PENTAGON PLAYS GAMES See Editorial Page flit t9 an A& :43 a t t DITTO High-29 Low-s See Today for details Eighty-Four Years of Editorial Freedom a1. LXXXV, No. 88 Ann Arbor, Michigan-Thursday, January 16, 1975 Ten Cents Ten Pages TAX CUTS URGED i ttMU SE IFUS if&PEJ CALL %.DAI4 Regents meet The Regents are in town today for their monthly meeting and financial matters top off the agenda. The Regents will discuss possible cuts in this year's budget among other topics at 3:00 p.m. in the Regents Room. A public comments session will follow at 4:00 p.m. Today's meeting will be the first for the newly-elected' Regents Sarah Pow- er (D-Ann Arbor) and Thomas Roach (D-Grosse Pointe). Clerk arraigned Washtenaw County Prosecutor William Delhey yesterday charged former Dexter Village clerk Harry Peters with embezzlement. Peters was ar- raigned before Chelsea's Fourteenth District Court. Peters, who surrendered himself to authori- ties yesterday morning, resigned as clerk in No- vember following a state audit which revealed a $14,353 discrepency in the water, sewer and refuse revenues and deposits as well as poor bookkeeping and accounting procedures. Peters, who faces a maximum fine of $5,000 or jail sentence of 10 years or both, was released on $2,000 bond. He was unavailable for comment. s Ford pessimistic on econom President advocates increased oil taxes WASHINGTON (Reuter) - President Gerald Ford yesterday gave Congress the gloomiest peacetime State of the Union message since the "Great Depression" of the 1930's and urged massive tax cuts and stiff fuel-saving measures to stem recession. "The state of the union is not good . .." he told a somber and for the most part silent joint session of the Senate and the House of Representatives. "I want to speak very bluntly. I've got bad news, and I don't expect much, if any, applause." MEMBERS matched his grimn mood, applauding only occa- sionally during the 41-minute televised address as he listed what he wanted thrown into the battle against rising unemployment and They shoot horses They may .not be trying acupuncture on U.S. citizens yet, but at least a few horses are bene- fiting from the rather arcane Chinese form of medicine. And where else would be a better place to start than agriculturally oriented Michi- gan State University? The practice is being used to treat lame horses. "It's not a cure-all," says Dr. Leonard Gideon, assistant profesor of large animal surgery and medicine. But, he says, it is a treatment "which, when used properly, gives amazing results." Dope note Three people were arrested and $40,000 worth of heroin was seized during the raid of an Owosso home Tuesday night. State police officials said members of their narcotics unit purchased $20,000 in heroin from the suspects, and seized the re- mainder in a follow-up raid. The three suspects were arraigned yesterday. " fappening$... . . are largely political today. The Human Rights Party will meet to elect a new steering committee and plan campaign strategy at 7:30 p.m. in the fourth floor of the Union . . . similar- ly, the Second Ward Democrats will meet to plan their own campaign strategy at 7:30 p.m. in North- side Presbyterian Church . . . at 8 p.m. in the Law Club Lounge, sociologist Jay Schulman will speak on "Systematic Jury Selection and Its Im- plications" as they relate to Wounded Knee and Attica . .. a free Ukranian film, "Shadows of For- gotten Ancestors," will be shown in 200 Lane Hall at 7 p.m. Happily, there will be subtitles . . . the Bach Club will have an organizational meeting at 8 p.m. in East Quad's Greene Lounge . .. there will be a poetry reading at 7:30 p.m. in Guild House, with John Paval reading from his works ... another reading will be held in Stockwell Hall Lounge at noon. This time, poet and writer Val Grey Ward will be featured . . . and an intro- ductory lecture in Transcendental Meditation will be offered at 8 p.m. in the Union's Kuenzel Room. " X-ra ted Sex education is difficult for two reluctant gor- illas in the Sacramento Zoo these days. It's not that the pair - named Chris and Susie - don't have the inclination, it's just that they don't know the mechanics, the officials say. Because they have been in captivity all their lives, the two nine-year- olds have been denied the learning experience which, for gorillas, comes almost solely from ob- servation. The solution: The zoo has obtained an X-rated sex education film from a zoo in Basel, Switzerland, featuring group sex among several gorrillas. The results, however, have been dubious. During the first showing, the gorillas be- came more interested in. the workman operating the projector than in the film itself. Hopes were temporarily dashed during the third showing when the projector broke. More showings are planned. " On the inside.. . . .Arts Page writer Jim Valk interviews Christian Monitor film critic John