TheMchgn aly
Vol. LXXXV, No. 48-S Ann Arbor, Michigan-Thursday, July 24, 1975 Ten Cents Eight Pages
Ford may accept oil price ceiling
PRESIDENT FORD chats with Speaker of the House Carl Albert, right, aboard the Presidential yacht
Sequoia in Washington yesterday. Sources say Ford may offer a compromise on the energy problem and ac-
cept a price ceiling on domestic oil and extend the period for phasing out controls.
Compromise would
phase out controls
WASHINGTON (-P) - Republican congressional
sources said yesterday that President Ford may offer
a compromise way out of the energy legislation tangle
by offering to accept a price ceiling on U.S.-produced
oil and extending the period for phasing out controls.
'Meanwhile, the House removed from its pending
oil policy bill a controversial oil-pricing feature which
would have rolled back some oil prices while letting
others rise.
THE PROVISION, killed on a 215-199 vote, would
have established a new system setting a statutory price
ceiling on domestic crude oil production ranging be-
tween an average $7.50 to $8.50 a barrel.
Under the defeated section, existing price controls
on oil would have been phased out over five years. Be-
ginning in the fourth year, the price ceiling would have
been allowed to rise eight per cent a year due to
inflation.
Supporters of the move killing the provision said
its elimination would leave the present price control
system in effect, keeping "price controls where they
are at this moment."
THE WHITE House said earlier that Ford may
send Congress a new energy formula this week, but
gave no details. Republican congressional sources said
Ford's emissaries to Capitol Hill have been seeking
agreement along these lines:
-Prices on "old oil," which is production up to
the 1972 levels, would be gradually decontrolled, as
Ford has proposed. But the phasing out would be
stretched out longer than the 30 months he had stipu-
lated, perhaps over a period as long as 42 months.
-A limit would be set on the increase in price of
old oil, now $5.25 a barrel. The linit could be $13.50
a barrel if Congress goes along with Ford's plan for a
$2 a barrel tax, or $11.50 without the tax.
-Most of the windfall profits resulting from the oil
price increase would be taxed away under a formula
designed to channel one-third of the revenue to state
and local governments and the remainder to citizens
generally through income tax rebates or reductions and
cash payments to those too poor to pay income tax.
-To allow time for legislation to be enacted - and
not interfere with Congress, plans to recess for the
month of August - Ford would agree to a brief ex-
tension, up to 60 days, of the basic oil price control
law, which will expire Aug. 31 unless Congress acts.
Ford has said that if his earlier plan is not accepted
he would veto a pending six-month extension, but has
left the way open to accept shorter stay,
Federal Energy Administrator Frank Zarb, who
met with several key congressmen about a. comprom-
ise, told reporters there is "a long way to go."
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Military triumvirate may
take power inPortugal
LISBON, Portugal (4) - A collective leadership of Gones has democratic socialist views, informants say.
tree military men is preparing to assume power in BUT THE shakeup, prompted by the worst crisis
ortugal, a high government official said yesterday. since the revolution after the Socialists and the mod-
The triumvirate' would be composed of President erate Popular Democrats quit the government, was an
rancisco da Costa Gomes, Premier Vasco Goncalves, obvious device to downgrade political parties and even-
nd the national security chief, Brig. Gen. Otelon Sarai- tually eliminate them altogether from any role in the
a de Carvalho. It would take over from a 30-man government.
ouncil which is the current ruling authority. The high official said the new military leadership
A SPOKESMAN for the president's office said lie envisioned the possibility in the future of a "popular
ould not confirm or deny the report of three-man col- parliament" - with representatives chosen by factory
ctive leadership. colleagues or neighbors because of personal character
The Socialists and the Popular Democrat Party not ideology - but not a party parliament.
PPD), moderate leftists who together represent about-
eo-thirds of the Portuguese electorate, consider Gon- The Armed Forces Movement promised a parlia-
alves pro-Communist. They quit the government to imsent composed of political parties in a program an-
rotest the military's extreme leftward swing, and de- nounced after the revolution. The piogram has under-
anded Goncalves be replaced as a condition of their gone several modifications, however, as Goncalves
turn. moved the country to the left.
The reported new regime would make the parties'
conditions obsolete and leftist 'military leaders would
be seizing full control.
THE GOVERNMENT official also said a reorgani-
zation of the current ruling Revolutionary Council of
30 military leaders was expected. He indicated the
council would be subordinate to the three-man lead-
ership which he said might be called "The Directory."
The government officer said there was no doubt of
Goncalves staying on as premier and he indicated both
Costa Gomes and Carvalho already had agreed to
share leadership in what appeared to be a vast power
shuffle among the country's military leadership.
The official acknowledged final authority for set-
tig up "The Directory" was in the hands of the 250-
man assembly of the Armed Forces Movement (AFM),
the oficer's organization that ousted the old right-wing
government 15 months ago.,
THE GOVERNMENT official described the change
as one of "concentration of authority" and a "linkpin"
with the military leaders. He said the 30-man council
has been too big to be workable.
But lie gave no timetable for the change in the left-
ist leadership, although he said it would not be af-
fected by the fact that Carvalho left Monday on an
eight-day official trip to Cuba.
The flamboyant 38-year-old Carvalho is considered
a nationalistic leftist without real party ideology. Costa
GEO blasts 'U' affirm ive action policies
By TIM SCHICK
The Graduate Employes Organization (GEO) has
filed a grievance charging the University with fail-
ing to live up to its contractual obligation to prac-
tice affirmative action.
The GEO grievance calls for the University to
recruit more women and minorities into graduate
school, increasing the pool of women and minorities
available for positions as graduate employes.
IF THE UNIVERSITY had wanted to exclude re-
cruitment (of women and minorities from the af-
firmative action agreement)," the grievance asks,
'why did it not include additional language (in the
contract' to exclude" it.
The availability of women and minorities will in-
crease as "the department or unit actively recruits"
them for admission to graduate- school, the griev-
ance states.
GEO is calling for a two-step program to insure
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the implementation of their graduate school recruit-
ment plans.
THE FIRST PART asks the University to rescind
sections of a memo which deny a recruitment obli-
gation. GEO also wants to make sure that appro-
priate officials are aware of the change.
The other part seeks the inclusion of recruitment
as part of the University's affirmative action pro-
gram.
"Without recruitment, the affirmative action pro-
gram in the University-GEO contract would be
illegal," the grievance contends. "Departments or
units would thei be allowed to perpetuate any dis-
criminatory practice in hiring and admission."
YESTERDAY, GEO added another complaint to
their grievance. A letter to the University criticizes
a soon-to-be-released affirmative action report con-
See GEO, Page 5