, the Army announced.

The bridge was reportedly blown up on the Jordanian side after a brief exchange of fire between the opposing armies, but it was not known whether the charge was set by regular soldiers or Arab commandos. It was the third, but by far the most serious incident in the last 24 hours. Other Terrorism Earlier today, 10 persons in Gaza were wounded by a terror ist-thrown hand grenade, and last night some windows and a wall at the historic St. John the Baptist Monastery south of Jericho were shattered by a dyna mite explosion, also believed to be the work of terrorists. The Damiya Bridge is about 22 miles north of the Dead Sea.

It handles traffic between Jor dan and the northern part of the West Bank, which the Israelis call Samaria. Occupied areas to the south are served Dy me Aiienoy (Continued, Page A 2, Col. 5) By Nathan Miller Washington Bureau The Sun GETS OFF TO NOISYSTART Street Protests Fail To Halt Commonwealth Conference By Charles V. Flowers London Bureau 0 Tht Sun London, Jan. 7 Despite variety of demonstrations out side, the Commonwealth Prime Ministers Conference got oft to a smooth start today.

About a dozen groups chanted and marched outside Marlborough House the conference cen ter which is near Buckingham Palace. The causes included pro-Nigerians, pro-Biafrans, and anti-Rhodesians. At Rhodesia House, 40 opponents of the white-su premacy Rhodesian government conducted a sit-in until hauled out by police. There were no arrests. African Groups Separated Police kept the pro-Nigerians and pro-Biafrans separated to prevent fighting.

AH 28 Commonwealth nations are represented at tne confer ence, 24 of them by their prime ministers or presidents. Prime Minister Harold Wilson, the chairman, welcomed the group by emphasizing the grave racial problems facing the world. He pointed out that not only is the Commonwealth mul ti-racial, but it is "united in its anti-racialism." Weekend Break Nevertheless, racial problems will occupy a good portion of the time of the ministers, who will continue meeting through Janu ary 15, except for a weekend break. One of the most volatile racial issues, immigration, was at least partly dampened when the conference agreed to establish a working committee that will re port back to the full group. Britain has severely restricted the entrance of Asians with Bri tish passports who are being forced to leave Commonwealth countries in East Africa.

Debate On Rhodesia Rhodesia will be on the agenda Thursday and Friday and is expected to be the most acri monious debate of the confer ence. The black African nations of Uganda, Tanzania and Zambia deplore Britain's method of dealing with the illegal Rhodesi an government of Ian Smith. The three nations, which would have preferred that Britain invade Rhodesia, fear that Prime Minister Wilson's recent negotiating terms will allow the Smith regime to prevent the black majority from ever ruling the country. Britain believes that there are enough guarantees for majority rule built into the terms and that the economic boycott against Rhodesia will eventually force Mr. bmith to give in.

The ministers quickly agreed to the Drooosed agenda this (Continued. Page A 2, Col. 2) AP Wlrephola Mary, ard dapper brother, Ma-nir. 21. sat.

The session began at 9 42 A (Continued. 1'aEe A CuL 3) vv. Maryland's new Welfare Gaps ments, while Mr. Finch made his statement upon leaving the White House. Senator Gordon Allott Colo.) later told newsmen Mr Rogers felt American diplomatic efforts could be undermined oy demands for a "hurry-up" set tlement of the war.

"He said the new Republican administration's aim is to end the war as quickly as Senator Allott said. "But he in dicated this will require some difficult negotiations." Mr. Rogers, who had served tne Eisennowcr administration as Attorney General, made a similar statement in a brief informal session with reporters following a breakfast meeting with House GOP leaders. Several Months Needed He said he hoped the new ad ministration would be given "several months" to work out major problems "sucn as tne negotiations in Paris." The Secretary-designate, who has yet to hold a formal press conference, made guarded an swers to the few questions reporters were allowed to ask after the morning meeting. Then he was led off by Representa tive Gerald R.

Ford the House minority leader. Reminded that the Russians have described him as an "old line militant anti-Communist," Mr. Rogers said he had the 'same feeling for peace" which people have everywhere, in eluding he hopes, in the Soviet Union. Asked for his comment on the charge that Henry Cabot Lodge, Mr. Nixon choice as chief peace negotiator in pans, is a Vietnam "hawk," the mcom- (Continued, Page A 8.

