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(8Th NEWS SUMMARY May 17, 1972 (Wed. nets, wires, mags, columns) Major stories of the day: THE PRESIDENT HAS annn SEEN - All nets led with neurosurgeon's prognosis that Wallace's chances of ever "walking again are" less than 50-50 but the Gov's overall physical situation isn't hopeless. Dr. Galbraith (film all nets) indicated remaining bullet is lodged close to or in spinal column but that spinal fluid is passing freely. The bullet will be removed in 7-10 days. Final determination must await that surgery. The Gov., who was described as "fully conscious and rational, 11 was told of mixed prognosis. Wallace's reaction was 'simply that he was going to fight it and would make out. 11 Visitors described Wallace as alert and reading paper accounts of his Mich. -Md. victories. First hospital photo of Gov. and wife released. UPI notes RN physician Tkach inquired on Gov's condition at hos- - pital -- and reported Pres. Suite at Walter Reed was in readiness if Wallace wished. Dr. Galbraith said there are no plans to move Wallace. - Despite "bad" medical news, said Chancellor, Wallace got "ex- ceedingly good" political news with his "stunning" 51% win in Northern, liberal State of Mich. and 39% win in Md. - Following NBC note of WH released details of RN's trip, Valeriani reported the Admin. has info at least 1 possibly 2 Soviet seamen were killed in bombing raids of NVN ports. Officials are under WH orders not to discuss the matter, said Valeriani, ap- parently to avoid an awkward situation for all concerned. USSR is apparently also willing to keep it quiet, as the deaths haven't been publicized nor has the US been presented with a public pro- test. Summit atmosphere is already "somewhat strained" by the mining operation, and the handling of this situation, concluded Valeriani, shows both sides are taking some care not to strain it further. Sevareid predicts next week will be "good news 11 week with announcement of US-USSR agreements unfolding one after the other, assuming no dramatic reversal on VN battlefield. NBC notes Helsinki sources don't think a SALT agreement will be reached before RN arrives in Moscow. Pravda said improved US-USSR relations are both possible and desirable. Although the edit. broke no new ground, diplomatic observers say its publica - tion, along with other articles and commentaries, appears to be a general effort to prepare Soviet public for the summit.