Sunday, March 17; 1968 THE MICHIGAN DAILY Page Five Sunday, March 171 1968THE MICHIGAN DAILY N -to- FIv w ENTERS RACE FOR PRESIDENCY: Kennedy Loosens The Ties That Bind' Europe's Solution to Gold Flow: De-escalate the War in Vietnam WASHINGTON (IP)-The once- Democratic presidential nomina- avowed support Sen. Robert Ken- nedy (D-NY) gave to President Johnson has finally been com- pletely eroded. The senator's an- nouncement yesterday that he will attempt to win the Democratic presidential nomination this year ends a five year "friendship" with Johnson. For five years Kennedy insisted that he supported Johnson for re- election, and he said repeatedly that he himself would not be a candidate in 1968. Then, last Wednesday, Kennedy said the strong showing by Sen. Eugene J. McCarthy (D-Minn) against Johnson in the New Hamp- shire primary led him to reassess the situation-a reassessment cli- maxed by his decision to challenge Johnson and McCarthy for the tion. The challenge comes eight years after Robert Kennedy managed the campaign of his late brother for the same nomination against a field of other Democrats that in- cluded Johnson and his vice pres- ident, Hubert H. Humphrey. United Party The nomination, of Johnson for vice president in 1960 and the Democratic victory in the Novem- ber election united the party. But some bitterness remained between the Johnson camp and the Ken- nedys over Robert Kennedy's re- ported advice -to his brother against asking the Texas senator to be his running mate. Johnson moved quickly follow- ing the assassination of, John F. Kennedy Nov. 22, 1963 to assure Robert Kennedy he wanted him to remain as attorney general. But rumors of coolness between the two began to circulate again with- in months. A Kennedy associate tries to put the matter into perspective: "The attorney general and Presi- dent Johnson have never been very close. But they are no farther apart today than they were three months ago. This talk of a feud is just silly." Kennedy said of Johnson, "I have the highest regard for him. He's been kind to me and my fam- ily and to Mrs. John F. Kennedy. He is continuing where my brother started." Johnson expressed support of Kenedy's .1964 attempt to become New York's senator, but by the time Kennedy returned to Wash- ington as a senator Johnson had begun his escalation of the war. On May 6, 1965, Kennedy spoke in the Senate on Johnson's request for an additional $700 million to meet new military commitments, a request Johnson made clear was to be regarded as a vote of con- fidence in his policies. Kennedy said that while he sup- ported the request, "I do so with the understanding . . . it is not a blank check." He said he assumed Johnson would seek approval from Congress for any expansion of the war. The escalation continued. In December, 1965 Kennedy still took the public position that he basically supported the adminis- tration's position in Vietnam. But by March, 1966 his criticism of administration policy led Sen. Wayne Morse (D-Ore), to say he would back Kennedy for president in 1968 if he "continues to sup- port a change in American Viet- nam policy." Criticism Spread Slowly, his criticism of Vietnam bean to spread into other areas. In August, 1966, he said that despite three years of racial riots in its cities, the United States "as a government" has not "made the kind of commitment necessary to deal with the problems of the ghetto." But when a New York psychia- trist, Dr. Martin Shepard, formed "Citizens for Kennedy-Fulbright" to promote a 1968 ticket of Ken- nedy and Sen. J. W. Fulbright (D- Ark), the New York senator told him to stop. By the fall of 1967, the circum- stances began to change. Sen. Eugene J. McCarthy (D-Minn), like Kennedy a prime possibility for vice president in 1964 before Humphrey was chosen, began to talk of running against Johnson to protest his Vietnam policies. McCarthy made clear he would step aside if Kennedy decided to run. Gathering Last Jan. 30, Kennedy gathered political reporters for a breakfast at which he expressed grave con- cern over the course of the coun- try, especially in Vietnam. But the only thing he permitted them to say was that he did not plan to oppose Johnson under any fore- seeable circumstances. That week, in Vietnam, the Communists launched their Tet cities and increasing expressions ofensive, bringing the war into the of doubt in this country about the course of the war. On Feb. 8, in a speech in Chi- cago, Kennedy charged Johnson's policy was based on illusions, such as the thought that "the events of the past two weeks represent some sort of victory." Still, Kennedy kept his ground about not running while McCarthy trudged the snows of New Hamp- shire, en route to last Tuesday's primary. McCarthy won a start- ling 42 per cent of the presidential preference vote and 20 of 24 con- vention delegates. Changing Mind But when the news of