The Los Angeles Times from Los Angeles, California • 19

The financial scheme concocted by a San Diego fraud rasped was docned to faJ, prosecutors say. (Part 2. Page L) The tie shouldn't be used for the further repression of the Korean people, an expert says. (Part 2, Editorial Section.) It'll he hack to street-fighting for the President in 1980, David S. Broder writes.

(Part 2, Editorial Section.) As a basis for money, gold would be hazardous to our health, in the opinion of an economics writer. (Part 2, Editorial Section.) In Sports Marcel Dlonnne scored his 43rd goal and assisted on another and the Kings beat Vancouver, 2-0, at the Forum. (Part 3, Page 1.) Terry Former is the talk cf Dodg-ertcwn in Vero Beach. The left-hander's larynx is healthy but his am is now suspect (Part 3. Page 1.) The NCAA huketball tournament is less than two weeks away and none of the participants knows whom or where they'll play.

(Part 3, Page 1.) In Business The New Jersey casino commission granted Resorts International the first permanent license for Atlantic City gambling. (Part 3, Page 12.) Southern Pacific bid $40 a share for Ticor and the offer won tentative agreement from Ticor management (Part 3, Page 13.) Treasury Secretary W. Michael Blumenthal reported progress in China trade talks and no backlash on his Vietnam remarks. (Part 3, Page 13.) Cos Ancles Simes pse 2. fan Inside The Times CamMlag Isaacs rote but the rest of the stock market languished with the Dow Jones industrials losing 2.16 to 821.12.

(Part 3. Page 13.) In View The Chinese film industry is very different but growing more contemporary, report Americans who recently visited there. (Part 4, Page 1.) The Dwight Twllley story may yet have a happy ending. After a hot start followed by a cooling trend, he's on the rise again. (Part 4, Page 1.) Kathleen Hendrix interviews Iranians in the Southland, faced with the dilemma of whether to return.

(Part 4, Page 1.) Jack Smith has admitted to four errors this year (his quota through 1980). However, he's not the only one guilty of mistakes. (Part 4, Page 1.) District attorneys from Los Angeles and San Francisco testified that white collar crime is at epidemic proportions. (Parti, Page 3.) The California Assembly asked Congress to amend the U.S. Constitution to require a balanced federal budget.

(Parti, Page 3.) Rep. Peter W. Rodino Jr. (D-N. urged the nation's governors to go slow on the balanced-budget amendment.

(Parti, Page 4.) Israel's cabinet will meet to decide whether Prime Minister Begin wiil attend a Mideast conference without Anwar Sadat. (Part 1, Page 5.) An American, a Belgian and two Britons reportedly were arrested, then freed by members of Iran's revolutionary regime. (Part 1, Page 5.) Iran's Jewish community is establishing a tenuous coexistence with the Moslem rule of Ayatollah Ruhollah Khomaini. (Part 1, Page 6.) Rep. Daniel J.

Flood's motion to stop the government from prosecuting him a secand time for bribery and perjury was denied. (Part 1, Page 12) American trtde anion leaders in the Panama Canal Zone fear a gradual return to the old double standard for canal wages. (Part 1, Page 13.) The general manager of the embattled San Diego Transit Corp. has submitted his resignation, effective June 30. (Part 2, Page 1.) The San Diego City Council unanimously approved its controversial growth management plan after a six-hour hearing.

(Part 2, Page 1.) The Legion of Honor, France's highest award, will be presented to an Encinitas man for his opposition to the Nazis. (Part 2, Page 1.) Brief in TUESDAY, FEBRUARY 27, News Compltat AnMlot from tht Lot AngolM Tlimt tht Los Tlnm-WMhlngton Pott Newt Strvlct nd major wlrt and tuppltmtntory ntwt ogtnclts. THE WORLD British Strikes May Force Vote Tit. Jk. ''lit! from the Tokyo, shows Chinese soldiers captured in battle Bang, according to the agency.

SAN DIEGO Two San Diegans escaped serious injury when their light plane crashed into a mountainside 15 miles southwest of Thermal Airport. Riverside County Sheriff's Sgt. Mike Ludtke said Robert Skidmore, 51, and his 17-year-old son, Mark, were returning from a weekend trip to Big Bear when their Cessna 150 crashed Sunday night at the level of Rabbit Peak. Sheriff's deputies, working with the Civil Air Patrol, located the downed aircraft by tracing the signal from an emergency transmitter in the plane's tail section. The elder Skid-more sustained a cut on one ear and his son received minor scratches, Ludtke said.

