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August 04, 1967 - Image 3

Resource type:
Michigan Daily, 1967-08-04

Disclaimer: Computer generated plain text may have errors. Read more about this.



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£ £'3U '1AEEtbE.*5



Tax Hike



Adds 45,000


1o F.
10 Per Cent
Wants Prompt Action
On New Fiscal Plan;
Changes 'Temporary'
WASHINGTON (P) -President
Johnson called. on Congress yes-
terday to enact promptly a 10 per
cent surcharge on individual and
corporate income taxes, partly to
pay for a new troop buildup in
In submitting his tax plan in a
special message, Johnson promised
to hold down spending as much
as possible and he asked Congress
to do the same.
With increased taxes and reins
on spending, he said, the budget
deficit for the fiscal year which
ends next June 30 can be held to
between $14 billion and 18 bil-
Otherwise, he added, the deficit
could go as high as $29 billion.
Midyear Review
Johnson said a mid-year review
of his budget shows defense
spending will rise an additional
$4 billion above the approximate
$75 billion projected in January.
In describing his message as
a "financial plan for America's
continued economic well-being,"
Johnson proposed that the sur-
charge on individuals take effect
on Oct. 1 while that on corpora-
tions be made retroactive to
July 1.
Johnson called the surcharge
temporary and said it would ex-
pire on June 30, 1969, "or continue
for so long as the unusual expen-
ditures associated with our efforts
in Vietnam require higher
He refrained from labeling the
surcharge a "war tax," however,
and said it Is designed also to
stem inflationary pressure, hold
down interest rates, keep "Great
Society" programs moving in
view of recent racial disturbances
and safeguard prosperity.
6 Per Cent Surcharge
Johnson last January prdposed
a 6 per cent surcharge to take
effect last July 1 but administra-
tion leaders have repeatedly indi-
cated the rate could go higher.
There had been speculation in
recent weeks of a surcharge as
high as 10 per cent.
Under the surcharge, a person
would add 10 per cent to his pre-
sent tax bill.
For example, an average family
or four with an income of $10,000
plays about $1,100 in federal taxes
under present rates. Under the
surcharge the family's tax bill
would increase by $110 over the
course of a year.



Ridildr n

To Forces in War Zone

UJ UV'U4. .,E..A

L X A LjWASHINGTON -- President 461,000 total which was posted ing "may exceed our earlier esti-
Johnson announced yesterday that at the time the President spoke. mates." He said that based on
he had authorized an increase of Officials said the reduction is a present plans defense expenditures
at least 45,000 more troops to be statistical matter and does not in .fiscal 1968, which ends next
sent to Vietnam. "represent a drop in actual op- June 30, may top the authorized
After the President's authorized erational strength." budget "by up to $4 billion."
C vil o iet boost in troop strength is com- Rather, is was explained, the Review
pleted, the actual number of men reduction reflects the number of To help offset this increase,
in uniform in Vietnam will be transient-departing troops and Johnson said he has asked Secre-
Il 'eases'about 525,000. their coming replacements-who tary of Defense Robert S. McNa-
In a briefing outside the mes- are in the manpower pipeline at mara "to conduct a searching re-
sage itself. the President talked of any one time. These are no longer view of all defense expenditures"
Ins de C1111 a 45,000 to 50,000 increase. Thus, being counted as part of the in- and postpone any spending "not
the actual buildup by the end of country force. now essential for national secu-
Tthe year would be above 60,000. Suply Arms rity."
TOKYO v(M-New and wide- Recommendations "This nation." the President Defense officials told newsmen
sprea vionce hasmmuted C Johnson said he had reached said in disclosing the troop in- last week some planned aircraft
many parts of Communist China!1
in a continuing tense struggle for his decision after considering rec- crease, "has taken a solemn pledge purchase are being cut back be-
power, reports from the mainland ommendations of Defense Secre- -that its sons and brothers en- cause war losses in recent months
indicated yesterday, and a Mos- tary Robert S. McNamara, the gaged in the conflict there shall have not been as high as pro-
sdtheJoint Chiefs of Staff and Gen. never lack all the help, all the iected.
tion of 700 million was headed for William C. Westmoreland, com- arms and all the equipment es- Phil G. Goulding, the Penta-
civil war. mander of allied forces in Viet- sential for their mission and for gon's chief spokesman, refused to
T r a e 1 e r s from Communist nam. their very lives. comment when asked how far the
China were quoted in Hong Kong Currently, according to figures "America must - and will - newly authorized 45,000 troops
as reporting bloody fighting be- revised yesterday, there are 454, honor that pledge." went toward meeting recent re-
tween more than 20,000 support- 000 men in Vietnam, down from a The additional forces mean quest of Gen. William C. West.
ers and foes of Mao Tse-tung in 464,000 total which was being used higher war costs, and the Presi- {moreland, the U.S. commander in
Hunan, Chairman Mao's native by the Pentagon on July 1 and a dent warned that Vietnam spend- Vietnam.
province. Additional 70,000

