ISSUE DATE: May 15, 1972; Vol. LXXIX, No. 20

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IN THIS ISSUE:-
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COVER: VIETNAM: THE SPECTOR OF DEFEAT.

TOP OF THE WEEK:
VIETNAM: CRISIS: With the stunning Communist military successes in South Vietnam, President Nixon hinted that he was considering a major new escalation in Indochina. With files from Saigon and Washington, Associate Editor Richard M. Smith assesses the Administration's response to the crisis and Associate Editor Richard Steele examines the fallacies underlying U.S. strategy in Vietnam. From on-scene, correspondent Tony Clifton describes last week's ARVN rout. (Newsweek cover photo by Frank Fischbeck.).

FBI: AN ERA ENDS: J. EDGAR HOOVER's death last week touched off a passage of national mourning--and reopened the question of what role the FBI should play in the post-Hoover era. With files from correspondent Nicholas Horrock, Senior Editor Peter Goldman surveys Hoover, his bureau and its future.

AFTER SATO, WHO? Prime Minister Eisaku Sato is expected to retire soon, and Tokyo bureau chief Bernard Krisher interviewed the three major contenders for Sato's job. krisher also filed a report that General Editor Raymond Carroll used to write the story of the political scene and the succession.

CANTON: U.S. TRADERS: Hard on the heels of President Nixon's trip to Peking, American businessmen are, for the first time, bargaining hard with their Chinese Communist counterparts at the huge Canton Trade Fair. And so far, relations could scarcely be more cordial. Newsweek's Hong Kong bureau chief, Maynard Parker Parker, was one of only three U.S. journalists on the scene. From Parker's report, Associate Editor David Pauly wrote the story of the start of a promising new era for American-Chinese trade.

CORPORATE SWITCH: What really happens in a corporate crisis? Los Angeles bureau chief John L. Dotson Jr. has been following the drama at Frontier Airlines, where a new management has been struggling to turn red ink into profit. Associate Editor Michael Ruby wrote the story from Dotson's files.

PROPAGANDA U.S.A. The USIA spends some $200 million a year to tell this country's story overseas. From his own exhaustive sampling of USIA's offerings and reports from Newsweek bureaus abroad, Contributing Editor Joseph Morgenstern appraises the quality and effectiveness of American propaganda.

NEWSWEEK LISTINGS:
THE WAR IN INDOCHINA:
Vietnam: the specter of defeat; with two pages of color photographs.
President Thieu fights a one-man war.
The chaotic retreat from Quang Tn.
What went wrong: three weaknesses in.
U.S. strategy in Vietnam.
NATIONAL AFFAIRS:
J. Edgar Hoover: an era ends.
L. Patrick Gray, acting FBI head.
The primaries: on to California.
George Wallace's talented wife.
Newsweek's delegate count.
Where McGovern stands on the issues.
Why the GOP switched to Miami Beach.
A tale of two plane hijackings.
INTERNATIONAL:
Who will succeed Sato in Japan? Interviews with three tap contenders.
A reprieve for Bra ndt's Ostpolitik.
Golda Meir's visit to Rumania.
Egypt: a growing unhappiness with Sadat.
Canada's plan to curb foreign take-overs.
THE MEDIA: Will the Dick Cavett show survive?; Women's lib vs. ABC; The shadow on the Pulitzer Prizes.
SPECIAL REPORT: The American propaganda machine.
MEDICINE: Who can stand the most pain?; The debate over "genetic engineering"; A new defense against poison ivy.
BUSINESS AND FINANCE:
U.S. businessmen at the Canton Fair.
New jolts for the UMW's Tony Boyle.
Auto price cutting: the Big 3 under fire.
Turnaround at Frontier Airlines.
Price controls: turning the screw.
SPORTS: Riva Ridge wins the Derby; The hot Houston Astros.
SCIENCE: No credit for Dr. Shockley's theory; Killing the vampire bats.
LIFE AND LEISURE: The surge in small-plane thefts; Junk mail for babies.
THE COLUMNISTS: George W. Ball. Henry C. Wallich. CIem Morgello. Stewart Alsop.

ART:
Morris Louis: the power of color.
The Guggenheim's Vassily Kandinsky.
show, with two pages in color.
MUSIC:
The brassy bands of Britain.
Mabel Mercer--singing it like it was.
MOVIES:
"Fritz the Cat": fantasies in animation.
"La Salamandre": Swiss artistry.
THEATER:
Vidal's "Evening With Richard Nixon".
Jason Miller's "Championship Season".
BOOKS:
Arnold Beichman's "Nine Lies About America".
VS. Pritchett's "Midnight Oil".
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