TUESDAY, FEBRUARY $, 1968
THE MICHIGAN DAILY
TUESDAY, FEBRUARY 6,1968 THE MICHIGAN DAILY PAGE THREE
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CONSTRUCTION FUNDS CUT:
LBJ Proposes $53 Million
Taxes on Travel Fares, Hike in Federal Student Aid
WASHINGTON (P)-The John-
son administration proposed yes-
terday a graduated travel tax on
spending in excess of $7 a day out-
side the Western Hemipshere and
a 5 per cent levy on overseas
plane and ship tickets.
These were major recommenda-
tiofls in the administration's pro-
gram, to cut by $500 million a
travel spending gap which jumped
to more than $2 billion last year.
The program, which also in-
cludes sharp reductions in the
duty free allowance on goods
brought back to the United States,
was outlined by Secretary of the
Treasury Henry H. Fowler to the
House Ways and Means Commit-
The exempt area, as defined by;
the bill, includes Canada, Mexico,
Central America, South America,
the Caribbean islands, Bermuda
and the Bahamas.
The new program includes a
cut in the duty free allowance on
souvenirs and other goods bought
overseas from $100 to $10 and
in the duty free gift provision
from $10 to $1 for each article.
This would apply to U.S. resi-
dents returning from all coun-
tries except Mexico, Canada and
the Caribbean area.
Fowler said the travel tax and
ticket tax would cut the dollar
drain by up to $300 million while
the cuts in the duty free allow-
ances and customs collections re-
forms would save another $100
The administration hopes to
save another $100 million through
President Johnson's appeal to
Americans to defer unnecessary
travel outside the hemisphere for
Any person who spent $7 or less
/ a day while in other country out-
side the hemisphere would pay no
Travel Tax 'L
American and foreign travel in-
dustry spokesmen yesterday gen-
erally criticized as unreasonable
and unworkable a Johnson ad-
ministration proposal to tax U.S.
tourists going overseas.
The proposal would put a grad-
uated travel tax on spending over
$7 a day outside the Western
Hemisphere, a 5 per cent levy on
overseas ship and plane tickets,
slice the duty free allowance on
goods brought in from overseas
from $100 to $10, and cut the
duty free gift provision from $10
In Switzerland, one tourist of-
ficial said, "This is horrible." An-
other added, "In our days of jet
transport this is a step back to
the Stone Age."
Government sources in Rome
said the proposal gave them
In London, British government
officials and travel agents adopted
a wait and see attitude.
In New York, Dick Bryers, a
travel agency vice president, said:
"I don't see how they can keep
any accurate record of what you
spend overseas. Forcing people to
be accountants while on vacation
How the tax would be admin-
istered also concerned Aaron
Krubein, vice president of a New
York Travel service.
"What's to prevent you from
flying to Montreal with your pass-
port and picking up tickets to
London or Paris? You return from
Europe to Montreal and then you
go back to New York."
*Among several industry sources
who did not approve of the pro-
posals was Harvy Olson, president
of a Chicago travel service.
The proposed legislation is un-
realistic." Olson said. "Any one
old enough to travel is smart
enough to arrange to get access
to funds abroad that would be
0 impossible to trace or account
In Minneapolis, Robert E. Short,
chairman of "Discover America,"
said his organization "adopted
the position that we are in favor
of the inherent right of an Amer-
ican to travel freely wherever he
wants to travel."
Hodward L. Clark, president of
American Express Co., said, "I
think such taxes could lead to re-
taliation affecting our present
favorable balance of trade with
many countries and would not
travel tax. The next $8 would be
taxed at 15 per cent and any-
thing above $15 a day at 30 per
Although the 5 per'cent ticket
tax on airline tickets would apply
generally, even to travel within
the Western Hemisphere, the tax
would cover ship tickets only to
destinations outside the hemi-
The ticket tax would be per-
manent but the spending tax
would expire Oct. 1, 1969, making
it applicable during the main
travel periods of both 1968 and
There would be exemptions for
individuals remaining abroad for
more than 120 days in connection,
with a trade, business, profession
or education. This would apply to
WASHINGTON (JP)-The United
States appeared to be balking yes-
terday at North Korean demands
that an apology be made in ad-
vance as the price for the release
of the 82 surviving crew members
of the captured U.S. Navy intel-
ligence ship Pueblo.
