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November 29, 1967 - Image 3

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The Michigan Daily, 1967-11-29

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World Bank


Bank confirmed last night that
Secretary of Defense Robert S.
McNamara had been nominated as
president of the bank.
The first official confirmation of
the nomination came after the
White House said McNamara's de-
parture from the Cabinet would
mean no change in the conduct of
thet Vietnam war.
Ix response to inquiries, the
bank confirmed earlier reports that
McNamara's name had been placed
in nomination but it's still uncerr
tain when any formal action will
be taken by the bank's executive
Hardened War Effort
Informed congressional sources
indicated yesterday that McNama-
ra's departure from the Defense
Department is likely to bring a
hardening of the Vietnam war ef-
Although job fatigue played a
part in McNamara's expected
transfer to the World Bank after
nearly seven years in the Cabinet,
the clear indications are that the
hawks among President Johnson's
advisers have won out.
Relies on Rostow
An official familiar with the
situation said that in recent
months Johnson has been leaning
more heavily on Walt W. Rostow
than on McNamara or any other
adviser for Vietnam policy recom-
Rostow, who is Johnson's spe-
cial assistant for national security
matters, is generally regarded as
a hawk on the war.
McNamara has advocated re-
straint, questioning the increasing
commitment of troops and their
deployment. He has argued that
expanded bombing of North Viet-
nam will not win the war
No Change
At the White House, where Mc-,
Namara's resignation was neither
confirmed nor denied, a spokesman
said his departure from the Penta-
gon would mean no change in the
conduct of the war.
But some congressional sources
think one result of the changeover
may show up soon in the bombing
of Haiphong harbor docks--a move
McNamara has opposed.
There was a wall of silence at
both the White House and the
Pentagon on a successor for Mc-
Namara as head of the Defense
Department, which he has ruled
with a;firm hand for nearly seven
But informed sources mentioned
as possible successors Charles B.
Thornton, chairman of the board
of Litton Industries; and J. Irwin
Miller of Columbus, Ind., official.
of the Cummins Machine Co.
It seems more likely to interested

members of Congress, however,
that Johnson will choose,a man of
some experience in the Defense
Department for the job.
, Cyrus R. Vance, former deputy
secretary currently serving John-
son as negotiator in the Greek-
Turkish crisis, was at the top of
their list.
Others mentioned included Gov.
John B. Connally of Texas, a
former secretary of the Navy;
Robert B. Anderson, former deputy
secretary of defense, and Harold
Brown, secretary of the Air Force.

White House press secretary
George Christian was asked at his
midday briefing whether McNa-
mara's departure from the Penta-
gon would mean any change in
the conduct of the war in Vietnam.
"No," Christian replied. "I don't
know of any changes in the con-
duct of the war for any reason."
Christian also replied No when
asked whether there are any sharp
policy, differences between McNa-
mara and Johnson over bombing
North Vietnam.
The questions were prompted by

persistent speculation that the
President has been listening more
to the military chiefs and less to
McNamara in recent months, and
that McNamara is the principal
spokesman for those who counsel
against escalating the air war over
North Vietnam.
Although Johnson has freed
more and more targets from the
restricted list, he has thus far
backed McNamara's strong op-
position to hitting the port of
Haiphong, the number one target
on the Joint Chiefs of Staff list.

UN Refuses
Peking Bid'
for Entry
munist China lost ground slightly
yesterday when the UN General
Assembly brushed aside for the
eighteenth year bids to seat the
Peking regime and expel National-
ist China from the world organi-
The vote was 45 in favor of
seating the Chinese Communists
and 58 against with 17 abstain-
ing. This represented a net shift
of only one vote as compared with
1966, but it was significant in
that it continued a trend away
from the tie vote registered in
Six-Day Debate
The outcome of the six-day
China debate left the Peking gov-
ernment far from a UN seat since
the United States had pushed
through in advance a resolution
asserting that this was an "im-

