SATURDAY", JULY 1, 1967
THE MICHIGAN DAILY
SATURDAY, JULY 1,1967 THE MICHIGAN DAILY
Chief of State Lieu
Heads Team After
Council Prevents Split
SAIGON (R)-A military presi-
dential ticket headed by Chief of
State Nguyen Van Thieu, with
Premier Nguyen Cao Ky in the No.
2 spot, emerged from political
Consolidating rival candidacies,
with unified backing of the 600,-
000- man armed forces which con-
w trol communications and the bulk
of South Vietnam's transport
facilities, Thieu and Ky seem cer-
tain to outdistance civilian candi-
dates in the election Sept. 3.
That electon s ntended to re-
store civilian government.
Ky Pressured Out
The race took on new meaning
as Ky, who announced his candi-
dacy for president May 12, bowed
out under pressure within the
Armed Forces Council on behalf of
Theiu, who tossed his cap into the
ring June 14. The council ap-
A uThe State Department declared
full U.S. neutrality in the Viet-
namese presidential race Friday
and firmly denied news dispatches
which alleged that Washington
had taken sides. The White House
meanwhile kept silence.
"Everyone was surprised, includ-
ing the participants,' a high U.S.
A Vietnamese government source
said Ky, in withdrawing and
agreeing to run for vice president,
was making a patriotic sacrifice
to avoid'splitting the armed forces.
But is was apparent that the
premier, riding high with a
month's head start on Thieu, had
lost so much support among the
50 or so ruling generals that he
had to take a back seat.
Thieu, 44, is a lieutenant general
in the army. He is a native of cen-
tral Vietnam and a Roman Cath-
olic, the religion of a small but in-
fluential minority. Though his
post as chief of state is largely
ceremonial, he, technically out-
ranks Ky, the administrator.
Ky, 36, has run South Vietnam's
government for two years. He is a
vice marshal who still commands
the air force. He is a native of
North Vietnam and a Buddhist,
the religion of most Vietnamese.
The importance of the military
backing stems from the fact that,
with about a dozen entries, the
ticket with the most votes will win,
regardless of whether it gets a ma-
jority. No other candidates have a
bloc so large as the 600,000 that
;resumably will be solidly behind
Thieu and Ky.
The servicemen represent more
than 10 per cent of South Viet-
nam's estimated 5.2 million voters.
The struggle between Ky, came
to a climax after three days of
sometimes heated discussion among
the ruling generals, who almost to
a man, were worried that the com-
petition would split the military.
The meetings were highlighted
by -shouting matches between the
two men. Several propositions were
kicked around, including the for-
mation of a caretaker government
to run South Vietnam while Ky an
Thieu battled for votes.
With about 40 generals on hand
at the showdown, Ky finally
agreed to run with Thieu.
Ky's suport apparently had suf-
fered because. of a series of com-
plaints that he was using govern-
ment agencies in his campaign.
HINDERS DEFERMENT STACKING:
Johnson Signs Draft Bit
Ends Use of Tests, Rank
Admit Ship Bombing Possible
SOVIET PREMIER Alexei Kosygin (center) will go from talks with Cuban Prime Minister Fidel
Castro (right) to talks with French President Charles De Gaulle. An interpreter aided communica-
tion between the two Communist leaders today in Havana.
UN Delays Mideast Resolution;
Kosygin, de Gaulle To Parley
WASHINGTON M)-U.S. war-
planes may have bombed a Soviet
cargo ship in Haiphong harbor
while attacking nearby North
Vietnamese anti-aircraft positions,
the Pentagon said yesterday.
The incident-the second in less
than a month-drew a "resolute
protest" from Moscow and a Soviet
demand for "strict punishment of
"Although pilots are under in-
struction to avoid Soviet ship-
ping," the Defense Department
said, "it is possible that certain
of the ordnance directed aththe
anti-aircraft site fell on the ship."
It said the air defense installa-
tion under attack was about 500
yards from the ship.
The Pentagon ordered an in-
It avoided any flat statements
that might boomerang, as happen-
er June 18 when it had to retract
a denial that American planes had
struck another Soviet freighter at
a small port northeast of Hai-
phong. Moscow reported one killed
and several wounded in this epi-
The" Soviet government identi-
fied the ship involved in the latest
incident as the Mikhail Frunze. It
said the merchantman was dam-
aged but made no mention of any
death or injuries to Soviet crew-
men aboard. The Russians report-
ed the ship struck June 29 by an
anti-personnel bomb of the type
often used against anti-aircraft
At the same time, the official
East German news agency ADN
claimed that American bombers
had hit four merchant ships while
attacking oil installations near
It identified the ships as the
Frunze, the British vessel King-
ford, the Italian ship Bertain, and
a Chinese craft called Kong Ky157.
All were damaged, ADN said.