-Associated Press
PRESIDENT JOHNSON YESTERDAY signed his proposal to Congress calling for "a temporary
surcharge of 10 per cent" on both individual and corporate income taxes.
Viet Presidential Candidate
Calls for Peace Negaotiations

SAIGON WP) - Two civilians
teamed in South Vietnam's presi-
dential race called yesterday for
peace negotiations with the Com-
munists "at all levels, including
the National Liberation Front" of
the Viet Cong.
This controversial p r o p o s a 1
marked the official opening of the
campaign for votes in the national
election Sept. 3.
By injecting the issue of nego-
tiations with the Viet Cong into
the campaign, Phan Khao Suu
and his running mate, Phan
Quang Dan, put themselves in
direct opposition to the stand
taken by the military ticket con-
sidered to be the best bet to win--
Chief of State Nguyen Van Thieu
and Premier Nguyen Cao Ky.
Peace Candidate
Since the legislative assembly
eliminated a ticket headed by
peace candidate Au Thruong
Thanh two weeks ago, it has been
believed that peace-and especial-
ly peace by negotiation with the
Viet Cong-was a dead issue.

Another ticket, headed by law-
yer Truong Dinh Dgu, declared
it was determined to stop the war.
It proposed a ceasefire, a halt in
the bombing of the North and a
second Geneva conference.
Some of the other 11 presiden-
tial candidates also called for
peace, but "not at any price."
Most of them indicated they con-
sidered negotiations with the Viet
Cong would be too high a price.
As before the campaign, the
ticket of former Premier Tran
Van Huong and Mai Tho Truyen
offered a platform of stolid non-
controversy. The Huong-Truyen
ticket, considered by observers to
be the leading civilan slate, pre-
sented a platform that differed
only slightly from that offered
by the military ticket of Thieu
and Ky.
One note of possible difference
was contained in a report by a
Saigon news agency, Tin Viet,
that Huong had decided to name
Au Truong Thanh, the former
peace candidate, as his economics
minister in the event he won.
Thanh served at one time as Ky's
economics minister.
But the fact remained that
Thieu and Ky are still the front
runners in the Sept. 3 election.
Their advantages showed up in
a mass appearance of the candi-
dates on Vietnamese television.

All the candidates were allotted
five minutes to speak. Although
some of the civilian candidates
spoke for as long as six minutes,
Thieu spoke for at least 10. The
introduction he was given also
was longer than that given any of
the other candidates.
Thieu spoke from a special
podium. The other candidates
were given less glamorous settings.
All of the presidential and vice-
presidential candidates were pres-
ent for the television program ex-
cept Premier Ky.
Ky has said he will not do any
campaigning. But just being pre-
mier means that he will be mak-
ing appearances all over South
A special government airlift
will fly the candidates to 22 loca-
tions around the country during
the month. Thieu plans to go on
only a few of the trips and Ky
says he will not go on any.
Thieu and Ky are running on a
platform of building democracy,
solving the war and social im-
provement, or as Ky says "social
They will say they have been
attempting to meet these goals
in the two years they have been
in power, but that the war re-
quires so much of the national
effort that it has been impossible.

