The Pantagraph from Bloomington, Illinois • Page 1

Thunderstorms likely Variable cloudiness, warm and humid with thunderstorms likely tonight; low in lower or middle 70s. Wednesday partly sunny, continued hot and humid with chance of thunderstorms; high In upper 80s or lower 90s. Final Edition 25c 133rd Year. 199th Day Bloomington-Normal, Tuesday, July 18, 1978 28 pages 2 sections Castle conference fails to narrow differences mm standing ofthe Israeli obsession with security and the fear of the West Bank under hostile leaders within cannon shot of Tel Aviv. One U.S.

official said Vance hoped to set up an "accelerated negotiating schedule," with follow-up talks between Dayan and Kamel possibly beginning next week. These might be held at El Arish, on the Mediterranean coast of Sinai. "Our hope," said Vance on his arrival Monday from the Bonn summit conference, "is that new momentum can be given to the peace process by the discussion which will be taking place, and that we can see further direct negotiations between the parties." Egyptian President Anwar Sadat suspended the negotiations between Dayan and Kamel in January, before they really got started, because of a deadlock over the future of the West Bank and Gaza, which Israel captured in the 1967 war, and the 1.1 million Palestinians living there. The deadlock continues. Egypt wants Israel to return the West Bank to Jordanian rule and the Gaza Strip to Egyptian rule.

After five years, the Palestinians in the two areas would be allowed to choose their own destiny. Begin refuses to surrender the territories, which he considers historically part of Israel. He has offered to give them civilian autonomy under Israeli military guard. And he refuses to allow Palestinian statehood even after five years. A U.S.

official said the two sides are agreed that they want peace and that there should be a five-year transitional period. Israel also is prepared to return the rest of Sinai to Egypt although so far it refuses to dismantle the Jewish settlements which have been established there. Complicating the situation is a deep split in the Israeli cabinet and the unrelenting pressure of militant Arabs on Sadat to abandon the peace initiative he launched by visiting Jerusalem eight months ago. LEEDS CASTLE, England (AP) -Egyptian and Israeli foreign ministers opened a two-day meeting in this castle southeast of London Tuesday, but after 3 Mi hours of negotiations the only apparent agreement was that the gap between their positions on Mideast peace was "very wide." Asked if there were any areas of agreement between Israeli Foreign Minister Moshe Dayan and Mohammed Ibrahim Kamel of Egypt, Egyptian spokesman Hamdi Nada said: "We are still waiting for a more positive response to our initiatives and proposals." Sounding only slightly more optimistic, Israeli spokesman Naftali Lavie said that since the last negotiating session in Jerusalem in January, "We have got much nearer to understanding each other, the problems being presented by the other party." But Nada quickly rejoined: "I don't think there is anything new" in Israel's proposal. U.S.

spokesman Hodding Carter, speaking for Secretary of State Cyrus R. Vance who chaired the meeting, said the aim of the talks is "to identify areas of agreement and then move into other areas." Reliable reports said Vance's assis- tant, Mideast troubleshooter Alfred Atherton, would shuttle between Egypt and Israel to follow up the talks here. But Carter declined to confirm Atherton'i travel plans. There even seemed to be disagreement over whether the parties were negotiating directly. Lavie said these were face to face negotiations.

Nada saw them as indirect talks through Vance. A top U.S. official said before the day's discussions began at Leeds Castle 45 miles southeast of London that no breakthroughs were expected. i "It's a good thing that the parties are beginning to talk directly to each other again," Vance told reporters before they sat down at an oval table in the heavily guarded, 13th century fortress in the pastoral English countryside. However, U.S.

officials said Vance would urge Egypt to spell out security guarantees for Israel, particularly against the use of the West Bank of the Jordan River as a base for Palestinian attacks on Israel. The American idea is that this would put new pressure on Israeli Prime Minister Menachem Begin to relinquish the West Bank and the Gaza Strip. The Americans said the Egyptians appear to have grown more under- i k- Leeds Castle, England Egyptian Foreign Minister Mohammad Kamel, center, and Israeli Foreign Minister Moshe Dayan started of their peace talks with a handshake Tuesday as United States Secretary of State Cyrus Vance, left, looked on. (AP Laserphoto) Handshake Soviets convict U.S. reporters Draw Summit promises may not come easy gian dissident sources as saying the Soviet television officials had fabricated the filmed confession of Georgian human rights activist Zviad Gamsakhourdia.