Col. 5) Second Boost In Three Weeks Sets Interest At 100-Year High New York, Jan. 7 (PI Leading banks boosted the prime interest rate to a record 7 per cent today in another effort to slow the surging economy by making it more expensive to borrow money. The prime rate, which is the Interest charged important, ren able customers such as corporations, last went up December 18 when it was boosted to 6 per cent from 6V2 per cent. The new rate is the highest that American borrowers have had to pay in a century.

While the prime rate applies directly to big borrowers, the higher interest charges sooner or later will seen down to the consumer who buys and ft nances a house, an automobile, a refrigerator or furniture, or obtains a personal loan. Effect Widespread An economist said, "The whole family of interest rates is structured upward by an in crease in the prime rate." The new upward move in the prime rate was initiated by First National City Bank of New York, one of the country's three biggest banks. Other big New York banks quickly followed and were joined by others Philadelphia, air mingham, Atlanta, Boston, San Francisco and elsewhere. The stock market slumped in reaction to the money squeeze The Dow Jones average of 30 industrials fell 10.94 points to 925.72. This average has skidded steadily since it reached its 196 high of 985.21 on December 3.

Fear Of Credit Crunch Brokers attribute the stock market decline in part to fear a credit crunch such as devel oped In 1966 when the lack lending money put a crimp in the economy. It had been thought by many government and private econo mists that the 10 per cent in come tax surcharge imposed last Julv 1 would cool an over heated economy and stem the persistent inflationary trend. The effect has been much less than predicted. In an effort to slo-v the eco-nomic growth rate, the Federa Reserve Board in December raised its discount rate the in terest it charges for money borrowed by commercial banks to 5'i per cent from 5'4 per cent Slowdown Doubted George W. Christie, chie economist for F.

W. Dodge Com pany, leading statistical organi zation in the construction field said he doubted the increase would deter spending by corporations for new plants and cauipment except in margina cases. Spending will continue at a high rate, he said, because of apprehension that interest mign be even higher next year. But he said he expected inter est rates to decline in the second half of the vear. The Bank of America, the big- cest United States bank, said "This rise in the prime rate to An historically high level re flects an unprecedented demand for loans and the unprecedented high cost of money which pres ently exists in the market." George McKinney, senior vice president and chief economisi of Irving Trust Company of New York, commented: "The price of money like the price of any thing else moves up and down depending on supply.

Now sup-nlv is short and money costs i -more." Hijacked Plane Lands In Cuba Havana. Jan. 7 (JB-A hijacked Colombian airliner with 56 per sons ahoard landed tonignt in Santiago, Cuba. The pilot. Cart Jorge Otalora of Avianca Airline, said a young man with a pistol forced him to fly to Cuba after the plane had taken off from Riohncha, near the Venezuelan border, on a flight to another Colombian city.

Otalora wa3 interviewed by Dhone bv a Colombian newsman. Thi nassentrers aboard the IiC-4 were believed to be Colom- Intirkte VivP Avianca Speaker 123 Votes' Of 180 Cast By Charles Whltcford Annapoht Bureau of Th Sun" Annapolis, Jan. 7 Marvin Mandel became Maryland's fifty-sixth elected Governor today by the overwhelming vote the General Assembly. Immediately afterwards, the short, quiet Baltimore city Democrat went to the mahog any rostrum from which he had presided for six years as speaker of the House of Delegates to accept his election as successor to Republican Vice President-elect Agnew. He declared that he will be anything but a "caretaker" fill ing out two years of an elective term.

Easy Victory "Let there be no mistake la anyone's mind. I shall govern," he asserted. "The State of Maryland cannot mark time, and I do not accept mis omce in tnat spirit." It was a walkawav victorv for Mr. Mandel. On the first ballot, he received 123 of the 180 votes cast by the senators and delegates meeting in joint session in the House chamber.

Morton Second Representative Rogers C. B. Morton 1st), who had been placed in nomination by the GOP to "show the party flag," was second with Z9 votes. Francis X. Gallagher, who is expected to try for the Democratic nomination for governor next year as the candidate of the liberal wing of the party, got 13 votes.

