DOES KHRUSHCHEV BLUFF ON BERLIN? See Page 2 C, r Sir iauF ~at1r PARTLY CLOUDY High--82 Low--66 Less humid; otherwise little change. Seventy Years of Editorial Freedom VOL. LXXI, No. 188 ANN ARBOR, MICHIGAN, TUESDAY, JULY 25, 1961S FIVE CENTS FOUR PAGES Westerners Come To Japan's Prince By PAT GOLDEN Special To The Daily TOKYO-Crown Prince Akihito and Princess Michiko grant- ed an extraordinary private audience last week to seven Ameri- can college students touring Japan under the auspices of the United States National Student Association. We met first for a protocol briefing in the outer waiting room of a modern castle built for the newly-wed Prince two years ago. The protocol session was less complicated than we had anticipated. We were told that both their Highnesses speak ex- cellent English and that we could discuss anything, but should let them lead the conversation. We were also told never to stand with our backs to them but that court behavior had re- laxed in recent years so we could smile. Prince Speaks Prince Akihito spoke with all of us for a minute, and then skillfully steered the male students off for more conversation. The Princess conversed only with the women. The quiet-voiced, docile Princess whom we met only faint- ly resembles the vivacious, fun-loving girl who was president of student government at Sacred Heart College, her friends say. She was interested in our tour and the student organization which sponsored it. We spoke about the varying degrees of freedom student governments have. She wondered how American student govern- ments conveyed their wishes to the faculty, and what the rela- tionship of an individual student to USNSA is. Deep Interests The Crown Prince told the two men in our group of his deep interest in the social welfare of the Japanese people. He explained that while he has no voice in the government, he occasionally offers suggestions for more welfare and assistance programs. He has no knowledge, himself, of the human problems which call for public assistance. He was brought up as a non-thinking symbol, with his reading material, his teachers, and his entire environment carefully protected from anything resembling a political, economic or social problem. After several minutes of talk in the garden, the royal couple gradually led us back into the sitting room. They shook hands with us 'again, but neither made any attempt to speak with students of the opposite sex. Then the soft-voiced Princess and the young-looking future Emperor nodded and left the room. Retain Respect Conservative elements in the country maintain consider- able respect for the traditional ruling dynasty. Politically, they blame much of the younger generation's lack of respect on re- visions made in the teaching of Japan's history and culture since the war. Socialists claim conservatives have sought for the last two years to subtly re-instate the teaching of emperor-worship in the public schools. The throne can be manipulated by politicians, but the royal family could not possibly participate in anything political. The Emperor speaks to a Joint session of the Diet once a year, but his speech is both ghost-written and screened before presenta- tion. He couldn't have a political opinion because he receives no information on political matters except what his advisers and the government want him to receive. If he did have an opinion, he would have no one to tell it to. In effect, the royal family is under house arrest on a very lavish and formal level. Force U.S. Airliner Into Flight to Cuba MIAMI, Fla. (P)-With a hijacker's pistol pointed at his head, a commercial pilot flew his prop-jet Electra into Cuba yesterday, while a United States fighter plane tried unsuccessfully to turn him around. The fighter, an F-102 Delta Dagger, returned to Florida after accompanying the airliner to Cuba's three-mile territorial limit. Thirty-three passengers and five crewmen were aboard the Electra when it landed at Havana's Jose Marti Airport at 11:25 a.m. Senate Gives Foreign Aid $4.3 Billions WASHINGTON UP) - President John F. Kennedy's $4.3 billion foreign aid bill cleared the Senate Foreign Relations Committee yes- terday and headed for a storm of controversy on the Senate floor. While the committee approved it by a 13-4 vote, this did not reflect the margin of support for its chief provision - authority for the President to borrow funds from the Treasury to finance a 5-year long-term economic devel- opment loan program. Sen. George D. Aken (R-Vo) predicted that not more than six of the Senate's 36 Republicans will suport that method of financ- ing when the bill is called up for the start of long debate begin- ning next Monday. Only one of the committee's eight Republi- cans, Sen. Alexander Wiley (R- Wis), supported the treasury- financing provision when that feature of the bill was approved, 10-7, by the committee last week. Kuchel Opposes Acting Republican leader Thomas H. Kuchel (R-Calif) also pre- dicted the Senate will not approve the long-range loan program financed by Treasury borrowing. "I'm a supporter of foreign aid but I'm not going to vote for an $8.8 billion blank check," Kuchel said in an interview. "Congress has responsibility in this matter and I don't think it is going to turn it over to the Pres- ident." House Troubles The financing provision also