Offer from G. M.

Ever since the Government accused General Motors last July of making $17.4 million in excess profits on a contract to build 599 F-84F Thunderstreak jet fighters (TIME, Aug. 5), G.M. has jittered at the prospect of a court case and possible bad publicity. Last week Louisiana's F. Edward Hebert, whose House Armed Services Subcommittee had brought out the original charge, announced that G.M. has moved to settle with the Government. It offered to refund a total of $9,701,458 to the Air Force. Already in the hands of the Air Force is a check for $2,400,000 to cover one section of the contract. G.M. also wants credit for another $2,600,000 of the total that has been paid in corporate taxes, and has offered to refund another $4,701,458--provided that the government does not prosecute the company. It is now up to the Government to decide whether to settle or go to court.

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