News stories from Tuesday April 17, 1973

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

In a hastily arranged press conference, President Nixon conceded that White House aides may have been involved in the Watergate scandal. He stated that an agreement has been reached with Senator Sam Ervin's Watergate committee to allow White House aides to testify under oath before public and possibly televised sessions of Senate hearings.The White House conducted a second investigation of the Watergate case through Justice Department official Henry Petersen. That investigation has revealed major new developments. Any White House aides who are indicted in the case will be suspended. If convicted, the aides will be immediately discharged. No high officials involved in the scandal will be given immunity from prosecution. Republicans who were recently critical of the President for his refusal to take action in the Watergate case are happy with the new statements. Senator Edward Gurney said he is glad that President Nixon is now cooperating with the committee, as he felt all along that he would. Senator Lowell Weicker said that the spirit of getting to the truth of the case is finally present. Senator Howard Baker believes that the biggest hurdles are now behind the investigating committee. President Nixon now appears to be saying that he has recently learned what was long kept from him and his staff, which is that high White House aides may have been involved in the bugging and later in covering it up. Nixon's second investigation of the case bypassed White House staff and was conducted through the Justice Department. This makes it understandable why White House staff were taken by surprise when they were told that former campaign director John Mitchell had been called to Washington last week. It is significant that negotiations with the Ervin committee were conducted by John Ehrlichman and Leonard Garment rather than by H.R. Haldeman and counsel John Dean as would have been expected. Nixon seems to have been deceived by his own staff when he said last August on the strength of a report by Dean that nobody presently employed in his administration was involved in the Watergate case. [CBS] Henry Kissinger may return to Paris to hold further peace talks with North Vietnam's Le Duc Tho. [CBS] The war in Laos and Cambodia continued. U.S. bombing there moved Senator Mike Mansfield to say that the U.S. is getting more deeply involved in another civil war. [CBS] Cambodian Premier Lon Nol may soon move to broaden his government's base of support by admitting members of the opposition. The effort will be made so that peace negotiations may become possible. [CBS] Defendant Daniel Ellsberg was cross-examined in the Pentagon Papers trial. Ellsberg stated that he never mentioned the papers to co-defendant Anthony Russo until the day he decided to copy them. Ellsberg maintains that nothing in the papers could have harmed national defense, and claims that he didn't "steal" the papers; he only transferred them to a different branch of the government. This long and expensive case may reduce itself to a charge of misusing government property, which is only a misdemeanor. [CBS] At the United Nations, U.S. Ambassador John Scali cautioned against adopting any resolution that condemns only Israel for Mideast violence. [CBS] Heavy gunfire was exchanged between federal marshals and the Indians who are occupying the town of Wounded Knee, South Dakota. [CBS] The Pentagon announced the details of upcoming military cutbacks, stating that 40 installations will be closed entirely and 234 others will have their operations reduced; 42,800 jobs will be lost. Half of the job losses resulting from military cutbacks will occur in Rhode Island.When a military base closes down, the economic impact on the area can be great, but the effects are not necessarily permanent. When Sewart Air Force Base closed in 1971 it was felt it would mean economic disaster for Smyrna, Tennessee, and the town might have died but for the action of some local officials. The town bought the former base, set up an industrial park and revived the area's economy. Smyrna now builds boats and its economy is booming. Mayor Sam Ridley noted that the closing of the base hurt badly -- temporarily -- but the town recovered. [CBS] The executive branch has charged the legislature with financial irresponsibility, but Congress has no ability to make a budget or stay within one. Congress is now moving to remedy that situation. The House and Senate Budget Study Committee submitted a report recommending that both houses of Congress set up budget committees to consolidate Congress' spending plans. Those committees would set spending ceilings and establish priorities among competing programs. Requests for appropriations beyond ceilings would have to be accompanied by suggestions as to where the extra funds would come from. At the end of the year, if spending exceeded the ceiling, a tax surcharge would make up the difference.The committee's suggestions were well received. Rep. Herman Schneebeli said that Congress must show itself to be financially responsible. Rep. Al Ullman believes that the plan will help Congress recapture the power of the purse. Rep. Jamie Whitten stated that this plan will make Congress become responsive to the people. [CBS] Engineers opened a spillway in Morganza, Louisiana, to ease flood conditions. It is the second spillway to be opened. The diversion of water from the Mississippi River to the Red River through a dam is expected to remove further danger of flooding in areas with high population densities. Eight million acres have been flooded by the Mississippi River this spring. [CBS]

Stock Market Report

Dow Jones Industrial Average: 953.42 (-3.31, -0.35%)
S&P Composite: 110.94 (-0.50, -0.45%)
Arms Index: 1.23

	Issues	Volume*
Advances	507	3.56
Declines	911	7.90
Unchanged	350	1.37
Total Volume		12.83

* 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*
April 16, 1973	956.73	111.44	11.35
April 13, 1973	959.36	112.08	14.39
April 12, 1973	964.03	112.58	16.36
April 11, 1973	967.41	112.68	14.89
April 10, 1973	960.49	112.21	16.77
April 9, 1973	947.55	110.86	13.74
April 6, 1973	931.07	109.28	13.89
April 5, 1973	923.46	108.52	12.75
April 4, 1973	922.71	108.77	11.89
April 3, 1973	927.75	109.24	12.91