At the same time the State De-
partment cautioned against any
premature hopes that the U.S.-
North Korean negotiators in Pan-
munjom are on the verge of a
settlement that would lead to the
speedy -release of some or all of
the American crew.j
That talks are continuing was
the only sign that could be con-
sidered progress, a spokesman
Earlier, Assistant Secretary of
WASHINGTON (A) - President this type already has been tried was proposed along with an $85:
Johnson proposed yesterday in- at Indiana University, where ad- million program for training han-
creased federal assistance for col- ministrators view- it as a prom- dicapped and retarded children.
lege and university students and ising method for cutting high costs The President remarked in his
recommended a sharp cut in con- and for spreading instructional message that he was directing the
students, teachers and business- struction aid for institutions of talent. Secretary of Health, Education
men. higher education. Johnson recommended also that and Welfare to work out a long
The tax would be _collected The President's annual educa- federal funding for support of range strategy for curing the ills
through the Treasury Depart- tion message to Congress placed Head Start and Follow Through currently besetting U.S. educa-
ment's customs service and the major emphasis on financial help programs for preschool disad- tion.
Internal Revenue Service. for students in higher education vantaged children be stepped up "The President," said U.S. Com-:
Before leaving this country, and called for appropriations for from $340 million to $380 million, missioner of Education Harold
each individual would file a this purpose of $574.8 million for A $5 million appropriation for Howe, "is also mounting a major
statement indicating how much fiscal year 1969. That's an increase special, bilingual educational pro- study to help institutions of
money and traveler's checks he of $53 million over the present grams for Mexican - American higher learning to get out of fi-
was taking abroad, and pay an year. and Puerto Rican children also nancial trouble."
estimated tax. He would file a At the same time, $375 million -
similar statement when he re- would be cut fr6m higher educa-
turned. tion construction funds. New York SamtationStrike
The det ip pled s tont nntr ohnsModest Increase
el detld statementd try e Jhno roposed amodest in-
7:00 U 9:00 P.M.
I , I
i wui ce requreu o oi n
return to the United States would
take into account credit card:
charges, amounts paid in advance
for a booked tour, and with-
drawals from domestic or foreign
banks and money sent from home.
limit spending iby the well to de
or expense account traveler.
Clark said the proposal would
"discriminate against the student,'
teacher, clergyman and middle
Thomas -Donovan, president o'
a Chicago travel service, said: "$7
a day will hardly cover tips and
incidentals. I personally don't
think anything like this will ge
Secretary of the Treasury Hen-
ry Fowler said that the average
cost of a trip to Europe is $1,000
comprised of a $450 return trip
fare and $550 in spending while
The average stay is 33 days and
the averagerdaily expenditure
$16.73 per person.
On this average expenditure, the
tax would be $1.20 on the next
$8 and 52 cents on the next $1.73
for a total of $1.72 in tax.
State William P. Bundy deflated
reports from Seoul that some
agreements had been reached in
principle for the release of the
Bundy, in charge of East Asian
affairs, said he had no confirma-
tion of the reports of a settle-
Press officer Robert J. Mc-
Closkey told newsmen it is incon-
trovertible that the Pueblo when
first approached "was well be-
yond North Korea's 12 mile limit
and North Korea knew this."
He also insisted that remarks
by Secretary of State Dean Rusk
and Secretary of Defense Robert
S. McNamara ina nationwide
television appearance Su n da y
should not have been interpreted
as laying the ground work for an
apology in advance.
"What they said was that if
additional facts became known
after the release of the men and
the crew, those facts would be
made public," McCloskey said.
There was no suggestion the
United States would make an
apology in advance.
The Rusk and McNamara dis-
closure ,that the Pueblo main-
tained radio silence from Jan. 10
to Jan. 21 led to speculation in
South Korean government quar-
ters, sources said, that the United
States was preparing to apologize
to the North Korean Communist
Informants indicated that this
may have been the basis for some
of the reports that an agreement
had been reached at Panmunjom.
Informants added that only a
diplomatic move in the form of
a note or a special envoy could
ease the present strain in rela-
tions between Washington and
The South Korean reaction has
been stronger than U.S. authori-
ties anticipated. There is some
concern that anti-American dem-
onstrations could break out if the
correct steps are not taken now.
crease in federal spending for Pile
message basically reflects a re- Mon. thru
shuffling of priorities. NEW YORK (")-The flotsam for leaders of striking municipal' Thurs.
For example federal outlays for of a great city-bedspring, broken unions. However, the city did not ? 7 4
the new fiscal year beginning next down furniture, discarded tele- ask prison penalties.
