Home Paper at n Communities Cloudy, Mild Tonight Low Mid-SOs dnHicQ o( RaiA'Friday High 64-70 A B§U€r Newspaper VOLUME LXXXII — 93 Bugging GALESBURG, ILL 61401 — THURSDAY, APRIL 19,1973 PRICE TEN CENTS er Pointed at Mitchell^ Dean John W. Dean III U. S. Stops Mine Clearing, Han.i A»gry By United Press International The United, States for the second time since the Jan. 27 signing of the Vietnam cease fire has suspended mine clearing operations in North Vietnamese waters, the Pentagon announced today, and Hanoi labeled the move a "blatant violation" of the truce. Pentagon spokesman Jerry W. Friedheim told a news conference in Washington the mine-sweeping operations were suspended "because of the failure ',of, the other side to abide by the agreements and assurances of Paris ..." and "because of continued cease fire ^iolations by the other side in South Vietnam and Laos ..,." Friedheim would not elaborate further and did not say when the mine clearing operations were halted, but Hanoi's Vietnam News Agency (VNA) monitored today in Saigon said the U.S. Navy suspended the mine sweeping Tuesday and said the North Vietnamese Foreign Ministry has issued a statement denouncing the move .as a "blatant violation" of the Paris agreement ending the Vietnam War. Friedheim made his references to cease-fire violations in Laos and South Vietnam after U.S. sources in Vientiane said American bombing in Laos halted Wednesday after two days of new air strikes there to counter Communist truce violations and more post-truce fighting was reported in South Vietnam. Lawmen Say War Money Must Be Cut WASHINGTON (UPI) - Antiwar members of Congress, restless over continued U.S. military involvement in Southeast Asia, have initiated moves to stop it by both legislation and court action, Sens. Frank Church, D-Idaho, and Clifford P. Case, R-N.J., introduced a bill Wednesday that would prevent the administration • from spending any funds to support U.S. military forces "in or over or from off the shores" of North or South Vietnam, Laos or Cambodia, unless authorized by Congress. And Rep. Jonathan B. Bingham, D-N.Y., introduced legislation to cut off funds for military operations in Cambodia, Laos and Vietnam. Bingham said the joint resolution he offered was needed to restore Congress' constitutional prerogatives and end "a presidential war that has no constitutional or statutory basis." Rep. Elizabeth Holtzman, DN.,Y., filed suit in U.S. District Court in New York challenging President Nixon's right to continue military operations in Cambodia without congressional approval. John N. MitcheU Jeb Staart Magrader WASHINGTON (UPI) -i The Washington Post reported today that presidential aide Jeb Stuart Magruder has admitted helping plan the Watergate raid and named then-Attorney General John N. Mitchell and White House Counsel John W. Dean III as fellow planners. The newspaper said that Magruder, who was President Nixon*s deputy campaign manager last year, poured out his story to prosecutors last Saturday and was prepared to repeat it under oath before a grand jury today. Quoting unnamed sources in the White House and the Committee for the Re-Election of the President (CRP), the Post said Magruder had also told government attorneys that Mitchell and Dean arranged to pay hush money to the seven men convicted of the bugging raid on Democratic Committee Headquarters last June 17. Source Forecasts Indictment "One of the sources went so far as to say that Magruder's statements and other information developed by the prosecutors—especially regarding the payments of cash to the conspirators to plead guilty and remain silent—are expected to result in the criminal indictment of both Mitchell and Dean," the Post said. Both Mitchell and Dean have denied repeatedly any involvement in the Watergate affair- Mitchell under oath—and Magruder testified at the Watergate trial last January he had no knowledge of the bugging. The New York Times reported that current Attorney General Richard G. Kleindienst has disqualified himself from further partieipation in the Watergate investigation so he won't have to prosecute former administration colleagues should they be indicted. It is Not Unusual The Justice Department declined to confirm or deny the Times report,.though a spokesman said it was not unusual for prosecutors to avoid the! appearance of conflict of interest by disassociating themselves from cases that might involve personal friends. The twin reports came as rumors surged through the capital—followuig Nixon's own statement that "major developments" were brewing—that high administration officials might soon be indicted in the Watergate affair. According to various government sources, about eight new indictments are anticipated. The Post said Magruder has provided