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August 16, 1961 - Image 1

Resource type:
Michigan Daily, 1961-08-16

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Seventy Years of Editorial Freedom

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Cooler today
and tomorrow

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Brazer Wins Position
In Treasury Office

To Retain
Aid Veto




To Conduct Economic Research
In Areas of Tax Plans, Programs
Prof. Harvey E. Brazer of the economics department has been
appointed director of the Office of Tax Analysis in the Treasury De-
Beginning September 1, Prof. Brazer will be the Department's
principle adviser on matter of tax policy. Responsible to Assistant
Treasury Secretary Stanley S. Surrey, he will head a technical staff
engaged in relating economic data to tax plans and programs. He has
been a consultant to the Treasury since May 23.
Describes Duties
Prof. Brazer gave a three-fold description of his duties. First,
he will be responsible for directing research on the economic aspects

If Pressured by

Trade Sanction

WASHINGTON ()-Atty. Gen.
Robert Kennedy's plan for "no
discrimination" signs in inter-
state buses and bus stations drew,
strong approval yesterday from
spokesmen for Freedom Riders
and others.
But Mississippi officially oppos-
ed it as illegal, unworkable and
capricious. Bus company spokes-
men questioned it as likely to cre-
ate racial tensions where none
In the aftermath of the "Free-
dom Ride" troubles, Kennedy has
petitioned the Interstate Com-
merce Commission regulator of
interstate carriers, for a rule "un-
equivocably" banning discrimina-
To Carry Signs
Interstate buses would have to
carry signs saying seating is non-
discriminatory; no bus company
could use a terminal, restaurant or
waiting room which is segregated;
and companies would have to re-
port to the ICC if anybody, in-
cluding police or state officials,
tried to interfere with the ICC
Backing Kennedy's proposal in
oral arguments before the ICC,
Carl Rachlin, counsel for the Con-
gress of Racial Equality, asked
the ICC to "apply a little moral
force." He said some people tend
to balk at desegregation, but go
along once the plunge is taken.
Asks Increase
He asked that Kennedy's pro-
posal be strengthened. For ex-
ample, he would require bus com-
panies, in leasing terminals, to re-
quire that no segregation be prac-
ticed. He suggested it would be
salutary if communities which in-
sisted on segregation stood in
some danger of losing bus serv-
ice, through ICC action.
The state of Mississippi, in a
written statement filed by its Atty.
Gen. Joe T. Patterson and its
Public Service Commission, hotly
opposed the Kennedy plan.' The
statement declared the "bill-
boards" advocated by Kennedy
would do no good.
Agency Backed
top officials of the Eisenhower ad-
ministration yesterday strongly
urged formation of a permanent
United States disarmament agency

*of formulating tax policy. Then
he will present these economic as
pects to the appropriate congres
sional committees - specifically
the House Ways and Means Com
mittee and the Senate financ
He said he will also coordinat
the Treasury's policies with th
general policies of the administra
tion particularly as they involv
such agencies as the Council o:
Economic Advisers, and the de-
partments of Labor, Commerc
and Health, Education and Wel-
Prof. Brazer said he is optimis-
tic about tax reform and is ir
support of those measures ex-
pressed in President John F. Ken-
nedy's tax message and by Treas-
ury Secretary Douglas Dillon.
Requests Leave
Prof. Brazer has requested a
leave of absencehfrom the Uni-
versity in order to accept this ap-
He is the author of "A Program
for Federal Tax Revision" and
"Taxation in Michigan: An Ap-
praisal" in addition to articles in
professional journals. He was re-
search director of the Michigan
Tax Study Committee in 1957-58,
and collaborator, the National Bu-
reau of Economic Research from
1954 to the present.
He is currently a research as-
sociate in the University's Insti-
tute of Public Administration.
Cuts Section
On Election
PUNTA DEL ESTE, Uruguay (')
-Latin American and United
States delegates settled a hemis-
pheric conference feud yesterday
by cutting out a political jibe at
Prime Minister Fidel Castro from
a conference proclamation.
Sources said the delegates to
the Inter - American Economic
Conference agreed to throw out a
reference to the necessity for "free
and periodical elections" in the
Americas contained in the origin-
al draft of the proclamation.
Fear Propaganda
Some felt that inclusion would
merely give Cuban delegate Er-
nesto Guevara, Castro's econom-
ic boss, an excuse for another
propaganda attack on the United
States. Others argued that it was
out of place in economic negotia-
Informants said with the con-
cession all 21 of the nations ex-
cept Cuba approved the final
draft of the proclamation.
The 900-word proclamation
outlines the spirit and aims of
the conference, called to put Pres-
ident John F. Kennedy's $20-bil-
lion Alliance-for-Progress pro-
gram in motion.
Summarize Charter
Delegates feared the basic char-
ter, running to 3,000 words, would
be over the heads of most of
Latin America's 200 millions. So
they proposed a proclamation
summarizing the charter.
Brazil, backed by Argentina and
Ecuador, led the fight against the
free-elections phrase. Argentina
was said to have argued that it
would give the charter a flavor
alien to the conference.
Anti-Castro delegates felt such
references would make it clear
that any nation which did, not
hold free elections would not be
permitted to share in the aid mil-
lions The outcome was a com-
promise version which contained
no harsh words and merely boiled

