t Y G- Seventy Years of Editorial Freedom :4E aiti MOSTLY FAIR Hligh-82 Low--58 Cooler today and tomorrow ir v T Y x.7W e ANN ARUU, MICHIGAN, WEDNESDAY, AUGUST 16, 1961 FIVE CENTS PanTR. AC 'P4 RKJLun £ 3AZrla 5 Brazer Wins Position In Treasury Office Senators To Retain Aid Veto Communists Propose Blockade 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- partment. 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 exist. 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- tion. 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 regulation. 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. Disarmament Agency Backed WASHINGTON (R) - Former 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 committee. 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- fare. 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- pointment. 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. Conference 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- tions. 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. WASHINGTON (A'P) - The Sen- 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 size. 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- ing. 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- terfere. "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 Campaigning WASHINGTON (P)-The Senate 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. WASHINGTON (A) - The Air 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 Scholarships WASHINGTON (P)-The House 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- vice. 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- ed. 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- tarily. 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 Ap'pointment 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. LONGER TERMS: 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 agreements. 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 embargo. The Bonn government announc- ed the lower house of Parliament will meet in special session Fri- day to take its own counter- measures. 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- ade. 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 Soviets. 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 rocket. 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 WASHINGTON WA) - Freedom 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 Court. 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 States." 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 f,; COMPLETES BARGAIN: 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 ~:.