SATURDAY, OCTOBER 7, X967
THE MICHIGAN DAILY
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SATURDAY, OCTOBER 7,1967THE MICHIGAN DAILY
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LBJ Renews
Plea for Tax
Boost in '68'
Appropriations Head
Stymies Measure,
Wants Budget Cuts
WASHINGTON (P) - President
Johnson again pleaded for a tax
increase yesterday while Congress'
tax chief spelled out a stiffened
demand for future as well as pre-
sent economies.
The indirect exchange left the
gulf between Johnson and the
congressional economy forces,
whose spokesman is Rep. Wilbur
D. Mills (D-Ark), as wide as ever,
if not wider.
Johnson said government ex-
perts think prices will rise four
to five per cent next year-and
perhaps more in 1969-unless Con-
gress "enacts his proposed 10 per
cent income tax surcharge.
If the higher tax is put into ef-
fect, he said, their estimate is for
a 21/2 per cent price rise next
year and less than that in 1969.
Mills is chairman of the tax-
writing Ways and Means Commit-
tee, which has pigeonholed the
President's proposed 10 per cent
surcharge on income taxes until
the White House and Congress
agree on spending cuts.
"This kind of buck-passing
makes it all the more difficult to
come to grips with our real prob-
lem," Mills said.
Mill said "spending cuts in this
fiscal year or in 1969, welcome as
they would be, are not really the
central objective.
"When administration officials
and spokesmen insist that it is
Congress' job to cut appropriations
and spending and insist that the
President cannot act until appro-
priations actions have been com-
pleted by us," Mills said, "they are
concentrating only on this year's
expenditures."
Rep. John W. Byrnes of Wiscon-
sin, senior Republican on the com-
mittee,,remarked, "It almost begins
to look-as though there is a ques-
tion whether the President really
wants a tax increase. It seems to
me he would be trying to find
ways of accommodation rather
than widening the gap by his
adamance."
Johnson, meeting with officials
of the Federal Home Loan Bank
Board system at the White House,
said, "I know it's not a popular
thing to ask for a penny out of
a dollar for a war that's not pop-
ular either." But he stressed the
two situations have to be faced
and he would like to see it done
"reasonably, nonpolitically."
-Associated Press
PRESIDENT JOHNSON, meeting yesterday with executives of home loan banks, again tried to
muster support for his proposed income tax in crease. Until Congress and the President can agree
on spending cuts, the lawmakers have shelved his proposal for a 10 per cent surcharge. At right is
John E. Stipp of Chicago.
Britain'sabor Party Resolves
Policy Conflict wLiith Left Wing
McNamara
Halts Army
Construction
Holds Housing Funds
For Military Families
In New Spending Cut
WASHINGTON (P) - Pentagon
figures showed yesterday that
Secretary of Defense Robert S.
McNamara froze $91.7 million in
family housing projects Thursday
when he ordered an indefinite
halt in contracting for some $350
million in military construction
work.
McNamara's actions - which
also included a suspension of new
"pork barrel" civil works projects
-came in response to congres-
sional demands for assurances of
economizing b e f o r e President
Johnson's proposal for a 10 per
cent surtax is considered.
The $91.7 million covers 5,048
units of housing for the wives
and children of American serv-
icemen in the United States and
abroad.
Unfrozen in January
Construction of such units was
frozen once before, in December
1965, when .McNamara ordered a
reduction in spending because of
the Vietnam war. He unfroze these
units last January but contracts
had not been let when the new
clampdown came.
McNamara's move flies in the
face of strong appeals from the
armed services for more family
housing, which the services con-
sidered a vital factor in keeping
seasoned officers and enlisted men
in uniform.
It also flies in the face of the
Pentagon's own findings on the
importance of such housing.
Disdain for Congress
And the action drew some an-
gry response in the Senate where
Sen. Henry M. Jackson (D-Wash)
said it is another example of
what he termed McNamara's dis-
dain for Congress.
Paul R. Ignatius, then assistant'
secretary of defense for installa-
tions and logistics, told a House
committee in May that a Penta-
gon study found that:
"Satisfactory living accommo-
dations for uninformed personnel
and their families are a decisive
motivating factor in influencing
the retention in service of both
enlisted and officer personnel."