McCar- thy's showing came through last Tuesday, Kennedy indicated his mind was changing. "At the mo- ment," he said, "my plans haven't changed." By the middle of Wednesday he had announced that the vote show- ed the party was already split so "I am reassessing my position as to whether I'll run against Presi- dent Johnson." McCarthy made clear his ear- lier offer to withdraw was no longer valid and he said a Kennedy candidacy might divide opponents of the war and help renominate Johnson. BRUSSELS (R)-"If they would only announce in Washington to- morrow that they are de-escalat- ing the war, that might make all the difference" in allaying the gold crisis, says one Brussels broker. His remark reflects a general European concern over the Viet- nam war's cost in money, as well as men, which is seen here as a leading cause of the run on gold. There is the basic fact that for 17 out of the past 18 years, the United States has been shipping out more dollars and gold than it takes in, thus causing a deficit in balance of payments. Causes of Deficit This deficit stems from several c a u s e s including spending by Americans on travel and remit- tances to relatives abroad, foreign investment by U.S. firms, station- ing of U.S. troops in Europe and U.S. imports on foreign goods. President Johnson has announced plans for plugging up many of the drains. But many Europeans are fear- ful that the conflict in Vietnam will be much more difficult to 'plug. An economist who works here on Common Market matters says: "Any way of ending the war would have a good effect on the mone- tary situation. It would be fine if Hanoi made an acceptable offer. But you won't find many in Eu- rope who think that is going to happen. Most people feel it's up to the United States to move." One reason for continued French pressure on the dollar is the be- lief of many Frenchmen from President de Gaulle down that the United States should not be fight- ing in Vietnam. Henry Fowler, U.S. secretary of the treasury, has estimated that the war is costing the United States $1.5 billion a year in out- flow of gold and dollars. This amounts to nearly half the deficit in the country's balance of pay- ments. Spending by the U.S. govern- ment and its troops in Vietnam, though much less than what is spent within the United States on the war, is different in that it puts dollars in the hands of Viet- namese and other foreigners. These dollars could eventually be drawn in the form of gold from U.S. reserves. Some of them may have already been drawn. In any case, they go on the debit side of the ledger when the U.S. balance of payments is being reckoned. At least a few of these dollars find their way into North Vietnam through trade and Viet Cong "taxes" on businessmen. Those are certainly cashed in. The war also has important side effects that have contributed to the gold rush. War spending within the United States has add- ed hugely to the deficit in the U.S. budget. The result is a swing to- ward inflation, which makes for- eigners nervous about the worth of the dollar. Another side effect is the volume of extra imports needed by U.S. industry to meet war needs. Such imports must be paid for in dol- lars or gold - another drain on American reserves. There are several possible de- velopments, more likely than a sudden end to the war, which could slow the gold rush. One would be progress on the proposed tax increase, seen in Europe as the test of President Johnson's firmness against infla- tion. International Money Another would be agreement on creation of a new form of inter- national money to supplement gold: a system of special drawing rights on the International Mone- tary Fund. This agreement is ex- pected at the end of the month. Still another possibility is a pledge by the wealthier countries of Europe that their reserves of' gold will be put on the market if necessary to keep its price at $35 an ounce. Militant Black Editor Warns Of Impending 'Arms Race's a !_ -Associated Press FATHER GROPPI AND SUPPORTERS Groppi's Housing Protests End After 7 Unsuccessful.Months By GEORGE MILLER An "arms race" between "white fascists," police and administra- tion officials on one side and Negroes on the other is shaping up in Detroit, John Watson, ed- itor of the black militant news- paper, The Inner City Voice, said Friday. Speaking to an audience of over 100 persons in the UGLI Multipurpose Room, Watson said each of the sides expects a riot this summer and is preparing for attack. He cited the rise in the rate of guri purchases in the city from "500 a month before the riot to 3,000 a. week today," as one indication. According to Watson, the Negro community is "behind" the police and administration in its preparations, but is hurriedly catching up. Organize Suburbs Watson's speech was sponsored by the Citizens for New Politics. Watson said the "white fascist" segment of the Detroit commun- ity