New USSR Threat to Israel in Diamond Market JERUSALEM (JTA)—The Soviet Union has been dumping diamonds (both raw and polished) on the world market own flourishing diamond industry, the Jewish Telegraphic Agency was told. in quantities and at prices that threaten Israel's Moshe Schnitzer, president of the Israeli Diamond Exchange in Ramat Gan, said, "The danger lies mainly in the fact that the Soviets, who dig for diamonds in their own fields, are not bound by any cost calculations. They can easily undercut us even if, by Western standards, they would be selling at a loss." Cut and polished diamonds are Israel's largest single export item and last year brought in about $200,000,000. The Russians last year sold $20,000,000 on the world market. Roles of Two Arch Nazis: Expose of Hjalmar Schacht THE JEWISH NEWS and Rudolf Hess Michigan Weekly Commentary Page 2 VOL. LVI I, No. 19 Review of Jewish News Courageous Role of. USSR Jewry World Despair and Hope Imbedded in Time Editorials Page 4 Michigan's Only English-Jewish Newspaper — Incorporating The Detroit Jewish Chronicle 4!SeL 6 '. 27 17515 W. 9 Mile Rd., Suite 865, Southfield, Mich. 48075, 356-8400 July 24, 1970 $7.00 Per Year; This Issue 20c Laird Reaffirms Nixon Policy Assuring Israel Balanced Power World Youth Assembly Delegates Bring Adults' Hatreds to Conference should be heard on the Since youth represents half the world, youth urgent problems of the day. Or so the organizers of the United Nations World Youth Assembly billed their nine-day conference. But, as it turned out, most of the 600 young participants were as tiresome as the Establishments they represented. Every effort by the Israeli delegates to meet with their Arab counterparts was met with a rebuff—just as the grown-ups do. After one of many speeches on the Middle East, which, like many others, castigated Israel, one participant commented: "This is the Establishment—the Soviet-Arab Establishment." "Never have I seen such an atmosphere of injustice, hatred and prejudices," an Austrian delegate said. For nine days, a highly organized and strident foot•stomping, hand- clapping and raucous Soviet-Arab-leftist bloc fostered a monotone of hostility Mid bureaucratic despotism within the assembly, especially in the "peace commission," that led to expected results. When the assembly ended last Friday, an amendment to the "peace" report calling for the creation of "a unitary, democratic state in Pales- tine" was adopted by a vote of 293-17. Lars Thalen of Sweden, assembly chairman, then read a proposal to add an amendment calling "upon all parties to conclude without delay a just and lasting peace in the Middle East, in accordance with the Security Council Resolution 242 of November 1967." After reading this proposal, Thalen ruled that no vote could be taken on this because it contradicted the one on the democratic state adopted moments earlier. The Soviet-Arab bloc, however, suffered a setback at the closing minutes of the assembly when an amendment to the "peace" report, introduced by the Israeli delegation and their friends to call upon the Soviet Union to withdraw immediately its troops from Czechoslovakia, was adopted by a vote of 271-115. The peace commission was the most bellicose of the four commis- sions because the Soviet-Arab-leftist bloc was able to stack it with a disproportionate number of delegates. Each delegation had five members who, theoretically, were supposed to participate in each of the four commissions. But this bloc decided to send most of their delegates to the peace commission and then proceeded to steamroller uncommitted delegates into their fold. The resolution of this commission was formulated by members of this bloc. The "peace" report contained eight denunciations of United States imperialism, a series of denunciations against "aggressor" Israel, and a number of swipes against Great Britain, West Germany, Japan, France, Spain and Portugal. The 18-member steering committee also was controlled by the Soviet- Arab-leftist bloc. The "peace" report, which was rammed through late Friday night, was challenged by the Israeli delegates and their sympa- thizers. The five American delegates sat quietly and offered no challenge to its legality. Vasile Nicolcioiv of Romania, speaking on behalf of the steering committee, submitted the "peace" resolution which included an expres- sion of "solidarity with the struggle of the Palestinian people" and de- manded the immediate withdrawal of Israeli troops from all occupied Arab territories and "the recognition of the inalienable rights of the Palestinian people to self-determination." Prior to the adoption of the "peace" report in a wild, table-pounding (Continued co, :, age 5) WASHINGTON (JTA)—"The United States'will do what it has to do to maintain a military balance of power in the Middle East, but it has no plans to involve Ameri- cans directly," Defense Secretary Melvin E. Laird told a group of young visitors to the Pentagon on Tuesday. He told his visitors that the Soviet buildup of power in support of Egypt created in the Middle East "a far more serious situation for us in the long run than we now face in Southeast Asia.' The secretary reaffirmed the Nixon administration policy by stating that the best way to "avoid a confrontation" of the superpowers was to maintain the present military balance. Declining to rule out the