The Pantagraph from Bloomington, Illinois • Page 1

Rain likely Mostly cloudy, warmer tonight. Low in middle or upper 20s. Cloudy Wednesday, rain likely. High in upper 30s or lower 40s. (More weather data on Page B-4) Final Edition 25e 134th Year.

58th Day Bloomington-Normal, III. Tuesday, February 27, 1979 24 Pages 2 Sections Gasoline rationing down the road? WASHINGTON (AP) The White House prepared Tuesday to send Congress standby cplans for gasoline rationing, but Energy Secretary James R. Schlesinger assured the nation's governors that rationing would be used only as a last resort. Schlesinger said rationing would not be used as a result of the loss of Iranian oil, but that other mandatory, energy-saving measures proposed by the administration might be imposed if the Iranian cutoff continues for a year or longer. "We will not come to rationing because of what is a relative shortfall in supply" as a result of the Iranian shutdown, Schlesinger told the natural resources committee of the National Governors' Association.

Schlesinger spoke as the White House was about to send Congress its standby plan for rationing and other steps, in increases voted by oil-producing nations. Asked about published reports the rationing plan would limit gasoline use to two gallons or less per day per registered vehicle, Schlesinger said that figure was an average based on "the typical car." However, when pressed further on the matter, he said he did not recall what the actual rationing quantities would be and would have to check it further. Earlier, Energy Department spokesman James Bishop said reports of the two-gallon limit were a "total fabrication" and that the standby rationing plan contained no specific gallon figures. Any gasoline rationing plans probably will be based on the assignment of coupons to owners of registered vehicles, according to sources who asked for anonymity. The coupons could be freely bought and sold.

cluding allocation of crude oil among refineries and possible restrictions on weekend retail sales of gasoline and diesel fuel. Schlesinger predicted possible gasoline shortages this summer due to the Iranian shutdown, and said some mandatory steps contained in the administration's contingency plan might be triggered. Asked about the plan for barring gasoline sales on weekends, he said that if this step is taken the administration might consider allowing states to pick a weekday if they preferred. However, Schlesinger said he hoped such harsh steps would not be required' at all. He told the governors that gasoline prices probably will rise 10 cents a gallon because of the combined effect of Iran-caused shortages and recent price Schlesinger told the House Budget Committee last week that the loss of Iranian oil production during the political turmoil there could lead to mandatory steps to insure an adequate supply of heating oil next winter, causing a reduction in "gasoline availability." "There will be a gasoline problem in all likelihood this summer," Schlesinger said.

Iran's revolutionary government has said it will resume oil exports soon, but it has not disclosed how much oil will be exported or to whom it will be sold. Iran's new oil chief, Hassan Nazih, said Tuesday that Iran will sell its first exported oil in months next week on the spot market to the highest bidder and hopes to get $18 to $20 a barrel. This would be $4.65 to $6.65 more than the current base price of $13.35 a barrel set by the Organization of Petroleum Exporting Countries. But five of the 12 other members of OPEC already have jumped prices because of the worldwide demand due to the suspension of Iranian exports, and more are expected to do so. "At this moment, there are several foreign tankers in Iranian waters ready to take on oil," said Nazih.

"These are expected to dock within a few days." Nazih said the national oil firm's agreement with a European-American oil consortium is under review, and "we will not be willing any longer to deal with the consortium under the past conditions. We will not give any discounts." But he said the revolutionary government is prepared to renegotiate the agreement with the consortium if certain conditions were met. Among these is the assurance that Iranian oil will not be resold to Israel or South Africa. Saudis hold out against oil price boost crude oil price increase) you're looking at another penny on a gallon of product," he said. "So you figure a penny or a penny and a half." But Walker said the increase might be absorbed by the firm.

Kuwait's oil Minister, Sheik Ali Khalifah Al Sabah, Tuesday blamed the increase on what he said was the "greed" of the international oil companies. In an interview published in a special issue of the Middle East Economic gradual price increases, analysts say. Kuwait produces about 2 million barrels of oil daily, roughly 4.2 percent of non-communist production. Its oil is not a large factor in the total U.S. supply picture, but Kuwait is a key supplier to Gulf Oil Corp.

