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MEDIA POLITICA LIANA YSIS IDENT (September 30, 1972 HAS SEEN A light political news day, in which we came off fairly well, and McGovern did not. Major news stories - the POW airport embroglio, in which DOD got some negatives, but also some effective defense of its position. Hard to believe Administration or President took any losses on this matter. RN-Kissinger shot, and Haig to Saigon got wide coverage fanning rumors that settlement may be around the corner. Rumsfeld's watch to guarantee that old folks social security rise is not eaten up in rent increase gets good play. White House hard-line no-compromise on welfare reform seen as killing the measure this year. And Taiwan is Out in the Cold -- as Japan recognized Peking, and severed relations with Taipei. Focus of Smith commentary which is concerned about future direction of Taiwan. POLITICS Vice President had one of his best days to date. His rhetoric even won him an excellent headline in the Times; good ABC footage sparring with demonstrators. Focusing his attack on McGovern's record on Vietnam. All plus. Further, on our side, Magregor and V.P. have started up talk of a sweep or landslide. Also, Sindlinger poll, giving us 41% lead was carried on one net -- in a day when battle of polls continues in earnest. In summary we are ahead by six in California and 11 in Oregon, depending on various polls. On Watergate, Post charge that ex-AG Mitchell controlled secret fund carried in wires all over country, along with Mitchell denial. The grain deal got another dominant story on CBS this time, however, it was the Big 6 exporters who came off as the big losers and recipients of major windfall profits at taxpayer expense. Mr. McGovern -- He continues to get rough inside stories, and TV reports on voting blocs which reflect unfavorably on him. We have several pieces in this report, one on TV, wherein blacks say they haverno real choice this year, and may stay home, which is damaging to McGovern. Some of the union types are saying things in public about "homos" and "lesbians" and "fruits" and the like, which are seemingly incredible, but which are being picked up locally -- about the McGovern campaign. Further, McGovern did nothing yesterday or said nothing to pick up a major story to eclipse this back-page material, very little of which is favorable to him.