faces trouble in the House, where the Foreign Affairs Committee is considering the bill. Speaker Sam Rayburn (D-Tex), however, told newsmen he ox- pected Congress to approve Ken- nedy's long-range foreign aid pro- gram despite what Rayburn call- ed "a terrific campaign against it by unthinking people." Critics "all around the country" have harped on things that have gone wrong with the program, Rayburn said, but they say noth- ing about "the good." Predicts Success He said he hoped the committee would complete work on the bill by the end of the week. He said' the bill "will come through all right" when it reaches the floor. The measure, as reported by the Senate committee yesterday, is tailored to fit most of Kennedy's< specifications.1 Its main new feature provides the full authority the President asked for a 5-year, $8.8 billion, treasury-financed program for making low or no-interest loans to1 help struggling nations build up their economies.' (EST). It had left Miami at 9:05 a.m., bound for Tampa, New Or- leans and Dallas. Last Words The last word from the airliner pilot was: "I am proceeding to Havana at pistol point." There- after his radio went silent. There was silence also from the Cuban raio. In a radio-television speech July 4, Prime Minister Fi- del Castro threatened to keep any planes hijacked in the United States and flown to Cuba. The Electra landed in Havana amid confusion preceding the ar- rival of Yuri Gagarin, Russian space man, in Havana to attend Castro's 26th of July celebration. Passengers Waited The passengers were discharged in waiting rooms at the airport while crew members were ques- tioned by police. There was no word from Cuba as to how or when the Ameri- cans might be allowed to leave the country. First indication that something had happened to the Electra came when the $3/ million aircraft made a sharp turn off course on the radarscope. This occurred as the plane was about 20 miles southwest to Pahokee, Fla. Then it swerved directly toward Havana. NORAD Warned A federal aviation agency re- port thast the Electra had left its pattern was picked up by the North American Air Defense Com- mand (NORAD) at Colorado Springs, Colo., and an immediate order went to the Homestead, Fla., Air Force Base to send up a fighter. Ever since the Cuban invasion, NORAD has been keeping a close watch on the Florida area. The fighter plane took off and picked up the airliner south of Miami. Cuban Prime Minister3Fidel Castro said last night the 33 pas- sengers and five crewmen aboard a hijacked airliner are free to leave Cuba at any time, the Na- tional Broadcasting Co. reported. Castro was quoted as saying the dispute over the plan itself has not yet been decided and that the United States and Cuba "might talk about an agreement" regard- ing hijacked planes. The Cuban leader indicated such an agreement should take up the Cubana planes currently be- ing held in Miami in connection with a civil court litigation. Kennedy Talks On New Threat WASHINGTON (P) - President John F. Kennedy will go on radio and television at 9 p.m. (EST) today to outline his plans for dealing with the Soviet threat to Berlin. The President's speech will be carried live by major radio and television networks, from 9 to 9:30 p.m. He will speak from the White House. Hammarskjold To Ease Bizerte ,rrives Tension Envoy Asks U.S. Support 'For Tunisia Bourguiba Withdraws Troops from Congo To Oppose French TUNIS (IP)-Dag Hammarskjold arrived yesterday to lend a hand in settlement of the Bizerte crisis, which has veered now from a shooting war to an angry exchange of charges between Tunisia and ' France. A heavy loser in the military action touched off by Tunisian fire on French aircraft last Wednes- -AP Wirephoto BIZERTE REFUGEES-Refugees left Bizerte in Tunisia by the thousands yesterday, as the uneasy ceasefire between French and native Tunisian forces threatened to make the North African port' a scene of disaster for any inhabitants who chose to remain. Efforts by the Tunisians to receive strong U.S. support against the French are so far not successful. DEFENDS KENNEDY HEALTH PLAN: Welfare Chief Attacks AMA WASHINGTON (R) - The ad-' ministration yesterday opened its fight for a social security health plan for .the aged with a sharp attack on the American Medical Association. Welfare Secretary Abraham Ribicoff accused the AMA of mis- Job Accepted In Blue Cross By McNerney Prof. Walter J. McNerney, di- rector of the University's Bureau of Hospital Administration, has accepted an offer of the presi- dency of National Blue Cross. McNerney cited the opportunity to work in the field of voluntary health care was one of his ma- jor motivations in accepting the job. Last week, McNerney presented the final report of a three-year study which he headed of prepaid medical care plans in Michigan. He noted that although the study was confined to the state, much of it had relation to more general problems and "made sense" as far as application to National Blue Cross. Among other things, the study criticized Blue Cross-Blue Shield for not requiring more detailed accountings of, how money paid out for hospitalization benefits are spent. McNerney has been at-the Uni- versity for six years. He earned degrees from Yale and the Uni- versity of Minnesota and has been hospital administrator as well as