THE MICHIGAN DAILY P1 THE MICHIGAN DAILY P eetrngs End at Geneva; s Unchanged erl in IS'S Germany--Two UN Seats? By J. M. ROBERTS Associated Press News Analyst The commission to study the organization of peace has iot only revived the hoary old "two Chinas" idea for United Nations member- ship, but somewhat tentatively extends the principal to two Ger- manys. The latter idea comes at a time when the Soviet Union is acting as standard bearer for all the preju- dices of Eastern Europe in trying to formalize the division of Ger- many. It could become explosive. Right now it appears that long months of discussion between the United States and the Soviet Un- ion have produced little or no com- mon ground over which to ap- proach a settlement of the Ber- in dispute. Soviet View The Soviets have promised often that if this issue is not settled to their liking-and it cannot be as long as they demand removal of, allied occupational troops - they will sign a separate peace with their puppet regime in East Ger- many. The idea of the commission in general is that all governments should be able to meet at the UN where differences might be thresh- ed out. In the case of East Germany, this would permit the Soviet gov- ernment to escape all responsibili- ties to the, Western powers for anything done by a government over which it has complete con- trol n fact, but which would have been recognized as autonomous by the UN. Commission Sincere There is no question of the sin- cerity of the commission, an off- shoot of the American Association for the United Nations, in wishing to strengthen the UN. But the United States, France, Britain and West Germany, form- ing the core of the Atlantic com- munity which is the prime factor World News Roundup By The Associated Press WASHINGTON-President John F. Kennedy sent to the Senate yesterday the nomination of Gen. Maxwell D. Taylor to be chairman of the Joint Chiefs of Staff for a two-year term beginning Oct. 1. At the same time, Kennedy nominated Gen. Earle G. Wheeler for a two-year term as Army chief of staff. Kennedy previously had announced selection of the two for the posts.: * * * * SAIGON-Tribesmen in South Viet Nam's central highlands are making a mass exodus to government security regions to escape Com- munist Viet Cong terrorism, a government spokesman said yesterday. So far, 96,000 mountain tribesmen have fled from their villages, the spokesman said. The government is rushing food and clothing to the main refugee concentrations. WASHINGTON-The Army expanded its test of the troop rota- tion plan yesterday with announcement that three 1,500-man battle groups will begin six-months duty tours in Europe, starting Oct. 1. It also said that during the next 10 months about 4,000 dependents of the three groups involved would be returned to the United States. Other groups sent overseas under the rotation program will not be permitted to take their dependents. The new program will not mean any reduction in Army man- power in Europe, the announcement said. TOKYO-Pheng Phong Savan, Laos minister of interior, says his government "recognized the people's republic of (Communist) China only and there is only one China, not two," the New China News -i Agency reported yesterday. The agency said the minister made the statement in a talk with leftist leaders at Khang Khay, former rebel headquarters. * * * * VIENNA-Austria's three-party parliament last night was formally dissolved following a decision of the Conservative-Socialist coalition government to hold national elections Nov. 18. MOSCOW-More than nine Soviet officials in Frunze, capital 'of the Kirghiz Republic, reportedly have been sentenced to death for economic crimes. The group was the largest known to have been sentenced to death at one trial since a decree was issued last year prescribing the death penalty for certain crimes, such as fraud. * * * * NEW YORK-The stock market staged a brisk comeback in the final hour of trading yesterday; erasing or paring many early losses. The closing pattern was mixed with some averages up but with declines of individual stocks exceeding gains. Oils and utilities were generally higher while tobaccos and drugs were off. Gains and declines by key issues were generally under $1. Women s SHOE BARGAINS Summer and Spring Dress and Street Shoes $7 and.