The San Francisco Examiner from San Francisco, California • 1

The night gays offered tn hpln nitv Bill MandelA3 Stocks down 2.50 Tanning Open New movies Jof rey Ballet Monte Carlo to Ml XVV 7 Final edition Complete stocks PageCI 116th Year No. 304 Friday, May 29, 1981 fete bodfe They'll turn over remains after performing tests Today HANOI, Vietnam (LTD Vietnam in- ists complete their verification. "I have said many times and I reiterate: Vietnamese and a three-man delegation from the U.S. Joint Casualty Resolution Center, based in Hawaii. Lt.

Col. Joe Harvey, head of the U.S. team, said arrangements for the transfer of the remains would be worked out with the Vietnamese Embassy in Bangkok, Thailand. "We're pretty damn happy," said Harvey. Both sides refused to reveal the names of the recovered airmen, who were among some 2,500 American servicemen missing in Vietnam, Laos and Cambodia during the Vietnam War.

The U.S. team said it did not want to raise the hopes of family members in the United States until the work of lab specialists in -See Back Page, Col. 2 Topic A formed a special U.S. team today that the remains of three American airmen missing in action since the Vietnam War had been found. Vu Hoang, director of the Vietnamese Office Seeking Missing Personnel, said the remains will be turned over to the Americans as' soon as Vietnamese forensic special- There are no American POWS alive in Vietnam, and all remains discovered have been handed over to the American side," Vu Hoang said.

"We have no interest to keep them." The announcement was made after the second meeting in Hanoi between the INVESTIGATORS PAINTED a picture of jail corruption, lax security and preferential treatment in the escape of Hells Angel Sergey Walton. Page Al. City State Walton escaped Deputy pushed laundry cart with Walton hidden inside to laundry room 'B' Walton walked out of jail this way from here SEVEN HUNDRED GAY men and women answered a call for volunteers to help The City's social service agencies last night in an effort to build a bridge to the community. Bill Mandel reports. Page A3.

DESPITE THE PROTESTS of neighbors, the Planning Commission has voted to allow Midnight Sun, a Castro Street bar, to move around the corner to 18th Street. Page Bl. THE HEAD of the 70.000-student San Francisco Community College District says plans by state Senate leaders to impose a tuition fee and cut state aid for adult education programs would cost the district $10.7 million next year Bl. Ot'TER MISSION neighbors have been enraged by the announcement that the Alemany emergency aid station will be dosed for good on Monday. Page Bl.

HpIIr 7 I Visiting rooms I I L-U jr. Laundry Cells Angels' A A all in Nation Felony area Laundry room I 'B' Walton hid inside laundry cart Orawin'-j to scale 7th floor, Hall of Justice Walton shaved and changed into deputy's uniform KEY DEMOCR TS have rejected two elements of President Reagan's tax-cut plan and are pressing for a one vear tax cut that favors low- and middle-income Americans. Page Al. THE SOCIAL SECURITY debate goes on with Reagan administration officials saying they are ready to accept proposals that would cut benefits for those who retire early and might consider cutting the annual cost-of-living increases if the president doesn't have to take the blame. Page A3.

THE FAA is studying cracks in the wing spars of some DC-9 airliners, but said the aircraft will not be grounded. Page A4. PRESIDENT REAGAN says he has never found Wall Street, the nation's financial center, to be "a source of good economic advice." Page A6. Examiner Harry Aung How Angel escaped in a guard's suit The $50,000 inside story on Walton's easy disappearance from the county jail World PRESIDENT REAGAN praised envoy Philip Habib's peace efforts in the Middle East as "miraculous," but Lebanon reported Israel raided a village in south Lebanon in the third raid in the two days since Habib left the area. Page Al.

THE REAGAN administration has changed policy on selling arms to foreign countries, which could make make the Uiuted States the world's leading arms merchant. Page A10. ANOTHER IRA convict has begun a hunger strike, replacing the one who quit because of a perforated ulcer, but British Prime Minister Margaret Thatcher dismissed the fasts as the "last card" of a discredited cause. Page All. Demos firm on 1-year tax cut plan Reagan hopes for bipartisan coalition WASHINGTON '(AP) Key Democrats in the House, rejecting basic elements of President Reagan's tax plan, are holding firm for a one-year tax cut that favors lower- and middle-income Americans.