the author of several books. leading the public and its own members in its attempts to hang a "socialized medicine" label on the administration plan. He add- ed: "180,000 doctors are not going to be able to defeat the will of 180 million Americans." Misrepresentation Republicans on the House Ways and Means Committee, before which Ribicoff appeared, jumped into the fight with charges of, misrepresentation by Kennedy and Ribicoff's Department of Health, Education and Welfare. The stormy start of the hear- ings presaged a bitter fight in Congress next year when the con- troversial issue will be taken up. The hearings starting yesterday are designed to lay the ground work for next year's action. Ribicoff presented the admin- istration proposal in detail with a heavy accompaniment of statis- tics. It wasn't until he had fin- ished and was being questioned by committee members that the fireworks began. AsCalls for 90 Days As outlined by the secretary, the plan would provide up to 90 days of hospitalization, 180 days in a nursing home, and 240 home health visits for 14.5 million per- sons over 65. It would be financed through an increase of %/th of 1 per cent in the social security taxes of both employers and employes, and an increase in the payroll base on which the tax is applied from $4,- 800 to $5.200. No money would be provided doctors for' bills, other than in connection with diagnostic studies at the hospital. Rep. Cecil R. King (D-Calif), who is sponsoring the plan in the House, served up the question about the AMA and its charge of socialized medicine and Ribicoff pounced on it eagerly. He said doctors have been spe- cifically excluded from the plan and that nothing in it interferes in any way with the normal doc- tor-patient relationship. Cion-Con- Primary elections for consti- tutional convention delegates will be held in the state today. Polls will be open from 7 a.m. to 8 p.m. Each legislative and each senatorial district will choose one Republican and one Democrat to oppose each other on the September 12 ballot which will determine the one representative from each type of district to attend the con- vention opening in Lansing Oc- tober 3. Two hundred eighty-eight candidates will thun run Sep- tember 12 for the 144 conven- tion posts. The names of candidates who are unopposed for their party's nomination will not appear on the ballot today. The major issues of the con- vention should include reap- portionment of the state Legis- lature, the question of a four- year term for the governor and a revision of the fiscal and tax structure. Candidate's statements ap- pear ondpage 3 of today's Daily. PROTECT NON-STRIKERS: Rhodesian Negro Strike Turns Police to Violence SALISBURY, Southern Rhodesia P)--An appeal for a general strike by African political extremists exploded into violence yester- day. Police said two Negroes were killed and four wounded after they stoned police cars. The strike won only spotty support and the government mount- day, Tunisia charged that land- ing barges debarked French re- inforcements at Cap Blanc, five miles north of Bizerte. In Washington Tunisian Am- bassador Habib Bourguiba Jr., the president's son, called on Secre- tary of State Dean Rusk and urged immediate action to halt what he called new French land- ings. Eyes Soviet Aid "I suggest the free world act now before another world does," the envoy angrily told newsmen, referring to possible Soviet inter- vention. The Tunisian radio said French paratroopers, ignoring the United Nations Security Council's order for combatants to return to their original positions, were fortifying strong points they won within the city in the four-day battle. The French admiralty charged that Tunisians were taking at- vantage of the UN cease-fire to get Moslem civilians out of Bizer- te's ancient casbah and convert it into a military bastion from which artillery fire could be directed against French ships on the canal linking Lake. Bizerte and its mili- tary installations with the Medi- terranean. The French insist they must maintain French communica- tions. New Restrictions Tunisia invoked new restrictive measures against the French. El Aquina airfield, Tunisia's only in- ternational airport, was closed to all French planes. Air liaison with Paris was maintained by the na- tional airline, Tunis Air, which has an average of two flights daily. French-owned restaurants were closed. Some 60 French citizens were held at Sousse Prison in what Tunisians called preventa- tive arrest. Financial circles within France, however, showed no particular alarm. French shares, especially Sahara oil issues, recouped some of their losses of last week on the Paris Bourse. Hammarskjold arrived as streams of refugees, both French and Tunisian, headed out from the battle-stricken city. Claim 670 Dead The Tunisian news agency said 670 dead had been counted in Bizerte and 1,500 were wounded. French'announcements have re- ported less than a score of French dead. The first contingent of Tunisian troops serving in the UN task force in the Congo returned to Tunis. Tunisia hoped to bring back all its 3,200 soldiers - the best units of the nation's tiny army. Messages of support and sym- pathy arrived from a number of Arab countries, many of which until recently had boycotted Tu- nisia, branding it "too pro- Western. The 