The Michigan Daily Vol. LXXXVI, No. 48-S Ann Arbor, Michigan-Saturday, July 17, 1976 Ten Cents Twelve Pages 2 claim nurses innocent * * * * * * No. 2 FBI man fired WASHINGTON () - FBI Di- rector Clarence Kelley yester- day fired the bureau's No. 2 man, a 40-year veteran eligible for retirement, in the wake of Justice Department investiga- tions into illegal FBI burglar- ies and financial kickbacks. Kelley said he "asked for and received the resignation" of As- sociate Director Nicholas Calla- han. Kelley made the announce- ment Friday night in a state- ment from his sickbed at Be- thesda Naval Hospital, where he is undergoing treatment for a back ailment. THE PROBE of financial cor- ruption at the FBI reportedly includes alleged kickbacks in the bureau's purchase of elec- tronic eavesdropping equip- ment. "Director Kelley declined to discuss the matter of the con- tinuing investigations of various allegations concerning former -and present officials and per- sonnel of the Federal Bureau of Investigation," the statement continued. An FBI spokesman declined to elaborate on Callahan's dis- missal. THE FIRING OF Callahan was Kelley's first sharp, strong response - at least in public - to the reports that current FBI officials are under investi- gation in two separate Justice Department probes. The fact that Kelley fired Callahan was all the more sig- nificant because Callahan was eligible for retirement. Callahan, 62, has been with the FBI for about 40 years and rose through the ranks under the bureau's first director, the late J. Edgar Hoover. He was near the top of the hierarchy when Kelley took over three years ago. KELLEY APPOINTED Cal- lahan associate director despite criticism both inside and out- side the burnau tha t he was relying too macs on oldH o sver hands. There was no immediate com- ment from Callahan. The department's Civil Rights Division a few weeks ago be- ganĀ° an investigation of FBI burglaries during the past five years. It is examining whether criminal charges should be brought against agents or offic- ials for violating the civil rights of Americans. KELLEY acknowledged re- cently that some burglaries were conducted as late as Ap- ril 1973, three months before he took office. He said he had based earlier statements that no burglaries were conducted since the mid- 1960s on the best information that was provided to him at the time. The targets of the burglaries are believed to have been po- litical militants. THE OTHER investigation is in the hands of the Justice De- partment's Office of Personnel Accountability, which reports directly to Atty. Gen. Edward Levi. From Staff Reports A male nurse who worked closely with two Filipino nurses charged with murdering and poisoning patients last summer at Ann Arbor's Veteran's Ad- ministration (VA) Hospital, and a free-lance writer who said she got involved in the case out of concern for the two accused, said yesterday they have given t h e FBI information which could exonerate the two woman. Frank Burns 27, a night nurse in the hospital's intensive care unit, and Susan Kybett, 37, a free-lance writer, claimed that contaminated intravenous fluid was responsible for the myster- ious d e a t h s and poisonings which occurred at the Fuller Rd. facility in July and August 1975. THE TWO NURSES, Filipina Narcisco, 30, of Ypsilanti, and Leonora Perez, 31, of Evanston, Ill. were arrested by the FBI June 16 on charges of murder- ing five patients and poisoning See 2, Page 10 This article was prepared frot onmaterial obtained by George Lobsenz, Phillip Bokory, Ia) Levin, and Jennifer Miller. 27 vanish in bizarre case CIIOWCHILLA, Calif. UP) - Ground and air crews swept over a five-mile area of central California farmland yesterday searching for 26 children and their bus driver who inexplic- ably vanished on the way back from a summer swim. A statewide alert for three white vans with gold trim be- lieved connected with the disap- pearance was broadcast by the California Highway Patrol. "IT APPEARS to be an ab- duction," Madera County Sher- iff Ed Bates told anxious par- ents and reporters who crowded his command post at the Chow- chilla Police Department. "We are waiting to be contacted. BULLETIN LIVERMORE, Calif. ) - The 26 children missing since Thursday afternoon were found this morning in a rock quarry "in good condition" near here, authorities said. The children were buried in the ground, but all were un- harmed. The bus driver was also re- ported alive and