News stories from Thursday July 1, 1971

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

Communists made a new proposal at the Paris Peace Talks. The Viet Cong proposed a gradual release of American POWs as the U.S. withdraws from South Vietnam by the end of the year. They also demanded a coalition government in Saigon. South Vietnam pointed out that the proposal doesn't mention anything about North Vietnam withdrawing its forces from South Vietnam. The U.S. is not expected to accept the entire proposal, but it may serve as a basis for real negotiations. No reply is likely to be made until Henry Kissinger returns from his foreign trip.Senator Mike Mansfield said that credit for the Communists' proposal should go to President Nixon; House Speaker Carl Albert said that he believes Nixon's withdrawal policy is succeeding. Former Defense Secretary Clark Clifford stated that the U.S. should take advantage of the opportunity represented by the Communists' proposal, and he hopes that public pressure will force President Nixon to change his policy. [CBS] The Communist proposal was no great surprise in Paris. The arrival of North Vietnamese politburo member Le Duc Tho increased anticipation of a new Communist proposal; it was designed to affect American public opinion by offering the U.S. a way out of the Vietnam war with security and honor. [CBS] UPI reported the unauthorized U.S. bombing of a North Vietnamese rocket position in the DMZ; the White House has ordered an investigation. 6,000 more U.S. soldiers have been withdrawn from South Vietnam. [CBS] The Selective Service System continues physical exams and processing appeals even though the draft law has expired; Senator John Stennis said that future of the draft is uncertain. [CBS] Attorney General John Mitchell announced that the government will prosecute those who violate the law regarding the publication of the Pentagon Papers. Secretary of State William Rogers noted that the Supreme Court did not say that publication of the report would not damage national security, and he hopes that newspapers will realize their obligation not to publish portions of the papers which are damaging. The government is ready to identify documents which it believes could harm national security. [CBS] CIA director Richard Helms ended three days of talks with Israeli leaders. [CBS] The Soviet Union mourned the deaths of the Soyuz II cosmonauts, who lie in state in Moscow. The cosmonauts will be buried in the Kremlin Wall tomorrow; the cause of their deaths has not yet been announced. [CBS] The House passed a bill which will create 200,000 public service jobs. [CBS] 15,000 West Coast longshoremen have gone on strike, as have 25,000 copper workers. The United Transportation Union announced a planned railroad strike for July 16, and the new U.S. Postal Service is facing strikes in Washington, DC and New York City.New York City postal workers will strike if the contract negotiated in Washington, DC, is deemed unsatisfactory. If postal employees in New York City strike, workers in other big cities are expected to follow suit. [CBS] The FTC proposes that cigarette companies be required to carry health warnings in their advertisements as well as on cigarette packs. [CBS] The House Commerce Committee voted to ask the full House to declare CBS and president Frank Stanton in contempt for refusing to turn over unbroadcast materials used in preparation of "The Selling of the Pentagon".Committee chairman Harley Staggers said that the issue is whether the American public has the right to know if it is being deceived by the electronic media. Rep. Brock Adams said that the information the committee is seeking may already be available through the Pentagon; he believes that the first amendment is violated by trying to force CBS to turn over material. [CBS] Timothy Leary escaped from a California prison last year. Switzerland is now holding Leary; the U.S. is trying to extradite him. [CBS] Police removed Indians from an abandoned missile site near Chicago; the Indians occupied the site to protest housing conditions. The Indians resisted police attempts to remove them; 17 were arrested. The Army is giving the site to the city for a park. [CBS] Six soldiers were arrested and 10 civilians evicted from Fort Lewis, Washington, for handing out copies of the Declaration of Independence without permission. [CBS]

Stock Market Report

Dow Jones Industrial Average: 893.03 (+1.89, +0.21%)
S&P Composite: 99.78 (+0.08, +0.08%)
Arms Index: 1.06

	Issues	Volume*
Advances	746	5.97
Declines	587	4.96
Unchanged	334	2.15
Total Volume		13.08

* 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*
June 30, 1971	891.14	99.70	15.41
June 29, 1971	882.30	98.82	14.46
June 28, 1971	873.10	97.74	9.81
June 25, 1971	876.68	97.99	10.58
June 24, 1971	877.26	98.17	11.36
June 23, 1971	879.45	98.41	12.64
June 22, 1971	874.42	97.59	15.20
June 21, 1971	876.53	97.87	16.49
June 18, 1971	889.16	98.97	15.04
June 17, 1971	906.25	100.50	13.98