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Seventy-Two Years of Editorial Freedom
LXXIII, No. 18-S
ANN ARBOR, MICHIGAN, FRIDAY, JULY 19, 1963
SEVEN CENTS
FOUR PAGES
I
resident Requests Stock
Tax
To
Preserve Gold
To Impose' easure
On ForeignPurchases
Curtis Calls Plan 'Artificial Wall,'
Indicating Congressional Fight
I, WASHINGTON (WP)--President John F. Kennedy proposed new
steps to stem the outflow of United States gold and dollars by asking
Congress to impose a tax on most. Ahierican purchases of foreign stocks
and bonds.
A signal that the bold proposal will run into troble was raised by
Rep. Thomas B. Curtis (R-Mo), a member of the House Ways and
Means Committee which will be the first to consider it. He told
O"newsnien he will fight the tax as
an "artificial wall."
Instead, Curtis said, the United
" ;. States should seek to keep invest-
~v ~ments at home by improving the
fiscal and business climate here
and enabling goods better to com-
} " ' Pete in world markets.
?'V Supplement Economy
} But House Speaker John W.
McCormack (D-Mass) described
t{[e r., 4< r kthe tax plan, plus other proposals
V> put forth by Kennedy in a special
message to Congress, as "meaning-
- ful, important and needed supple-
rms to our national economic
pr ograms."
WASHINGTON - Atty. Gen.
Robert. F. Kennedy told the Sen-
ate Judiciary Committee yester-
day that those who preach states'
rights are not "seeking the pro-
tection of the individual citizen,
but his exploitation."
In pleading before the southern-
dominated group for passage of
the administration's civil rights
program, Kennedy said:
"The time is long past when we
should permit the noble concept
'of states' rights to be betrayed
and corrupted ito a slogan to
hide the bald denial of American
rights and of human rights."
Kennedy told the committee
that passage of the controversial
public, accommodations part of,
the program is essential.h
In other action ten civil rights
demonstrators were arrested yes-
terday at the offices of the Chi-
cago Board of Education where
they have been staging a sit-in
campaign for nine days. The
arrests followed. a clash Wednes-
day between police and demon-
strators outside the downtown
office building in which the school
board has its headquarters.
A federal appeals court yester-
day amended its order directing
desegregation .of schools in Mo-
bile, Ala., to give the school board
more leeway. Mobile was told to
begin- desegregation of schools this
fall, but no grade was specified.
The school board was ordered, in-
stead, to present a plan for using
the state's pupil placement law.
In Charleston, S.C., high bonds
were set yesterday for the first
of 68 Negroes arraigned on riot
charges in Tuesday night's racial
disturbance. The city has prom-
ised a "no compromise" prosecu-
tion.
Ini Cambridge the threat of re-
newed demonstrations hung over
the city as a state-proposed med-
iating committee delayed stepping
into the racial dispute.
Negroes 'called off further dem-
onstrations yesterday: when State
Atty. Gen. Thomas B. Finan said
the racial relations committee of
the Maryland Bar Association
would try to find a common
ground for agreement.
Indiana Indicts
Students Again.
BLOOMINGTON (P) - Three
The President's message "clear-
ly demonstrates that the country
is on solid financial ground" and
indicates "the great concern of
the Democratic Party for a sound
dollar and a vigorous economy,"
McCormack said.
Chairman Wilbur D. Mills (D-
Ark) said the Ways and Means.
Committee will take up Kennedy's.
proposal as soon as it finishes
work on the administration's tax
reduction. and revision program-
probably in two or three weeks.
Solely Administrative
Aside from the tax plan, other
steps outlined in Kennedy's mes-
sage are of an administrative
nature and require no Congres-
sional action.
The most significant of these
is the plan, starting Monday, for
the United States to begin, draw-
ing up to $500 million in foreign
currencies from the International
Monetary ,Fund.
This is the first time this coun-
try has exercised this privilege.
Kennedy said these currencies will
be used by the United States
Treasury to buy foreign-held dol-
lars that otherwise might be used
to pdrchase American gold.
Curb Foreign Investments
The President noted that efforts
to slow down short-term invest-
ments abroad-those of 90 days'
to a year-were taken earlier this
week when the Federal Reserve
Board raised from 3 to 3/2 per
cent the discount rate for its
banks' loans to other banks.
But because purchase of long-
term loans or securities issued by
foreign governments and business-
es have been rising rapidly further
action is necessary, he said.
Under his proposal, the tax for
American residents would be 15
per cent of the purchase price of
common stocks and other equity
securities issued by business in 22
industrialized countries.