State Senator William S. James Harford), president of the Senate, received 13 votes. Rush To Change There was an immediate rush to change votes to Mr. Mandel before the official result was announced. But after three Re publicans went through the cum bersome process of switching to the winner, Senator James A.

Pine 5th Baltimore county) brought the balloting to an end. So the record will show that Mr. Mandel was elected with 128 votes. Short Speech The whole process of saving good-by to a retiring Gov ernor and hearing his swan song, adopting formally the rules for the historic election, then receiving the nominations and conducting the voice-plus-written ballot election itself. took exactly 2 hours 10 minutes.

Mr. Mandel made his brief acceptance speech in the House chamber and shortly afterward took the oath of office in the Senate chamber. The oath was administered by Chief Judge Hall Hammond of the Maryland Court of Appeals. Mr. Mandel's family, two former governors Mr.

Agnew and Millard Tawes as well as legislators and scores of other dignitaries served as witnesses. It had been obvious for several days that Mr. Mandel would win what started out to be a nine- candidate contest to succeed Mr. Agnew. Field Reduced By balloting time, the field had been reduced to four.

The last drop-out was Senator Harry It. Hughes Upper Shore), his party's majority floor leader, who ended up as one of the two seconders of Senator James's nomination. Senator Clarence M. Mitchell 3d 4th Baltimore), one of the 11 Negro members of the General Assembly, put his father. Clarence M.

Mitchell, head of the Washington office of the National Association for the Advancement of Colored People, into what he termed a "symbolic" nomination. He said his aim was to underscore the fight of his people for equal status. Then Senator Mitchell, his purpose accomplished, withdrew the nomination. Abortive Fight That, and an abortive fight bv Senator Julian L. I-ipide 2nd Baltimore) for the rigM of each senator and ddegate to peak fur two minutes before the balloting, were the only departures from prepared scrpt.

Through much of the day, first (Coniiflucd, A CuL I) DEMOCRATIC UNIT GAINS LIBERALS Hart, Fulbright, Kennedy Join Senate Policy Panel By Joseph R. L. Sterne Washington Bureau of The Sun Washington, Jan. 7-The Sen ate Democratic Policy Commit tee. which is to have a new roi to play under a Republican President, today took on a more liberal complexion.

Senators Philip A. Hart1 (Mich.) and J. William Ful-1 bright (Ark.) were named to succeed retired Senators Carl Hayden (Ariz.) and Lister Hill In addition, Senator Edward M. Kennedy (Mass.) automati callv replaced Senator Russell B. Lone (La.) as an ex officio member because of his victory over Mr.

Long in last week's race for assistant majority lead er, ine commuiee is composea of seven regular members and two ex officio members. Senator Mike Mansfield the majority leader, announced he had selected Mr. Hart and Mr. Fulbright during a Senate Democratic caucus this morning. No Objections There were no objections pos sibly because he had discussed his decision earlier with Senator Richard B.

Russell Sen ate president pro tern and lead er of the conservative Southern bloc. Since the presidential victory of Republican Richard M. Nixon last November. Mr. Mansfield has stated repeatedly that the Senate Democratic majority will have new responsibilities to ful fill.

Not only will Democrats ex pect to in on the takeoff as well as the landing" of the Nix on administration program, ne (Continued, Page A 8. Col. 1) ment that Mr. Thompson had addressed to the President. "You may recall," it said, "when I told you last spring ot my desire for personal reasons to retire from the foreign berv ice, it was agreed that I would remain in Moscow until the end of the year." As presidential appointees, all imbassauors are required to of fer their resignations whenever the White House changes hands and the White House announced today three such tenders that President Johnson has accepted Brazil Ambassador One.

effective January 20, came from John W. Tuthill, professional diplomat who has been ambassadvir to f-razil since Mjv. Tm effective Inau guration Day one from Phillips Talbot, a non professional who has been Ambassador to Greece since September, The third, for which no effec- (Contiaucd, Page A 8, CoL I) Washington, Jan. 7 William! P. Rogers, Secretary of State- designate, today asked con gressmen to give the Nixon administration support and understanding during what are likely to be lengthy Vietnam peace negotiations.

