THE MICHIGAN DAILY

Kerr Says
Need Plan
For GOP
By KENNETH McELDOWNEY
Henry H. Kerr, Jr., '59, charged
last night that the Republican
legislature should stop putting all
the blame for the present financial
crisis on Gov. G. Mennen Williams
and formulate programs on their
own.
Kerr, who is chairman of the
College Young Republican Federa-
tion, spoke at the Young Republi-
cans meeting
The main reasons for the prob-
lems, he said, is the lack of fore-
sight on the part of the legislature
in seeing the need for a fieible tax
structure., Every time Michigan
has a recession, he added, the lack
of flexible tax structure shows up
as a shortage of funds.
Tax System 'Regressive'
A second cause, as Kerr saw it,
was that the tax system is regres-
sive so the lower income section of
the state must carry the brunt of
the tax load.
Boiled down, he said, there are
too many expenditures for the
revenue that is coming in.
In comparing Michigan with
other state, he said, the legisla-
tors note Michigan pays more than
most states for education but on
the other hand receives more reve-
nue.
Actions Based on This
Basing their actions on this, the
legislators feel there is no need
for increases in the taxes, Kerr
said. This can't be used as a true
picture, Kerr, contended, because
Michigan educates on the average
three times as many students as
some other states.
There is a continual paradox, he
said, in that the public, demands
that there be more services, while
they are not willing to pay for
them. A -possible solution might
be to increase the revenues and at
the same time decrease the spend-
ing in some of the programs, Kerr
maintained.
Proposals Offered
Many proposals have been of-
fered to alleviate the problem in
legislature, he said. Included in
these are plans to increase the
sales tax, have a graduated income
tax, raise the debt limit and also
to have a student bond issue, in
which the student upon gradu-
ating from college would have to
pay the state
All of these proposals should
be tested against a system of
standards, he said. They should
be progressive in nature, flexible
and should guarantee a high de-
gree of industrial activity in the
state.
Need Graduated Income Tax
The only program passing these
standards is the graduated income
tax, Kerr claimed. The legislature
will not pass this program, because
it is a Democratic proposal. The
Republican party has committed
itself to too much ideology which
seems to be paralleling idiocy, Kerr
said.

°ess Proposed Free YEE E
YELA{ Trade Area.
ICELAND: { ." .
x }{ THE COMMON MARKET
Led by France, six
nations are knocking
kY {:xi NORWAY P/ J4 4 down trade barriers to
a,{ Yfi:/tn create a custom -free
market with a population
of 168 million. Eleven
$ Sothers, led by Britain,
IRELAND threaten retaliation
8Runless freeing of trade
$< . *{ ..... T is broadened to include
them.Theypropose an 17-
-Tnation Free Trade Area.
Y :The CommonG ERMAY
Y }s Mretmmon MTrk
4.t:~'PORTUGAL
4 .. ? /x L:. ...
Trade Barriers in Europe Begin To Fall

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script, musical score and choreography.
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By CHARLES STAFFORD
Associated Press Newsfeatures Writer
Trade barriers dividing six Euro-
pean countries - members of the
Common Market - have begun to
crumble. But this desire for unity
among the six threatens relations
with their neighbors.,
It could even touch off a nasty
trade war among new friendly na-
tions of Western Europe.
The Common Market embraces
West Germany. Italy, France, Bel-
gium, the Netherlands and Luxem-
bourg. These countries greeted the
New Year with the first of a series
of mutual tariff cuts that give
preferential treatment to the goods
from other member countries.
- Tariffs Eliminated
During the next 12 to 15 years,/
they will progressively eliminate
tariffs among themselves while
erecting a common tariff wall for
all goods entering Common Market
countries from outside countries.
Their goal is a tightly-knit, cus-
tom-free market with a concen-
trated population of 168 million.
This self-reliant economic union
would rival the United States, the
British Commonwealth and the
Soviet bloc.
But by giving preferential treat-
ment to the,. goods of member
countries, the Common Market
discriminates against goods from
outside countries. The outsiders,
notably Great Britain, want to be
included in this freeing of trade.
The British have espoused a

larger ,more loosely run 17-nation
Free -Trade Area ( FTA) . This
would includethe six Common
Market members plus Britain,
Iceland, Ireland, Portugal, Turkey,
Switzerland, Austria, Sweden, Nor-
way, Denmark and Greece.
Like the Common Market, the
FTA would remove all trade bar-
riers among members. But unlike
the smaller group, it would permit
member nations to fix their own
tariffs on goods from non-member
countries.
The British insist on this pro-
vision to allow them to continue
offering a tariff break on imports
from commonwealth countries.
France Opposed
France, leader of the Common
Market nations, argues that this
.would allow commonwealth goods
free access to the entire FTA by
way of Britain. It is dead set
against the idea.
Attempts to reach agreement
Dec. 16 at a meeting of the 17-
nation Organization for European
Economic Cooperation disinte-
grated into a threat-hurling deb
acle.
The British threatened retalia-
tion unless they are included in
the freeing of trade. They warned
Prof. Marra
Says Nation
Wastes Wood
Nearly 50 per cent of that wood
which leaves our forests is wasted,
says a University wood technolo-

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git.
Prof. Alan A. Marra of the nat-
ural resources school noted that
the nation's wood products indus-
tries are doing an inadequate job
of utilizing wood. He pointed out
that costs run just as high to cut
and haul the unused part of the
log away as itudoes the used por-
tions.
No.15
7 8 9 10 i1, 12
16

KKROSSWORD

1~

ACROSS
1. Delaying
actions, in
the paddock?
7. Titled Turks
15. Kools refresh
your -
14. Traffic in
exchange
students
15.,A sitting duck
f or Drake
16. Niftier
17. Jumbo ear pool
18. Guys without
gals
20. Pride of the
pregnant perch
21. Crossword bird
22. Suns
23. Tongue-lashings
26. Un-oomphy
horse
27. Kiplinig poem
29. Confronter
33. ....... Kool your
steady smoke
86. On the-
388 Part of a
church
39. Europe in
World War It
40. Kind of berry
" blonde
42. Make the crew

DOWN
1. Wild guess
2. Kind of way
on the road'
8. Weapons ,used
in smooching
4. Mauna-
5. They're made
for lasses
6. Ohio, Penn
or Michigan
7. Kool's Willie
8. Heave-hoes
a steady
9. Saratoga, for
instance
10. Jalopy's
successor
It. Small space
in a plant
12. Extra attention
19. Small amount
22. French novelist
24. British fly-,boys
25. World's most
thoroughly
tested ......(pl)
28. Remote
$0. Buy Kools
iby the__
31. Come about
gradually
32. Clear the
lawn again
33. Pilgrimage,
place
34. One of Dumias!

1 2 3 4 5 6
13
15

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4$. Seection Big Three - -
45. Russet, gas 35. Refreshingest
or Mickey cigarettes made
47. Hot under- 37. Kind of boy SWITCH FROM TO
place 40. Cry of
48. Nook, not aelurophobes
ncessrl for 42. HanlfoQ j¢
necking WhitmangPTR
49. They're not 44. French island
liabilities 46. Corporal or
50. Pelted sergeant (abbr.) *- "

I

11