News stories from Saturday December 17, 1977

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

Increased attention to the economy is planned by President Carter as he prepares a "master agenda" for action in 1978. He is considering a major shift in economic policy that would use tax incentives to fight inflation, his senior advisers said. The President was said to be looking with interest at a proposal by Arthur Okun, the economist, that would give tax advantages to companies and unions that voluntarily restrain price and wage increases. Major changes in the federal civil service system are also being considered. [New York Times] Weak presidential leadership was one of the reasons given by congressional leaders and political scholars for what they perceive as only a moderately productive first session of the 95th Congress, which ended Thursday. The complexity of many issues before Congress, the lack of a national consensus and an increased skepticism in Congress over the ability of the government to improve many national problems were said to have contributed to an undistinguished session under a new inexperienced President. [New York Times] Americans are raising cash by borrowing against the enormous appreciation in the market value of their homes. A sharply rising number of homeowners are renegotiating and extending their mortgages at higher interest rates, and sometimes taking out a second mortgage. The increased borrowing has tripled the country's mortgage debt on existing homes in less than three years. At the same time, consumer spending has soared, helping the country to pull out of the world recession faster than any other country. [New York Times] Another meeting between President Anwar Sadat and Prime Minister Menachem Begin is expected to take place in Egypt this week, earlier than had been planned. Sources in Cairo said the meeting might take place as early as Wednesday. Mr. Sadat, who announced the invitation to Mr. Begin at a news conference, is awaiting full details of the Israeli peace proposals taken to Washington by Mr. Begin last week. [New York Times] President Carter called Israel's latest peace proposals "a constructive approach" tonight following a two-hour meeting at the White House with Prime Minister Begin. No details of the plans were released, but a White House official said that Mr. Begin's proposals "show additional flexibility." Following the meeting Mr. Begin said that "peace is coming closer." [New York Times] Thousands of Egyptians cheered as the Israeli peace delegation entered Cairo's synagogue to attend sabbath services. It was the first time that the Israelis had been visible to the ordinary public without advance notice. Cairo's Jewish community now consists of only 85 persons, so there was ample room for well over 100 photographers and reporters who followed the Israelis inside the large, handsome building. [New York Times] Kidnappers released the son of President Spiros Kyprianou of Cyprus after holding him prisoner for four days, according to the police. Achilleas Kyprianou, 19, was set free in the port city of Limassol. Earlier, the Cypriot President said he was ready to sacrifice his son, "but never my country." [New York Times]