New President Reaches Havana, May End Martial Law, Curfew; Larger Defense Budget Proposed

HAVANA, Cuba, Jan. 5--Provisional President Manuel Urrutia arrived in Havana late today, raising the prospect that martial law in Havana province and a prospective curfew for the capital would be lifted quickly.

He arrived at the height of a confused situation that pitted Fidel Castro's rebel forces against a group of young revolutionary zealots who had occupied the presidential palace. Castro's men so far were resorting to persuasion. Apparently they were meeting with success, for the splinter group of revolutionaries left the palace on orders from their leaders rather than embarrass Urrutia's struggling young regime.

The proclamation of martial law was made by Maj. Camilo Cienfuegos, Castro's military chief for Havana province. He said it would remain in force until Urrutia was installed in the presidential palace.

Administration Proposes $40.9 Billion for Defense

WASHINGTON, Jan. 5--The Eisenhower administration sketched out a $40,900,000,000 defense budget today for leaders of the new Congress, a figure slightly larger than last year's appropriation.

The reaction to the spending plans was less than enthusiastic. Some key Democrats challenged the space and missile financing as too small. Nor did Republican congressional leaders organize any cheering section as they marched out of a 2 1/2 hour conference with President Eisenhower.

There was no sign that the Soviet Union's blasting of a satellite toward orbit around the sun would result in any immediate monetary shot in the arm for the American space program. Rather, indications developed that the heavily Democratic Congress convening Wednesday may write its own ticket in the months ahead on funds for defense and allied operations. Eisenhower's figure is up only 100 millions over the current budget.