News stories from Wednesday January 20, 1971

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

Defense Secretary Melvin Laird stated that there is no limit to the use of U.S. air power in Indochina to aid our allies. Laird contends that the recently expanded U.S. air role is not a change in administration policy.Senator Frank Church wants new Foreign Relations Committee hearings into the Cambodian situation. Church noted that previous testimony by administration witnesses indicated that U.S. air power in Cambodia would be limited to interdiction of enemy supply routes; he believes that the policy has obviously changed. Senate debate on Cambodia is not far off. [CBS] After the ninth day of battle for Highway 4 in Cambodia, North Vietnam is still holding Pich Nil Pass. U.S. helicopters are supporting the attacks and F-4 Phantoms are being called in. Cambodian forces are advancing slowly up Highway 4. [CBS] Because of a 100% increase in cases of draft evasion, a Chicago grand jury has begun serving 200 indictments. [CBS] Egypt presented its Mideast peace proposals, including a demand for Israeli withdrawal from occupied territory, a demilitarized zone policed by the "Big 4", an agreement to recognize an end to the state of war, and guaranteed borders and freedom of navigation. Palestinian guerrillas denied a report in an Egyptian newspaper that they endorsed the idea of a political settlement in the Mideast. [CBS] A crisis over British plans to sell arms to South Africa was averted as Commonwealth nations threatened to leave. They agreed to appoint a commission to study the question. [CBS] Postal workers went on strike in Britain; their strike also affects telephone service. [CBS] The House Democrat caucus changed its seniority rules. Ten congressmen can now challenge the appointment of a committee chairman or committee member. House Speaker Carl Albert favored an appointed assistant Majority Leader rather than an elected one. There are fears that Southern and Southwestern states are gaining control of important House positions. [CBS] Convicted Soviet spy Igor Ivanov returned to the Soviet Union to visit his ailing father. The USSR guaranteed Ivanov's return to the U.S. when court action requires his presence. Stephen Habney, an American citizen serving a three-year term in the Soviet Union for drug smuggling, was freed. The State Department says that there is no reciprocal deal involved in the two cases. [CBS] TWA reported a $64 million net loss last year compared to a $20 million profit the year before. [CBS] Robert Bailey and Joe Conquest were trapped by deep snow for 28 days while deer hunting in Idaho. Bailey started out to get help but it took 25 more days to reach the nearest inhabited ranch. Bailey spent nights in empty cabins until he reached safety; Conquest was frozen to death. [CBS] The unseasonal heat spell in the southwest has ended but the east coast cold spell continues. [CBS] A bottle containing a paper signed by 31 Long Island (New York) school pupils in 1906 containing the inscription "We shall love beauty forever" was unearthed by construction workers building a new shopping center, after a tree planted by those pupils was cut down. [CBS] Three television crews were permitted to film American prisoners' Christmas in Hanoi. CBS News showed two of the films previously; the third is now available. Filming was done by a by Japanese television crew under North Vietnamese control at the showcase prison camp "Hanoi Hilton". The film shows POWs singing and practicing music for a Christmas program. It also shows POWs playing guitar and basketball, receiving letters and packages, and eating Christmas dinner. [CBS]

Stock Market Report

Dow Jones Industrial Average: 849.95 (+0.48, +0.06%)
S&P Composite: 93.78 (+0.02, +0.02%)
Arms Index: 1.00

	Issues	Volume*
Advances	785	9.08
Declines	622	7.17
Unchanged	274	2.09
Total Volume		18.34

* in millions of shares

Arms Index is the ratio of volume per declining issue to volume per advancing issue; a figure below 1.0 is bullish.

Market Index Trends
Date	DJIA	S&P	Volume*
January 19, 1971	849.47	93.76	15.80
January 18, 1971	847.82	93.41	15.40
January 15, 1971	845.70	93.03	18.01
January 14, 1971	843.31	92.80	17.60
January 13, 1971	841.11	92.56	19.07
January 12, 1971	844.19	92.72	17.82
January 11, 1971	837.21	91.98	14.72
January 8, 1971	837.01	92.19	14.10
January 7, 1971	837.83	92.38	16.46
January 6, 1971	837.97	92.35	16.96