$ *7 5 Value to 15.99 Washable Kedettes, Keel and Summerettes '2 ~and 3 Value to 5.99 BERNANDO THONGS reg. to 9.99 in preserving the non-Communist world, are and probably will con- tinue to be unalterably opposed to further recognition of those trun- cated parts of former countries which are ruled by branches of international Communism. The practical effect of running head on into this opposition would be to face the UN with a split in policy which it is not strong' enough to handle. Geneva Talks The Geneva talks between Sec- retary of State Dean Rusk and Foreign Minister Andrei Gromyko on Berlin appear to be a complete failure. So do the discussions of disarmament and nuclear test- ing. These are issues already par- celed out by the UN because it cannot face them as a body. There's going to be a big enough. fight this year over the Chinese membership question. At its heart is the permanent Security Council seat held by the Nationalists and desired by the mainland Reds who still stand under the label of ag- gressor and of conduct outside the UN charter. Other Issues Algeria promises to create seri- ous international problems before the Assembly meets. Laos may flare up again by that time. The Congo battle lines already are be- ing drawn. The war grows in South' Vietnam. Nobody can foresee what will happen between Red China and India, or between Holland and Indonesia. The problem of Germany now appears to be in stalemate. Even a Soviet-East German treaty is not expected to mean a license for the East German Communists to start any serious trouble with the Allies. A moratorium on new problems for the UN, or stalemate on most of the old ones, might be the hap- piest condition for that body in coming months. Farm Bill Set To Face Battle, WASHINGTON -P)-The Senate Agriculture Committee set the stage yesterday for a new farm legislation battle next week-prob- ably Wednesday - over controls and marketing of grains. It refused by a hairline 9-8 vote to substitute the administration's tough controls plan for a House- passed grain bill, but Senate softer version to the floor for debate by a 10-7 margin. The legislation, as it now stands, is nearer in detail, to the House proposal and identical with the one the committee sent to the Senate in April. Prle Fails To Develop Any Solution U.S., Russian Chiefs See No New Crisis GENEVA (M~--Dean Rusk and Andrei Gromyko are leaving the! Berlin problem essentially where they found it at the outset of their Geneva negotiations, informed sources said yesterday; nothing happened to create either a solu- tion or a new crisis. Positions of the United States Secretary of State and the Soviet Foreign Minister, who conferred three times on Berlin in the past five days, were termed basically unchanged as Rusk took off for Washington and Gromyko ar- ranged to head back to Moscow today. But each side ended with a defi- nite recognition of the other's commitments in Berlin and an un- derstanding that serious xconse- quences could result if these are infringed. This would apply among other things, to the Russians' long-pro- fessed intention to sign a separ- ate peace treaty with Communist East Germany and turn over to East Germans the control of West Berlin's supply lines across more than 100 miles of Communist ter- ritory. It was not clear whether theI Russians will continue their pres- sure for such an arrangement. Informed sources said there is reason to believe that if the Rus- sians do sign a treaty with East Germany, it will be done in such a way as not to interfere with the vital interests of the West in West Berlin. Rusk accomplished one aim in his conversations with Gromyko. He spelled out clearly the United States' position and its determina- tion to defend its war-won rights in Berlin. The talks were described by in- formed sources as clear and pre- cise, without bluster or extrava- gant language. They went into ,more detail than any previous talks between the two foreign min- isters about the divided city. Loeb Report To Renew Peru Junta LIMA (M-United States Am- bassador James Loeb is flying to Washington to give President John F. Kennedy a first hand report on the seizure of power a week ago by a Peruvian military junta. The junta's foreign minister, Vice Adm. Luis Edgardo Llosa, has predicted the United States soon would recognize the military re- gime. Loeb said in a statement he had been recalled to Washington for consultations "as is normal in these circumstances." The United States suspended diplomatic relations and cut off Alliance-for-Progress aid when military leaders headed by Army Gen. Ricardo Perez Godoy ousted President Manuel Prado and set up a military regime. Step Backward The United States said the seiz- ure of power was a step backward for democracy in Latin America. In Washington, State Depart- ment press officer Lincoln White announced Loeb's return and said the Peruvian junta had officially requested United States diplomat- ic recognition in a note to the embassy in Lima. He said, however, United States authorities rejected the request from the junta, which Washington regards as a power-grabbing mili- tary dictatorship. Expect Approval But Foreign Minister Edgardo Llosa said in an interview before the announcement of Loeb's de- parture that he was confident the United States would soon change its attitude. Informed sources said