WEDNESDAY, JANUARY 17, 1968

THE MICHIGAN DAILY

PAGE THREE

WEDNESDAY, JANUARY 17, 1968 FIlE MICHIGAN DAILY PAE'~F~ TrU?~'

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Wilson Announces Cut
In Domestic Spending,

Y POLITICALVIOLENCE:
-YTop U.S. Officers
ME Killed in Guatemala

LONDON (A)--In a drive to substantial surplus on overse
make Britain solvent, Prime Min- payments, we are 'unable inte
ister Harold Wilson announced nally or externally to do all th
yesterday cancellation of a billion things which as a nation we woul
dollar order for U.S. F11 bombers, like to do," the prime minist
and a withdrawal of all British said.
armed forces from the Far East "Abroad it means reassessing ou
and the Persian Gulf by 1971. role in the world and realistical]
Wilson told the House of Com- limiting commitments and ou
mons he also plans slashes in so- goings to our true capacity."
cial welfare benefits, cuts in ed- Suez Withdrawal
ucation, housing and road build- Wilson said the withdrawal fro
ing, and virtual abandonment of east of Suez, four years ahead o
tLe civil defense program. the target set last July, will perm
When he mentioned an end to manpower reductions in the arme
free medical prescriptions, some forces of 75,000 military personni
s#Laborites shouted, "Resign! Re- and 80,000 civilians.
sign!" The prescriptions will now IThe decision to cancel the con
cost 30 cents. tract to purchase 50 F1111 swin
Tough Wrangling wing bombers involves $1.02 bi
Wilson's austerity package was lion. The bombers are made b
the result of more than 30 hours the General Dynamics Corp.
of tough wrangling within his gov- Although the British will leav
ernment over the past .week. the Far East by 1971, Wilson em
f "Our purpose in this review is phasized Britain is prepared t
to make devaluation of the pound aid the Commonwealth partne
work because until we do, until we in Southeast Asia through "a join
are earning year in, year out, a air defense system for Malaysi
~High Court Restricts
Maritime Screening
WASHINGTON P) - The Su- to safeguard vessels and wate
preme Court punched gaping front facilities from sabotage an
.holes Tuesday in the government's other subversive acts, undertoo
method of screening for subver- to reach into the First Amendmen
sives in the maritime industry area.'
The McCarthy era law wiat In another ruling, the Tenne
spawned the elaborate process see Valley Authority won a majo
was left standing in an 8 ^ueci- victory over a private power sup
sion by Justice William O. L. as. pier in a fight over limitation
But its use was restricted to keep- set by Congress in 1959 on exten
&ing saboteurs off ships. sion of TVA services.
The court's narrow reading of Speaking for a 6-1 court, Justic
the 1950 Magnuson Act extends Black said the TVA board has th
a series of decisions in which the authority to determine the are
justices have cut down broad gov- left to it by Congress and th
ernment inquiries into citizen's courts may upset such judgmen
ideas, and associations. only when they are witho
Trojan Horse' "reasonable support."
The Magnuson act, passed dur- The immediate effect is to au
ing the Communist hunting activ- thorize distribution of TVA pow
ities of Sen. Joseph R. McCarthy to Tazewell and New Tazewell,
(R-Wis), was known as the "Tro- two small towns in Claiborn
jan Horse" bill. It gave the Coast County, Tenn., which had bee
Guard broad powers to search for- supplied largely by the priva
eign ships and control their activ- company, Kentucky Utilities.
ities in U.S. ports.
It was designed to keep ships
from sneaking atomic bombs or
germ weapons into American
ports.
The law, Douglas said, "speaks
only in terms of actions, not ideas By The Associated Press
or beliefs of reading habits or so- MOSCOW - The Soviet gov
kcial, educational, or political as- ernment yesterday named Jaco
sociations." A. Malik to head its delegation t
He added: "We hesitate to con- the United Nations.
lude that Congress told the Ex- Malik, a 62-year-old deput
ecutive to ferret out the ideological foreign minister, replaces Ambas
strays in the maritime industry." sador Nikolai T. Fedorenko.
Appeal Case Malik, one of the Kremlin's to
The court acted on a appeal diplomats, headed the Soviet U.N
4brought by a Seattle marine en- delegation from 1948 to 1953. H
gineer, Herber Schneider, who be- then became ambassador to Grea
came entangled in the screening Britain for seven years before re
machinery when he tried to go turning to Moscow.
back to sea in 1964 after a 15 year There was no indication i
absence. Moscow whether the shift ha
He admitted having been a political significance.
ember of the Communist Party * * *
but refused to tell the Coast Guard, WASHINGTON - The Unite
which administers the program, States has decided to aim its ar
much beyond that, including senal of nuclear missiles at Sovie
whether he had been a subscriber cities rather than at militar
to the "People's World" and his bases in the event of war, Th
"attitude toward the form of gov- Washington Post reported yester
ernment of the United States." day.
Douglas said: " We are loathe to The newspaper says this dece
conclude that Congress, in its sion represents a "fundamenta
grant of authority to the President shift of strategy."