The Pentagon's statement made
no mention of any vessel other
than the Soviet.
The Pentagon said that com-
manders. have been asked to ex-
amine flight paths taken by the
iAmerican warplanes and post-
strike photographs to gather all
U.S. military sources said the
Navy planes, based on a carrier in
the Gulf of Tonkin. were using
cluster bombs against heavily con-
centrated anti-aircraft guns.
The cluster bomb is anything
but a precision weapon. It is chief-
ly an anti-personnel projectile and
achieves its results by spraying
hundreds of ball-bearing size pel-
lets over wide areas.
They are used not only against
anti-aircraft sites but against
other "thin-skinned targets" such
as trucks and light armor.
SAN ANTONIO W)-President
Johnson signed into law yester-
day a four-year extension of the
military draft and changed stu-
dent deferment rules.
Through an executive order,
Johnson revised the basis for un-
dergraduate deferments, restrict-
ed deferments for graduate stu-
dents and sharply limited "the
pyramiding" of deferments-get-
ting one after another to avoid
The order also includes standby
authority for the induction of
19-year-olds first, but this will not
be used immediately.
The former draft law had per-
mitted drafting of 19-year-olds,
but in practice older men up to
25 had been taken first.
The Senate and House, in com-
mittee reports, had approved the
shift to the earlier age group.
The complex executive order
scraps the old system of basing
undergraduate deferments on test
scores and class standing. The
new rules will grant deferments
to those who satisfactorily pur-
sue fulltime studies. These defer-
ments will continue until the
young man gets his bachelor's
degree, drops out of school or
reaches the age of 24-whichever
That provision had been written
into the law by Congress, which
rejected a presidential advisory
that educational deferments be
The individual thereafter would
not be eligible for other types of
deferments except for occupa-
tions or graduate study deemed
necessary to the national interest
or because induction would im-
pose an extreme hardship on de-
Deferments will be given for
graduate study of medicine, dent-
istry, veterinary medicine, osteo-
pathy and optometry.
Students who have been accept-
ed for graduate study in any field
will be given a one-year grace
period before they are eligible for
induction. The same applies to
those already enrolled in graduate
The executive order also will
permit women to serve on local
draft boards and will limit service
on local boards and appeals
Raise Dept. Ceiling;
Current IDeficit Up
By The Associated Press
The permanent ceiling on the
national debt was raised by legis-
lation signed by President John-
son yesterday from $285 billion to
$385 billion, with a temporary in-
crease to $365 billion for fiscal
1969 which starts a year from Sat-
The debt yesterday stood at $327
billion, covered by temporary in-
creases which have been sought by
the administration and granted by
In the absence of new legisla-
tion, the limit would have reverted
at that time to the old permanent
figure of $285 billion, and the gov-
ernment still would have been far
in the red.
The Treasury would have been
unable to pay bills and meet gov-
ernment payrolls in about two
weeks, officials said.
Beside the $22-billion imme-
diate increase, the new ceiling
provides an automatic $7-billion
increment in a year, to be renewed
annually and to cover seasonal
fluctuations in the debt.
The increase is the second this
year allowed by Congress to enable
the Treasury to finance continuing
budget deficits. The limit had been
increased March 1 from $330 bil-
lion to $336 billion.
Yesterday the federal govern-
ment ended a fiscal year with its
second-highest deficit in the na-
tion's "peacetime" history.
The deficit is expected to grow
even larger in the fiscal year
which begins Saturday even if
Congress raises taxes to help pay
for the Vietnam war and stem in-
Although the tabulation of final
tax and spending figures won't
be completed for another three
weeks, Treasury officials estimated
the year-end deficit at about $11
billion, exceeded only by those of
World War I, World War II and
Even the deficits during the
Korean War failed to exceed the
The latest estimate for the fiscal
year which begins Saturday is a
deficit of about $13.6 billion with-
out any major escalation of troop
;trength in Vietnam.
The Vietnam war is largely re-
sponsible for the heavy deficits in
both the old and the new fiscal
Lower-than-expected tax collec-
tions also helped raise the deficit
from the $9.7 billion figures by
the administration last January.
Officials now expect tax collec-
tions to fall abou $500 million
below their earlier estimates to
$116.5 billon. Over-all spending of
about $127.5 billion, about $800
million more than expected last
January, raised the anticipated
deficit to $11 billion.
boards to 25 years, with no one
serving after age 75.
It rejected the presidential com-
mission's recommendation that
the local boards be consolidated
into 300 to 500 units, with actual
registration and classification of
youths handled by federal em-
The new law also rejected a lot-
tery-type method proposed by the
commission for selecting youths to
be called and determining the
order of their induction.
By The Associated Press
The United Nations General
Assembly yesterday postponed a
showdown on compromise solu-
tions seeking withdrawal of Israeli
troops from former Arab territory
as Soviet Premier Alexei Kosygin
and French President Charles de
Gaulle prepared for a today meet-
ing on the crisis.