The Soviet television officials summoned the 39-year-old Gamsakhourdia who is now serving a three-year prison sentence for anti-Soviet activities as their key witness. With Soviet and Western journalists and television cameramen allowed to look on, the prosecution aimed its case at showing that Whitney and Piper allegedly virtually ignored such official Soviet sources as Tass news agency and opted instead to believe what the prosecution called "unreliable dissident sources." "Whitney and Piper are slanderers only interested in distorting Soviet reality," prosecutor Georgy Skaredov told the court in his summation. He asked the court to convict the Americans, send a letter to the Soviet Foreign Ministry asking that they be deprived of their official accreditation, order them to pay $3,168 in fines and court costs, apologize to the Soviet television officials and publish a retraction both in the United States and the Soviet Union. dampen oil consumption by Americans, he would increase the price of domestically produced oil now an average of $8.99 a barrel to the world market level, about $13.50 a barrel, by the end of 1980. Actually, Carter can achieve that goal, and sooner than promised, by doing nothing.

Under legislation Congress passed after the 1973-74 Arab oil embargo, price controls on domestic oil automatically will expire in May 1979, and prices would rise to world levels. The result would be a seven-cent boost in retail gasoline prices. But in curbing oil imports, the president will have a fight on his hands, no matter how he goes about it. Carter's proposal to reduce consump- WASHINGTON (AP) President Carter is home from the Bonn economic summit meeting, where he promised to reduce U.S. oil consumption.

Now he faces the difficult task of getting Congress to help him make good on that vow. After two days of meetings with the leaders of six other major, non-communist industrial nations in Bonn, West Germany, Carter told reporters: one of us was cautious not to promise things we could not subsequently deliver." Carter will have no trouble fulfilling one part of his promise, raising U.S. oil prices, but the other part a cutback in U.S. oil imports may be a lot tougher to achieve. The president said in Bonn that to help tion by imposing a tax pn domestic crude oil, thus making it competitive in price with imported oil, is in deep trouble in Congress.

Observers say that in an election year, and with Proposition 13 pressures mounting among the voters against higher taxes, it would take a miracle to get a crude oil tax through Congress. The same pressures would work against any attempt by Carter to achieve the same results by imposing a quota or fee on oil imports, which he can do without permission from Congress. Even before Carter went to Bonn, the Senate voted to block imposition of an oil import fee, and there is strong support for such a move in the House. If he tries to slap a quota on oil imports, Carter risks the threat of a legislative ban against that step, with especially heavy backing from East Coast senators and Republicans. Congressional leaders in the 15-month fight over Carter's energy program had no comment on the president's commitments at the summit.

They said they were awaiting specifics. Inside today Hospita ERA extension clears hurdle BAGUIO CITY, Philippines (AP) Challenger Viktor Korcbnoi and world chess champion Anatoly Karpov played to a draw Tuesday In the opening game of Korchnoi's grudge match for the title. Karpov offered Korchnoi a draw after 18 moves, and the game, which experts described as "unexceptional," ended after two hours of play. Korchnoi, the 47-year-old defector from the Soviet Union, made a traditional English opening, one of his favorites. The 27-year-old Soviet champion transposed it into a queen's gambit which Korchnoi declined.

The tournament will continue until one of the players wins six games. Experts say they may have to play 20 to 30 or more games, and this could take two or three months. Carter spoke with forked tongue: Indians WASHINGTON (UPI) Leaders of more than 400 Indian tribes Tuesday charged President Carter has broken campaign promises he made them by dismantling the Bureau of Indian Affairs. The National Tribal Chairmen's Association and the National Congress of American Indians, joined by groups of Alaska natives, said tribal governments unanimously oppose the elimination of the BIA's educational functions. "President Carter promised us decisions affecting Indians would not be made in the White House and in Washington, but at the tribal council level," said tribal chairmen spokesman Patricia Locke.

