TRIDAYYEBRUARY 2,1968

THE MICHIGAN DAILY

PAGE THREE

FRIDAY, FEBRUARY 2,1968 THE MICHIGAN DAILY PAGE THREJ3

w

MNc amara
New Troops
Loeated In,'

Predicts

U.S.

Seeks

New Talks
On Pueblo
WASHINGTON (,P) - Respwnd-

ECONOMIC REPORT:
Johnson Asks Strike Truce,
Study of Wage-Price Guide

Budl

11 T T _

Near DMZ
WASHINGITON (') - Secretary
of Defense Robert S. McNamara
reported to Congress yesterday
North Vietnam is expected to in-
crease sharply its armed strength
in South Vietnam in the next few
months.
1McNamara's warning,'set against
a backdrop of guerrilla assaults
on Saigon and other South Viet-
naiese areas, came in a sober
accounting of the war effort as
he prepares to leave office.
Assessment
The Pentagon chief's assessment
of the conflict, as well as the
whole realm of U.S. security
matters, was presented to the
Senate Armed Services Commit-
tee at a closed session. A cen-
sored version was made public.
In the strategic area, McNa-
mara disclosed that the Soviet
Union more than doubled its
force of land based nuclear mis-
siles facing this nation - from
340 to 720 in the 12 months end-
ing last Oct. 1.
Gains
McNamara's 219 page document
his annual "military posture"
statement - spoke of both gains
i and setbacks in Southeast Asia.
At times he pointedly placed
the burden of responsibility for
lack of success on the South Viet-
namese.
"No matter how great be the
resources we commit to the strug-
gle, we cannot provide the South
w Vietnamese with the will to sur-
vive as an independent nation
or with the ability and self
discipline a people must have to
govern themselves," he said.
Uneven Progress
He acknowledged, however, that
over-all, allied progress "has been
uneven" the past 22 years.
Increasingly aggressive guerrilla
attacks have slowed pacification
in rural areas and "heightened
the feeling of insecurity" in South
Vietnamese cities and towns, he
stated.
In contrast, McNamara said,
bigger battles have "conclusively
demonstrated that the Communist
main force units are simply no
match" for allied forces.
Russian Aid
McNamara said North Vietnam
received perhaps $1 billion in aid
last year from Russia and other
,r Communist countries and still has
not infiltrated into the South
"any very large part" of its active
army.
He referred to several. new
North Vietnamese divisions mov-
ing southward-four or five al-
ready have been located near or
in the Demilitarized Zone - and
said Hanoi's force in the South
"may increase sharply in the next
few months."
"We have provided for this de-
velopment in our own plans," he
said, presumably referring to last
summer's decision to boost the
U.S. manpower level to 525,000
this year.
North Vietnam's military input
rose from about 9,000 men in
June 1965 to 50,000.

i"