Gulf spokesman Thomas D. Walker said the price increase could mean higher prices at Gulf gasoline stations and on heating-oil bills from Gulf dealers. "You figure that for every dollar (of Survey, an oil review published in Nicosia, Cyprus, Sheik Ali said the international shortage of oil following the cutoff in Iranian production "strengthened the position of the major oil companies to the point where they have been reaping very considerable profits out of this situation." In addition to Kuwait, Qatar, Libya and the United Arab Emirates have made some sort of price increase to take advantage of the oil supply squeeze caused by the shutdown of Iran's oilfields during that nation's political upheaval. Iran had been the source of about 10 percent of the non-communist world's 011 before ti shutdown, and the loss of Iranian oil has tightened world supplies. Venezuela also has announced a p'rice increase for several types of oil used primarily for powering factories and electrical generators, an increase that could mean a nickel-a-gallon rise in the price of these types of oil.

Israel rejects bid to summit JERUSALEM (AP) The Israeli Cabinet Tuesday rejected an American invitation for Prime Minister Menachem Begin to attend a Camp David summit meeting, plunging the 15-month-old peace process to one of its lowest depths. Begin said last week's ministerial-level talks at Camp David produced no 4 hijack Soviet airliner NEW YORK (AP) Saudi Arabia announced Tuesday it will not raise oil prices during the first quarter of this year, breaking with a series of oil exporters who have raised prices to take advantage of the cutoff of Iranian exports. The Saudi announcement came one day after Kuwait told customers it was tacking 9 percent onto its current price of $13.35 a barrel, raising it to about $14.55 a barrel. The Saudi royal court decree, broadcast by Riyadh Radio and monitored in Nicosia, Cyprus, also called for an urgent meeting of oil exporters and consumers "to regulate consumption and stabilize oil prices, to save the world from a possible economic relapse." Saudi Arabia is the world's largest oil exporter and traditionally has been a moderate in pricing decisions of the Organization of Petroleum Exporting Countries. The supply squeeze caused by Iran's oil cutoff has been pushing prices up on the open, or spot, market, and producing nations feel the general market will bear higher prices, according to analysts.

The Saudi announcement said it plans no increases before the scheduled April 1 OPEC increase of 3.9 percent. That rise is part of a four-part increase totaling 14.5 percent spread out this year. The first increase, of 5 percent, was Jan. 1. Saudi Arabia previously raised prices on some of its crude oil production, saying its extra production to help make up for the loss of the Iranian crude should be paid for at the higher April 1 price.

But OPEC could decide at its scheduled March 26 meeting to speed up the Inside today Abby A- 2 Opinion A- 4 Amusement. A- 6 Porter A-12 Births A- 5 B- 5 Comics A- 8 Sports B- 1 Deaths. A- 6 Farm A-10 Today A- 9 Markets A-ll Weather B- 4 100 schoolchildren overcome by fumes CLEVELAND (AP) About 100 children were overcome by gas fumes at an elementary school Tuesday and taken to hospitals, deputy school superintendent James Tanner said. Many were quickly released after treatment. "For the most part, they are releasing the children after emergency treatment," Tanner said shortly after the children were taken to city hospitals.

"I don't have any reports of any serious illness." Authorities were at the scene on Cleveland's near east side trying to determine what kind of gas was involved and where the leak was. Some children were carried from the building in stretchers with oxygen masks over their faces. Sadat, who reportedly felt his presence was not necessary. In Washington, a senior White House official said the initial White House reaction "was of grave concern about what the decision means for the peace processs." The official, who asked not to be named, said the administration wants "to make sure we have all the information on what decisions were made" before commenting publicly. Begin is believed to have sent a personal message to President Carter.

In Cairo, Prime Minister Mustafa Khalil said the next move was up to Carter. "Is it I who extended the invitation? Let him who extended the invitation talk to he told The Associated Press. He denied that Egypt had toughened its stand. "Egypt's has not changed. We did not present any new proposals," he said.

Contrary to Begin, he said there was progress at last week's talks at Camp David. After the Cabinet meeting, Begin said: "The Cabinet decided that the prime minister is not in a position to accept the proposed meeting with Prime Minister Khalil." The vote against Begin going was 14-2. In Washington, Carter administration officials were discouraged and taken aback by Israel's rejection of new Mideast peace talks at Camp David. They had expected Prime Minister Menachem Begin and the Israeli cabinet to give their consent. The assumption was based on President Carter's meeting at the White House Sunday with Israeli Foreign Minister Moshe Dayan and Egyptian Prime Minister Mustafa Khalil.

Dayan's personal support was reflected in his vote to have Begin attend the talks with Carter and Khalil. But he was overwhelmed in a lopsided cabinet tally. Carter expects a letter from Begin explaining the action. Until then, administration officials are withholding judgments on what to do next to try to conclude an Egyptian-Israeli peace Gloria Carter Spann Jimmy's sister out of tune AMERICUS, Ga. (AP) President Carter's sister, Gloria Spann, is free on personal recognizance bond after being charged with illegal harmonica playing.