11-nation Arab League Council, meeting in Cairo, voted unanimously to send Arab volun- teers to Tunisia within the next few days and organize other groups later. League headquar- ters gave no figures on the number of volunteers enrolled. Florida To Get NI CAJI " "llf ed an impressive show of force British Ready For Austerity adjustments LONDON (WP) - Prime Ministe Macmillan's government increase post offices charges yesterday onl 24 hourse before the schedule announcement of a stern austerit program for the nation. The new economic programn designed to combat inflation an protect the value of British ster ling. It also may make it possibl for Macmillan to open negotia tions for Britain to Join the Eurc pean Common Market. The Treasury boss -- Chancel br of the Exchequer Selwyn Lloy - is to announce the program i the House of Commons today.I received final cabinet approva yesterday, at a meeting preside over by Macmillan. The economic program to b announced by Lloyd today will in elude both short range and lon term goals including the organ ization of public and private in vestment into a British five-yea plan, it was reported. There were forecasts that th sale anr exise tax increase to protect workers who ignored the -(strike call. Some of those return- ning from work were beaten by agitators; others were jeered. Violence at Salisbury' The violence was reported in segregated townships around Sal- isbury, where tension is high be- cause of Wednesday's referendum on a new constitution. Negro po- or litical leaders say the black ma- d jority will not have a large enough ly voice in the new parliament. d Police blamed nationalists for y the strike call but one of the major nationalist groups, Joshua Nkomo's African National Demo- d cratic Party, denied it had any- - thing to do with the stay-at-home le movement. The party, which held its own - unofficial referendum Sunday and mounted a display of opposition to the constitution, said it had rd called a strike for Wednesday to d coincide with the official refer- n endum. Charge Shooting yd Party Secretary T. G. Silundika charged that police shot and kill- e ed one Negro child and wounded several others in putting down g the violence. 1 There was no immediate official - comment on the charge. i- At dusk police began to move in strength to strategic points with armored cars and trucks to pro- a tect workers who said they feared ADVISES BLUE CROSS CHANGES: Study Asks Health Insurance Controls By PHILIP SUTIN Greater public control of the fi- nancing of health care and the in- surance company and pre-paid health plan rates policy were among the major recommenda- tions of a report issued last Sat- urday by Prof. Walter McNerney of the business administration school. Financed by an approximately $380,000 grant from the W. K. Kel- logg Foundation, the study is the last of three reports to the Gov- ernor's Commission on Pre-Paid Hospital Care. The public interest in cost con- trol should be considered of para- mound importance in the future development of insurance and pre- payment plans, the report de- clared. Aspects Intertwined ernment must provide strong in- ducement to self control by the providers of health care. Definitive Standards This can be done using definitive standards, methods of monitoring performance, and impartial stand- ards, the report stated. "Insofar as possible, professional control is preferable to either fi- nancial or legal control. It recog- nizes the fact that, in the final analysis, the providers of care must make the decisions and carry out the programs which determine the cost, quality, and quality of care," it noted. Prepayment plans, insurance companies, the government and other purchasers of health care can greatly increase the incentives for development of such controls by encouraging the use of accepted standards and the development of firms could make accurate cost an- alyses a condition for payment. The report also urged the sub- mitting of annual cost reports to the State Insurance Commission- er, Blue Cross, private firms and the public. Besides illustrating the relation- ships between cost and quality of care, these reports could aid hospi- tals in gaining full payment for services to government supported patients. Shouldn't Ask Discount "There is little reason why pub- lic agencies should expect a dis- count on health care'when that discount will result either in lower quality or increased charges to other members of the public," the report commented. The report also studied the problems of effective locations and construction of health care facili- ties, has been limited by its fi- nancial power. Under the Hill- Burton Act it may provide 34 to 55 per cent of the cost of new hos- pitals which conform to state and federal standards. The new agency would develop the state plan further, and ad- minister the state franchising law and the federal Hill-Burton pro- gram . In addition it would receive cost reports from hospitals, license all hospitals and medical facilities, approve the construction of new health care units, and enforce con- struction standards. Functions Now Held Many of these functions are presently held by the Departments of Health, Mental Health, and So- cial Welfare, the Fire Marshall's office, and the Crippled Children's Commission. I -a t lr - ? nR-1TTYfl TV'Xf