AP Photoy
GREETED BY A large reception, Reagan waves to the crowd after his
arrival in France.}
Reagan, Mitterand
say fighting must end

In Brief
Compiled from Associated Press and
United Press International reports
Israeli ambassador attacked,
critically wounded in London
LONDON- The Isreali Ambassador to Britain, Shlomo Argov, was shot
and critically wounded Thursday night in an assassination attempt outside a
London hotel, police and Foreign Office sources reported.
They said Argov was taken alive to London's Westminster Hospital, and
that Argov's assailant was shot and wounded by police of Scotland Yard's
Diplomatic Protection Group after the attack on the ambassador outside the
Dorchester Hotel.
A Scotland Yard spokesman said Argov was in critical condition, but gave
no other details.
He said the suspected assailant was "detained under guard" in a central
London hospital, but did not disclose the man's condition or identify him.
The spokesman said that, soon after the shooting, police arrested two
people in acar and "a weapon was recovered" in the south London district of
Brixton across the River Thames from the swank Mayfair district where the
Dorchester is located.
House to vote on Reagan budget
WASHINGTON- Democratic leaders gave President Reagan a hollow
and potentially embarrassing victory yesterday by moving his original-
and foredoomed-budget to the House floor.
"I don't take any pleasure in embarrassing the president of the United
States," insisted House Speaker Thomas O'Neill (D-Mass.)
Nonetheless, he predicted that if Reagan's plan does come to a final vote,
it will be "overwhelmingly demolished."
According to plan, the Democratic-controlled House Budget Committee
met yesterday and on a voice vote reported out the president's original
budget-submitted to Congress in February-for use as a vehicle for debate
in the full House next Wednesday.
O'Neill had said the panel would send the Reagan budget to the floor with
the recommendation that it be defeated, making room for Democratic and
Republican leaders to offer separate substitutes to- the administration
package.
However, the recommendation for defeat was dropped, a Democratic aide
said, to avoid the appearance of "rubbing it in."
Airlines post higher fares
for former Braniff routes
NEW YORK- Higher fares posted by three airlines on routes once served
by defunct Braniff International will be closely watched by other hard-
pressed carriers who hope to raise fares and keep them up.
The key questions are whether passengers will pay the higher fares plan-
ned by American Airlines, Trans World Airlines and Pan American World
Airways-and whether airlines can resist price-cutting if passengers stay
away.
American said fares on 650 of its 1,400 domestic routes would go up June 18,
some up to 30 percent. Many of those routes serve the Dallas-Fort Worth
market, where Braniff is based.
Announcement of the higher fares came three weeks after Braniff, a
heavy discounter of fares, suspended operations and filed for protection
from creditors under federal bankruptcy law.
May auto sales up 11.4 pereent
DETROIT - Sales by the nation's five automakers rose 11.4 percent in May
- the first monthly increase in the 1982 model year - while sales of imports
dropped nearly 10 percent.
Analysts were careful to term the increase in U.S. sales a "modest up-
turn" and credited the hike to rebates and other incentive programs offered
by the firms.
Total U.S. sales of 584,074 were up from 524,021 in May, 1981. It was the fir-
st monthly sales increase since last September. There have been no monthly
sales hikes since the model year began in October.
Sales rose 8.2 percent for the automakers in the final 10 days of the month
- the third straight period in which sales have gone up.
World War I nerve gas leak
threatens Louisiana conmmunity
WESTLAKE, La. - Worried neighbors said Thursday chemical leaks
were too frequent at the Olin Chemical Co. plant where escaping phosgene, a
nerve gas used in World War I, killed a truck driver and injured 58 workers.
Phosgene, which is used by Olin as an industrial catalyst, spewed into the
air for 2% minutes Wednesday, but company officials insisted there never
was any threat of a "major disaster."
Loretta Abshire, whose father works at a nearby Conoco plant where
workers were overcome, said Olin was too slow to notify its neighboring
plant wo workers could be evacuated.

PARIS (AP) - President Reagan and
French President Francois Mitterrand
agreed yesterday that fighting in the
Middle East and the Falkland Islands
must be halted quickly, but they made
no move to resolve their own quarrel
over economic difficulties.
Over an elegant lunch at the Elysee
Palace marking the formal start of
Reagan's 10-day European tour, the
two leaders deferred tackling sensitive
economic issues until the summit of
seven major industrial democracies
begins tonight at Versailles.
THE FRENCH are particularly
critical of what one senior official in
advance of the meeting called "this
frenzy on Soviet credits" - a reference
to U.S. opposition to low-interest credits
for Soviet purchase of West European

industrial goods.
Secretary of State Alexander Haig,
told reporters the credits issue did not
surface at the Reagan-Mitterrand
meeting, which lasted nearly two
hours, and that he hoped it would not
become a "spoiler" at the summit con-
ference.
"All in all," said Haig, "it was a very
successful first day." He said Reagan
and Mitterrand enjoyed "an unusual
relationship" characterized by "in-
timacy and mutual confidence and
frankness in their exchange of views."
Haig said the two leaders agreed that
the war between Iran and Iraq must not
be allowed to spread to other areas of
the Middle East, which would threaten
"grave consequences," and should be
ended as soon as possible.

Soviet credit deba ted
at Versailles summit
VERSAILLES, France (UPI)- Soviets help with military technology,
France squared off yesterday against a but they are not ready to take economic
U.S. attempt to cut off easy credit to the sanctions."
Soviet Union-an early indication Reagan wants to use this weekend's
President Reagan faces tough op- seven-nation summit of economic allies
position at the Versailles Economic to win an agreement making it harder
Summit. for the Soviets to borrow money from
"France is against putting Soviet the West to finance projects like the $15
credits on the agenda as the Americans billion natural gas pipeline from
want to do," a well-placed government Siberia to Western Europe.
source said. Both France and West Germany have
"FRANCE believes credits to the provided easy credit terms to the
Soviets have global dimensions. The. iRussians in hopes of getting a steady
''rench -are-opposed-to giving the .fuuie energysupply.