"Obviously I have less talent than I thought," Mrs. Spann said Monday night. She, her husband, Walter, and two other persons were arrested Saturday night at the McWaffle restaurant, said Americus police. "I am charged with: 'Defendant was playing a harmonica. When asked to stop playing music refused to do so and kept on Mrs.

Spann said in a telephone interview from her Plains, home. "Walter is charged with: 'Defendant was asked to leave building, but refused to do so unless placed under she said. "I'm reading from Walter's ticket." Mrs. Spann said she and a dozen friends had gone to the restaurant "after a musical evening at my house," and one of the group dared her to play the harmonica. She said she had been learning to play it for about a month.

"I went in playing. By the time I sat down, a girl came over and said, 'You can't play that thing in Mrs. Spann said. "My husband said, 'Play me another so I played some more." The four arrested were sitting together in a booth, she said. Police got a complaint from the restaurant's assistant manager, who said patrons couldn't hear the jukebox, said police officer Mae Davis.

She said she asked the Spanns to leave, but "they said they paid for their food and weren't leaving," so she called for help and a lieutenant arrived and made the arrests. Mrs. Spann was charged with disorderly conduct and others in the party were charged with failure to leave when officers requested, Ms. Davis said. She said the Spanns are to appear in Americus Recorders Court on March 12.

progress. He accused the Egyptians of hardening their position on terms for a Mideast peace treaty. The talks were to have been held without Egyptian President Anwar Bomb TEL AVIV (AP) A terrorist bomb exploded in Jerusalem's crowded Mahane Yehuda market Tuesday injuring five persons, one seriously, police said. Police closed off the area to search for other explosives in the market, a frequent target of terror attacks. On Monday police defused a bomb discovered by a vendor in one of the narrow lanes of the market.

On Jan. 18 a blast in Mahane Yehuda wounded 21 persons. Iran executes police official TEHRAN, Iran (AP) A former commander in Iran's paramilitary state police was executed by a firing squad Tuesday for ordering his troops to fire on anti-government demonstrators during recent political disturbances, Tehran's Kaylian newspaper reported. The commander, Lt. Kholan Ali Elyasi, was convicted Monday of murder and cooperation with Savak (the secret police) by a six-man Islamic revolutionary court in the town of Khonsar, about 198 miles west of Tehran.

Iran's Revolutionary Council Tuesday ordered police not to renew the work or residency permits of Americans and other foreigners still in the country, diplomatic sources said. The ban on renewing residency permits for foreigners, communicated to police departments Monday, followed the arrest and subsequent release of an American and three Britons seized by Ayatollah Ruhollah Khomeini's Moslem militiamen. Diplomatic sources said Khomeini intervened personally and ordered the release of the four men, one of whom was identified as John Cassiba, an American employee cf the Fluor Co. of Anaheim, Calif. STOCKHOLM, Sweden (AP) Two men and two women of apparently four different nationalities hijacked a Soviet Aeroflot airliner Tuesday just before a scheduled stopover here and surrendered to police, authorities said.

Police Inspector Soren Lundgren tentatively identified the two men as Swedish and Indian and two women as Brazilian and West German, but said there were still doubts about their nationalities. It was earlier reported that the hijackers were Soviet citizens. The Brazilian woman has asked for political asylum in Sweden, Lundgren said, but the motives of the others were unclear, he said. The hijackers were quoted as saying they carried explosives and had placed bombs in the Tu-154 airliner, whose passengers were brought to the terminal while police searched the plane. It was not immediately clear whether the jetliner, Aeroflot Flight 212 en route from Oslo, Norway, to Moscow, would continue its flight the same day.

There were 24 passengers and 10 crew aboard. The crew asked for police assistance soon before its scheduled stop-over in Stockholm, the control tower said. The plane later parked at an emergency runway, where ambulances and fire engines were rushed to the scene. In May 1977 a 37-year-old man hijacked an Aeroflot plane to Stockholm during a domestic flight in Soviet Latvia. The Swedish authorities granted him political asylum and sentenced him to four years in prison for hijacking.

The Soviets accused Sweden of leniency. However, one senior U.S. official said: "The initial reaction here was of grave concern about what the decision means for the peace process." A number of Arab countries long opposed to Sadat's peace talks with Israel have been hinting they would convene a summit conference soon. That could lead to discrediting of Sadat in the Arab world and a broad front against Israel. Carter, meanwhile, has dropped veiled hints that he would abandon the U.S.

mediation effort if he concluded Egypt and Israel were not serious about completing terms sketched out at last September's Camp David summit. Carter has said repeatedly he has spent more time on the Arab-Israeli conflict than any other foreign policy issue. The clear implication was that fast-moving events in Southeast Asia, the Persian Gulf and elsewhere now require his concentration. Sanjay Ghandi sentenced NEW DELHI, India (AP) Former Prime Minister Indira Gandhi's son Sanjay and former Information Minister V. C.

