The Michigan Daily Vol. LXXXV, No. 56-S Ann Arbor, Michigan-Tuesday, August 5, 1975 Ten Cents Eight Pages RED ARMY HOLDS 50 HOSTAGES Japan accepts terrorists demands KUALA LUMPUR, Malaysia (P) - Japan ar- ranged yesterday to free five Red Army mem- bers from Japanese prisons in exchange for the lives of an estimated 50 hostages held under death threat in a 12-story building here. Among the captives are U. S. Consul Robert Stebbins and the Swedish charge d'affaires. Negotiations stalled, however, over two more prisoners who rejected the scheme, and the hos- tages entered their second day of captivity. A DC8 JET from Japan Air Lines was standing by at Tokyo's Haneda airport .to bring the freed terrorists here, but a snag developed when two prisoners turned thumbs down on the exchange deal. Japanese officials said five agreed but one said no because he belonged to a rival faction and a second rejected the plan because of ill health. The half - dozen Red Army members who stormed the building Monday morning demand- ed the release of seven of their comrades in the Japanese Red Army, but the Tokyo government said two refused to be involved. A watchman and two policemen were wound- ed in the attack on the building that houses the U- S. and Swedish embassies on the ninth floor. The terrorists threatened to blow up the struc- ture unless their imprisoned comrades were flown here from Japan. One deadline passed without incident. MORE THAN 100 policemen, 40 firemen and five fire trucks were in position around the build- ing. Lights on the 9th and 12th floors remained on throughout the night. More than 5,000 people gathered around the building as news of the siege spread, but the crowd had dwindled to about 400 orderly onlookers yesterdayy. In a telephone call to Kuala Lumpur's New Straits Times newspaper, one of the Red Army members said he wanted to talk to his jailed comrades in Tokyo. "We told the Japanese diplomat, who has been in contact with us, that we want to speak to our comrades by phone before they leave Tokyo," he said. He added that the hostages were well and sleeping. WHEN ASKED to identify himself, he replied "I have no name." The caller expressed the Red Army's dedica- nounce our solidarity with the Laotian, Vietna- mese and Cambodian revolutionary people. Long live the Palestinian people's struggle." See JAPAN, Page 5 AP Photo A security man who was wounded in the thigh by Red Army members during a takeover of the U.S. Embassy in Kuala Lumpur Monday is carried to safety by photographer Tan Hong Kuan of the Strait Free Press, second from left, and two unidentified men. The terrorists seized hostages and demanded freedom for seven Red Army mem- bers jailed in Japan. Jury deadlocked in Gurney case TAMPA, Fla. (AP-Jurors in former Sen. Edward Gurney's influence peddling trial reported yesterday they had reached verdicts on some charges but were deadlocks on others. The judge sealed the verdicts without looking at them and ordered the panel to try to resolve the impasse. "After long and careful deliberation on all charges and all the defendants, we have been able to come to verdicts on some defendants and some charges on others, but not all," the jury said in a note to U.S. District Judge Ben Krentzman after 46 hours of deliberation over eight days. "WE THE JURY, unanimously and emphatically agree that we have reached all the verdicts that can possibly be reached, regardless of further deliberations," the six-man, six-woman panel said. But Krentzman, following an hour-long secret bench con- ference, ordered the verdicts sealed in an envelope and locked in. a vault until the jury made another effort to reach a unanimous decision on all 11 counts of the indictment. Gurney, 61, onetime aide Joseph Bastien, 33, and former Federal Housing Administration officials Ralph Koontz, 51, and K. Wayne Swiger, 61, are charged with conspiring to shake down Florida builders for campaign contributions in return for favored treatment from the FIA. See JURY, Page 5 FBI launches nationwide search for Jimmy Hoffa DETROIT (UPI) - The FBI threw its en- tire resources last night into the search for the man who was once its arch-enemy, miss- ing former Teamsters President James Hoffa. Agents, acing on orders from FBI Director Clarence Kelley, moved into the white frame Hoffa summer .home where the fallen labor czar's wife, son and daughter have been waiting for him to come home since his dis- appearance last Wednesday. MEANTIME, a former union official, Daniel Sullivan, quoted Hoffa as saying in 1974 that former Teamsters Vice President Anthony' "Tony Pro" Provenzano once threatened to kill Hoffa or kidnap his grandchildren. Sul- livan said Hoffa told him that "Tony Pro threatened to pull my guts out or kidnap my grandchildren if I continued to attempt to return" to the Teamsters presidency. Hoffa's daughter, Barbara Crancer of St. Louis, Mo., was believed to have been the moving forcein getting the FBI to enter the case Sunday night. Family friends said she called Kelley personally and told him, "You used 2,040 agents to put my father in jail and up to now have used only two agents to find him.' IT WAS reported FBI task forces were at work in major cities throughout the country seeking out leads as to how Hoffa, battling to regain control of the 2.2 million union which is the nation's most powerful, could have been lured from a restaurant parking lot where he had planned to meet a reputed chieftain and two other men - all three of whom deny planning to meet Hoffa. Hoffa disappeared at a time when he was believed to be mobilizing his considerable forces to regain control of the union which he relinquished to his onetime friend, Frank Fitzsimmons, as a prelude to the commuta- tion of his sentence in 1971 by then President Nixon. See SEARCH, Page S