Long-Term Maturity
In the case of bonds and other
securities maturing in three years
or longer and issued by govern-
mental and private interest in the
22 nations, the tax would range
from 21/2 per cent to 15 per cent.
Canada would be the nation
most affected by the plan and in-
terests there can be expected to
protest.
Bomb Ban
Advances
In Parley
MOSCOW <() - United States,
British and Soviet negotiators
held their their shortest session to
date on a limited nuclear test ban
treaty as they apparently moved
toward difficult areas of the issue.
Foreign Minister Andrei Gromy-
ko and Special Envoys Averell
Harriman and Lord Hailsham
issued their most uncommunica-
tive communique of the week. It
said simply that they "met again
on July 18 to discuss some of the
provisions of a test ban treaty
covering tests in the atmosphere,
outer space and under water, and
also continued their exchange of
views on other matters of mutual
interest." The statement said "the
next meeting will be held on
July 19."
Wednesday's communique had
said progress was made in draft-
ing some of the provisions of a
test ban treaty.
Build on Old Principles
The delegates dug out texts of
the earlier treaties proposed in the
talks in Geneva. Despite the new
spirit evident in the first three
days of the talks, the old treaties
might form the pattern of an
agreement that was impossible in
Geneva.
One delegation member Indicat-
ed he felt all along that if there
truly was a will for a treaty, a
treaty would be worked out.
Increasingly the Western dele-
gates have indicated there is a
will evident in Moscow. for an
agreement which would relieve the
big countries of the costly burden
of testing, not to mention the
danger it spells in speeding up and
broadening the nuclear arms race.
Won't Spread Arms
An agreement was reportedly
discussed to prevent spread of
nuclear arms into other hands,'
notably those of Red China or
West Germany.
Chinese Fire
New Attacks
At Soviet Reds
M O S C O W (3) - Communist
China yesterday fired new attacks
against Premier Nikita S. Khru-
shchev's policies of peaceful co-
existence as high Communist
sources predicted the deep split
between the two Red giants would
continue.
The talks designed to heal the
breach were in recess until today.
Many believed they would be al-
lowed to sputter out after that
session.
The Chinese continued to harp
on the theme that the Russians
were disastrously wrong in their
doctrine of peaceful coexistence,
especially in developing countries.
Red China's foreign ministry
concluded, "The people of South
Viet Nam have shown the world
that the correct way to win lib-
eration is not to affect 'peaceful
coexistence, but to use a revolu-
tionary armed force to defend
oneself and fight the enemy."
Pravada, in return, accused the
Chinese of liking the "smell of
gun powder."
*
*
*
*
*
*
*
College
Presidents
Initiate
Own Review
ofEducation
NASSERITE ELEMENTS:
Troops Crush Syrian Revolt
BEIRUT (P)-Syrian troops yes-
terday beat down with tanks and
guns an armed attempt to over-
throw Syria's Ba'athist rulers;
Damascus radio reported.
It was impossible to identify im-
mediately the forces behind, the
uprising, but four menordered ar-
rested were once widely known as
supporters' of President Gamal
Abdal Nasser of the United Arab
Republic.
On the other hand, a Middle
Eastern source connected with the
United Nations in New York said
the plotters were followers of Maj.
Gen. Ziad Hariri, a non-Nasserite,
lion-Ba'athist career officer. He
was discharged and exiled to Paris
10 days ago after losing a power
struggle with the Syrian army's
strongman, Maj. Gen. Amin Hafez.
Crush Rebels
Four hours after the rebels
struck at strategic centers in Da-
mascus, radio announcements in-
dicated that the uprising of "civil-
ians supported by a small number-
of discharged military men" had
been beaten and crushed.
The nation of 4.5 million pre-
dominantly Moslem people was or-
dered under curfew. Its borders
were closed and international tele-
phone lines cut.
The revolt was launched short-
ly after Lt. Gen. Louay Atassi,
chairman of the Eyrian National
Revolutionary Council, flew to
Alexandria, Egypt, to meet Nasser.
Tried To Ease Feud
His mission was to try to ease
the feud between Syrian Ba'athist
leaders and Nasser. The feud has
brought hopes for a projected fed-
eration of Syria, Iraq and Egypt,
close to extinction.
Atassi was reported to have
shown astonishment when he re-
landing at Alexandria.
ceived word of the shooting on
If successful, the uprising would
have been Syria's fourth coup
d'etat in 22 months. The first
yanked Syria out of its merger
with Egypt and the last, March 8,
installed the present Ba'ath So-
cialist regime of Premier Salah
Bitar.