Dashing hopes for a quick compromise, most Democrats on the House Ways and Means Committee turned thumbs-down yesterday on Reagan's plan for a three-year, across-the-board cut of 30 percent And they would have no part of an administration-backed alternative calling for a 25 percent cut over three years. "They may win it on the floor (of the House), and they may win it in the Senate, but we're not going to give it to them," declared Rep. William Brod-head, a member of the committee. "Most everybody said that if they (the administration) are adamant about three years and across-the-board cuts, we cant deal with them." White House spokesman Larry Speakes said Reagan "remains hopeful that a bipartisan coalition can be built in Congress." "President Reagan's position re--See Back Page, Col. 2 Sports r5 i By Phil Bronstein When Sergey Walton decided he'd had enough of the good life in the San Francisco county jail, the burly Hells Angel strolled out one midnight, dressed in a forest-green deputy sheriffs jumpsuit In interviews with law enforcement officials, inmates and other sources close to the investigation of Walton's escape from jail last March, a picture has emerged of his escape and the life he and other Hells Angels lived in jail including the use and distribution of drugs, private access to phones and "open cell door" parties attended by friendly deputies.

It was also learned that: Walton, captured by federal authorities yesterday in a rented Santa Cruz-area cabin, is now being guarded by at least one deputy still under suspicion in the investigation of his escape. Walton may have paid as much as $50,000 to the people who helped him out For three days after his unauthorized departure, Walton was listed as present during nine daily prisoner counts. One deputy accepted a $2,500 personal loan from the Hells Angels he was guarding. Attempts by at least one deputy to warn superiors about the hikers friendship with other deputies before the Walton escape brought the complaining deputy a reprimand and the threat of disciplinary action. Although San Francisco Sheriff Michael Hennessey said yesterday that his department's investigation into the Walton escape would be over soon.

The Examiner has learned that both that probe and a federal grand jury investigation have been hampered by conflicting stories, witnesses who refuse to talk and an apparent lack of information exchange between the sheriff's department and the grand jury. Many members of the motorcycle gang have been in the jail for more than two years, having gone through two federal trials on racketeering charges in VS. District Court here. Both ended with hung juries. Walton, 37, who was a fugitive during the first trial, was arrested and moved into the seventh-floor jail at the Hall of Justice in October of 1979.

He was convicted in March of 1980 on charges of machine-gun possession and was awaiting removal to a federal prison when he escaped. Although there are still discrepancies in some accounts, this is the See Back Page, Col. 5 MAJOR LEAGUE baseball's looming strike has earned at least a temporary reprieve, but the threat still hangs over the 1981 season. Page Fl. AFTER BEING swept in a three-game set in Cincinnati the Giants return home to play the visiting Houston Astros.

Page FL THE OAKLAND A's, still clinging to first place in the American League East, left yesterday for Toronto and will face the Blue Jays in the opener of a short six-game road swing. Page Fl. Business SMALL INVESTORS AGAIN were drawn to high yields in money market funds 16.36 percent in the latest week but overall assets decreased due to an outflow of institutional and broker-dealer money. Page CI. JOHN MCATEE, who created a stir by complaining that his $130,000 government salary was not enough, has resigned from the Synthetic Fuel Corp.

Page CI. Associated Press RP. DAN ROSTENKOWSKI, ILL, He could back cut for shorter period Opinion Another wayit is the alienated for whom the wristwatch tolls THE EXAMINER'S VIEW: The United States Supreme Court this week gave another demonstration of how law can be warped to defeat justice. Editorials, Page B2. BAY AREA FORECAST: Fair through Saturday except for fog and low clouds along the coast spreading inland nights and mornings.

Chance of drizzle Friday night Details, Page Bll. her poem on its summer festival program. "Alarm, melody and chime watches represent a growing percentage of digital-watch sales, which already account for more than 35 percent of all watches sold," The Wall Street Journal reported recently. The story was headlined "As the Hour Approaches, a Nation of Beepers Prepares to Mark Time." But these watches 'tell a lot besides time," said a San Francisco State University communications professor, Arthur Asa Berger. Tm a pop cultur- From Page 1 beep, beep could be heard throughout the acoustically sensitive hall, bemoaned Susan Feder, the symphony's program director.

"It disturbs me greatly." she said, "that people don't come to the symphony with enough concentration to turn that thing off." So she wrote a poem for the symphony program to encourage patrons to listen to the musicians and not to the digital wizardry of their wrist-watches. Her poem is titled, "Alarming Situation." It may notbecome a classic, but it is getting the classics. The opera, she said, also plans to use It's worse than a blooper, worse than a cough, PLEASE WATCH YOUR WATCHES AND TURN THEM ALL OFF. S.F. Symphony program By Mike Lassiter What goes beep both night and day is plaguing the arts and whetting the appetite of poptulturists? When the San Francisco Symphony opened its new season in Davies Hall, it found itself with unexpected competition.

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