possibility that the U. S. might have to send troops into the Middle East if the need arose. Laird said that the Russians "are moving military manpower, their own manpower and committing it to that area of the world." He added that "we do not have any plans to involve Americans directly in that confrontation and I would hope that always could be the case. But we are watching the situation very carefully." State Department spokesman Carl E. Bartch declined comment on reports that the department is seeking to replace lost Israeli F-4 Phantoms with older and inferior F-8 Crusader jets. The department was said to be urging LTV Vought Aeronautics, a division of Ling-Temco-Vought, Inc., to persuade Israel to accept Crusaders, which supposedly would not anger the Arab states as much as Phantom sales. The Crusaders are capable of intercepting MIG-21s, but do not have the Phantoms' range and over-all usefulness. It is also reported that Israel has contracted for more American bombs for use against Egyptian positions on the Suez Canal. Bartch, asked to comment on the joint Egyptian-Soviet communique on the Middle East released last Friday in Moscow, re- plied: "There's nothing in there that is directly addressed to the (American) peace initiative." The spokesman said Egyptian President Gamal Abdel Nasser had not yet reported his official reaction to the initiative, but "the sooner the better." Israel Ambassador Itzhak Rabin reiterated Sunday his government's opposition (Continued on Page 12) Israel Warns of Snowballin4s Blackmail Resulting From hijacking by Terrorists Blackmailing hijackers, whose demand for the release of seven jailed Arab terrorists was met Wednesday by the Greek government, landed in Cairo with the Olympic Airways Boeing 727 owned by Aristotle Onassis. The 58 passengers on the hijacked plane that was originally destined for Beirut were freed by the hijackers. Included in the seven whose release was promised for Aug. 22 arc the two Arab terrorists who hijacked an El Al plane at Athens Airport last November. In that attack a Greek child was killed and several people were wounded. While the Greek government yielded to the blackmailers, it is still possible that the trial of the two terrorists held for the El Al hijacking will go on today as originally scheduled. In Israel it is felt that an incident like the one that occurred this week at Athens Airport could not happen there because of the strict security. But Israelis fear that a surrender to terrorist blackmail snowball into routine policy. They reason along these lines: "If an Arab terrorist knows that even in the case of his capture his fellow terrorists will secure his release before long. the element of risk is removed and he can go on his terror mission with more confidence than a soldier going into battle at the front. Hijacking would grown in frequency to an intolerable extent and make air travel a doubtful proposition unless every airline follows the Israeli example of keeping guards on board every single plane." Jews, Italians Affected by Libyan Grab TEL AVIV (JTA)—The property of the 120-140 Jews and the 40,000 Italians in Libya has been confiscated, the Tripoli government announced Tuesday. The decree, broadcast over Tripoli Radio, said the Jews would be compensated with government bonds payable over 15 years; it did not refer to loss of employment opportunities or other rights. The confiscated property will be taken over by the ministries of plan- ning, housing, agriculture and agrarian reform. It was believed that any Jews who wished to emigrate would not be hindered. The Italians in Libya will be harder hit, with no compensation to be granted and all employment opportunities denied. Sources said Tripoli was encouraging their emigration. In a radio statement, the Libyan leader, CoL Muammar El-Qaddafi, charged the Italians with having stolen their property from Libyans during the "tyrannical and fascist" occupation of the country in the decade prior to World War I. Jewish property in Libya was left behind when the Jews there, almost all of them of Middle Eastern ancestry, went to Israel following her independence. The property was subsequently controlled by the monarchic government of King Idris, who was toppled from power last September. Maddox and Associates Walk Out on a Bigot AYNESBORO, Ga. (JTA)—Gov. Lester G. Maddox led 25 political candidates and 250 spectators from a weekend rally when a speaker denounced Jews, Negroes and Yankees. "I'm for segregation, and I'll always take my stand for neighborhood schools and freedom of choice," Gov. Maddox said after the exodus, "but I can't be a part of any program that wants to wipe out any race." Those joining him included the state's first black gubernatorial candidate, C. B. King of Albany. Maddox, who cannot succeed himself and is running for lieutenant governor, said he would not participate in any events that included "racists" on the podium. The governor said that in the speech he walked out on, gubernatorial candidate J. B. Stoner "was calling people savages and making attacks on what, he called blue-bellied Yankees and Jewish. Americans and black Americans." The segregationist governor added: "You can't take people's color or race and denounce it. You can denounce an individual, but not a group. A man can't help the way he's born, any more than I can help being born Lester Maddox."