But the administration's support of the bill "against our wishes is almost an insult to our integrity and decisionmaking ability. It is the beginning of piece-by-piece dismantlement of the BIA." The bill, under consideration in the House and Senate, would create a new Cabinet-level Department of Education incorporating the functions of about 300 other government divisions and agencies. Ms. Locke said "true" Indians those with at least one-quarter Indian blood or more would "get lost in this huge department of education" and wishes of tribes to have their children taught in native languages will be ignored. The Indian groups held a news conference as hundreds of other Indians participating in the "Longest Walk" march prepared to demonstrate at the FBI to complain about "native American" political prisoners.

MOSCOW (UPI) A Soviet court Tuesday convicted two American reporters on charges of libeling Soviet television officials and ordered them to pay fines of 81,647 each and publish retractions of the offending material in either Soviet or American newspapers. The verdict came in a swift, three-hour trial that was boycotted by the defendants, Craig Whitney of The New York Times and Harold Piper of the Baltimore Sun, both of whom are vacationing in the United States. Both said they would return to Moscow when their vacations are finished. Chief judge Lev Almazov of the Moscow City Court ordered that Whitney and Piper pay their fines within 10 days and publish the retractions within five days. He made no mention of a prosecution' demand that the court also ask the Soviet Foreign Ministry to strip the two American reporters of their official accreditation.

The New York Times said it would have no immediate comment but might issue a statement later. Paul Banker, managing editor of the Baltimore Morning Sun, said the paper was prepared to pay the fine but that the required retraction "was another matter." "The conviction is what we expected," he said. "Piper was convicted the moment he was charged. We stand on the contention that the news article was correct that friends of the dissidents said they doubted the confession." Banker said he had talked with Piper briefly over the phone after the report of his conviction. He said Piper was scheduled to spend a couple of weeks on vacation but would then return to his assignment in Russia.

"I don't know what the Russians mean by a retraction," said Banker. "I don't see how we can do that. We didn't say the dissidents said the television program was faked. It was friends of the dissidents who said that and they did. If they want us to retract that I don't see how we can." Soviet television officials had brought the charges in a civil lawsuit, claiming they were slandered in dispatches written by the two Americans.

Whitney, 34, and Piper, 39, declared they would not participate in the proceedings and left the Soviet Union earlier this month for vacations in the United States. The verdict was considered sure to further strain U.S.Soviet relations, coming just five days after the sentencing of Soviet human rights activists Anatoly Shcharansky and Alexander Ginzburg. The Carter administration responded to the charges against the Americans by hinting that it might expel five Soviet reporters based in Washington. The stories in question quoted Geor- Markets B-14 Opinion A- 4 A-14 B- 5 Sports B- 1 A- 9 Today A-12 Weather B- 4 Abby A-13 A- 6 Births A- 2 Comics A-10 Deaths B-13 Doyle A- 9 Farm B-14 Heartline A-14 refused to do so in the past. He said this would give impetus to other states to follow suit.

If the ERA does not make it by the deadline, he said, Congress should start the process over again and this time submit the measure for ratification by state conventions the other alternative outlined in the Constitution. Thirty-five state legislatures have ap- proved the ERA, although four of them in Nebraska, Idaho, Tennessee and Kentucky later rescinded approval. Kentucky's rescission action was vetoed by the acting governor. Thirty-eight, or three-fourths of the states, must approve the measure for ratification. Rep.

Thomas Railsback, said he would offer an amendment providing that state legislatures that have already ratified the measure could withdraw their approval during the extension period. Congress has not yet indicated whether rescission actions are legal. Railsback, who also voted for the ERA when it passed Congress, said his amendment was needed to "assure the American people that their Constitution is not being unfairly altered." The new deadline under the compromise 39-month extension would be June 22, 1982. Postal negotiators down to Veal crunch' WASHINGTON (UPI) Postal Service and union contract negotiators resumed work early Tuesday after a late-night session that addressed tough issues but deferred any decision on a crucial wage issue. With both sides still far apart on the money matters, the negotiators were reported to have worked until midnight on a package of union demands a no-layoff clause, no mandatory overtime work and improved working conditions.

"This (the package) is the real crunch," a source close to the negotiations said, "and they're down to it. AH are interrelated and have to be addressed as sort of a block." cost-cutting bill gutted WASHINGTON (UPI) Handing President Carter a major defeat, the House Commerce Committee Tuesday gutted his plan to force hospitals to cut costs by threatening them with federal controls. Instead, the committee passed 15-12 a watered-down bill asking hospitals to cut costs in 1978 and 1979 without the threat of federal penalties if their cost-cutting attempts failed. "This simply guts the administration bill," said Rep. Paul Rogers, D-Fla.