Trimmed Request
This year, the Pentagon asked
for 12,500 new units that would
cost about $247.5 million. Con-
gress trimmed this to 10,609 units
to cost $212 million but has not
completed action on the bill
Ignatius assured Congress this
year's program-following a total
absence of new military housing
requests last year"Marks the
return to the orderly development
of an annual program of new
housing."
NASHVILLE, Tenn. {P)-Warn-
ing that the United States faces
"a crisis of survival," Michigan
Gov. George Romney proposed'
yesterday a "Strategy for a NewI
IAmerica" designed to lessen the
gap between Negroes and whites.
He called for strict and equal,
law enforcement, more job train-
ing, an end to discrimination anda
stepped-up federal spending even
at the expense of ~other national
programs.
"If the lot of millions of people
on earth is more important than1
putting a man on the moon in
this decade," Romney said, "let
us invest more in people and even
less in space. Let us spend more
in Harlem and less in the sea of
tranquility."
Romney,an undeclared Repub-
lican President contender who
recently finished a 20-day tour of
many of the nation's cities, warn-I
ed the National Conference of
Editorial Writers in prepared re-
marks that "America is becomingr
dangerously polarized."
Romney's "Strategy for a New
America" included these ideas:
-"Stop looking at the people1
of the slums as a drag on our so-
ciety, and see them rather as an
untapped asset. There is as mucht
talent and leadership in the slums
as there is in the suburbs." t s
-Negro self-help, "the creatives
side of black power."
"Time and again," he said, "thea
people of the ghettos showed met
how they were altering the at-s
mosphere and direction of lifet
around them by producing pro-
gress of their own making-pro-e
gress they will fight to defend,r
not to destroy, because it is their ing priorities to make more
own." money available to deal with
-Eliminate discrimination, es-!' slum problems.
pecially in housing and employ- "We can cut down and defer
ment. public works," Romney said. "We
"Poverty, not race, is the com- can wait to beautify our high-
mon denominator of the people ways; we can delay urban renewal
of the slums," Romney said. "And projects that replace potentially
the answer to poverty is employ- servicable housing with palatial
ment, not welfare - jobs, not office buildings and luxury apart-
handouts." ments.
Business should locate plants in "We can slow down spending
slum areas and "both business for a multitude of other purposes,
and unions must end discrimina- even some defense spending,"
tion and establish more flexible Romney said, "but we can't hold
and realistic job entry standards," back on eradicating slums and on
he said. the promise of a better life for
-A revision of federal spend- those who live in them."
Teamster Independents Still
Striking for Pay Increase
INCREASED SPENDING:
Romney Seeks 'New Strategy'
To Ease Urban Ghetto Tension
SCARBOROUGH, England OP)
-Prime Minister Harold Wilson's
Labor party emerged last night
from its annual five-day conven-
tion apparently united on most
key issues.
Party Chairman John Boyd
proclaimed inhissclosing address:
"Let this message ring out
through the country - there has
been no split. There has been no
divorcement whatever between
party and our government col-
leagues."
What Boyd meant was that
Wilson and his government had
successfully weathered a much
heralded onslaught by the party's
disgruntled left wing on the ad-
ministration's foreign, defense and
economic policies. Only on Viet-
nam did the government take a
beating and that by such a slim
margin that Foreign Secretary
George Brown wrote it off as a
tie.
The left, which only last week
was promising fireworks and a
determined campaign to force
the government to change its
policies, appeared in the words of
the authoritative weekly Econo-
mist to have "sunk into gloomy
despondence." The left wing re-
mained leaderless and disorgan-
ized.
Wilson won party endorsement
for continuance of his economic
deflation despite the pain of ris-
ing unemployment, of his defense
policy and of his intention to
seek membership in the European
Common Market.
The 6,000 delegates, despite
Brown's appeals, demanded the
government Wednesday dissociate
itself publicly from U.S. bombing
of North Vietnam and work for
the ouster of the Greek military
regime from the North Atlantic
Treaty Organization.
