News stories from Friday October 20, 1978

The decision to call Israeli peace negotiators home from Washington reflects growing anxiety over the turn the talks with Egypt have taken and political differences within the Israeli government. Prime Minister Menachem Begin acceded to Foreign Minister Moshe Dayan's request to return to report to the cabinet only after first arguing against the recall, partly to avoid generating an atmosphere of crisis and partly to keep strategy firmly in his own control and out of the hands of the 19-member cabinet, government officials said. [Washington Post]

The latest turn in the investigation heightens the potential embarrassment for Carter. A month before Lance resigned on Sept. 24, 1977, Carter went out of his way to underscore his faith in the integrity of his longtime friend, telling reporters with Lance at his side: "Bert, I am proud of you." However, since last April 24, when Carter was briefed on the early stages of the grand jury inquiry by Deputy Attorney General Benjamin Civiletti, Carter has had no known contact with Lance. [Los Angeles Times]

According to the ABC reports, in his 1975 federal income tax return the president said that a peanut sheller cost $695,000 and he received an investment tax credit based on that amount. But that same year, the warehouse filed at declaration with Sumter County, Ga., tax officials listing the value of the sheller at $375,000. Carter's local property tax on the sheller was based on the lower amount. In 1976, according to the report, the president received an investment tax credit for a new peanut loader and elevator that he said cost $367,040. But when the loader and elevator were listed with local tax officials, they were valued at $50,000. "The broadcast report raises questions to which we do not have answers," White House deputy press secretary Rex Granum said when asked about the different values. [Washington Post]

The previous record drop for one week occurred almost five years ago when stocks plunged 51.78 points in the week ended Nov. 2, 1973. That occurred in the wake of the Arab oil embargo and the first of the dramatic series of oil price increases initiated by the Organization of Petroleum Exporting Countries. Analysts attributed this week's broad and steep retreat to growing fears by investors that higher interest rates will continue to be the only effective inflation-fighting tool in the government's arsenal, and that rates may have to go much higher before they have any impact. That in turn could trigger a recession. [Washington Post]

The last-minute change in the price guideline came after officials apparently concluded that the original 5.75 percent would be too tough on some businesses. Officials said the existence of already-negotiated wage settlements and cost increases would make it difficult to meet. However, the move is expected to draw fire from organized labor, which consistently has insisted on full parity in treatment of wages and prices as a condition for its participation in the new guidelines program. Labor leaders already are grousing about Carter's new plan. [Washington Post]

The action taken by Smith and his three colleagues marked their first unequivocal commitment to participate in the so-called all-parties conference -- a plan that Washington and London have been pushing for more than a year. By accepting, though, Smith in effect put the United States and Britain in the position of having to win a similar, no-preconditions agreement from Joshua Nkomo and Robert Mugabe, leaders of the Patriotic Front guerrilla forces fighting the Smith government from bases in neighboring Zambia and Mozambique. [Washington Post]