Hammarskjold Settles Mideast Rift; Israel Resumes Convoys Today

JERUSALEM, Dec. 4--Dag Hammarskjold settled the Israeli-Jordan dispute over convoys to Mt. Scopus today, and Israel will resume the dispatch of supplies to the isolated ridge tomorrow.

An Israeli government spokesman said the next convoy includes nine drums of gasoline, the ingredient which had threatened to blow up the peace and brought the U.N. Secretary General here on his trouble-shooting mission.

In Amman, the Jordan capital, a government spokesman said the next convoy would pass through Mandelbaum Gate into Jordan territory tomorrow and would be searched by Jordan military authorities.

Knowland Reports Tax Reduction Postponed

WASHINGTON, Dec. 4--Sen. Knowland (R-Calif.) reported tonight it probably will be necessary to postpone a three-billion-dollar-a-year reduction in corporation and excise taxes scheduled for next June 30.

Knowland said he is very hopeful that a tax increase can be avoided, but that any reductions next year are "highly unlikely." The senator also said he had a strong impression that the budget for the fiscal year starting July 1 can be balanced.