well. Livermore is about 95 miles north of Chowchilla, where the children and driver disappeared en route home from summer school classes. There was no immedate indi- cation how the children arrived at Livermore. "There's no blood, no evi- dence of foul play at the bus. I absolutely can't figure it. We can't find anybody who has a motive." The children, ranging in age from 6 to 15, vanished Thurs- day afternoon en oute home from a swimming outing. The bus was formd in a dry canal camouflaged by tall bamboo off state Highway 152 about 150 miles southeast of San Fran- cisco. Brightly colored swim suits and towels were found in the empty seats. FEW OTHER CLUES had been discovered by late yes- terday. A law enforcement source said a mismatched shirt and pants were found on a highway leading north to San Jose, but it was not known if the adult-sized shirt and chil- dren's pants were connected with the case. "THE FIRST officer there got the impression there was dust on all the seats except the driv- er's seat," Bates said. "Ie felt that had the children been in- side the bus until it stopped, the dust would have been gone. This indicates the children were dropped off someplace else." IN WASHINGTON, a White House spokesman said Presi- dent Ford was "quite concern- ed" for the safety of the chil- dren and their driver and has authorized Attv. Gen. Edward Levi to call on the resources of any federal agency to assist in the search. Press Secretary Ron Nessen said Ford telephoned Levi after receiving an initial report from the FBI that said it will sub- stantially increase its recourses devoted to the case. The state highway patrol and the Civil Air Patrol dispatched at least four airplanes and a helicopter, the FBI in Sacra- mento sent a half-dozen agents, and scores of volunteers on horseback scoured the flat farmland of the fertile San Joa- quin Valley for the missing youngsters. OFFICERS STARTED a door- to-door search of the homes in Chowchilla, a town of 4,500 per- sons in the midst of almond or- chards and cotton. The nearest big town is Fresno, 35 miles away. "We'll search the whole state if we have to," vowed Bates, clad in scruffy Army boots and corduroy pants. Asked about the possibility of z terrorist - oriented kidnaping, Bates said such a move would be baffling because "the cen- tral valley of California is rela- tively unsophisticated in guer- rilla warfare." HE ALSO SPECULATED that terrorists would not choosy children because they might be difficult to handle but would in- See 27, Page 2 Spain frees political prisoners MADRID (A) - Spain's new government early today proposed a general amnesty for all of this nation's political prisoners except those sentenced for terrorism. After a 7 -hour cabinet meeting, Premier Adolfo Suarez won approval to make the amnesty recommendation to King Juan Carlos. BUT THE NEW premier obviously ran into trouble with his 10-day-old cabinet in working out a declaration of national reform policies. Government officials said the amnesty proposal, likely to be acted on by the king July 25 - Spain's patron saint day - would free about half of the nation's estimated 650 political prisoners. Amnesty was proposed as part of the government's appeal for "cooperation from the people," aimed at critics from both left and right. BUT A WEAK proposal for a national referendum gave evi- dence of continued fear of reaction from right-wingers who are sill entrenched in positions of power, including the parliament. The government's declaration called for submitting a decision to the nation on "questions relative to reform of the constitution and to celebrate general elections before June 1977." The previous referendum this fall and elections to name a nw parliament early in 1977. Arias Navarro had formed the first government after the death of Gen. Francisco Franco last No- vember. JUAN CARLOS, who succeeded Franco as head of state; has pledged that the government will be liberalized. He has been opposed by leftists demanding amnesty for all political prisoners, quick elections and full political activity, and rightists who ac- cuse him of moving too far too fast. As the cabinet convened yesterday, thousands of Spanish left- ists demonstrated in Cadiz and Murcia, in the south and the east, chanting for amnesty and more liberty. Eleven persons were arrested in Cadiz when people in the crowd displayed flogs of the banned Communist party, police sources said. The Murcia demonstration passed without incident.