Defense Minister Denis Healey
won party endorsement for the
government's defense policy by
a massive million and a quarter
votes Wednesday.
But political quarters wondered
as the convention closed how
much of the confidence of the
electorate at large in him had
been restored.
PITTSBURGH (P) - A spokes-
man for trucking firms said yes-
terday he will try to get striking
steel hauling drivers the pay they
want for waiting at mills to be
loaded.
The waiting without pay has
been a key issue in the violent
walkout, which has constricted
steel producers and users in seven
states for nearly two months.
And in Salt Lake City, Utah, an
air of pessimism hung over nego-
tiations in the nationwide copper
strike yesterday-but there was a
tiny glimmer of hope.
"All strikes must come to an
end, and this one is getting pretty
ripe," said one union negotiator
Congo Mercenaries Leave
For Repatriation in Malta
Governor Issues Tax Report;
Notes General Fund Surplus
after three days of talks with the
nation's largest domestic copper
producer, Kennecott Copper Corp.
Besides pay for waiting, the
striking truckers want their share
of shipping costs hiked by six per
cent to 79 per cent. The indepen-
dents, angry with the Teamsters
Union over a new three-year na-
tional contract signed last spring,
want the contract reopened.
The Teamsters say the contract
was approved by a whoppingma-
jority and have refused to do so.
As union pickets at the entrances
to America's copper mines, smelt-
ers and refineries logged their
84th day on strike, the issues seem-
ed much the same as when talks
began last spring.
But in Salt Lake City there ,were,
signs of give and take, despite
emotion-charged press releases.
Since Utah Gov. Calvin L.
Rampton induced the sides to re-
sume negotiations earlier in the
week, the coalition of unions led
by the United Steelworkers of
America, AFL-CIO, has retreated
from its original "heaven in '67"
demands estimated to cost in ex-
cess of $3.00 per hour for each em-
ploye.
On the auto scene following his
third visit of the week to the bar-
gaining table ended as the others,
in no progress, United Auto Work-
ers Union President Walter P.
Reuther took to the picket lines
yesterday to cheer the union mem-
bers striking Ford Motor Co.
The strike, in its 30th day, be-
came the fifth longest national
strike in auto industry history.
world News Roundup
GENEVA (A)-The white mer-
cenaries in the Congo have agreed
to end their three-month rebel-
lion against the Congolese gov-
ernment and will be flown to
Malta for repatriation, the Inter-
national Red Cross reported yes-
terday.
President Joseph D. Mobutu
first requested the Red Cross in
August to arrange for evacuation
of the mercenaries under Col.
Jean Schramme, a Belgian. Ne-
gotiations have been going on
since.
Jean Wilhelm, Red Cross dele-
gate to the Congo, said Mobutu
had shown him a statement sign-
ed by Schramme agreeing to
withdrawal ofhis 130-man white
army and 1,000 Katangan troops
if guaranteed safe passage by the
Red Cross.
Schramme and his rebellious
army hold Bukavu, capital of
Kivu Province, where they routed'
Congolese troops and later beat,
off repeated attacks.
Red Cross Director Roger Gal-
lopin said the Mediterranean
island of Malta was suggested as
a withdrawal point by Mobutu
"purely for technical reasons"
and Maltese authorities agreed.
"We assume that the mercena-
ries will choose to return from
there to their country of origin
if they want to," Gallopin added.
The Katangan -troops have agreed
to go to Zambia, where they will
decide on their future, Gallopin
said.
As Congolese, the Katangans
may want to return to their
southeast province of Katanga,
but whether Mobutu will let them
is another matter.
The white mercenaries launch-
ed their uprising July 5 at Kis-
angani, formerly Stanleyville in
the northeast, and at Bukavu.
The uprising at Kisangani failed
but Schramme consolidated the
rebel forces at Bukavu.
The mercenaries struck after a
plane carrying ex-Premier Moise
Tshombe was hijacked over the
Spanish Balearic Islands June 30
by a French passenger and forced
to land in Algeria.
Tshombe awaits death on a
treason charge in the Congo if
extradited from Algiers, and the
mercenaries and Katangans back
him. He led an unsuccessful at-
tempt to secede from the Congo
when he was president of cop-
per-rich Katanga Province.