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and Singapore." Britain will train
personnel to operate the joint air
defense system.
The prime minister said Brit-
ain's defense budgets will be cut by
$264 million in fiscal 1969-70; be-
tween $504 to $624'million in 1972-
73.
The future of. Britain's armed
forces, Wilson said, will then "lie
mainly in Europe." Britain will
still face "the problem of the
heavy continuing cost in foreign
exchange of stationing our troops
in Germany."
Bonn Talks

- ' Wilson said informal talks have
g already been held in Bonn in an
l- effor to persuade the West Ger-
man government to underwrite the
byJ foreign exchange cost of maintain-
ing Britain's forces in the North
e Atlantic Treaty Organization.
a- Spending by local authorities
to will be cut back. An already an-
rs nounced increase in family allow-
t ances will be continued and there
ia will be no cuts in the hospital
building program.
Income taxes will be raised to
pay for the increase in allowances,
Wilson said."
The savings on the home front
during 1968-69 are calculated to
save $720 million.
Re-establishment of charges for
medical prescriptions was an issue
r- which wrought Wilson's resigna-
d tion from a previous Labor gov-I
k ernment.
it New Demands
The abolition of prescription
- charges was one of the first acts
of Wilson's government when it
- came to power in October 1964.
- Wilson estimated the cuts aimed
at education would save $172.8 mil-
e ion in the fiscal year 1968-69.
he In Washington, Sen. John G.
a Tower (R-Tex), commented that
at the cutback in British defenses
ts will place "serious new respon-
ut sibilities and demands upon the
shoulders of the United States."
- Tower, a member of the Senate's
r Armed Services Committee, said
Britain's plight is a warning to the
e United States that "we must move
n immediately to return fiscal sani-
te ty and sound budgeting to our own1
federal economic policies."j

GUATEMALA 'P) - Machine
gun fire from a passing car killed
the two top U.S. Army and Navy
officials in Guatemala yesterday
and wounded two other American
military men.
They were apparent victims of
a wave of political gangster vio-
lence ravaging this Central Amer-
ican country.
Earlier in the day, machine
gunners killed a former congress-
man from the era of leftist Pres-
ident Jacobo Arbenz Guzman.
who was toppled in 1954 by a U.S.
supported army coup aimed at
preventing a complete Communist
t a k e o v e r. The congressman's
bodyguard also was slain.
Political Terror
Police quoted a gardener as say-
ing the Americans, driving toward
their homes, 'were shot 'from a
green car that drove off fast.
In the past year and a half.
more than 1,000 persons, perhaps
as many as 4.000, have died in
the terrorism of political factions
and gangsters.
The attack on the Americans
occurred on the eve of the sched-
uled arrival here of Covey T. Oli-
ver, U.S. assistant secretary of
state, who is on an orientation
and get acquainted tour of Cen-
tral America. He was in Panama
yesterday with a group of mem-
bers of the House Committee on
Merchant Marine and Fisheries.
American Victims
Before yesterday's killings, of-
ficials say no U.S. citizens had
been victims in the wave of vio-
lence.
The slain Americans were Col.
John D. Webber Jr., 47, head of

-Associated Press
DISASTER IN SICILY
Debris is piled high amid the rubble of the devastated village of Gibellina, Sicily. Gibellina was only
one of the towns on the Italian island province hit by earthquakes Sunday and Monday. The unoffi-
cial death count was over 300 yesterday with over 1,500 injured and almost 1,500 missing. Author-
ities report the death toll could climb to 500 as new shocks shatter buildings.
LAST-QUARTER RISE:

either as rightists or leftists, have
been exploiting the turmoil for
purely private profit, authorities
said.
The Cabinet of President Julio
Cesar Mendez Montenegro went
into session quickly to study the
shootings, but there was no im-
mediate indication from police on
the identity of the assassins or
their motives.
Sam~s SBA
Loan Misuse
WASHINGTON (P) - A House
Republican demanded yesterday.
an investigation of the Small
Business Administration for its
handling of flood disaster loans
to a prominent Alaska Democrat
and to the state's Republican gov-
ernor.
The neighboring Fairbanks mo-
tels of the Democrat, L. Donald
Pruhs, and the Republican, Gov.
Walter J. Hickel, were damaged
by flood last August.
Pruhs, as reported by the As-
sociated Press Monday, got an
SBA disaster loan of $894,000 -
nearly all he asked for - while.
Hickel's $1.2 million application
was trimmed by half. Hickel
claimed greater flood damage.
Political Payoff
Placing the story in the Con-
gressional Record, Rep. H. R.
Gross (R-Iowa), said the SBA
"has been caught flatfooted using
the taxpayers hard earned dollars
for a political payoff to one of its
party faithful." He called the in-
cident "a blatant misuse of the
public trust by the SBA."
It has been reliably reported
that the Fairbanks matter was
brought directly to President
Johnson's attention by Budget
Director Charles L. Schultze as
the two prepared the forthcoming
federal budget last month.
Tighten Standards
An administration source con-
ceded that "It's possible - but
only in a vague, general way. You
don't bring single cases like this
to the President."
SBA Administrator Robert C.
Moot refused to divulge any de-
tails of individual loans to Fair-
banks businessmen beyond who
got how much.
But he said the agency-which
has approved some $25 million in
disaster loans to Fairbanks busi-
nesses - plans to tighten its
standards in disaster loans.