The cause of the crash, which occurred shortly after the plane refueled at Thermal Airport, was not immediately known. Westfield Insurance Co. has filed suit in San Diego Superior Court asking that all claims stemming from the Jan. 29 sniper attack on Cleveland Elementary School be limited to a total of $100,000. The firm named Wallace E.

Spencer, father of accused sniper Brenda Spencer, 16, as a defendant in the action. Westfield claims Spencer held a casualty policy that limited the amount of claims to a total of $100,000 for each occurrence. Spencer, according to the complaint, wants the insurance company to handle all claims, regardless of the size. Also named as defendants in the action were Lee and Marilyn Selvig, parents of a 9-year-old girl wounded in the attack that ended in the deaths of the school principal and head custodian and the wounding of eight children and a police officer. The Sel-vigs have sued Spencer for $300,000.

Mayor Pete Wilson named telephone executive Ron Del Principe, 39, as chairman of the city Planning Commission. Del Principe has served on the board three years and replaces Louis Wolfsheimer as chairman. Wolfsheimer recently was appointed to the San Diego Unified Port Commission. Wilson named Dorothy Leonard as vice chairman of the Planning Commission. VS.

Navy divers who made a futile search off Baja California's Isla Na-tividad for three bodies said they were thwarted by the strongest ocean currents they ever encountered, a consular official in Tijuana said. The 16-member Navy diving team was flown back to San Diego Sunday after a two-day attempt to find the bodies reportedly lashed together Prime Minister James Callaghan conceded in a television broadcast that Britain's labor crisis may force him to call a general election before the fall. Opinion polls are rating the Labor Party's chances 20 behind those of opposition leader Margaret Thatcher's Conservative Party. Buffeted by soaring union pay demands and the nation's worst industrial turmoil in years, Callaghan said he still hoped that overall pay increases and inflation would be lower than he feared. He said his goal still was to bring inflation down to 5.

Seven Moscow intellectuals have sent a telegram to top Soviet police officials protesting anonymous threats against dissident physicist Andrei D. Sakharov, dissident sources said. Sakharov said last week that he had received a series of threats that a "terrorist attack" would be carried out against him. Those making the threats identified themselves as relatives of the victims in a 1977 Moscow subway explosion, he said. Seeking to topple President Idi Amin of Uganda, rebel forces reportedly captured the garrison town of Mbarara in southern Uganda and were said to be in nearly full control of the region.

Exile sources in neighboring Tanzania said that elements of an army battalion based in Mbarara had deserted and gone to the assistance of the anti-Amin forces. The report that Mbarara had fallen could not be confirmed independently, but Amin admitted in a radio broadcast that it was under heavy attack. U.N. Secretary General Kurt Waldheim proposed March 15 as the dale for a cease-fire in Namibia (South-West Africa) and the start of U.N. operations leading up to prein-dependence elections.

In a report to the Security Council. Waldheim outlined proposals for the solution of dif- Newsmakers by radio in Outright Nitrite Ban groups, Mayo investigators said, the decrease was more common in the elderly. A 60 reduction, for example, was noted in persons 80 years or older. The report in the New England Journal of Medicine speculates that the decline is due to better treatment of high blood pressure, a cutback in smoking and dietary changes. The Tesmiler-affillated Policemen's Assn.

of New Orleans presented the city with a modified contract proposal after talks recessed until today in the 10-day-old police walkout About 1,100 of 1,514 policemen are on strike for more money and benefits, forcing the city to use national guardsmen and slate troopers as police. In addition, talks recessed indefinitely between the city and union negotiators for its fire fighters, whose contract expires at midnight Thursday. But garbage collectors returned to work on the eve of Mardi Cras and began cleaning up the French Quarter, which was partly buried under plastic drinking cups and other debris. Milk was nearly in the New York metropolitan area in the second day of a Teamsters strike against 85 dairies that serve 10 million consumers. Picket lines were set up at each of the struck dairies the Board of Education turned to powdered milk to make cocoa and to fruit Juices for lunches for 1 million students.

Nego-UaUont over money and benefits were to resume today. Meanwhile, bootleggers brought some milk from neighboring states, although New York trade snd health refutation make such shipments illegal An nhtklt Ku Klux Klin mater at Cao AP Wlrtphoto THE STATE A bill to repeal a 107-year-old law excluding the public from a preliminary hearing at the defendant's request was introduced by Sen. James W. Nielsen (R-Woodland). The measure was endorsed by the Oakland Tribune and the East Bay Press Club which earlier petitioned the state Su-' preme Court to overturn a ruling allowing closed preliminary hearings.