July 1 will total about 13 per cent vision sets and a miscellany of The union rank and file went F
th contry. 'sother trash-piled up at the rate on strike in apparent defiance of
Tight Program of 10,000 tons a day yesterday as its leaders, after talks failed to j ndaf
Officials emphasized that while union sanitation men stayed out produce a contract with the city 1 -3-5-
the new education message was on strike for a fourth day. to replace one that expired June 7-9-11
submitted within the framework For the second time, the strik- 30.
of a tight over all budget, all ers were ordered back to work; O'Dwyer argued on this basis
major programs are going ahead this time by State Supreme Court that the strike was unauthorized Sun.
despite cutbacks in some areas. Judge Saul S. Streit, who said: and said The law does not ap- 1-3-5
Johnson's message calls for a "It is an illegal strike to the de- ply in this case . . . A union 13
total spending by the federal gov- triment of the public-eight mil- leader is not a dictator. It is the
-ernment of $11.6 billion in fiscal lion men, women and children. will of the workers that is the
1969 for education. Current fiscal "This is a highly hazardous deciding voice."
year educational spending totals 'dangerous situation. It could lead The union sought a $600 in- sog
$10.8 billion. to a dangerous epidemic." crease in annual wages that now
Guaranteed Loans Streit issued a temporary in- range from $6,424 to $7,965 after
The new proposal for increased junction against the strike by three years. The city has offered
assistance to college and univer- 10,000 members of the Uniformed $400.
sity students, mostly through Sanitationmen's Association, a New York City's garbage ac- 210 S
guaranteed loans, will involve Teamsters Union affiliate, and cumulates during a six day collec- I
some two million students within declared: "We're - not helpless. tion week at the rate of 10,000 SNEAK PREVIEW
the next five years, according to They do not have us by the tons a day, or 1,800 truckloads. FIRST RUN FOR
U.S. Office of Education authori-f throat." The Department of Sanitation: Come as late as 900 a
ties. . The union's lawyer, Paul estimated 30,000 tons already were__
Johnson proposed fullafunding, O'Dwyer, brother of a former at curbside awaiting pick up-
school program originally pro- mayor, announced he would ap- enough to fill 500 railroad coal
posedbyrCalifornia's Republican peal the back to y'ork order and cars.yY our
Sen. George Murphy. The funds,I added "This kind of mischievous-! Mayor John V. Lindsay said the: 0 r er o
Johnson said in his message, will ness and interference by the court accumulation thus far is no more
help high school graduates, has never settled a strike." critical than during a heavyne
Among new educational initia- The union ignored a court order snowstorm, when pickups have to
tives proposed by the President in launching its strike last Fri- be suspended for several days.
was a Network of Knowledge Act, day.
which would support the estab- State law prohibits strikes by ---- --
lishment of a pilot project enabl- 'public employes and the city
ing colleges and universities to moved in another State Supreme
pool resources, including faculties, Courtroom yesterday to invoke a
through an educational television statutory fine against the union ROOM 3D M ICH IGAN UNI
service, of up to $10,000 'a day.
An experimental program of The law also provides jail terms 8:00 P.M.-WEDNESDAY, F
I .,'r, &I CAO* tnb A C*'t'C~t - 'I 1
the whole crazy Mk"e-u
loge stor Is backin aton!
Th botching scene... the leeches...
the escap though the jungle...
H4ORIZON PtCTUES paats
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"ONE OF THE YEAR'S
-Bosley CrowtherNew York Times ."Joseph Morgenstern, Newsweek i
-Judith Crist, NBC.TV Today Show " Hollis Alpert & Arthur Knight,
Saturday Review . William Wolf, Cue Magazine
-National Board of Review
-N. Y. Film Critics Award
"ANNE BANCROFT IS CLOSE
- Hollis Alpert, Saturday Review
"DUSTIN HOFFMAN IS NOTHING
SHORT OF SUPERB!"
-Bosley Crowther, N.Y. Times
"KATHARINE ROSS IS
BEAUTIFUL, TALENTED, SURELY
THIS YEAR'S JULIE CHRISTIE!"
- Liz Smith, Cosmopolitan
JOSEPH E. LEVINE
Socialist Labor Party Club
University of Michigan
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THE PROFESSIONAL THEATRE PROGRAM
In Cooperation With
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SOCIALIST LABOR PARTY
After Vietnam **
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