down the bulky charter.

ate voted yesterday to retain a
substantial veto power over Presi-
dent John F. Kennedy's proposed
$8.8-billion five-year foreign de-
velopment loan program.
s An attempt to cut President
Kennedy's requested borrowing
authority for a five-year economic
development loan fund from $8.8
billion to $7.3 billion lost on a
46-46 tie vote.
Sen. Frank J. Lausche (D-Ohio)
offered the amendment to slash
Kennedy's development loan re-
quests by $287 million this year
and by $30 million for each of the
succeeding four years.
Its effect would have been to
provide $900 million this year and
$1.6 billion annually for the next
four years.
It was a narrow escape for the
money totals in the five-year pro-
gram and forecast trouble for the
administration when other amend-
ments are brought up to reduce its
Senators by a 52-44 vote ap-
proved an amendment by Repub-
lican leader Everett M. Dirksen of
Illinois to let Congress knock out
any individual loan of $5 million
or more that it may deem unwise.
Turning to a series of other
amendments to trim the money
amounts proposed in the Kennedy
plan, the Senate then defeated
57 to 38 a move to slash $500 mil-
lion off the $1.8 billion in military
assistance funds.
The sponsor of this losing
amendment was Sen. Allen J. El-
lender (D-La) who contended that
West Germany and other Euro-
pean allies, along with Japan,
are now prospering and better able
to pay for their military hardware
than this country.
Offers Compromise
Dirksen offered his plan as a
compromise between those seeking
to arm the administration with
broad leeway to make long-range
foreign aid commitments and
those anxious to preserve Con-
gressional supervision over spend-
Besides the multi-year develop-
ment loan authority, out of bor-
rowed treasury funds, the bill calls
for $4,326,500,000 spending this
year, including $1,187,000,000 as
the first year installment in de-
velopment loans.
Explains Amendment
This is the way Dirksen's amend-
ment would work.
Before making a development
loan of $5 million or more, the
administration would have to send
it up to Congress for a 30-day ad-
vance look. The Senate and House
Foreign Relations and Appropria-
tions Committee - four groups in
all - would study it.
If there was no objection the
loan could be consummated. If
any of the committees objected it
could sponsor veto resolution, if
this was adopted in the House and
Senate the loan could not be made.

'Germans Set
To Consider
New Action
West Cool to Plans
Of Trade Embargo
MOSCOW (P) - Izvestia last
night rejected Western protests
over the Communist barricades on
the East-West Berlin city borders
and warned against trying to in-
"He who sticks his nose into
the German Democratic Republic
with bad intentions is risking hav-
ing it cut off," the government
newspaper said.
The warning appeared in an
article entitled "The People Ap-
prove, Provocateurs in Hysteria,"
written by the newspapers diplo-
matic observer.
Take Same Line
The Communist Party newpaper
Pravda took a similar line, saying
the barricades were raised to keep
out spies and provocateurs.
'These measures have produced
a new outburst of war hysteria
in the camp of the opponents of a
peace treaty with Germany," said
the Pravda article.
The article in Izvestia said last
Sunday's sudden closure of the
Berlin border has "evoked an out-
burst of hysteria" in the West.
The writer compared events in
Berlin to a political litmus paper
that shows who is for peace and
who is against peaceful solution of
the East-West dispute. Litmus
paper is chemically treated to turn
red in the presence of acids and
blue in the presence of alkalines.
Izvestia said that the East Ger-
man border closing was not an
improvization but had been a nec-
essary measure, "dictated by life."
It said the Western powers had
been using Berlin for subversive
attacks on East Germany and its
socialist neighbors.
Theft of Citizens
"Events reached the point of
impudent theft of her citizens, of
huge economic diversionary acts
by means of currency speculation
and of attempts to disrupt trade,
industry and agriculture," the ar-
ticle said.
Western protests were ridiculed
and Western leaders accused of
"adopting a pose of offended in-
nocence." It asserted that the
West had brought the harsh
measures on themselves.
Favors Less
Elections Subcommittee unani-
mously approved a resolution to-
mously approved a resolution yes-
terday in favor of shorter Presi-
dential campaigns.
The resolution, although having
no binding legal effect, would put
the Senate on record as urging
that party conventions to nomi-
nate candidates for president and
vice-president not be held prior to
the first Monday in September in
election years.