Allen, who, in- cidentally, is a Uuniversity graduate . . . on the Editorial Page, a Pacific News Service article describes the Buddhist resistance in South Viet- nam . . . and Ray O'Hara writes about wrestler Jim Brown on the Sports Page. " AP Photo FOLLOWING HIS GRIM State of the Union message yesterday, President Ford meets a flock of Washington officials including House minority leader Hugh Scott (R-Pa.), wearing glasses and facing the President; economic advisor Arthur Burns, white- haired man on the left of Ford, and Lowell Weicker (R-Conn.), standing next to Burns. Ford asked for an income tax cut and an increase in oil tariffs. KEPT FILES ON 10.000: Colby admits CIA spied the economic slump. The President, striving to as- sert leadership in the face of his plunging popularity ratings, offered to cooperate with the heavily Democratic Congress in solving the economic crisis - a gesture which accounted for most of the applause. Reflecting the bleak econom- ic picture, his address was de- voted almost entirely to the do- mestic situation, making only brief references to foreign policy. ETHE PRESIDENT u r g e d Americans not to back away from international cooperation, ,nd he scolded Congress for leg- islative restrictions that led to the Soviet Union's decision to nullify its 1972 trade agreement with the U. S. Desnite the Soviet action, he voiced his support for contimed dwtente and said his November summit with Soviet leader Leo- rid Brezhnev in Vladivostok had been a major step in slowing down the nuclear arms race. While emphasizing the need for detente, he said America's military f o r c e s remained strong and ready to deter ag- gression against allies as well as to protect the U. S. itself. PRESIDENT Ford formally gave Congress proposals an- nounced earlier this week for a massive cut in income and busi- ness taxes and increased duties and excise taxes to force Americans to save fuel. He sought an immediate $16 See FORD, Page 2 Esch on By AP and Reuter WASHINGTON - The Intelligence Agency ( knowledged for the fi yesterday that its ag filtrated dissident grout the United States anc lished files on about 10 citizens. But CIA Director Will by told a senate panel flatly denies the allegat the organization undert sive, illegal domestic operations. "WHETHER WE stra MEA delays sympat] strikes By DAVID BURHE Special To The Dal SOUTHFIELD - Off the Michigan Educatic ciation (MEA) announc last night that they we poning a threatened v sympathy strikes in su 180 fired Crestwoodt pending resolution of court challenges to those At a meeting of rep tives from the fifteen County districts comm sympathy strikes, North MEA Executive D i r See MEA, Page dissi dents the edge of our authority on a t Central few occasions over the past 27 c CIA) ac- years is a question for those rst time authorized to investigate those c ents in- matters to judge," Colby said. i ps inside The Senate Appropriations d estab- subcommittee on intelligence 3 ,040 U.S. operations cross-examined Colby and former CIA Director Rich- iam Col- ard Helms for more than three that he hours in closed-door session yes- i ions that terday. ook mas- The subcommittee then rec- spying ommended unanimously the im- I mediate start of a full and in- depth probe of all allegations yed over against the intelligence agency. IN A 45-page statement made available to the press, Colby said he firmly believes all cur- rent CIA activities are within legal limits. In the past, he said, the CIA -in two separate programs- placed agents into radical or dis- sident groups inside the United States to protect its own fa- cilities and to further its intel- ligence and counterintelligence activities abroad. c In a related development, the a Senate Foreign Relations Com-r mittee was told that "the U.S. ,NN government has been training e y foreign policemen in bomb mak- r icials of ing in a remote desert camp in n Asso- Texas."' ed herey re post- SEN. JAMES Abourezk (D- wave of S.D.) made the statement in a pport of letter to Sen. John Sparkman, teachers chairman of the committee. 9 current The senator's letter said the i firings. Agency for International De- f resenta- velopment (AID) acknowledged e Wayne that its Office of Public Safety C itted to (OPS) provided such training. 