'U' NEEDS NEW PROGRAM See Editorial. Page L wrA6 :4Iaii4t WARM High--9Z Low--64 Partly cloudy throughout the day 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 -; :- ', :.:w u2_ :. ''i ".i;':,:: :: : _.. " i t 2. :.\ 512..... _". .: '. ........i?:i..