a first-hand account of a meeting in Mitchell's Justice Department office in February, 1972, "to discuss and approve the illegal electronic eavesdropping operation at the Watergate." At the time, Mitchell was the nation's chief law enforcement officer as attorney general. He left that job in March last year to officially take over the rehis of the Nixon re-election campaign. Dean Hits Back WASHINGTON (UPI) White House counsel John W. Dean III said today he would not allow himself to become "a scapegoat in the Watergate case," and warned that it should not be assumed that he is guilty in any way. Breaking a long silence, Dean issued a statement saymg "some may hope or; think that I will become a scapegoat in the Wateirgate case. Anyone who believes this does notknow me, know the true facts or understand our system of justice." Less Federal Grant Control Is Feature of $2.3 Billion Program lull 1 (I'ill WASHINGTON (UPI) President Nixon today sent Congress a $2.3 billion a year program designed to let towns and cities meet their own community problems without "the excessive federal control that has been so frustrating to local governments." The, program, which the President called the "Better Conununities Act" and wants to begin July 1,1974, was the first of four special revenue sharmg proposals which Nixon plans to submit to Congress this year. It would scrap seven federal grant programs including urban renewal; Model Cities; neighborhood facilities; watjor and sewer grants; open space and historic preservation; rehabilitation loans and public facility loans. All these programs are admuiistered by the Department of Housing and Urban Development (HUD). Other HUD programs including housing and community planning would not be affected by the act. In a message to Congress on March 8, Nixon said that the program would permit communities to spend the funds "as they desire, to .meet their needs." Until the legislation becomes effective, funds ahready available will be used to mabitain ahd support community development. "The Better Communities Act is intended to replace inflexible and fragmented categorical grant-in-aid programs, and to reduce the excessive federal control that has been so frustrating to local government," Nixon said. The legislation provides the funds allocated by a formula on the basis of need and will be turned over durectly to local e 1 e ct e d goverranents. The President said many conununi ties not benefiting from present HUD programs would get funds under the new act. He said the formula would assure automatic annual funding to metropolitan cities and urban counties. Nixon told Congress that his program would eliminate "federal red tape and bureaucratic restrictions." He said that as of June 30, 1973 the total unspent money in community development categorical programs already obligated to conununities will be about $7.4 billion. Nixon said that the act would provide a single fund of shared revenues administered by HUD. Many big city mayors are opposed to the proposal because they think it ultimately will provide less money to their cities than the specific purpose programs it will replace. Economy Gains Sharpest Since Watergate Safe Opened Korean War Years An investigator dusts for fingerprints the safe of Sen. Lowell P. Weicker, R-Conn., containuig his Watergate bugging records, which the senator said was opened during the night. The top drawer to the filing cabinet, locked with a combination dial, was found open this morning by aides to the senator. Lowell is a member of the Senate committee investigating the Watergate affair. UNIFAX Buhhling Town Evacuated WILLIAMSBURG, Mieh. (UPI) - Mysterious craters bubbling with gas and water and up to 25 feet wide appeared in the ground and forced evacuation today of much of this tiny town located in the heart ol northern Michigan's oil drilling country. By midmoming, about 50 families had left their homes, virtually the entire population of Williamsburg. The craters, bubbling with natural gas and water, began showing in the ground Wednesday afternoon, measuring only a few inches in diameter at first and widening in some oases to as much as 25 feet. There were shout 20 in all. One of the first precautions taken by state police was to close off a 15-mile portion of M72 in the area where the holes were first noticed. There was some speculation that oil drilling operations in the area may have been partially to blame for the problem, but there was no official word on this. "If you ask me what's causing it, it's a good question," said Michigan State Police Sgt. Alfred Torrey early today. "It aippears to be natural gas escaping through underground water channels. "There are bubbling mud springs all through the southeast portion ol Williamsburg. We had to move a few more families out this morning." Torrey said geologists from the Michigan Department of Natural Resources have arrived at the scene. "You can smell methane and hydrogen sulfide gas," Torrey said. No fire or injury has been reported as a result of the gas. Where to Find It 4 SECTIONS Abingdon 31 Amusement 6 Bushnell 14 Business News 8 Classified Ads . 