News stories from Monday December 20, 1971

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

Communist forces in Cambodia have surrounded government troops near Phnom Penh. Communists again control the Plain of Jarres and are succeeding in the air war; four American fighter-bombers and Phantom jets were downed. North Vietnam displayed four captured American crew members, including Maj. Kenneth Johnson.In Minneapolis, a reporter visited Johnson's parents. The parents are relieved that their son is alive and they trust that President Nixon will win his freedom. Mrs. Johnson says she believes that Nixon is really trying on the POW issue. Mr. Johnson said he hopes that the President's visit to China will be effective. [CBS] More U.S. troops have been withdrawn from Vietnam. [CBS] The air war in Vietnam continues unabated although a Cornell University study shows that the air war is not escalating. More bombs have been dropped in the Nixon years than under Lyndon Johnson, but the trend is downward. President Nixon has stressed the importance of air strikes on infiltration routes. But the capability to escalate bombing is present, and there is no end in sight to the air war. [CBS] A Harvard University professor reported that Henry Kissinger told Chinese leaders that the U.S. would reduce its troop strength on Taiwan before President Nixon's visit to Peking. The White House denied the report, but some troop reductions have taken place in Taiwan. [CBS] New Pakistani President Zulfikar Ali Bhutto promised to lead his country to recovery; Yahya Khan resigned as President. Bhutto urged the Pakistani people not to lose heart, and promised revenge. [CBS] A machine gunner fired on British troops in Belfast; a 20-year-old girl was killed. Bombs exploded in downtown Belfast. [CBS] The United States lifted its 10% import surcharge. The "Big 10" meeting seems to have solved most trade problems. [CBS] Foreign money exchanges remain closed after the U.S. dollar was devaluated last weekend. The mood is gloomy in Japan and in China the currency exchange has been halted. Russia is now charging an 8% commission on the dollar.Governments and tourists are adjusting to the change in Europe. In Rome, the dollar is now worth five cents less than it was, so Italians feel favored. Devaluation has been most costly to West Germany, where German products will now cost 12% more relative to U.S. imports, and Chancellor Willy Brandt is being blamed. The cost of keeping U.S. troops in Germany will rise, and the weak dollar has wiped out the military pay raise. American products are now cheaper in the United Kingdom too. Export prices will likely be reduced, but Britain expects to still come out ahead. [CBS] The Supreme Court ruled that private schools for whites in the South are not tax exempt. [CBS] Illinois state's attorney Edward Hanrahan had been on the Democratic ticket for re-election next year, despite the fact that he is awaiting trial regarding the 1969 Black Panther raid. Hanrahan was later dumped after blacks and liberals objected to his presence on the ticket. [CBS] The U.S. Parole Board granted Daniel Berrigan a new hearing in his destruction of draft records case. The board refused parole for former Senate aide Bobby Baker. [CBS] Two New York policemen escaped injury when their car was hit by a hand grenade which was thrown from a speeding car. [CBS]

Stock Market Report

Dow Jones Industrial Average: 885.01 (+11.21, +1.28%)
S&P Composite: 101.55 (+1.29, +1.29%)
Arms Index: 0.65

	Issues	Volume*
Advances	1,197	18.34
Declines	342	3.40
Unchanged	234	2.08
Total Volume		23.82

* 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*
December 17, 1971	873.80	100.26	18.27
December 16, 1971	871.39	99.74	21.07
December 15, 1971	863.76	98.54	16.89
December 14, 1971	855.14	97.67	16.07
December 13, 1971	858.79	97.97	17.02
December 10, 1971	856.75	97.69	17.51
December 9, 1971	852.15	96.96	14.71
December 8, 1971	854.85	96.92	16.65
December 7, 1971	857.40	96.87	15.25
December 6, 1971	855.72	96.51	17.48