Shukla were sentenced to two years at hard labor Tuesday for destroying a film that satirized Mrs. Gandhi's regime. Sanjay, 32. and Shukla, 49, were also fined $L250 and $3,125 respectively. They were given until March 26 to appeal and freed on $625 bail.

About 80 Gandhi supporters went on a rampage for an hour in the crowded courtroom immediately after District Judge O.N. Vohra pronounced sentence. They shouted slogans, smashed furniture, swung sticks and climbed on tables and chairs. "I will not tolerate this," said the judge above the din. "They must show some respect for the court.

This is not a fish market." "It's a political judgment," said Sanjay. "What can you expect but a political reaction." No casualties or arrests were reported. Vohra found the pair guilty Monday of criminal conspiracy, breach of trust and four other charges relating to the 1975 disappearance of the movie "Kissa Kursi Ka" or "Pursuit of the Seat of Power." The film, made by a member of Parliament shortly before Mrs. Gandhi's regime imposed a state of emergency, included quotations from her, attacked Sanjay, poked fun at the compact "People's Car" he was unsuccessful in developing and attributed low moral standards to politicians of Mrs. Gandhi's Congress Party.

The prosecution charged that when the movie was submitted to the government for censorship during the emergency, Sanjay and Shukla destroyed it at Sanjay's automobile factory outside New Delhi. The two defendants denied the charges during the 11-month trial, accusing Prime Minister Morarji Desai's government of a political vendetta. Carter to China: Withdraw were killed or wounded in the past two days in Phong Tho district of Lai Chau province. Phong Tho is 15 miles inside Vietnam and 190 miles northwest of Hanoi. In Washington, the Senate voted 82-9 Monday to confirm Leonard Woodcock as the first U.S.

ambassador to mainland China since Chiang Kai-Shek fled with his armies to Taiwan and organized a government there in 1949. State Department officials said Monday night it was not clear whether Woodcock would fly to Peking in time for ceremonies Thursday marking formal opening of the U.S. embassy there. If not, the United States will be represented by Blumenthal. Woodcock, former president of the United Auto Workers union, has headed the U.S.

liaison office in Peking for two years. that at present there is more favorable world public opinion expressed" for the Chinese position. In answer to a question, Teng said if the Soviet Union followed through on threats to intervene on the side of the Vietnamese, he didn't think the Soviets would "take too big an action." Meanwhile, Vietnam reported fierce fighting Tuesday in the northwest corridor to Hanoi and said its forces wiped out 2,000 Chinese there from Friday to Monday. The official Voice of Vietnam said the fighting was concentrated in the Cam Duong area which sits astride the Red River delta corridor which runs from the frontier to the Vietnamese capital. The broadcast also said two more Chinese companies were decimated in Lang Son province northeast of Hanoi Monday and another 250 Chinese soldiers concerning the invasion.

He said was possible the White House might reply with new instructions before his meeting with Chairman Hua Kuo-feng on Wednesday. "Vice Premier Teng inicated that this was a limited operation which would be of limited duration, and he emphasized that point," Blumenthal said. "He did indicate that what he was telling me he expected and hoped I would communicate back to the president." Before meeting with Blumenthal, Teng turned U.S. criticism of the invasion back on the Carter administration, inferring Washington lacked the courage to buck Moscow's allies and that this was one of the reasons China had to act. Teng also rejected Blumenthal's suggestion that world opinion would turn against China, saying: "It seems to me PEKING (AP) President Carter called on China Tuesday to undertake "a speedy withdrawal" from Vietnam.

His statement was in a message given to top Chinese leaders by Treasury Secretary W. Michael Blumenthal. Blumenthal met for more than an hour with Vice Premier Teng Hsiao-ping and told reporters afterward that he had given Teng the message. "I conveyed the position of the United States' government with respect to the Chinese move into Vietnam, and indicated our opposition to that move and our hope there will be a speedy withdrawal from Vietnam," Blumenthal said. It was the bluntest statement to date of U.S.

opposition to the invasion. Blumenthal said later at a news conference that he had sent Carter a message which Teng had given him Nominated Col. Frank E. Petersen has been nominated by President Carter for promotion to the rank of brigadier general. With Senate confirmation, Petersen, the Marine Corps' first black aviator, will be the first black Marine to attain flag rank.

(AP Laserphoto).