"The committee has not faced this problem responsibly." The substitute, offered by Rep. James Broyhill, would ask hospitals to cut their rapid inflation by 2 percent this year, and another 2 percent in 1979. It also provides for federal aid to states to establish their own cost control plans and for a presidential commission to watch over cost control efforts. But it removed the Carter threat of mandatory federal cost controls if the voluntary effort is not met. Carter, in urging committee approval, earlier called it one of the most important bills of this session.

Although the administration said hospital costs rose 16 percent in 1977 and the threat of federal controls was the only way to force that figure down, Broyhill said Tuesday, "This plan would not kill hospital cost containment." Noting that hospitals claim they have recently sharply cut their inflation rate, he said, "This will encourage them to continue that program." Rep. Henry Waxman, sharply attacked the Broyhill plan, saying it provided no incentive for cost cutting. "The Carter bill offered hope," said Waxman. "You're not giving states incentive by giving them funds for cost control programs without the threat ot federal action," if those programs do not succeed. The Carter bill is still being debated in the House Ways and Means WASHINGTON (AP) A proposal to extend the deadline for ratification of the Equal Rights Amendment cleared its first hurdle in the House Judiciary Committee Tuesday by a vote of 23-8.

Before an overflow audience of ERA supporters and opponents, the committee turned aside a move by Rep. Harold Volkmer, that would have required the extension to get a two-thirds vote if it reaches the House floor. Supporters were confident of securing committee approval by a close vote later in the day for an extension of three years and three months, scaled down from the seven-year extension originally sought. Rep. Robert McClory of Illinois, the committee's ranking Republican, led off the opposition to the extension.

McClory, who voted for the ERA when it was originally approved by the House, said the extension would do "more harm than good" to the prospects of ratification. He said he believed ratification could be secured by next March 22, when the original seven-year period expires. The measure is designed to guarantee equal protection of the law regardless of sex. McClory predicted the Illinois legislature would ratify the ERA at a special session in November, although it has Dewitt Resident Sells Motorcycle with a Pantagraph Want Ad Makes no difference where you live in Central III. a Pantagraph Want Ad can solve a selling problem for you.

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to 5 P.M., 8:00 A.M. to Noon, 3 to 5 P.M. Just S1.27 per day for 15 words or only 71c per day more for 28 words, both on the special 8 day plan. Louisville firefighters end strike and that firemen won't be penalized for taking part in the strike. The strike closed all but seven of the city's 23 fire stations.

Twenty-eight Fire Department supervisors and about 280 National Guard troops had staffed eight houses, but one had to be closed Monday when some supervisory personnel were ordered off the job by doctors. As the firefighters began returning to work the National Guard members collected their gear and drove off in trucks to their armories. No major fires were reported during the strike and unlike recent fire "We feel this is a fair agreement," Segal said. "We think the city has at last negotiated in good faith and we are pleased and hopeful that the membership will agree that we got exactly what we wanted." Segal said the agreement calls for firemen with five years experience, who previously made $11,085, to receive a $1,600 raise in annual wages about a 14 percent hike. Originally the firemen had been offered a 5.5 percent raise.

Segal said the city also agreed to drop contempt procedures Egainst the union for failure to honor a back-to-work order fighter strikes in Dayton, Ohio, and Memphis, Tenn. reports of arson and false alarms remained at normal levels. "It was one of the cleanest strikes on record," said Sgt. Bill Bowman, an 11-year veteran. Bowman said the lack of any major incidents of false alarms or arson reflected "a lot of pride involved" among firefighters.

The firefighters walked off the job Friday in the third firefighters' strike against the city in the last eight years. On Friday night firefighters went back to work for seven hours until returning to their picket lines when contract talks broke down. LOUISVILLE, Ky. (AP) Striking firefighters voted overwhelmingly Tuesday to accept a new contract and immediately began returning to work, ending a five-day walkout that left this city of 400,000 with reduced fire protection. The vote at the pre-dawn meeting was 358-30 in favor of approval.

Herb Segal, lawyer for the union, had called the meeting after a tentative agreement was reached early Tuesday. Union president Larry Atwell said all firefighters could be back to work as early as three or four hours after ratification of a contract..