32-33-34-35 Comics-Radio 24 Editorial 4 Galva 14 36 PAGES Hospital Notes 9 Kaoxville 31 Markets 26 Monmouth 25 Obituary 9 Sports 29-30 Weather 2 Women in the News 11-12-13 By GENE CARLSON WASHINGTON (UPI) Pushed by sharply rising prices, the economy exploded m the first three months o^ this year and expanded at a rate unsurpassed since the inflation- plagued Korean War years, the government reported today. The Commerce Department said the economy, as measured by the Gross National Product (GNP), rose at an annual rate of 14.3 per cent in the first quarter. Prices rose at a hefty 6 per cent, sharply higher than in the previous quarter and well above the administration's anti-inflation goal. The first-quarter increase, which totaled $40.6 billion, was one of the sharpest quarterly gains in GNP since a 14.7 per cent advance in early 1951 when the nation was in the midst of Korean War production. The quarterly increase was equaled in the first three months of 1971 when the economy was rebounding from the effects of the General Motors' strike. The GNP is the value of the nation's total output of goods and services and is the broadest measure of the health of the economy. Today's report was preliminary and will be revised next month when more figures are available. But the mitial report indicates that the economy is growing much faster than the administration wants and could be headed for a sharp downturn unless inflation is brought under control. The first-quarter increase brought GNP to a seasonally adjusted annual rate of $1,235.5 billion ($1.2 trillion). In the fourth quarter, GNP rose at an 11 per cent annual rate. The department said "real," or non-mflated growth in the January-'March period was 7.9 per cent, about the same pace as the last three months of 1972. But the 6 per cent inflation rate followed a 2.8 per cent rate in the three previous months, reflecting a sharp upsurge in prices across the economy since the first of the year. Discounting the effects of pay increases for federal workers, which are included in the GNP inflation column, the price increase figure for the fu-st quarter still was 5.5 per cent at an annual rate, well above the admuustration's 3 per cent 1973 forecast. Both administration and private economists have warned that the economy may be overheating and the GNP report would appear to confirm these fears. A fast-moving economy following a recession is fine. Then there is idle manpower and unused plant capacity ready to be put to work. However, tiie economy has been expanding for about two years and much of the slack has disappeared. Shortages are developing, inventories are depleted, back orders are piling up and unemployment is edging down. If the boom contmues under these conditions, the :^rtages in manpower and goods will force wages, prices and interest rates higher still. Moves to counteract these forces, such as I tightening the supply of money and credit and perhaps reim-i posing tough economic controls, could precipitate a sharp downturn in the economy, experts fear. I g fill I Suicide Prevented Angelo Ferraro, 27, Brooklyn, threatened to leap from a fu*e escape Wednesday. Police and priests had convinced Ferraro not to jump. He slipped and fell three stories as his rescuers watched helplessly. Caught m a rescue net on the ground below, he was unhurt. UNIFAX ^Out^ Being Sought in Israeli Raid Talks UNITED NATIONS (UPI) Diplomats sought a way today to wind up the Security Council debate on an Israeli commando raid in Beirut with a resolution that could escape a veto by big power backers of both sides. j Their chances appeared slim. Ambassador Javier Perez de Cueliar of Peru, who is serving' as president of the council for, April, adjourned the debate i Wednesday without settmg a time for reconvening. But souices said the council could meet immediately if there was any likelihood of agreement on a resolution. After five days debate, councilsentiment was overwhelming for condemnation of Israel for the April 10 raid that Lebanon said took 12 lives. The Egyptian foreign minister, Mohamed H. Zayyat, said at least 50 persons were killed. The United States remained j opposed to any one-sided condemnation. Ambassador John A. Scali said the council could not condemn Israel while condoning Arab attacks one day earlier on an El Al plane and ! the Israeli Embassy m Cyprus.
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