The Michigan Daily
Vol. LXXXV, No. 63-S Ann Arbor, Michigan-Thursday, August 14, 1975 Ten Cents Eight Pages
ISRAEL AGREES TO TROOP PULLBACK
Mideast peace pact foreseen
By United Press International an interim peace agreement was being which we defined from the beginning, ISRAELI Ambassador Simcha Dinitz
Officials from both s i d e s reported made because the Israelis have become withdrawal from the passes and oil was given the Egyptian reply in Wash-
significant progress towards an interim more flexible in their demands. fields, are still the same. It is not our ington at a meeting with Secretary of
Mideast peace agreement last night as Egypt's reply to the latest Israeli pro- stand which has changed. It is the Is- State Henry Kissinger yesterday.
Israeli Prime Minister Yitzhak Rabin posals was received in Jerusalem within raeli intransigence which has changed," A top level Israeli delegation, led by
and his top negotiating team met for hours after Prime Minister Rabin dis- he said. Dinitz, is holding daily meetings with
2% hours to study Egypt's response to closed Israel's willingness to withdraw Israeli sources said'Rabin's disclosure Under Secretary of State Joseph Sisco
Israeli proposals. from the Mitla Pass in a new agreement was made to assure the nervous nation and aides to draft language of a new
A government source later said Is- that he said will pull back Israeli forces that a withdrawal from the strategic agreement for later submission to Egypt.
rael's leaders were cautiously optimistic up to 32 miles from the Suez Canal. pass would not impair Israel's security. A second Israeli mission is in Wash-
and that next Wednesday was a likely In the interview, Sadat referred to the "I do not view such an agreement as ington for talks with senior- American
date for Secretary of State Henry Kis- current round of American mediated dangerous, and anyone trying to define officials to examine ways and means
singer to renew his Middle East shuttle negotiations and said, "Arabs who read a proposed withdrawal as a disaster for of financing Israel's military purchases
diplomacy, about proposals coming and going would the state is only sowing panic," Rabin in fiscal 1976 as well as U.S. economic
EGYPTIAN President Anwar Sadat think some thing was being cooked in told members of kibbutz communial set- assistance to Israel. Israel is seeking a
said in an interview with the Beirut mag the dark." tlement Hatzerim in the Negev yester. total of $2.5 billion in military and
azine Al Hawadess that progress toward "BUT THE FACT is that our demands day. economic aid.

Security boss
shows plan
for Portugal
LISBON, Portugal (A) - Security chief Otelo
Saraiva de Carvalho stepped into the middle of
Portugal's escalating military and political crisis
yesterday with his own plan for determining the
course of the floundering 15-month-old leftist
revolution.
Summoning the nation's military commanders,
the flamboyant member of Portugal's three-gen-
eral ruling junta presented a program to nine
moderate military leaders trying to force Com-
munist-backed Premier Vasco Goncalves from
office.
CARVALHO'S document criticized the Armed
Forces Movement (AFM) - proposed spearhead
of the revolution-and the Communist left for
failing to solve grassroots problems in the munic-
ipal and rural areas where it seized power after
the revolution.
It called for establishment of worker-soldier
alliances and for popular government based in
shops and neighborhoods and rising up to a na-
tional people's assembly, as outlined in a con-
troversi AFM proposal six weeks ago.
IT ALSO urged close relations with developing
nations and rejected any domination by the super-
powers.
It was not clear if Carvalho, who shares su-
preme authority in the junta with Premier Gon-
calves and President Francisco da Costa Gomes,
was making a bid for personal power or if he
was seeking a compromise to avoid the risk of
armed showdown within the military.
Carvalho's surprise move came as a spokes-
man for the premier denied reports that moder-
ates claiming the backing of a majority of the-
armed forces had given Costa Gomes four days
to persuade Goncalves to step aside or be pushed
out.
THE SPOKESMAN acknowledged that 70 per
cent of the armed forces in northern Portugal
had lined up against Goncalves, but he said the
national average was nowhere near the figure of
85 per cent reported by moderate military
leaders.
Northern Portugal is the center of much of the
opposition to Goncalves, including rallies called
by the Roman Catholic Church and the recent
sacking of many local Communist party head-
quarters-

Summer silhouette
Kids, gulls and sailboats favor some of summer's idyllic pursuits on a warm afternoon Tuesday at Detroit's
Belle Isle.
State HouSe passes proposal
to control campaign financing

By ROB MEACHUM
A landmark campaign reform bill - limiting cam-
paign contributions and expenditures, prohibiting anony-
mous contributions, providing public funds for politcal
campagns and putting strict controls on lobbyists -
passed the state House late yesterday afternoon by a
59-43 vote. The bill- now goes to Governor William
Milliken for signing.
The unique measure, which will take effect April 1,
1976, will affect some 20,000 state public officials, in-
cluding the University's Board of Regents. Under the
bill, they will be required to disclose their contribu-
tions and expenditures before election, but will also
have to disclose their finances throughout their terms
of office, according to an assistant to Milliken.
THE BILL ran into stiff opposition from H o u se
Republicans last week because of several amendments

sponsored by Senate Democrats that would allow for
virtually unlimited contributions from labor organiza-
tions. The amendments were never deleted, and Repub-
licans to introduce procedural motions delaying the ef-
fective date from January 1, 1976, until April 1.
Because of that action, "Michigan will be without any
campaign law until next April," according to Craig
Ruff, an assittant to Milliken. "Until then," he says,
"there will be no law regulating money in a cam-
paign." This, in essence, means that those candidates
running in next year's primaries will be unaffected by
the bill because of the bureaucratic tangle involved in
making such a measure work.
But Milliken said that he was "gratified" at the pas-
sage of the bill and said that he will "in all probabil-
ity" sign the measure "despite a number of problems,
weaknesses and flaws" it contains.
See HOUSE, Page 5