News stories from Sunday June 1, 1975

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

As their talks on the Middle East began in Salzburg today, President Ford praised President Anwar Sadat of Egypt for creating "opportunities" for peace. Mr. Ford, in a toast at a luncheon given by Mr. Sadat, also said that "the United States will not tolerate stagnation in our efforts for a negotiated settlement?stagnation and stalemate will not be tolerated." This was taken by some observers as an implied rebuke to Israel. After lunch, Mr. Ford and Mr. Sadat had an hour-and-a-half meeting. Afterward, an aide to Mr. Sadat said that one of the points made was that "the time has come to heal the wounds -- to cure them and move to create a peace in the Middle East." [New York Times] Frank Zarb, the federal energy administrator, said that the Ford administration's energy conservation program would result in an increase of about 34 cents in gasoline prices over the next two years, raising the average cost of a gallon to 70 cents nationally. The increase would result from the administration's announced intention to de-control the price of "old oil" combined with the $2-a-barrel tariff now in effect on imported crude oil. Asked in a television interview if it was a Ford administration policy to push the price of gas to 70 cents a gallon, Mr. Zarb replied, "That is correct." [New York Times] Preliminary estimates in a confidential Budget Bureau memorandum indicate that New York City's budget deficit of $641.5 million for next year will more than double to $1.3 billion in the following year because of the rising costs of debt service, pensions and other expenses. The city's expenses are so far ahead of its revenues, the memorandum said, that even if it could erase the $641.5 million deficit, Mayor Beame will have to cut the expenditures of all city agencies by 10 percent next fall to avoid a huge deficit for the subsequent year. [New York Times] In contrast to steady passenger losses that are putting the old mass transit systems of New York and other major cities in the red, innovative public transport elsewhere in the country has been attracting enough new customers to retain for the nation as a whole almost all the ridership gains won during last year's gasoline shortage. [New York Times] Rhodesian policemen killed 11 black Africans and wounded 15 others when they opened fire on rioters in the black townships of Salisbury, the capital. The shooting started when the police fired on a crowd of 2,000 blacks in Highfield African Township outside a hall where the African National Council was meeting to discuss Prime Minister Ian Smith's ultimatum to the council to attend a constitutional conference. [New York Times] The K.G.B., the Soviet Union's security and intelligence organization, has taken on some new foreign assignments and a bigger work load at home as a result of East-West detente, according to Western espionage specialists. While detente has increased the ability of the K.G.B. -- the Committee of State Security -- to infiltrate Western countries, it has also given the organization more work at home keeping surveillance over the larger number of foreigners moving around the Soviet Union. For the United States, the Central Intelligence Agency and the Federal Bureau of Investigation are similarly occupied. [New York Times]