Force yesterday announced it will
keep 28,000 men who were due to
leave the service between now and
next June 30.
They will be retained for ad-
ditional periods of up to one year.
It is expected that some will
volunteer to stay on. Enough
others in needed categories to
make up the 28,000 total will be
frozen in service for an extra year
or possibly less.
The action is part of the mili-
Bill To Cover
Science and Astronautics Commit-
tee yesterday approved a bill aim-
ed at preventing federal scholar-
ships from going to Communists.
It provides for a maximum pen-
alty of five years in prison and a
$10,000 fine for any member of a
Communist organization who ap-
plies for a scholarship or fellow-
ship under the National Science
Foundation program.

tary buildup ordered by President
John F. Kennedy.
The Army plans to announce
today that 111 reserve units -
probably small, support-type out-
fits - will be alerted for possible
call to,active duty.
However, it was understood there
would be no immediate call-up of
these units.
The plan is similar to that used
by the Air Force several weeks
ago when it notified Air National
Guard and reserve units that they
might be summoned to federal ser-
The Army, like the Air Force,
desires to give advance warning
to units that they face possible
call-up so that members can ar-
range personal affairs.
Secretary of the Army Elvis J.
Stahr Jr. is holding a news con-
ference at 2:30 p.m. (DET) today
at which details may be announc-
The Navy announced Monday it
will retain 26,800 officers and men
for an extra 6 to 12 months of
active duty. This is part of the
Navy's buildup to 657,000 from its
present 626,000-man level.
The Air Force said it normallyt

and 102,500 enlisted men during
the fiscal year ending next June
30 because of retirements, com-
pletion of enlistment terms, resig-
nations and for other reasons.
Among them would be men with
special skills which are badly
needed. These are the ones who
will be asked to stay on, and if
necessary kept on duty involun-
The number to be frozen in ser-
vice will depend on how many
volunteers there are. The Air
Force was not making any guesses.
Nor was there any breakdown as
between officers and enlisted men.
Stirton Gets
Vice-president in charge of the
Dearborn Center William E. Stir-
ton was appointed chairman of
the Michigan Cultural Commis-
sion by Gov. John Swainson.
He is appointed to head a state-
wide campaign to encourage cul-
tural activities within the state
and to publicize Michigan's cul-
tural activities.

-AP Wirephoto
CLOSE COLLABORATION--West German Foreign Minister Heinrich von Brentano, second from left,
confers with Britain's Sir Christopher Steel, Francois Sydoux of France and Walter C. Dowling of
the United States over the East German restriction.
Air Force Initiates Build-up