Iraq's Ba'athist rulers, who
came to power with a revolution
of their own Feb. 8, messaged
their support of the Syrian gov-
ernment.
Diplomatic reports reaching
Beirut said tanks, artillery, auto-
matic weapons and small arms
were used in a battle around army
Panel Gives
Rail Report
WASHINGTON (!)-President
John F. Kennedy's railroad fact-
finding panel wrapped up its re-
port on the work rules dispute
today, and it seemed to satisfy
both sides except for some minor
details.
After hearing the views of rail-
road spokesmen and representa-
tives of the railway unions about
the preliminary draft, the six-
man committee made some small
changes.
It planned to hand the report
to Kennedy tomorrow morning, so
he can send to Congress on Mon-
day any legislative recommenda-
tions he deems necessary.
The fact-finding report was de-
scribed as containing no sugges-
tions but only a summary of the
issues to clarify them for Ken-
nedy and Congress.
After the railroad and union
spokesmen met separately with
the panel on the report, Asst. Sec-
retary of Labor James J. Reynolds
said the union representatives
"questioned very few points."
J. E. Wolfe, chief negotiator
for the carriers, said he "wouldn't
be critical" of the report. "The
committee members listened to
the suggestions we made as to
language and what our conten-
tions are," Wolfe said. "I think
they have tried to do a good job."
Both sides had been given the
report to study overnight. The
panel, appointed by Kennedy last
week, began working on it on
Monday.
headquarters and the government
radio station. Two jet planes were
seen in action over the combat
area.
Reports from Damascus called
the fighting unprecedented in
Syria, whose copus are numerous
but usually bloodless. There were
no specific reports of casualties,
but ambulances were seen rush-
ing through the capital's streets
and doctors were excused from the
curfew.
The official government said
rebels had surrendered and that
the rest of Syria remained quiet.
Among the four fugitives whose
arrest was ordered was Moham-
med El Jarrah, who was police
chief of Damascus and thus a high
figure in the widely dreaded se-
curity apparatus during Syria's
1958-61 union with Egypt in the
United Arab Republic.
The other three to be arrested
were not named and speculation
was reported as to whether they
were pro-Nasser.
Keppel Liniks
Aid, IBiasBll S
In House Talk
WASHINGTON --Commissioner
of Education., Francis Keppel re-
newed his plea today- for federal
aid-to-education legislation that
has all but been lost in the run-
ning congressional debate over
civil rights.
His appeal before a House edu-
cation subcommittee marked the
11th time in three months that
he has testified on behalf of edu-
cation bills before House and Sen-
ate committees.
Some Capitol Hill observers be-
lieve that the attention of Con-
gress on civil rights, tax reforms
and, most recently a threatened
railroad strike may mean there
will be no action taken on educa-
tion legislation this year.
Keppel emphasized the need for
federal aid to wipe out various so-
cial problems, including the in-
equality of educational opportuni-
ty between Negroes and whites.
The project, introduced in 1956,
provides additional guidance and
remedial help in schools for un-
derprivileged children. It also of-
fers a broad range of cultural ex-
periences.
"Estimates indicate that in the
14 largest cities, one child out of
every three in the public schools is
culturally deprived, that is, with
a background so meager that his
classroom learning is handicap-
ped," Keppel testified.
The matter of handling such
special problems, he continued,
should rest with the cities and
states, but the federal govern-
ment should be an "interested
partner."
Copyright, 1963, The New York Times
MARVIN L. NIEHUSS '
.. education study
NORTH VIET NAM:
Peac'e Plan
Reiterates
TOYKO (M -Communist North
Veit Nam has suggested a cease-
fire could be arranged in the
South Viet Nam war if President,
Ngo Dinh Diem's United States-
supported government takes in
Communists and kicks out United
States military advisers helping
to fight the Viet Cong.
President Ho Chi Minh of North
Viet Nam made his proposals in a
memorandum distributed today by
Peking's New China News Agency.
They echoed for the main part
Viet Cong terms laid: down last
year.
The North Viet Nam memoran-
dum, dated July 15, declared the
Communists wish to achieve a
peaceful reunification of the coun-
try.
Value Fighting
But a Peking foreign ministry
statement issued soon afterward
stressed the value of violence in
achieving revolutionary goals.
The Viet Cong, perhaps as a
result of Chinese prodding, appear
to have stepped up attacks on the
12,000 American military advisers
in South Viet Nam.