ing quickly to a North Korean WASHINGTON () - Presidents
suggestion, the United States said Johnson called yesterday for ai
yesterday it is prepared to try temporary no strike truce between
again to seek release of the Pueblo industry and labor, a tax increasea
and its crew through the military "in the next few weeks" and aI
armistice commission at Panmun- study of possible new wage price
jom. guideposts.
North Korea harshly rebuffed In his annual Economic Re-
_:''. \ the first U.S. request at the Ko- port, Johnson warned Congress f
rean truce commission meeting the business advance is running
....... place Jan. 24, just after the Reds "tofatorsey. The nation t
p h n e u toofast for safety.'' Tenaon
had seized the American intelli- must choose quickly, he said,
gence ship and its 83 crew men. h
rr~~r. . Attempts r oa
te 10 days f fruitless ei a ng t "a p
tempts to win back the vessel and
men through the UN Security (on *
nCross and various diplomatic
S channels. U.S. authorities are wrill-
ing to make a second effort at . iOWer tat
a eaPanmunjom.
But no one here is pedictg WASHINGTON A ') - Although
early success. The last time the the administration is insisting onu
armistice commission handled a a 10 per cent income tax sur-t
U.S. prisoner case, it took a year charge, there are increasing signs e
of meetings before the Americans that something less will be ac-f
-two helicopter pilots-were freed ceptable.a
by the Communists. It undoubtedly will boil down toI
The North Korean hint came in just how much Congress will ap-
an English language Pyongyang prove, if anything. Key congres-s
>radio broadcast of a statement by sional leaders have balked thus
a secretary of the Communist Ko- far at a 10 per cent surcharge on
rean Workers Party, Kim Kwang individual and corporate income
Hyop. taxes, a measure they have been
Kim said the United States can- sitting on since last Aug. 3.
not solve the Pueblo affair by The first firm hint of a possible
nmilitary threats, aggressive war or yielding in administration atti-p
-Associated Press illegal discussion at the United tude went virtually unnoticed at
Nations. But "it will be a different a news briefing on the $186.1 bil-
eported to the Senate Armed story if they want to solve this lion budget submitted to Congress!
its armed strength in South question by methods of previous last Monday.c
the Joint Chiefs of Staff. practice," he said. At that session, Secretary oft
Quoting Kims' words, State De- the Treasury Henry : H. Fowler a
partment press officer Robert J. backed up President Johnson's
McClosky announced "the United strong appeal for the 10 per cent
States is prepared to deal with surcharge but left the door open
this matter through this channel. for a lesser amount.
ssS Shock
nist Raids Gilbert and Sullivan Society
of raking bullets into the Com- MASS MEETING
munist positions.
But when the aircraft returned MikadoTouring Company
to their bases, the enemy mor-
tars, rifles and automatic wea- SUNDAY, FEB. 4-6:45 P.M.
pons would open up again.
"He is not retreating," said Col. 3rd Floor Union
Henry A. Barber of Waco, Tex.,
senior adviser to the South Viet-
namese 23rd Infantry Division. - - - ---.
"It looks like he is determined to
die on the field of battle." m
The American advisers were
virtually pinned down in their
compound as darkness fell.

sible financial crisis, and perhaps
ultimately a recession."
The expansion can be moder-
ated - by prompt enactment of
his proposed 10 per cent tax sur
charge - to, a high but healthy
production gain of $61 billion, he
said. That would bring 1968 out
put a record $846 billion.
"Damage already has been done
to interest rates, to our trade sur-
plus, and to the level of prices bys'
the failure of Congress to act last 3

'1
14

He endorsed a voluntary mora- Labor and Commerce in dealing
with this danger to our export
surplus."
y ccept The President also announced
establishment of a Cabinet Com-
mittee on Price Stability directed
tC rc l #e ,o develop means of fostering
price and wage stability.'

torium on strikes in major in-
dustries to keep American goods
available and competitive in
world markets and prevent fur-
ther balance of payments trouble.
"We must," Johnson said, "exert
every effort to avoid the possible
destructive effects on our trade
of strikes or the threat of strikes
in key industries.
Export Surplus
"I urge business and labor to
nnnnjrafO a uriVhUh1 L1 or+--4 01.

In talking of the debate already
underway Fowler said the federal
tax increase would cut the fed-
eral deficit in this and the next
fiscal year by $16 billion over all,
and it cannot be delayed much
longer.
He followed that up with this
statement:
"It will be taken by affirmative
action on the President's tax pro-
posal as proposed or in amended
form or simply by failure to act.
This is the first and decisive issue
presented by the President's
budget."
Now it is learned that the phrase
"or in amended form" was in-
cluded deliberately to show that
the administration's stand is not
an all or nothing position.

