Student reaction to the renewed bombing of North Vietnam and the Corporation's decision not to divest its Gulf stock threatened this week to defuse the Graduate Student and Teaching Fellow Union's six-week fight over proposed financial aid cutbacks.

But the issue reemerged as the Harvard strike fizzled and black occupiers left Mass Hall. Wednesday morning, R. Victor Jones, dean of the Graduate School of Arts and Sciences, presented representatives of the Union with an outline of the tuition abatement guidelines under consideration by the Committee on Fellowships and Other Aids.

The Union responded that afternoon by calling the proposed need criteria in the statement "unacceptable, insulting, and no ground for further discussion." Later 20 Union representatives walked out of a meeting with members of the Faculty Council, the Committee on Fellowships, and Jones, vowing not to reopen discussions until the University was prepared to bargain in good faith.

Throughout the week, members of the Union have been meeting in departmental caucuses to consider possible responses to a financial aid decision which has been promised by the end of next week. Among the alternatives proposed are granting A's to every student in courses graded by graduate students and withholding all grades until the Union's five demands are met. All of which could leave the Rank List somewhat congested.