THE MICHIGAN DAILY
15,. 1987 THE MICHiGAN DAILY FAGE SEVEN
TO ELIMINATE CORRUPTION:
$54 Million for Political Campaigns
Approved by Senate Finance Committee
British Protest U.S. Ban
On Foreign Ship Orders
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WASHINGTON (M-The Senate
Finance Committee voted yester-
day to make up to $54 million in
U.S. Treasury funds available to
finance the political campaigns of
major party presidential and sen-
A Republican claimed immed-
iately that President Johnson is
asking Congress to give him the
money to ' finance a try for re-
election next year.
Sen. John J. Williams (R-Del.)
said he. suspected that Johnson
began to show interest in govern-
ment financing of elections "since
he started dropping in the polls."
But a Democrat, Sen. Russell
B. Long (D-La.), committee chair-
man, said the plan would be a
long stride toward "removing cor-
ruption and improper influence
The bill would make available
$14 million to each of two major
party candidates for president and
$26 million to contenders in 34
Senate races in 1968. Minor party
presidential candidates would be
eligible for Treasury money if
they polled more than 5 per cent
of all votes cast.
The new financing plan would
apply to presidential and sena-
torial races only. Sen. Albert
Gore (D-Tenn.) said he hoped
members of the House would vote
to come under the plan if the bill
is passed by the Senate.
The bill approved yesterday fol-
lowed generally the principles of "If enacted this will be the
a May 25 message sent to Congress most far-reaching election reform
by Johnson endorsing direct gov- in this country since the consti-
ernment financing of presidential tutional amendment which pro-
campaigns and possibly s o m e |vided for direct election of mem-
LONDON OP - British leaders
fired off a double protest yester-
day against the American con-
gressional ban on foreign warship
With these protests, they cou-
pled a warning to President John-
son's administration that protec-
tionist sentiment in the United
Gore offered a compromise plan
after the Senate had shelved aj
presidential campaign financing
plan that had been enacted into
law last year.
The law provided that as much
as $30 million in government funds
could be made available to each,
bers," he said. States could damage British-
Under the 'bill presidential and American friendship.
senatorial candidates would have In a public statement on the
a choice of taking government developing crisis between London
funds exclusively for all their ex- and Washington, Defense Secre-
penses or electing to rely on pri- tary Denis Healey said: "If I saw
vate contributions, any sign that this was the begin-
Federal funds for presidential ning of the end of the F111
nominees would be determined by agreement it would raise the most
presidential nominee in 1968 un- a formula under which 20 cents
der a system of voluntary $1 tax- would be awarded each candidate
Martin Says Tax Increase
Needed to Curb Inflation
WASHINGTON (M)-Federal Re-
serve Chairman William McChes-
ney Martin, Jr. urged Congress
yesterday to pass President John-
son's tax increase-not so much
to improve the economic outlook
as to keep it from getting worse.
Pointing to what he called clear
and compelling evidence that in-'
flation threatens, Martin told the
House Ways and Means Commit-
tee "I am not here to guarantee
that interest trates will be lower'
if you pass the tax bill."
But he added "I can assure you
that interest rates will be much
higher if it does not pass."
Martin urged the committee not
to delay approval of Johnson's
proposal for a 10 per cent sur-
charge on income taxes.
Chairman Wilbur D. Mills, (D-
Ark), has been implying more and
more strongly that the committee
may not move unless or until
Johnson recommends specific,
largescale spending cuts.
Martin agreed, under Mills'
questioning, that expenditure con-
trol is needed and that Congress
should have recommendations on
Before another congressional
committee meanwhile, Secretary
of the Treasury Henry H. Fowler
appealed for prompt approval of
the surcharge. He picked up two
possible supporters from the Sen-
ate-House economic subcommittee.
Sen. Charles H. Percy (R-Ill),
said he thinks he will support a
tax increase and Sen. Jacob K.
Javits (R-NY), said he is rather
inclined In that direction.
Fowler said there is a solid body
of opinion supporting the admin-
istration's economic projection in-
cluding hundreds of academic
economists, 75 per cent of the Na-
tional Association of Business
Economists and the entire Federal
Javits asked whether the sur-
charge might result in a reces-
sion but Fowler said the only ques-
tion now is the size of the expan-
sion. The risk of immoderate
growth is so substantial, he said,
that prompt enactment of the sur-
charge is desirable.