With support of the United
States, 18' Latin-American coun-
tries submitted the newest resolu-
tion, setting no time limit for an
Israeli withdrawal. It called for
an end to the state of belligerency
by all sides and a resort to peace-
ful settlement of all disputes.
In view of the Latin-American
proposal, Denmark and other
countries dropped plans to submit
their own compromise resolution.
Soviet Foreign Minister Andrei
A. Gromyko showed up for the
afternoon session of the assembly.
He told reporters the nonaligned
resolution was a good one.
The Israelis remained steadfast
in their opposition to the non-
aligned resolution despite the
changes. They were inclined to
look with more favor on the Lat-
in-American proposal, but there
was no official Israeli comment.
At the end of the second week
of the emergency special session
the general debate was over, and
the delegates turned to consider-
ation of resolutions.
Since Soviet Premier Kosygin
stopped in Paris June 16 on his
way to the United Nations and
talks with President Johnson, De
Gaulle has put aside his middle-
To the cheers of the French
Communist party and the con-
sternation of some of his most
faithful followers, De Gaulle pub-
licly accused Israel of firing the
first shots in the June war with
the Arabs. He also repeatedly re-
minded Israel that France does
not recognize any claim to Egyp-
tian, Jordanian and Syrian terri-
tory occupied by Israeli troops.
De Gaulle's present posture on
the Mideast can only improve the
already cordial atmosphere be-
tween him and his guest when
they sit down at Elysee Palace as
Kosygin stops off on his way
home from talks in Havana with
Prime Minister Fidel Castro. But
whether they will be able to do
anything to push the Mideast im-
passe off dead center seems
JACKSON, Wyo. (P)-Republi-
can governors urged their party
yesterday to avoid formal advance
commitments to presidential can-
They said the move would pro-
mote party unity and produce an,
active national campaign for the
They exempted states with bind-
ing presidential primaries and for
Republican favorite-son candi-
The political impact of the res-
olution was unclear. It came after
two days of inconclusive corridor
talk about the 1968 race.
The Jackson conference pro-
duced no gubernatorial consensus
on a candidate for-1968.
But New York Gov. Nelson A.
Rockefeller and Rhode Island
Gov, John H. Chafee were active-
ly pursuing support for Gov.
George Romney. They won no an-
nouncements of endorsement.
And the resolution on conven-
tion delegates was the governors'
only formal action on the 1968
race. Gov. David F. Cargo of New
Mexico called the resolution "an
exercise in the niceties" he ex-
pects to have little effect.
Chafee, vice chairman of the
conference, said he read into the
resolution no advantage or dis-
advantage to any potential can-
Gov. Daniel J. Evans of Wash-
ington said he thinks the resolu-
tion will have some effect in
about 35 states which are not re-
quired by law to bind their dele-
gations or have no favorite-son
Chafee said California Gov.
Ronald Reagan and Romney, two
absentees with potential stakes in
the governors' action, were not
consulted about the resolution.
The governors can enforce their
proposal only through persuasion.
While it would seem to call for a
wide-open nomination campaign,
convention delegates are as often
bound by personal pledge as by
The governors will confer again
in Florida next December.
World News Roundup
By The Associated Press
BONN, Germany - Chancellor
Kurt George Kiesinger has can-
celed' his July trip to the United
States because of what a govern-
ment spokesman described yester-
day as "differences within the
Cabinet on financial que stions."
The spokesman said President
Johnson had been informed of the
cancellation and "expressed his re-
grets and understanding."
Kiesinger had planned to hold
talks in Washington with Johnson
July 7-8. Both expressed hope that
a new date could be set soon.
Kiesinger was to have been ac-
companied by Foreign Minister
Willy Brandt. Brandt also canceled
his trip, indicating there were ma-
jor differences within the coalition
VACATION CITY - Whitney
M. Young Jr., American Negro
civil rights leader, told Pope Paul
VI Wednesday at an audience
that the Christian churches have
done too little for too long in the
cause of improved race relations.
Young said later he had ap-
pealed to the Pope for leadership
in "a crusade to change men's
hearts" and added: "The Pope
indicated that he was accepting
Young, executive director of the
National Urban League, saw the
Pope for a few minutes after the
weekly papal general audience in
St. Peter's Basilica.
* * * *
NEW YORK - The American
chemical, textile and leater in-
dustries yesterday criticized the
"Kennedy Round" tariff cuts.
They felt that the results would
be harmful to them by opening
the doors to more imports without
equal export benefits.
S. Stewart Graff, secretary of
the Synthetic Organic Chemical
Manufacturers Association, said
newly disclosed details of the
agreements "confirm our indus-
try's worst fears regarding the
one-sided bargain reached by our
negotiators in Geneva."
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