Neither Johnson nor high ad-
ministration officials placed any
numerical value on a wage price
guidepost - it was 3:2 per cent
in 1966 - and admitted no hope
of achieving complete prices abil-
ity this year.
Settlements
But officials said wage settle-
ments should be appreciably lower
than the 5%/2 per cent average in-
crease in 1967, although it would
be unrealistic to expect labor to
hold its demands tb a 3 per cent
productivity gain when the cost
of living rose that much in 1967.
The administration's day to day
infighting to keep wages and
prices in check would still be
handled by the Council of Econ-
omic Advisers.

SECRETARY OF DEFENSE ROBERT McNAMARA yesterday r
Services Committee that North Vietnam is expected to increase
Vietnam. With McNamara is Gen. Earle Wheeler, chairman° of1
GUERRILLAS ATTACK:
Asian, Nations Expre
At Mounting COmmI

Adolf as Meas'
Hallelujlah TeHil
"Wittiest comedy of the season
.... an outrageous lark." (N.Y. Times)
Saturday, Feb. 3, 8:00 P.M.
50c
N EWMAN-331 Thompson

By The Associated Press
TOKYO -- Some Asian nations
reacted yesterday with shock,
anger and concern to the Com-
munist attacks spreading across
South Vietnam.
Thailand, engaged in fighting
Communist guerrillas of its own,
noted that the latest Viet Cong
offensive fitted in with a grow-
ing Communist drive in Asia.
Offensive
The army commander in chief,
Gen. Praphas Charusathien, said
the Communists had attacked gov-
ernment forces in Burma, Laos,
Thailand and South Korea. He
urged the non-Communist world}
to go on 'an offensive politically
and militarily instead of always
being on the defensive."
In the Philippines, the Viet
Cong attack on the Philippine
Embassy in Saigon set off anger
and sparked a demand in Con-
gress that Filipino combat units
be sent to Vietnam.
Boost
While such action was unlikely,
initial reaction provided an un-
expected boost to President Fer-
dinand E. Marcos' campaign to
win congressional support for a
bill to maintain the Philippines'
2,000 man noncombat commit-
ment in Vietnam. One Philippine
congressman called for sending
two battalion combat teams to
fight along side the allied forces.
The peaceful mountain town of
Ban Me Thuot, Vietnam, had
been basking on the outskirts of
the war in Vietnam until Tuesday.
Then about 2,000 North Viet-,

namese soldiers and Viet Cong
struck with savage fury against a
government force of about the
same size plus 200 U.S. advisers.
For three days and nights the
battle raged. Communist casual-
ties were heavy, one U.S. adviser
estimating ."he is taking at least
ten dead to every one of ours."
Jet fighter bombers of the U.S.
and South Vietnamese air forces
pounded the Communists with
750 pound bombs. Helicopters
mounted with machine guns and
Gatling guns pit long red streams

it

World News Roundup


J

GENEVA-Citing the U.S. B52
crash in Greenland, chief Soviet
disarmament delegate Alexei A.
Roshchin called yesterday for a
ban on all flights carrying nuclear
weapons across foreign borders.
"The recent incident in Green-
land convincingly underscores the
necessity for this measure," Ros-
chin told the 17-nation disarma-
ment conference, referring to the
crash Jan. 21 which spilled four
H-bombs into the ice on Thule
Bay.
* * *
TOKYO - Communist China
charged yesterday that U.S.
planes on bombing missions over
North Vietnam hit C h i n e s e
freighters anchored in North
Vietnamese ports Jan. 20 and 27
in "d e 1 i b e r a t e provocations"
against the Chinese ,people.

Peking's official Hsinhua, New
China News Agency, in an Eng-
lish language broadcast moni-
tored here, said the Chinese gov-
ernment made the accusation in
a statement issued yesterday.
* . * *
HAVANA - A truck driver hasj
been sentenced to a year in prison!
and a farm worker to six months
for stealing four gallons of gaso-
line, the Cuban government an-
nounced yesterday.
It was the first report of con-
victions for gasoline theft since
Jan. 2, when Prime Minister Fidel
Castro announced strict rationing
of gasoline for personal use to
conserve Cuba's dwindling supply.

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i

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