WASHINGTON (R) -Chairman
Wilbur D. Mills of the House Ways
and Means Committee told news-
men yesterday "it is impossible
to develop and pass a tax bill
through the House this year."
Mills' remark provided the
strongest evidence yet that the gap
between President Johnson and
some of the congressmen on whom
he must depend most remained
unbridged on the eve of the ad-
ministration's climactic push for
the income surcharge.
The Arkansas Democrat's verdict
theoretically left the way open for
a start on the tax legislation this
year, but he has indicated he does
not consider the administration
has yet come up with the kind of
spending he thinks would justify
even considering a heavier load on

tax bill until Congress and the
executive could agree on a scale-
down in government expenditures.
Mill's own position is that spend-
ing cuts should match, dollar for
dollar, any additional taxes im-
Administration spokesmen have
indicated the reduced spending
proposals they will submit to the
committee total a saving of about
$4 billion.
The yield of the proposed 10 per
cent surcharge on income tax, to-
gether with postponement of re-
ductions in excise taxes and
speedup of corporate tax collec-

tions is estimated by committee
revenue experts at $5.1 billion for
the fiscal year ending next June
30, $11 billion for the full year fol-
lowing that.
The administration mounted its
new drive after Britain devaluated
the pound sterling and heavy
pressure on the dollar built up in
international markets.
A key argument for a tax in-
crease, now especially stressed, is
that international bankers will feel
more confidence in the dollar and
the payment imbalance will he
eased if the United States reduces
its budget deficit.



Terms Acceptance

Of Tax Bill 'Impossible'

Greek Cabinet Rejects

Declare Martial Law,
In Malaysian States.

Turkish Peace

ATHENS, Greece (P)-An urgent
Greek cabinet meeting on the
Cyprus crisis failed last night to
produce agreement to Turkish de-
mands. Western alliance mediators
immediately decided on new visits
to Ankara, Turkey, and to Cyprus
to deal with points of difference.
Foreign Minister Panayiotis Pi-
pinelis emerged from the Athens
talks over Turkey's demands and
said: "There has been no approval
This came after a long day and
night of consultations from which
the government earlier had prom-

ised a decision one way or the
other, as a spokesman put it, for
peace or possible war.
The foreign minister told news-
men, "No agreement has been
reached with the Turks." He said
he saw the situation as "delicate
and dangerous.'"
Asked if he thought war possible,
Pipinelis appeared thoughtful and
replied: "Yes, it is possible. It is
less of a possibility now."
He conferred with White House
envoy Cyrus R. Vance, who there-
upon made plans to fly to Nicosia,
the Cypriot capital, to talk with

President Archbishop Makarios
about some of the details involved
in the main dispute about evacu-
ation of Greek troops.
Pipinelis also met again with
Manlio Brosio, secretary-general
of the North Atlantic Treaty Or-
ganization. Greece and Turkey are
NATO members. As a consequence
of that conference, Brosio decided
to fly back to Ankara.'
As the Greek cabinet met earlier
in the day more than a dozen
Turkish warships maneuvered off
the north coast of Cyprus for two
hours, then returned to their bases.
A Turkish source said it was a
routine naval exercise, but it was
widely regarded as another show
of force to increase pressure on
the Greeks.
The new steps by Vance and
Brosio clearly indicated that the
stumbling blocks in the controver-
sy involved details-undoubtedly
the timing and manner of any
backdown on either side-which
needed very delicate negotiation
to remove.
The envoys travelling from
Athens to Ankara and back for
four days produced some kind of
a package which resulted in the
Greek government's efforts to find

portant question"} which meant !tapay.s
that a two-thirds majority was
required. Another member of the tax-
As it turned out the resolution writing committee, however, said,
was unnecessary. The vote left "We should not close the door to
Pekingconsiderably short of even the possibility of getting a bill out
a simple majority, of committee this year."
Starting today, the committee
U.S. Opposition .wi hear testimony from Secretary
As usual, the United States led of the Treasury Henry H. Fowler,
thein osition to admitting the Budget Director Charles L. Schult-
Chnee Communists. It was ac- ze and William McC. Martin Jr.,
knowledged generally, however, chairman of the Federal Reserve
that the major factors in the poor Board.
chUwin Uf 2P akino lnv in f ts