At the same time. Robert H. Finch. President-elect Nixon's choice for Secretary of Health, Education and Welfare, said the nation could not continue to live with the great differences in welfare benefits existing among the states. Undermined By Haste Mr.

Rogers expressed his views during closed meetings with Senate and House Republicans in which members of the Nixon Cabinet briefly discussed the problems of their depart- NIXON JOB LIKELY FOR KLEINDIENST Announcement Expected On No. 2 Justice Post By Stephen E. Nordlinger Sun Staff Correspondent New York. Jan. 7 Presi dent-elect Nixon is expected to name Richard C.

Kleindicnst as Deputy Attorney General. He was active in the Nixon campaign last year and that of Bar ry Goldwaler in 14. Sources in the Nixon camp declined to comment on the ap- Dointment of Mr. Kleindienst but persistent reports here and in Washington indicated that he would be named to be ro. 2 spot in the Justice Department, one of the last remaining major posts to be filled by Mr.

Nixon Of Special Importance According to some reports Mr. Kleindienst might be select ed as Solicitor General instead. but it appeared more likely that he would be named deputy. This appointment is consid ered of special importance because impetus in the civil rights field in the Nixon administration micht depend in part on the views ana roie oi me aupiuj John Mitchell, the Attorney Gen eral-designate, is believed to fa vor more restraint by the de partment in this field. The appointment is also consi dercd significant because in the recent past some of the deputies have moved to the top spot in the department.

Mr. Kleindienst former Re- nublican chairman in Arizona would be in line for promotion ii Mr. Mitchell is selected to suc ceed Chief Justice F.arl Warren who is to retire when the (Continued. Page A 8. Col.

t) Sirhaii Trial Postponed One Day Thompson, Envoy To Russia, Quits After 7 Years In Post By Paul W. Ward Washington Bureau of The Sun I-: JVv 1 ft I I -'I Judge Denies Request For Month's Delay In Kennedy Case Los Angeles, Jan. 7 Sirhan Bishara Sirhans trial on a charge of murdering Senator Robert F. Kennedy sputtered through opening-day legalities today with the defense obtaining a day delay. The delay will give the defendant's lawyers time to write out a request to set aside his plea of innocent and obtain a new list of prospective jurors.

His lawyers were denied a re-auest for two juries, one to de cide guilt or innocence, the oth er to set the penalty if a convic tion is brought. "Silly To Deny It" They also were denied a 33- day delay to prepare the motion on his plea and the jury list. "It would be silly to deny he did it," one defense lawyer. Grant B. Cooper, told newsmen after the 90-minute session.

The slight, 21-year-old Jorda nian. accused in the fatal shoot ing of the New York Senator last June 5 at the Ambassador Hotel. was led into the eighth-floor courtroom after an elevator ride from his heavily guarded, thirteenth-floor cell. Neatly Dressed Neatly dressed in a gray suit, a white, buttoned-down shirt Washington, Jan. 7-Llewellyn E.

Thompson, United States Ambassador to the Soviet Union, is retiring from the Foreign Serv ice, the White House announced today. President Johnson's acceptance of Mr. Thompson's resignation presented President-elect Nixon wiih the problem of quickly finding a successor to the 64-year-old Coloradan who has spent over seven years in Moscow. Tom Johnson, acting White House press secretary, was unable to tell newsmen whether the t.t CMC! fxecumc IWJ tunad.uu representatives of Mr. Nixon before accepting a resignation he could have left for action by his successor.

Effective Date But it? effective date has yet to be determined. Mr. Johnson stressed after showing newsmen part of the request tor retire- Sirhan B. Sirkan enters courtroom for opening of his trial I Index Brrf; I M.lir -1 I nmiri SI OtiitriM ll I rkviJ HI Milptn It Milrrml I Swirl HI K.hloni Bl TV.RjHo mntul WetUitt CU the left end of a long counsel table. At the rear wall directly behind bim, bis stocky mother, planes have been hijacked andjand blue tie.

he waved to lt llowa to Cuba in recent months, lawyers and sat next to tnem at.