1 Wayne The AID letter said the training n e c t o r included instructions on how to 2 deal with bombs and practical t within experience in making explosive devices. Colby said that, in order to establish the credentials of spies it intended to send overseas, it "recruited or inserted" about 12 persons into "American dis- sident circles." HE ALSO said that, beginning in 1967, the CIA inserted 10 agents into dissident groups working i n s i d e Washington, D.C., because it believed that step was necessary to protect U.S. CIA facilities and information. According to Colby, the lirst program was part of an effort to uncover possible foreign in- volvement in domestic disturb- ances. That effort, which ended in March 1974, resulted in the creation of about 10,000 files on American dissidents which were shared with the F[U, he said. Colby reported that the in- filtration of agents into dissi- dent groups in Washington was See COLBY, Page 2 ' grants access to E seli to ask car tax credit By ROB MEACHUM U.S. Congressman M a r v i n Esch. (R-Ann Arbor) is present- ly putting the final touches to a 'bill that would give a $250 tax credit to any person buying a new car in 1975. According to Esch aide Keith Hartwell, there are still "a few rough edges" in the proposal but he 'expects the bill will be formally introduced either to- day, or tomorrow. He declined to speculate on , its chances of approval once it goes to the House floor. THE BILL is designed as a supplement to the recent eco- nomic proposals by President Ford and Congressional Demo- crats. "It w oul d stimulate sales," the aide said. The tax credit is unlike Chrys- ler Corporation's $200-400 cash rebate for buying one of its new cars however. Presumably, peo- ple would not be taxed on $250 of their gross income for 1975 if they bought a new car. The theory behind the bill goes something like this: by encouraging people to buy new cars, more people can go back to work in the auto industry- the industry affected most by unemployment and stagnation. Hundreds of thousands have been laid-off in that ndustry, some since last November. most counseling files By MARY HARRIS For the first time students will be able to see previously confidential counseling files, but due to a recent amendment to a new federal law, they can still be prohibited from viewing par- ents confidential financial state- ments, medical and psychiatric records, and letters of recom- mendations written prior to this year. The Educational Rights and Privacy act, passed in early October, would originally have granted students access to all nformation contained in their files. But strong opposition from educational institutions forced Congress to amend the bill al- owing certain material to re- main confidential. Recommendations written af- er January first will be avail- able . to students, unless they voluntarily choose to keep the etters secret. ACCORDING to Associate lit- erary college (LSA) Dean Char- les Morris, a number of stu- dents may choose to keep heir professors' recommenda- ions secret. He explained that rofessors may be hesitant to write the letters if they know hat the student has access to hem. Students may also choose to et a counselor or doctor look at his medical and psychiatric rec- ords, which would otherwise re- main confidential The bill also grants access to outside agencies, such as edu- cational t e s t i n g companies, which want a student's file. According to Morris, however, there is some doubt as to whether the University will ac- tually provide this information. "We'll wait until a case comes up, and then we'll consult with the University attorney. But it seems that we're legally obli- gated to provide access," he said. ANOTHER provision of the bill makes it mandatory to keep a log of every time a studert's file is consulted, or every time the file is even requested, if the request comes from an agency. outside the University. This has been a policy in a number of colleges of the Uni- versity for some time, out the new law guarantees that a log will be kept. The major point of contention at this time, at least within LSA, is whether to open up let- ters of recommendation used to gain admission to the Univer- sity. ACCORDING to some mem- See 'U', Page 2 Israeli official Bits trade deal rejection lE e I. t t p u t tl 1E h- a n Stephenson expects problems in upcoming re-ection bid By DAVID WHITING Mayor James Stephenson last night predicted he will have a difficult time winning re-election this April because of the new preferential voting system. Locally preferential voting, enacted last November, tends to favor a candidate who is more acceptable to the city's liberal radical majority than Stephenson, a conservative Republican. "OUR BACKS are not just against the wall but slammed there," Stephenson told the Washtenaw County Republican Con- vention. In addition to the new voting procedure, Stephenson said the effects of the Watergate scandal would hurt his bid for a second term. WASHINGTON (Reuter) - Israeli Foreign Minister Yigal Allon declared yesterday that any reduction in Jewish emigra- tion from the Soviet Union be- cause of Russia's rejection of a U.S. trade deal would be a great human tragedy. "And I don't think the Jewish their position. Senators Henry Jackson (D- Wash.), Abraham Ribicoff (D- Conn.) and Jacob Javits (R- N.Y.), joined by Rep. Charles Vanik (D-Ohio), said the trade agreement, spurned by the Rus- sians over the weekend, was fair and equitable.