New Crisis Possible in Mid-East As Egypt Plans Move into Gaza; Rebels Enter Batista's Residence

CAIRO, March 13--Egypt apparently has decided to restore her rule in the Gaza Strip within the next two days.

Another full-blown Middle East crisis may be precipitated.

Prime Minister David Ben-Gurion told the Israeli Parliament in Jerusalem today his country "reserves freedom of action in case Egyptians return to the Strip."

In New York it was announced U.N. Secretary General Dag Hammarskjold is flying to Cairo Saturday for consultations.

The Egyptian intention was reported tonight by an official of the Palestine Department in Cairo after U.N. Undersecretary Ralph Bunche had a 90-minute conference with President Nasser.

Cuba Rebellion

HAVANA, Cuba, March 13--Armed rebel forces invaded the palace home of Cuban President Fulgencio Batista today and 20 persons were reported killed in a battle inside the palace.

Reports tonight said group of student rebels broke into the palace past the guards and reached the first floor, where Batista has his offices.

The 56-year-old Batista was on the second floor at the time having a late luncheon with two Cabinet ministers.

House Cuts Budget

WASHINGTON, March 13--The House today voted its biggest percentage cut so far in the 1958 budget--and the executive office of the President was its target.

By voice vote, the House chopped by 26 per cent the amount of new money President Eisenhower asked to operate his executive office in the fiscal year beginning July 1.

The action upheld the recommendation of the House Appropriations Committee that executive office funds be fixed at $12,532,370, instead of the $17,047,870 Eisenhower requested.

President Eisenhower said today he hadn't asked Congress to cut his budget.

He made the statement in a news conference, where he also disclosd he is departing for the Bermuda conference by slow boat tomorrow, leaving it to Congress to "go ahead and cut" the budget if it can.

Indonesian Crisis

JAKARTA, Indonesia, Thursday, March 14--Premier Ali Sastroamidjojo resigned today. His government was toppled by bloodless revolts in east Indonesia and Sumatra.

President Sukarno immediately proclaimed a state of war and siege throughout the republic "because of the critical situation."