Supporters of the bill say the state law violates the First Amendment of the U.S. Constitution. The murder trial of Black Panther leader Huey Newton was delayed in Oakland Superior Court when he re- the judge assigned to the case, ichael Kennedy, Newton's attorney, said the rejection of Superior Court Judge Stanley P. Golde on a peremptory challenge was on grounds "we didn't think Newton could get a fair trial" in Golde's court. The challenge came as a surprise since Golde is known as a liberal he had worked out an agreement under which William and Emily Harris pleaded guilty in the kidnaping of Patricia Hearst Newton is charged in the shooting death four years ago of a 17-year-old prostitute.

A M-jear-ald Fmit farmer was killed when he apparently became entangled In a wire-rolling machine he was operating off his tractor. Authorities said the body of Art Houa-korgian was found in a vineyard on the city's west end. Investigators said Holiakorgtan's clothes got tangled in the wire and he was pulled into the machine snd cut by the wire. A Srramtai man pleaded innocent In Yolo County Superior Court to the slaying of two California Highway Patrol officers, Luis Rodrtgues. 23, and his 18-year-old girlfriend Margaret Klaess of Garden Grove were arretted in connection with the tun deaths of Roy Blecher, 50, snd William Freeman, 35 The two G1P Mirolmrn were shot betide Inlerstaie SO west cf Sacramento.

Um lares was allowed to plead guilty to lesser charge in ewhange to tmtimony against RMrg-t ferences between South Africa, which governs Namibia, and the Southwest Africa People's Organization, a black nationalist guerrilla group, over interpretation of a U.N.-approved plan for independence. The State Department's top human rights official, Patricia Derian, left on a three-week visit to six African nations, including South Africa. Aides said her trip was intended to familiarize her with local conditions in a cross-section of African countries. Rep. Les Aspin (D-Wis.) said an investigation by his staff failed to come up with evidence to support allegations that Israel systematically tortures Palestinian prisoners in the occupied territories.

He said a similar conclusion had been reached by the U.S. Embassy in Tel Aviv, the State Department and the International Committee of the Red Cross. An undersecretary of state told a House foreign affairs subcommittee Secretary of State Cyrus R. Vance directed that policy recommendations on U.S. arms sales be withheld from congressional investigators.

Vance's aide, Lucy Wilson Benson, told the subcommittee that the secretary had made the decision to protect the privacy of policy recommendations, including his own advice to President Carter. General Accounting Office investigators previously testified that refusal by Carter aides to fully cooperate had hampered their investigation of U.S. arms sales. British pmecators dropped all charges against artist Tom Keating, who had admitted flooding the art market with 2,000 fake paintings over the last 25 years. The case was postponed in January when the 61 -year-old artist was hospitalized with a heart ailment Prosecutors decided he could not stand the strain of a new trial.

LiQuor has been "a crutch for some of my personal problems." Sen. Herman CTalmodf satd, "I probably took my personal problems to the bottle rather than to my Maker." The Georgia Democrat said he would end his treatment for alcoholism this week and return to Washington to defend himself against charfcs of financial misconduct before the Senate Ethics Committee. Talmdjre. looking inm and retted, said he had been scotch drtnkcr for years but wvrr reahud he had poaWcm unul hit on. One.

tnd sides confronied him Jan. He entered the Ml hcwptul In BrtheKJ. Md that day tnd three days tater was Down the alroho-lum clinic at the RrtmaJ Nival Hospital tr.f IVath. Calif -s flare hm farmrr fin iMf tkxiy 'ord and ethre famoga permm have ten trraird Talmac i krar Ui4 that "all tit ha mmul an4 phytAt. tal funrtions ha WurM nor.

mat TtltmAif, 15, u-4 rtaiy 9 trfatx 'h djty to ln $n-' and "14 t.Nrr tny dwjfct. I I faJvMaS fo tr kixn nrit tu -Srtfirano IWtfly $HU, 'af ha 4I bfam pi Srw Vofk O'y Dpftt en tei nr.ti ftr fttrfrnr rif-inct c4 if A ff 't ctnr t-4 (Unto In nrtt ft! i to fa afttt IIJ fr-4-rta Jtf-J to ffit JaJxK" fUe tm i crf-f---'" I i cr; t--t -1 ftxrtf ar5. ft it if t1 liy fs 4 lefts' in t-. rfja-rtfat IM It 1 to i frt Ti 4 ft Talmadge Fills the Cup PRISONERS OF WAR This photo Vietnamese News Agency, received STORY IN MKT 1, PAOi 1 THE NATION Justice Dept. Favors The Justice Department believes it would be illegal for the government to phase out nitrites gradually, rather than simply banning the widely used food preservatives suspected of causing cancer, according to informed sources who asked not to be identified.