the ques- tion of United States recognition may depend on whether the mili- tary regime can return what the United States would consider some form of legality to the govern- ment. Reach Accord On Defense Bill WASHINGTON OP)-A Senate- House compromise group approved yesterday a defense money bill carrying $48.1 billion-some $229 million more than was asked by the Kennedy administration. The conferees rejected a last- minute appeal from Secretary of Defense Robert S. McNamara to delete from the final version a S e n a t e - approved directive to maintain the Army National Guard at a year-end strength of 400,000 and the Army reserves at 300,000. HONG KONG SMUGGLING: Refugee Flow Nears Crisis HONG KONG (R')-Government officials warned yesterday that a steadily increasing flow of sea- borne refugees from Red China is presenting this overcrowded Brit- ish colony a new major crisis. They estimated the human flow by sea has tripled in the last six months to more than 300 a day, or 10,000 a month. "The problem is more critical than the mass exodus of last May," one top official said. Crack Down The government has cracked down with stiff jail sentences for some refugee smugglers. It is con- sidering the destruction of Junks and other vessels used in the thriving smuggling trade. Close to 100,000 refugees from food - short Communist China stormed barbed wire barricades to seek asylum in Hong Kong in the mass exodus last May. But about 65,000 of these were intercepted by Hong Kong police and British troops and sent back. "The May exodus presented us a physically and emotionally ex- hausting problem," a police official said. "But most of it was over- land and, by straining all our re- sources, we could deal with it. Our, present problem is far more diffi- cult. Practically all the illegal immi- gration from Red China now is over water and nearly all of it at night. The refugees are smuggled Living Costs Set New High WASHINGTON (P') - Higher prices for restaurant rheals helped boost living costs to a new record in June; factory workers' earn- ings also reached a new peak. The Labor Department, an- nouncing the new figures yester- day, said higher costs for away- from-home meals and for fresh fruits pushed food costs to a new high. This pushed the department's Consumer Price Index up one- tenth of 1 per cent in June to 105.3 per cent of the 1957-59 aver- age-meaning the dollar is worth about a nickel less than in the former period. Robert J. Myers, deputy labor statistics commissioner, said a further slight living cost increase is likely in July. The government index has risen to new highs in four of the first six months of 1962. -at rates ranging from $3 to $100 (United States) per fugitive - in junks and other vessels that min- gle with the thousands of fishing craft dotting the waters separating Hong Kong and Red China. The government recently under- took a $2 million program to mod- ernize and re-equip its marine po- lice patrols. But the number of refugees is still increasing. Cheeks Impossible "It would be physically impossi- ble, especially at night, to check every fishing boat even if we post- ed patrol boats every mile for hun- dreds of miles, up and down the, coast," one official said. The over-water escape routes present Hong Kong another prob- lem. Chinese Communist authori- ties will not take back refugees caught at sea. "When a junk-load of refugees is intercepted by one of our patrol boats it's sent back in the direc- tion of the China coast," a police official said. "But as soon as our backs are turned, what's to stop them turning around and making another try?" U.S. Confirms French Blast WASHINGTON (P) - The D fense Department confirmed yes- terday that the coast and geodetic survey detected a French nuclear test in the Sahara May 1, but hung a curtain around the report of the findings. The problem of whether and how much information should be made public is on a State Depart- ment desk because: It involves technical data which could become part of the nuclear test ban negotiations with Russia at Geneva, and it concerns a nu- clear test by a friendly power. summmmme m Come to the Fair! Visit the So. University Street ART FAIR and find BARGAINS GALORE for Mom - Grandma Sister and Daughter at BARNARD'S where the clock has been turned back to the good old days of low prices and high quality, with a good old-fashioned SALE! Group, of " Bermuda Shorts " Sweaters " P~edal Pushers798 " Slacks " Dusters " Skirts many values orig. to 17.98 * DRESSES * SWEATERS 00 " SLACKS Values to 14.98' Sizes 8 to 18, 34 to 40 All Blouses (orig. 4.00), All Summer Purses Cotton Knit Tops Many odds and ends 298 ® DRESSES 0 Wool SKIRTS 700 0 JACKETS 0 SWEATERS Values to 14.98 I * WOOL SK IRTS Huge Group of Pastels 98 Slacks sizes 8 to 18. 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