I Surday, January 19, 1969 THE MICHIGAN DAILY Page T NOW 1 0 J m alm IRLWXPW Today at 1, 3,5, 7, 9 P.M. DEFENSE COSTS DROP Report warns recession possible An unsurpassed cast! CHRISTOPHER PLUMMER ORSON WELLES LILLI PALMER and RICHARD JOHNSON v, ,:. the news today by The Associated Press and College Press Service OEDIPUS THE KING I L -i A Crossroads Film Production/Universal Pictures Production A UNIVERSAL RELEASE TECHNICOI OR COMING THURSDAY "ZITA" By SPENCER DAVIS Associated Press Writer WASHINGTON 0P) - A Cab- inet-level report to President Johnson warns that the United States faces a possible recession when the Vietnam war ends and urges that the government be ready with an action plan to stop it. The report, sent to Congress last week by the President, said the economy would be subjected to the same deflationary pres- sures that followedthe K o r e a n War. While not predicting any date for an end to hostilitiesin Viet- nam, the committee of top White House advisers based estimates on an assumption that the transi- tion to peace could be essentially completed by July 1, 1971 - in other words, the start of the 1972 fiscal year. The report said that if the cur- rent 10 per cent income surtax is still in effect when the fighting ends, earlier phase-out of the tax could help offset any recession and promote healthy economic growth. It also urged that a detailed plan to speed up government spending on high priority pro- jects be prepared now to cushion the impact of the transition from a war to peace economy. The report of the Cabinet com- mittee, under preparation since IMarch, 1967, carried the signa- tures of Defense "Secretary Clark Clifford, Treasury Secretary Jos- eph Barr, Commerce Secretary C. R. Smith, Labor Secretary Wil- alrd Wirtz, Budget Director Char- les J. Zwick and Chairman Ar- thur M. Okun of the President's Council of Economic Advisers. economy will be generating Anticipating that the U. S. econ- Saturday and Sunday 0' ITHE ELIPSE Directed by Michelango Antonioni (BLOW-UP, RED DESERT, LA NOTTE, L'AVVENTURA), 1961. The third essay in Antonioni's trilogy about the na-) ture and possibility of love in our time. ) "There's no need to know each other to love. Perhapsf there's no need to love?"-Monica Vitti (heroine of Eclipse). ~:00 & 9:05 7 ARCH ITECTURE 662-8871 73C AUDITORIUM STEVE rvucUEENi AS Detecive It. rank Iulitfl--0some other kind of cop. HELD OVER 5th WEEK: SHOWS AT 1:00 - 3:00- 5:00 - 7:10 and 9:15 NO 2-6264 omy will be generating more than $1 trillion by 1972, the report said the cost of the Vietnam War has been a load for the U. S. economy to carry, and not a prop support- ing it. "Prosperity has not depended on the defense build-up and will not speed high military spending to support it in peace time," the report said. The amount available for fed- eral "peace and growth" spending would amount to $22 billion by fiscal 1972 and would increase at the rate of $7 billion to $8 bil- lion a year thereafter, once peace is restored, it estimated. The report warned that p e a c e could come in a number of ways. Hostilities might decline gradually, requiring reduced ex- penditures, or there could be a lengthy armed truce which would aot permit a significant reduction of U. S. forces in Sou t heast Asia. But on its assumption that with- in six months after a truce there would be a genuine assurance of peace and the beginning of a full withdrawal of U.S. troops, the re- port gave the following estimates for a rapid demobilization: The U. S. armed services would decline by 800,000 persons, aver- aging 200,000 a quarter, starting in the third quarter after t h e truce. - Civilian personnel in the De- fense Department would be re- duced by 170,000 during that same period. - As a result of manpower re- duction, military and civilian compensation would be reduced by $7sbillion by the end of 18 months. - Other operating expenditures would drop by $4 billion over a slightly longer period. - Expenditures for procure- ment would be reduced by $8 bil- lion over an interval of 30 months. The report thus estimated that defense spending would be re- duced $8 billion by the end of 12 months, $16 billion by the end of 18 months, and $19 billion at the end of 30 months. The United States now is spend- ing $80 billion for defense. If war continued it was estimated that defense purchases would r e a c h $86 billion after 18 months, and $90 billion after 30 months. But if a genuine peace is reach- ed, the report estimated that de- fense purchases could be reduc- ed to $73 billion by fiscal 1972. Among suggested new programs the report recommended a nega- tive income tax, which is said could make major inroads on pov- erty while preserving work incen- tives, at a cost of $15 billion to $20 billion a year. It would still need to be reinforced by housing, health, education and job train- ing. Vatican. warps rebel priests VATICAN CITY (R)-Vatican Radio declared yesterday that Roman Catholic priests who op- pose Church authority could find themselves opposing God's plans and losing their right to salva- tion. The warning was in a commen- tary on the action by French rebel priests who denounced last week what they described as stifling bureaucratic and power structures in the Church. The radio praised those priests who try to modernize the Church in cooperation with ecclesiastical authorities. Opposition, however, "could de- part from the historic plan of salvation conceived and put in motion by divine wisdom and providence," it added.r r w BOLIVIA SUSPENDED tees yesterday, claiming it CONSTITUTIONAL guaran- has discovered a