I

Commerce Dept. Announces
$16.4 Billion GNP Increase



WASHINGTON {A') - The na-
tion's economy took its biggest
forward step in almost two years
during the last quarter of 1967, a
factor alniost certain to be cited
by the administration in the re-
opened congressional battle over
higher taxes.
In announcing the advance, thej
Commerce Department said yes-
terday inflation absorbed half of
the fourth quarter increase in
gross national product and more
than half of the rise for the entire
year.
The department reported a

$16.4 billion increase in GNP dur-
ing the fourth quarter of 1967 to
a record annual rate of $807.6
billion.
GNP is the value of all goods
and. services produced in the
economy and is the most compre-
hensive guidepost to over all
economic activity.
For 1967 generally, GNP totaled
$785.1 billion, about $42 billion or
5.5 per cent above the previous,
year. But the department said 3
per cent of this was in higher
prices and 2.5 per cent in real
growth.
This is somewhat smaller than
the administration had hoped a
year ago when it projected a real
growth rate of 4 per cent. But the
first half economic sluggishness
during 1967 was deeper than anti-
cipated, and labor union strikes
cast a shadow over the second
half.
Administration witnesses are
expected to emphasize the third
and fourth quarter figures, how-

the U.S. military group in Guate-
lowed a $16.1 billion advance in mala since 1966, and Lt. Cmdr.
the third quarter and both figuresErnest A. Munro. 40, head of the
reflect a strike at the Ford Motor TT nv s -

Co., which began in mid-Septem-
ber and lasted through October.
The half year gain of $32.5 bil-
lion was the largest since the
fourth quarter of 1965 and the
first quarter of 1966 when the!
Vietnam war buildup produced a
$35.9 billion combined advance.
Almost a third of the f urth
quarter increase was attributed
by the department to a buildup
in business inventories which in-
creased to $9 billion at an annual
rate compared with $3.8 billion in
the third quarter.
It was the drastic decline in the
inventory buildup during the first
half of 1967 which produced the
six month economic pause.
Federal government purchases
during the fourth quarter in-
creased about $1.1 billion, main-
ly in national defense. The rise
reflected pay increases for bcth
military and civilian personnel.

U.0. 1a a ~l. I
A machine gun burst killed
Webber instantly. Munro died in
an ambulance en route to a hos-
pital. Webber was from Houston,
Tex., Munro from Rockland,
Maine.
The wounded were Sgt. Maj.
John R. Forster, 42, of Salem,
Ore., and Navy Senior Chief Ra-
dioman Harry L. Greene, 41, of
Omaha, Neb. Greene was reported'
critically hurt. Forster was dis-
charged from the hospital after
treatment of an arm wound.
All four men were married. The
families of Webber, Munro and
Greene were living with them in
Guatemala. Forster's family was
in the Panama Canal Zone.
In Washington, experts said
they had no information as to
whether the attack--was the work
of rightist or leftist extremists or
of other origin.
G a n g s t e r elements, posing


1d News Roundup

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Quoting Pentagon strategists, it
says the two nuclear super powers
have abandoned the idea of lim-
iting damage from an initial nu-
clear exchange to military tar-
gets and will attempt to obliterate
Russian cities.
Asst. Secretary of Defense Phil
G. Goulding, the Pentagon's chief
spokesman, denied the report and
said no change in U.S. strateg c
policies is under consideration.

ATLANTA, Ga. - Dr. Martin
Luther King, Jr. said yesterday
his planned march on Washing-
ton in April to demand jobs and
income for the poor will be led by
3,000 demonstrators trained in
nonviolence.

King told a news conference he ever; when they appear before the
expected the 3,000 to be a van- House Ways and Means Commit-
guard for thousands of others tee on Jan. 22 to appeal again for
who will go to the capital to de- approval of the 10 per cent tax
mand jobs and income from Con- surcharge.
gress. The fourth quarter gain fol-

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THIS WEEK AT
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(research associate in the 1421 Hill St
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speaking on
"GOD-so who needs him?"

2 Performances Each!
MON.-TUES.-FEB. 5-6
INTERNATIONALLY ACCLAIMED
"MAGIKAL.MUSIKAL"


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VACLAV NEUMANN, Conductor
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