Party Paper,
Notes Protest
Fronm West,
Izvestia Accuses West
Of 'War Hysteria'
In Berlin Response
BERLIN (P) - The Communists
last night threatened to blockade
Red-encircled Berlin as they did
in 1948-49 if West Germany puts
an economic blight on East Ger-
m any.
The Reds thus countered pro-
tests from-the West charging their
moves blocking the flight of East
German refugees have turned the
city into an armed camp in fla-
grant -violation of four-power
Considers Action
Chancellor Konrad Adenauer's
West German government was re-
ported considering more forceful
action against the East German
puppet regime, including a trade
The Bonn government announc-
ed the lower house of Parliament
will meet in special session Fri-
day to take its own counter-
The East Germans responded
immediately with a reminder that
West Berlin's land freight and
passenger traffic must cross 110
miles of its territory.
"West German ruling circles
should understand that the Ger-
man Democratic Republic is a
sovereign state and the use of its
access routes can only be tolerated
on a contract basis," asserted the
Communist statement.
Threatens Embargo
Adenauer said earlier a Western
trade embargo against the entire
Soviet Bloc is under consideration,
but informed sources in Washing-
ton feared such a sweeping repri-
sal would touch off more drastic
Communist steps.
During the blockade lasting from
April 1, 1948 to Sept. 30, 1949, all
traffic by rail, road and water
between West perlin and West
Germany was cut off. West Berlin
survived through an airlift by
United States and British planes
that brought in 2.3 million tons
of food and coal.
The United States, British and
French commanders in Berlin de-
clared in their protest that the
virtual seal-off of East Berlin by
the Communists was the . most
flagrant violation of the city's
four-power status since the block-
Cite Red Defeat
Top United States officials la-
beled the Communist seal-off of
East Berlin as a heavy Red defeat
strengthening the West in the
struggle over Germany.
These authorities also said no
strong countermeasures against
the Red barricade will be taken at
this time, because the barricade
applies to the Communist East
rather than to West Berlin.
A western Big Four ambassa-
dorial meeting to work on counter-
measures was reported to have
encountered a rift over what ac-
tions should be taken.
The United States, Britain and
France were described as leaning
toward only limited response for
the present. The West German
government said it would take its
own countermeasures against the
Communist clampdown.
Undersecretary of State Chester
Bowles termed the Communist
closing of the East Berlin border
to refugees last Sunday a "fan-
tastic defeat" well understood
around the world as a blow to the

U.S. Launches
New Satellite
The 83-pound payload, Explorer
12, roared away from this space
center at 10:21 p.m. EST in the
nose of a powerful Thor-Delta
All three stages of the 92-foot

It also spells out for the foun- I would expect to lose 11,500 officers

Last Issue
With this issue, The Daily
ceases publication for the sum-
mer. Publication will resume the
first Tuesday of the fall semes-
ter, September 19.
Raises Problem
Of Jurisdiction
In Mississippi
Rider attorney William Kunstler
and Prosecutor Jack Travis of
Jackson, Miss. prepared arguments
on a suit set before Federal Dis-
trict Judge Harold Cox Saturday
in Jackson.
The petition brought five Free-
dom Rider cases into federal
court and Travis has asked Cox
to return,. them to Hinds County
The judge must decide whether
the cases involve civil rights. If
they do, he keeps the cases; if not,
they go back to state courts. There
is no appeal on his decision.
"I think we have a slim chance,"
Kunstler said, "because this fed-
eral law hasn't been thoroughly
tested. It has been used only for
voting suits.
"But if we are successful, we will

dation authority to refuse or re-
voke any scholarship award if the
foundation's board "is of the opin-
ion that such award is not in the
best interests of the United
The bill is an outgrowth of the
case of Edward Yellin, a gradu-
ate student of the University of
Illinois who was awarded a $3,800
fellowship by the foundation
March 15, 1961.
Yellin was convicted in 1960 of
contempt of Congress for refusing
to answer questions about Com-
munism before the House Un-
American Activities Committee.
Yellin has appealed the conviction
to the Supreme Court.

See Hope forSholAid Bill.
In Congress This Session
WASHINGTON (A) -- The Kennedy administration is not ready
to concede total defeat in its effort to have Congress pass a public
school aid bill this year.
"As long as we are in session, there is still hope," said Senate
Democratic leader Mike Mansfield of Montana yesterday.
However, beyond contending that President John F. Kennedy's
$2.5-billion school construction and salary bill " is not dead," Mans-
field did not express anything stronger than hope for its survival.
House Speaker Sam Rayburn of Texas, who also attended a
weekly White House legislative session, said the school aid bill was
"mentioned "incidentally" at the
"ee"gwithKennedybut no con-
cusions were reached.
Catholics Object
The school aid measure is bot-
M i S a c i tled up in the House Rules Com-
mittee as a result of an economic-
religious controversy. As proposed
by Kennedy, the bill made no pro-
vision for federal aid to private or
parochial schools, and some Ro-
man Catholic and other members
objected to this omission.
The school aid issue is due to
come up in the Senate again soon,
possibly later this week, when ac-
tion will be sought on the im-
pacted areas bill.
To Continue Aid


Cuban Patrol Boat S

This is a measure to continue
federal aid to school districts that
have a big concentration of federal
employes. In that form it would
have no trouble passing the House,
since the districts of more than
300 members are receiving federal

S ~:.

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