Gallopin told reporters a Red
Cross delegate will be named next
week to supervise the evacuation,
which should be finished 'in three
weeks to a month." The whites
will first go to neighboring Rwan-
da, then fly to Malta.
LANSING (R) - The state of
Michigan spent $1.049 billion in
fiscal 1966-67, took in $893 mil-'
lin in revenue and ended the year
with a general fund surplus of $11
million, Gov. George Romney re-
ported yesterday.
The figures, announced by Rom-
ney at a news conference, were
taken from the year-end closing
financial report for the state, sub-
mitted to the governor by state
Budget Director Glenn S. Allen.
Romney said the year-end fig-
ures were "extraordinarily close to
budget estimates previously made"
and "contain no surprises."
Romney said two mutually off-
setting developments have oc-
curred since the end of the fiscal
year on June 30.
"On the favorable side new fig-
ures for 1966-67 released by the
federal government give reason to
WASEINGTON - Sen. Wayne
Morse (D-Ore), indicated he will
support President Johnson for re-
election;next year.
While criticizing many Johnson
policies, Morse told the Senate
that nevertheless he prefers to
"take my chances" with the Pres-
ident as compared with potential
Republican nominees.
Morse, who himself is up for
election next year, has been highly
critical of U.S. involvement in the
Vietnamese war. He has attacked
other Johnson policies, too, but
has supported many administra-
tion measures.
SAIGON -- U.S. planes have
blasted the Tien Nong fuel dump
six miles northwest of Haiphong,
cutting another target from the
forbidden list in North Vietnam.
Storage tanks at Tien Nong were
estimated to hold- 700 tons of oil
for the Communist war machine.
U.S. fighter-bombers hit them.for
the first time Thursday in one of.
134 missions that again centered
primarily on objectives in an area
of Haiphong, North Vietnam's
principal port, and' once-exempt
bridges in a zone ranging as close,
as 10 miles to Red China's frontier.
Still high on the restricted list1
believe that income from the new
tax package will be somewhat
higher than originally forecast,"
he said.
However, he did not elaborate
on what the changes in figures for
the revenue produced by the state's
new income tax might be.
Offsetting this, Romney said,
"is the effect of the Detroit and,
the Ford strike."
"Sales tax returns are already
running somewhat below original
estimates and, should the Ford
strike continue, will run substan-
tially over," he said.
of U.S. targets is Haiphong's wa-
terfront, though pilots have bomb-
ed the city's power plants and cut
its four major bridges in an in-
tensive effort to block trans-ship-
ment of the incoming supplies.
** *
WASHINGTON - Narrowly de-
feating two efforts to cut it, the
Senate passed a bill yesterday to
provide more than 4.6 billion to
carry on the U.S. space program
this year. The vote was 60 to 5.
Before passage Sen. Margaret
Chase Smith (R-Maine), ranking
Republican on the Senate Space
Committee, said James E. Webb
would be justified in quitting' as
head of the National Aeronautics
and Space Administration.
UNITED NATIONS, N.Y.-In-
dian Defense Minister Swaran
Singh declared yesterday he was
confident a cessation of all hostil-,
ities in Vietnam would follow an
unconditional halt in the U.S.
bombing of North Vietnam.
Singh, whose government has
close and direct contact with
Hanoi through at least two chan-
nels, told the U.N. General As-
sembly in a major policy speech
that the "essential first step" for
peace in Vietnam was a'halt in
the bombing.
Controversy 67'
UNION-LEAGUE presents
Bishop James Pike
Wednesday, October 11 8 P.M.
H ILL AUDITORIUM
A
Mike Seeger John Cohen Tracy Schwarz
THE NEW LOST CITY RAMBLERS
TONIGHT and Sunday--8 P.M.-$2 at the door
MEET THEM! today at Noon-Herb David's Guitar Studio
LAST TIME TONIGHT!
OPENS TUESDAY!
CINEMA II
PRESENTS
JASON ROBARDS JR.
A Thousand
Clowns
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A k A W 0 A I W & A S IP M W 9