has made successful efforts to organize working class whites in suburbs such as Dearborn and Birmingham to gather food and arms for use in the event of an attack from the Negro segment. These efforts have been made largely through the right-wing organization 'Breakthrough," and the Patriotic Party of which former Alabama governor George Wallace is a presidential candi- date. Watson said these groups, have held rallies and distributed large amounts of literature in or- der to gain support. Watson said representatives of the "capitalist and imperialist power structure," including the police and National Guard, have been increasing their supply of weapons ever since last summer's riots. "Sophisticated Plans" He said they have been draw- ing up "sophisticated plans" which include demployment of troops, containment of activity in the Negro ghetto, and cutting off of all vital services and sup- plies. According to Watson, the De- troit Police Department "plans to cause an incident" out of which a riot would evolve. The Negro militants would then be blamed for precipitating the up- rising, he explained. Watson said Detroit's Negroes were previously unconvinced of the seriousness of the prepara- tions of the right-wing sectors of the community but are now in the process of providing for their de- fense. Gi*bbs: gearedf o ole irls. Geared for college girls who want top-paying, challenging jobs. Geared for the up and coming. The pacesetters. Geared to get you where you're going. Fast. Write College Dean for GIBBS GIRLS AT WORK. Katharine GIBBS7secretarial 21 Marlborough St., Boston, Mass. 02116 200 Park Ave., New York, N.Y.10017 33 Plymouth St., Montclair, N.J. 07042 77 S. Angell St., Providence, R.I. 02900 MILWAUKEE 0) - The long trail that Milwaukee open housing demonstrators marched from sum- mer until nearly spring has ended with its goal unachieved. The Milwaukee Youth Council of the National Association for the Advancement of Colored Peo- ple called off the marches, abrupt- ly and without explanation, Fri- day-one day after the 200th con- secutive nightly demonstration. Milwaukee still has no strong open housing ordinance, only a measure that reflects the Wiscon- sin state law and leaves some two- thirds of the inner city's dwelling units exempt. Rev. James Groppi More than a hundred days ago, the Rev. James E. Groppi, white Roman Catholic priest and adviser to the youth council, said the Mil- waukee marches could be, perhaps, one of the last tests of peaceful demonstrations for racial goals. "If they fail," he said, "the young militants would then be able to say, "you marched for that many days, and that many of your people went to jail and nothing happened. "Violence then would be in- evitable," he said. Father Groppi was out of the city Friday and could not be reached for comment. Violence has not recently pla- gued the route of the marches, .which began last Aug. 28, less than a month after Milwaukee's riot. It was different in the begin- ning, however. An initial foray from the inner core, where 95 per cent of Milwaukee's 85,000 Ne- groes live, into the virtually all- white South Side, required almost all the city's available police to cover the retreat of the 250 marchers. Streets were lined with 13,000 jeerin, bottle-throwing whites who braved repeated tear gas barrages to press their attacks. Yet on Labor Day, Father Grop- pi and Negro civil rights leader Dick Gregory led a straggling col- umn of some 2,500 demonstrators across the mile-long viaduct sepa- rating the South Side from the central city, with only a few cat- calls to mark the occasion. 'God Is White' Later, white South Side youths formed a group and counter marched. They were light hearted and they carried a mock coffin labeled "God Is White," earning a rebuff from Archbishop William E. Cousins. That movement faded away. The Common Council, which four times has rejected a strong open housing law offered by Mrs. Dale Philips, its only woman and only Negro member, put an open housing referendum on the April 2 ballot as demanded in petitions by 27,000 opponents. But in February U.S. District Judge Robert E. Tehan forbade voting on the issue, terming the proposal in violation of the 14th Amendment's equal treatment clause. In the last weeks,.the marches dwindled to token parades only occasionally marked by the pres- ence of leaders like Father Groppi or Mrs. Phillips. In the March mayoral primary, Mayor Henry Maier, who opposed a strong housing law unless it covers the entire county, was re- nominated by a margin of 9 to 1 over the nearest of five opponents. Henry Fowler kl c IS COMING BACK TO ANN ARBOR MARCH 18-20 A New York Make-up Artist will be at TheoinC. Q ryTo Give You a 4 ,fir: " { } ", . _ ci y . SHIFT GOWN tropcalflowers n predominantly Pomegranate pink or orange. TODAY--SUN., MAR. 17, 1--6 P.M. BALLOTING AND -DEMONSTRATIONS YOSIT FIELDHOUSE - I. 11