If that opinion stands, it could mean an outright ban on nitrites commonly found in hot dogs, bacon and many processed foods-in the same summary manner that officials unsuccessfully tried to use to get saccharin off the market two years ago. A spokesman for the Food and Drug Administration would only say, MWe anticipate further discussions with the Justice Department on this matter." The Incidence of strokes, third leading cause of death among Americans, has declined dramatically, according to a Mayo Clinic study of nearly 2.000 patients over a 30-year period. Although the decline was reported in both sexes and in all age With Sobriety Plymouth Volart station wagon, earning the right to meet this weekend's cramming winner in the March 10 Cramaihon finals. It tu mounding." reported disc tockey Urt Han. msw They found places to put people that you wouldn't believe.

His d-vicft Don't be first in." "Praying to Cod almighty that this happy news will herald blawinf nd food fortune for our dear Jar dan, the royal physician announced in Amman that American-born Qn Nt, 27. and Kinf liuiatin, who were married tn June lt year, aft fiprciing her Hrit child, hu rgUv. September. On Monday, Unum's Prirt Chart will (tot the eye of I dragon The fflvrmment of Korg said the rw danr.i his fm-day irowid pmi th pusaii. ol the tt m4e of i UxWd fram toreffd uh fauM snd raW dyrtng I rwnjr it th tm Tnal the way fw df tjmbd tsl la U.

v4 that UJ start i of (rtwft'j eAhrr ywihi trm rtf tM Br.tisJi Mf atrtf to hackt ihm fist afetirty to ihti" firls4 )nmi UtlUt Ix3f ti t-rMv-jA a-tasfl arttan i-M Jurtl War-si, fcf toartlt tCTtt tta urf Kt f4 tfwir i tntitei i4 1 t-4 I r-r rM Gst f-n. 1 rwv'H Cu IT. I Piri which had been seen deep in a kelp bed halfway down the Baja coast. Vice- Consul Bart Flaherty, who accompanied the divers, said they were certain the powerful tides had swept the bodies away from the site days before they arrived. Authorities have not been able to establish whether the three bodies spotted by a Mexican abalone diver were those of Dennis Vowell.

23, his wife Debbie. 21. and Gary Newton, 23. missing aboard the San Diego boat Armistice since Jan. 22.

An txflealea and fir destroyed two Los Angeles County lifeguard rescue boats and badly damaged I boathouse tl Puddingstone Reservoir in San Dtmas. Total We were estimated at $35,000. County firemen extinguished the blase In 20 minutes, Fire Cant Lawrence Daedler said the fuel lank of one of the two fiberglass motwboau exploded while i hfrguard was warming up the engine. The lifeguard escaped injury. brwfica! nmi t'ndrf the rw TA tuidfSin.

biakt'xal fntoMcf will not Ka to undrrgo the tarn. rtjiftd ef potent tnanm Aa "lItlrimu caffraign within the While HaM KDeMsme: is Cartpf is to blame, a rl m4 f.t:.r-an fUhr4 m4 Caflt'l eeofnic 4titiftn at w.wt v9 f-. afna.j to tnT-ataar an to iVamip tfforu. Ajrnt to in gntirar-gCT'al ri'4-U tJbcmRrt: 4 u.o ft ti-l -4 fVbJir, C- ENERGY, ENVIRONMENT Additive to Boost Unleaded Gas Octane ials tn Winston -Salem. N.C, closed 45 minutes after It opened -an hour snd 45 minutes earlier than scheduled -when i shouting match developed between blacks and whiles who were wearing Nasi armbands.

About 2O0 tTwej had packed the tiny Sudilort-um of the Fonyth County Public Library wsKlht d-ipUy rot, public aborts and pictum The nihsbil was oi g4 while "mean ef tkwu," tmirdirf to Vernon Un. h4 tf the VaT of the Ku KIu KUn At kt mst prrtwj ukm into no er A ilHla i)U rgMl Wit r.fvwp4 p's to a tr'drt Pfirr.ict CT.t tO MJfWS ESSi' cm Scvt W'ft Cats )1Lfg mm Hm H.jf.ii-f fm" Ui4 tf Cft tta-rn e( tht N1, t'pUn C--4 a-l R4 tJATJifTt ef Nt fl ef is fls4 l-K. iva -a4 "r.t s4 to fut. CWts txsn Jr. tO r-'e- on if a4 w-arl foKSisaa isKMM wtf frsir arrwaj IN Jg Owri'W scfHl ef rJ f-4 f.rrsSl 19 5r- yufafta nf trijs io rVl St 4 TW rtM-lMlf fwi an.if MTM may I a44 to us V-i tu cam wvr i mr 10 ffftfwfl fcf th feVts tnijfl.

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