snowing of remig ay i u
ideological split with Moscow and Seven weeks ago, the committee
its internal political struggle. by formal resolution set aside the
The intensity of the Peking-
Moscow rift was reflected in the
lukewarm presentation of the W o l N eV
Chinese Communist case by the oride
Soviet bloc. The deputy foreign
minister of the Soviet Union, By The Associated Press
Vasily V. Kuznetsov, spoke only OTTAWA-Prime Minister Les-
nine minutes on behalf of Peking.
ter B. Pearson yesterday coldly ac-
Italian Resolution cused President Charles de Gaulle
While the main interest was of intervening in Canada's dom-
concentrated on the question of estic affairs by renewing his call
seating the Chinese Communists, for an independent Quebec.
Italy and a small group of other "It is intolerable that a head of
countries were rebuffed in their a foreign state or government
effort to launch a special UN should recommend a course of po-
study on Chinese representation litical or constitutional action
-a move generally considered as which would destroy Canadian
a step toward a two-China solu- confederation and the unity of the

-The government declared limit-
ed martial law in northwestern
Malaysia yesterday in the fifth
day of growing racial rioting be-
tween Chinese and Malays.
Army and police units were
given emergency powers and rush-
ed to the worst areas, including
Prime Minister Tunku Abdul Rah-
man's home state of Kedah in the
s Roundup
The statement came after a day
of bitter condemnation of De
Gaulle, once regarded as one of
Israel's best .friends. De Gaulle's
comments on the Middle East war'
were made at his news conference
LONDON-Prime Minister Har-
old Wilson stonily declined yes-
terday to withdraw Britain's bid to
join the European Common Mark-
et becauseofa new veto from
France's President Charles de
Wilson declared that "we have
slapped our application down on
the table, and there it will re-
main," despite De Gaulle's restate-
ment of determination to keep the
British out of the six-nation trade

country's prime rice-growing area.
Police said three Malays and
14 Chinese have been killed and
77 Malays and 112 Chinese have
been hurt. Two policemen and
two soldiers were also reported
Broadcasting an appeal for
calm, Rahman blamed the riots
on Communist terrorists and sym-
pathizers of Chinese Communist
Chairman Mao Tse-tung. He ask-
ed the Malays and Chinese to call
a halt to their retaliatory attacks
on each other and urged all Ma-
laysians to help track down left-
ist troublemakers.
"By sitting on the fence you
are only encouraging these people
who are making more trouble,"
he said. "They've brought disun-
ity where the people in the past
have been united."
Police said 851 persons have
been arrested in a roundup of
leftists and Chinese -secret society
members following the worst ra-
cial disturbances in more than
three years.
The situation in Kedah and
neighboring Perak State was con-
sidered so serious that some army
and police reinforcements were
sent in from the island city of
Penang, where the disorders de-
veloped last Friday out of a dem-
onstration against currency de-


tion. Canadian state," Pearson told an
The Italian resolution was de- applauding House of Commons.
feated by a vote of 32 in favor,
57 against and 30 abstaining. In JERUSALEM-The Israeli Ca-
1966 a similar resolution was re- binet rebuked President Charles
jected 34-62 with 25 abstentions. de Gaulle early this morning for
The United States was among the a "severe insult to the Jewish peo-
minority voting for the Italian ple" 'in saying that Israel started
proposal both times. the June war in the Middle East.

-Associated Press
INSPECTING TROUBLE SPOTS on Cyprus, UN envoy Jose Rolz-
Bennett left, looks over Kofinoy, where 24 Turkish Cypriots were
killed in recent fighting. At right is Finnish General Martola of
the UN forces on Cyprus.

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