subversive i I conspiracy against the government. Declaring a state of seige, President Rene Barrientos or- dered"the arrest of prominent journalists, and opposition po- litical leaders, mostly among the previous ruling Nationalist Revolutionary Movement. The government hinted it would not respect immunity claimed by Parliament, the universities or trade unions. In a radio message to the country, Interior Minister Da- vid Fernandez said "reactionary elements" and "pro-Castroite groups," were responsible for the plot, which allegedly involv- ed terrorism and agitation in the cities and the countryside. Some sources, however, said the government measures were mainly precautionary steps to control social unrest in two provinces, rather than moves against the real danger of an organized plot. 0 0 ISRAEL WARNED yesterday it might send troops into Jordan if terrorists continue to launch border raids from Jordanian soil, And Foreign Minister Abba Eban denounced as a waste of time France's proposal for a Big Four conference aimed at settling the Middle East crisis. Eban said, the crisis can be solved only by Israel and the Arab countries, not by "outside powers who have at most only a marginal . . . interest in the area." Eban also discounted a proposal by the United States for Soviet-American talks on the problem, and a Russian pro- posal calling for acceptance of a UN peace formula, Arab recognition of Israel and Israeli withdrawal from Arab soil occupied in the Six Day War. * 0 WITHDRAWAL OF AMERICAN TROOPS from Viet- nam this year is set for planning, President Nguyen Van Thieu said yesterday. Although Vietnamese and American military leaders have agreed some combat troops can begin leaving later this year, they still must draft a timetable. There was speculation that a gradual pullback might start with 20,000 men, reaching 100,000 by the end of 1969. Meanwhile, the four parties to the new Vietnamese talks reached fullagreement in their first session on allprocedural matters, clearing the way for discussion on a war settlement itself early next week. its . . . STUDENT PROTESTS FLARED in West Berlin, India and Japan yesterday. In Japan, hundreds of students battled 8,500 police trying to drive them from buildings they held at Tokyo University. Police fought the students with tear gas fired from guns and dropped from helicopters. Over 200 students were arrested, but others still held a campus auditorium. The trouble stemmed from protests last January by medi- cal students, and subsequent disciplining of protesters. In Berlin, hundreds of students swept through the-down- town, smashing windows and stoning police on the fiftieth anniversary of the murder of Karl Liebknecht and Rosa Lux- embourg. Police posted 3,000 men, but confined their efforts to keeping protesters on the move. And in India, predominantly student mobs chased and stoned Deputy Prime Minister Morarji Desai's car as he urged people to vote for the ruling Congress party and keep Com- munists out of power. .. .. WRITER-IN-RESI DENCE PROGRAM I inml SUGGESTED FOR MATURE AUDIENCES TECHNICOLOR*v FROM WARNER BROS.-SEVEN ARTS W .1 presents V. JERZY KOSINSKI i Guild House, 802 Monroe MONDAY, JAN. 20 NOON LUNCHEON-25c I ; , oil 11 i I TODAY the Inlerdisciplinary Seminar JEWISH-ARAB RELATIONS 2 P.M.-Final Discussion-"Role of Minori- ties in Political Structures in the U.S.A. and Europe." approx. 3:30-Booksigning at Centicore- Beginning new series on: "RELEVANT ISSUES OF THE DAY" ORIENTATION MEETING: at Hillel (1420 Hill) TUES., JAN. 21-NOON LUNCHEON PROF. WILLIAM KRESSEY Dept. of Romance Language "THE LANGUAGE REQUIREMENTS AND POSSIBLE CHANGES (series: academic reform at U of M) " Sunday, January 19, 4:30 P.M. 1969 1229 South University -- i N _- .5 KURT VONNEGUT 1WRITER-IN-RESIDENCE UNIONLEAGUE OPENING LECTURE "Teaching Writers To Write" AMERICAN SUPPORT of its Asian allies' military power must continue ,during the Nixon administration, outgoing Defense Secretary Clark Clifford said yesterday. In a final departmental report, Clifford said "some de- gree of United States presence and commitment will be re- quired" as a bulwark against Red China in the years ahead. This includes "prudent use of the great military power at our disposal." Richard Nixon has called in public statements for great- er collective security efforts in Asia, rather than * unilateral or major United States role in military on the continent. MON.,8 P.M. RACKHAM LECTURE HALL Reception Following Lecture JANUARY 25 - FEBRUARY 8 SATURDAY, JANUARY 18-4 P.M. RABBI ERNST CONRAD, New Temple, Birmingham, Mich. "Archaelogy in the Middle East: The Origins of the Jewish People" Havdalah service following TICKET PRICES Available in the Fishbowl and C.A.F. Office, 3rd floor League Subscriber Tickets (saves $5.00; limited number available) Student $10.00 Non-Student $13.00 SUNDAY, JANUARY 19 Clive Barnes (Jan. 26) Dionysus in '69 (Jan. 26 27) Robin Kenyatta-African Contemp. Music Ensemble (Jan. 30) Morley Markson (Jan. 31) The Believers (Feb. 1) Dr. Spock (Feb. 2) Second City (Feb. 3 ) 2 performances! John Perrault (Feb. 4) 2 performances Stanley KaufmautnnFeb. (5) Marisol Feb. (6) .7 2.00 1.00 1.00 3.00 1.25 1.00 2.50 1.00 2.00 1.50 3.00 1.50 2.50 .50 1.75 1.25 2:00 P.M.-JERZY KOSINSKI, Writer-in-Residence "The Role of Minorities in Political Structures in Contemporary U.S.A. and Europe" 5:30 P.M.-DELI HOUSE SPECIAL SEMINAR sponsored by the BET MIDRASH (College of Jewish Studies) "Jewish Logic" --- Prof. Joseph Reif .50 11 1.25 Note: coming NEXT Sunday: Panel on the Rent Strike with bagels and lox brunch .7S 11