News stories from Sunday July 1, 1979

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

President Carter said a recession was "much more likely" now because of the price increases announced last week by the Organization of Petroleum Exporting Countries. More sharply critical of the Arab oil nations than he had previously been in public, Mr. Carter said that the price rises of 60 percent since December were "unnecessarily high and unwarranted." He predicted the possible loss of 800,000 jobs and a 2½ percent rise in the inflation rate by the end of next year.Gasoline rationing is more likely, too, according to administration officials and leaders in Congress, because of President Carter's pledge to hold oil import levels for the next five years and the prospect of a continuing gasoline shortage. Interest in some kind of rationing plan is reviving, especially in the House, which defeated a plan in May. It appears that President Carter would be given standby authority to impose rationing if crude oil supplies decline by at least 10 percent. [New York Times] Only a slight improvement in the national gasoline supply is expected this month compared with June, according to oil company and independent analysts. They agree that the shortage is now at its worst, but they anticipate continued shortages throughout the country. A major improvement in the overall supply is not expected until the summer driving season ends. [New York Times] Hoping to lift the order grounding DC-10's, federal officials are aiming at reaching a decision next week. Government officials believe that new maintenance and inspection rules have made less likely a repetition of the DC-10 crash in Chicago May 25. [New York Times] The doubling of the divorce rate among Americans in the past 20 years was reported by the Census Bureau, and, at the same time, the number of children involved in divorce more than tripled. The bureau's statistics, backed by the National Center for Health Statistics, trace the divorce rate from 1940, when it was as low as 2 for every 1,000 persons. The rate began to climb steadily in 1960, when it was 2.2 for every 1,000 persons, In 1978, it was 5.1. [New York Times] Ronald Reagan and John Connally were the star attractions at Virginia's Republican state convention, held nominally to plan the strategy for this fall's legislative elections but preoccupied with the 1980 presidential race. Both appeal to the conservatives, who are the majority of the Virginia Republicans. [New York Times] An oil spill threatened the New York Harbor area. About 100,000 gallons of diesel oil burst from a container ship bound for Saudi Arabia when she ran aground off Bayonne, N.J. [New York Times] The U.S requested the release of more than 100 of South Korea's political prisoners. Just before President Carter concluded his visit to Seoul, Secretary of State Cyrus Vance said that he had given Foreign Minister Park Tong Jin privately-compiled lists naming alleged political offenders. [New York Times] Expansion of Nicaragua's guerrilla junta with moderates is sought by United States officials. They have suggested to the five-man junta in talks in Costa Rica that Nicaragua's "democratic forces" be strengthened before President Anastasio Somoza steps down. [New York Times] Bolivians voted in elections that produced a close contest among three presidential candidates in early returns. The election was intended to restore civilian government after more than a decade of military rule. Making a surprisingly strong showing was Gen. Hugo Banzer Suarez, a right-wing nationalist. The other two leading candidates were Victor Paz Estenssoro and Hernan Siles Zuazo. [New York Times] The Soviet Union raised prices of a wide range of consumer goods, from carpets to cars. Western economists say that the government apparently moved to counteract the imbalance between rising personal savings and the demand for scarce consumer goods and services. [New York Times] Iran is expelling an American reporter, and it appeared that other foreign newsmen might have to leave. David Lamb, correspondent for the Los Angeles Times was ordered to go and was told that his paper would be excluded because of the "general negative tone " of its reports on Iran. [New York Times]