News stories from Sunday October 3, 1976

Summaries of the stories the major media outlets considered to be of particular importance on this date:

Criticism continued to grow over the racial remarks made by Secretary of Agriculture Earl Butz, but neither he nor the White House would say whether he would resign or be dismissed. William Scranton, the chief delegate to the United Nations, joined in the criticism, terming Mr. Butz's remarks "revolting" and saying they could damage American relations with African countries. [New York Times] The presidential campaigns this year are the first to be fully financed with federal money, and while this frees the managers from the task of soliciting cash, it has imposed strict limits on how much they can spend. Each of the major party campaigns is limited to expenditures of $21.8 million. This has forced the candidates to cut down on nitty-gritty organizing efforts and on the traditional paraphernalia of campaigns, such as buttons and bumper stickers. [New York Times] The Senate race in New York, a state long regarded as one of the nation's most liberal, has taken on a national significance. The candidacies of Senator James Buckley and Daniel Patrick Moynihan offer voters a clear choice between conservative and liberal philosophies and political analysts are watching the race to see if the state has shifted to the right. Extensive interviews with both candidates revealed that they, too, agreed with the proposition. [New York Times] The nation's economic recovery will stay sluggish for the remainder of the year, according to many of the bankers gathering in Washington for the convention of the American Bankers Association. This belief comes amid other signs that the pace of recovery is slowing, including the recently reported declines in construction contracts and the index of leading economic indicators. The bankers also reported that businesses were borrowing less and that little improvement was seen before the middle of 1977. [New York Times] Stiffer penalties should be imposed on criminal violators of the antitrust laws, according to Donald Baker, the new head of the Justice Department's antitrust division. He said that he had given high priority to developing standards for sentencing violators under the terms of a relatively new law that provides for jail sentences of up to three years for such criminal offenses as price fixing. Stiffer penalties, Mr. Baker believes, would act as a deterrent to others contemplating the same type of criminal action. [New York Times] West Germany's voters gave Chancellor Schmidt a greatly reduced majority in parliamentary elections, but Mr. Schmidt retained his office. Computer projections showed that the present 46-seat majority of the governing Social Democrats would be reduced to between 6 and 10 seats. Helmut Kohl, whose Christian Democrats were Mr. Schmidt's main opposition, said his party had won a "moral victory" in the election against the Socialists. [New York Times] Arab youths and Israeli security forces engaged in violent clashes in the town of Hebron on the occupied West Bank of the Jordan River. The fighting broke out after Moslems and Jews accused each other of desecrating artifacts at a shrine sacred to both faiths. Fifty-five Arabs were reported injured in rioting in Hebron that sparked protests in other occupied towns. [New York Times] Saudi Arabian troops who have been stationed on the Golan Heights since the 1973 Middle East war are to be withdrawn, the Syrian government said. The decision comes at a time when the Syrian army is already extended on other fronts because of its incursion into Lebanon. The move by Saudi Arabia is seen as an effort to put pressure on Syria to withdraw its troops from Lebanon. [New York Times] No one will starve in Bangladesh this year because of good harvests, and the inflation that was running at about 60 percent last year has been brought under control. One principal reason for the improvement in Bangladesh is the weather. Another, according to knowledgeable people in Dacca, is Gen. Ziaur Rahman, who took over the government last year. The general now faces an important decision: whether to turn the country back to civilian rule or extend his own rule, as many people are encouraging him to do. [New York Times] Balance of payment deficits must be eliminated by both rich and poor nations, the head of the International Monetary Fund said. At the opening session of the fund's annual meeting, the chief, Johannes Witteveen, said that the countries must stop borrowing to cover the deficits. At the same meeting, Robert McNamara, the president of the World Bank, said the wealthier nations must help solve the world's poverty problems. [New York Times]