An Open Letter to the
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Martin was backed up before
the House committee of the Fed-'
eral Reserve Bank of New York,
who said "I strongly believe that
unless a tax increase is promptly
enacted the country may well face
one of the worst outbreaks of in-
flation in many years."
Martin listed as signs of infla-
tion a spurt in the cost of living,
upward movement of prices for
key industrial materials and some
manufactured goods, and rising
The automobile strike may have
a moderating effect for a time, he
said, "but in the past, termination
of such strikes has been followed
by surges in auto production and
payer checkoffs on income tax re- multiplied by the total number of
turns. In killing the bill the Sen- votes in the preceding presidential I
ate directed the Finance Commit- election. This would mean $14j
tee to study possible substitutes. million for each candidate next'
The panel held hearings and the year since about 70 million votes
plan approved yesterday was the were cast in the Johnson-Goldwat-
result. er 1964 race.
After yesterday's 10-7 vote in In 1968 a third party nominee
favor of the bill, Long said the contender who achieves at least '
majority "feel that these provi- five per cent of the votes would be
sions will cost much less and do paid 40 cents for each vote re-
a great deal more to assure that ceived. This probably would mean
public issues are decided by the that George Wallace of Alabama,1
votes of the people rather than for example, would have to comet
the economic strength of cam- up with 3.5 million votes or more'
paign contributions." The vote was to qualify next year.
almost on a straight party basis Government funds to senatorial
with one Democrat, Sen. Herman candidates would be paid on a
E. Talmadge of Georgia, joining formula based on the number of
the six committee Republicans in votes in a preceding election. The+
voting against the bill. 1968 payments would range from1
Gore had joined Williams in $1,523,000 for each candidate in'
leading the fight to kill the 1966 New York to $100,000, for each
act. But he said he welcomed yes- nominee in Alaska, Nevada and,
terday's committee action. Vermont.
serious problems of defense and
foreign policy and undermine the
whole relationship between Bri-
tain and the U.S."
The F111 agreement provides
for Britain to buy j0 F111 super-
sonic fighter-bombers from the
United States. In return, Britain
was to be empowered to bid for
American defense contracts worth
$325 million on equal terms with
American producers by 1977.
The U.S. Senate Wednesday
night endorsed a House of Repre-
sentatives vote to amend the 1968
defense appropriations bill. The
amendment says all naval vessels
must be built in American yards.
It was initiated by Rep. John
W. Byrnes (R-Wis.) in the hope
of winning a contract for up to'
16 minesweepers for Wisconsin
shipbuilders. The e f f e c t will
squeeze out British competitors
who had hoped for a contract
worth about $120 million at a time
of some recession in British ship-
The development deeply embar-
rassed Prime Minister Harold Wil-
son's government, which has been!
under sustained pressure to can-
cel the F111 deal and build British
A former air minister who quit
the Wilson government last year,
Christopher Mayhew, called for
cancellation of the F111 agree-
ment "now that the Americans
have broken their promise."
But Healey said he sees no sign
of the congressional ban wrecking
the arrangement under which the
British are to offset the dollar
costs of the F111 planes.
Healey acknowledged his aware-
ness that Defense Secretary Rob-
ert S. McNamara cannot overrule
Congress on a budgetary matter
despite the administration's pledge
He acknowledged also that Bri-
tain has no power in the matter
except to back out of the Fll
deal. But this would mean big
changes in Britain's foreign and
Healey wrote personally to Mc-
Namara setting forth Britain's
dismay and alarm over the impli-
cation of the congressional ban.
Foreign Secretary George Brown
voiced Britain's resentment in a
meeting with Eugene Rostow, No
2 man in the State Department
in charge of political affairs.
The Graduate School, with the cooperation of the
Graduate Assembly, announces an open meeting
for undergraduate and graduate students interested
in graduate fellowships for 1968-69. Campus fac-
ulty representatives will describe the major fellow-
ship programs, including:
University of Michigan Fellowships
National Defense Education Act
National Science Foundation
Woodrow Wilson, Fulbright-Hays
TUESDAY, SEPT. 19
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