The North Vietnamese memor-
andum said Ho made his cease-
fire statement in a May 16 inter-
view with thecorrespondent of
a paper called The National
Guardian, which it did not iden-
tify further.
No Foreigners
"Foreign intervention must
cease," Ho said. "Forces and weap-
ons of the interventionists must be
withdrawn . . . a ceasefire pre-
sumably could be arranged be-
tween the Diemest forces and
those of the South Viet Nam lib-
eration national front (Viet Cong).
Between such a government and
that of the democratic republic of
Viet Nam, agreements could be
negotiated to abolish some of the
dangerous abnormalities of the
present situation and to abolish
the existing trade, communica-
tions and cultural barriers between
north and south."
*
Study Delves
Into Funds
Enrollment
Committee To Review
Needs and Policy in
Fall Interim Report
By ANDREW ORLIN
Despite a similar study by Gov.
George Romney's Citizens Com-
mittee on Higher Education, the
Michigan Council of State College
Presidents is conducting its own
investigation into the future needs
and problems facing higher educa-
tion in the state.
The study, initiated in June, is
being undertaken 'at the request of
the Coordinating Council for High-
er Education and is delving into
three distinct, but linked, areas-
enrollments, faculty, and capital
outlay, Executive Director of the
President's Council Ira Polley said.
Blue Ribbon Work
The "blue ribbon" committee is
completely reviewing higher edu-
cation in Michigan. It is ta make
an interim report on needs and
policy this fall for preparation of
the 1964 budget and a final report
in September, 1964.
While the study delves into the
rising enrollment, faculty needs
and capital outlay needs for the
next five' years, it is centered
around the "crucial years" of 1964-
65, Polley added.
There is some possibility that
the results will be used for some
type of public presentation to In-
form the citizens of the state of
the needs and problems of higher
education.
Avoid Delays
Although the Coordinating Coun-
cil fully endorsed the work of the
"blue ribbon" committee, "it
didn't believe that public policy
decisions could be delayed for the
great period of time that they
would need to handle the prob-
lem," Polley said.
Executive Vice-President Mar-
vin Niehuss said that the "purpose
of the study is to present a picture
of the capacities and needs of all
institutions in the state."
Even though both studies are
along thesame lines Niehuss be-
lieved that the blue ribbon report
would be more extensive and com-
plete. "I hope that there is no ob-
jection or opposition by the com-
mittee to this study," he added.
Ready in September
The results of the study are ex-
pected to be compiled in Septem-
ber. This is one month ahead of
the estimated date of the blue rib-
bon committee's report. However,
both Polley and'Niehuss indicated
that the schools' investigation in
no way was an attempt to block
or head off the work of the blue
ribbon committee.
University Administrative Dean
Robert Williams heads the faculty
section of this study. He has al-
ready completed and submitted a
preliminary draft.
*
orld News Roundup
By The Associated Press
UNITED NATIONS-A UN committee recommended yesterday
that the Security Council call an embargo on arms and oil shipments
to South Africa and consider imposing a blockade if necessary to en-
force it. The special committee on apartheid-South Africa's race seg-
regation policy-made the recommendation in an interim report to
Qthe Security Council and the Gen-
Symphonic Summertime
eral Assembly.
MOSCOW-Izvestia said yester-
day the man named as the Russian
intelligence officer who was re-
ported to have defected to the
West, Anatoly Dolnytsin, is actual-
ly in Russia. The Soviet govern-
ment newspaper backed its claim
by publishing what it said was a
picture of the officer.
WASHINGTON Mexico and
the United States announced yes-
terday a historic agreement to re-
turn to Mexico an area in El Paso,
Texas, which has been indispute
for nearly a century. The shift-
ing Rio Grande, which changed its
course in 1864 and created the
whole problem, is to be rerouted
in a concrete-lined, $6-million.
channel, paid for 50-50 by Mexico
and the United States. This will
bring an increase of 437 acres in
Mexico's national territory and re-
CHANGE IN JAPAN:
Dutch Trigger Rise to Power
By DANIEL BLUMENTHAL
' The Dutch East India Co. foothold in Japan during its 200 ye
ars
of isolation provided a pathway for Western influence, Prof. Frits
Vos of the University of Leiden said yesterday.
Because Holland was the only Western nation allowed to re-
tain contact with Japan, Japanese scholars only had Dutch books
to turn to when they began investigating science in the latter part
of the 19th Century, he explained.
As "the rise of Japan to a place of power in the last half of
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