In the long uneasy, populous
south China province of Kwang-
tung, numerousdisordersaand
pitched battles were reported to
have been breaking out sporadi-
cally, and reports reaching Tokyo
said the Peoples Liberation Army
had taken over there long ago be-
cause of what Premier Chou En-
lai described as "the extreme ur-
gency of the situation."
In turbulent Wuhan, the big
triple city of Hupeh Province and
economic heart of China, a Jap-
anese report from Peking said
that Chen Tsai-tao, rebellious
commander of an army brigade,
had been fired after a bloody out-
break led by dissident army men.
A Tass news agency dispatch
in Moscow, attributing its infor-
mation to unnamed sources, said
"witnesses arriving from China
report that the situation in cen-
tral and south China increasingly
resembles a civil war,"
"There are thousands of killed
and wounded," it said. "Helicop-
ters are dropping leaflets, urging
a stop to the bloodshed. Hungry
peasants are looting food stores.
Continued clashes are reported
between Mao Tse-tung's support-
ers and anti-Maoists and also
among servicemen."
The Hong Kong reports on the
violence in Mao's home province
of Hunan said both sides fought
with sharpened wooden or steel
rods and added that occasional
shots were heard.
One informant said the clash
had been "going on for seven days
and has greatly affected train
traffic between C a n t o n and
There also were reports in
Hong Kong that anti-Maoist rail-
road workers had repeatedly sab-
otaged the line between the Brit-
ish colony and Canton and Hong
Kong officials said a sharp drop
in the number of trains from Red
China had been observed.
The army takeover in Kwang-
tung Province occurred in March,
the Canton Kung-jen Chan-Pao,
or Workers' Combat Bulletin, re-
ported. The decision was made,
the bulletin said, by Mao and the
Central Committee of the Chinese
Communist party.
The following month, the bul-
letin said, Chou visited the pro-
vinde and, speaking of the urgency
of the situation, expressed confi-
dence in the military leadership.

ville, Tenn., police captain testi-
fied yesterday that the Student
Nonviolent Coordinating Commit-
tee is teaching Negro children
"pure, unadulteratedehatred of the
white race," in a summer school
subsidized by the federal govern-
The captain, John Sorace, said
the subsidy is a $7700 grant from
the Office of Economic Opportuni-
And he charged that militant
Negroes who took part in Nash-
ville's racial rioting last April are
among the teachers at the school.
OEO Grant
"SNCC in Nashville is now the
recipient of an OEO grant and
this is a real problem," Sorace
told the Senate Judiciary Com-
mittee, which is looking into the
recent waves of riots in Ameri-
can cities.,
He said the grant did not go to
the organization directly, but to
a man named Fred. Brooks, whom
he identified as SNCC chairman
in Nashville.
Sorace said Brooks is the di-
rector of the North Nashville Stu-1
dent Summer Project.
"They're running what they call
a liberation school," Sorace said.
He said the school is supposed to

Policeman Critic0iz
'Liberation' School

iitary men nad
immediate approval
tional 70,000 men.
what Westmoreland

noped to get
for an addi-
sought from

teach Negro history and culture'
and inspire pride in race among
colored children.
"According to our informants,
they're also teaching hatred for
the white man," Sorace said.
"We believe in this instance, the
federal funds are helping to per-
petuate the problems of our ci-
Earlier, Mississippi Sen. James
0. Eastland said Negro rioters in
American cities "follow tactics us-
ed by the Communist party the
world over."
The spokesman said the libera-
tion school is open to both Negro
and white children and is similar
to programs operated elsewhere in
the country.

the President has not been dis-
closed but sources said he is un-
deistood to have'expressed a need
for additional units which would
have raised the U.S. force to
around 550,000 men by mid-1988.
Some officers took consolation
that the President used the phrase
"at least 45,000."
The 454,000 Americans now
comprising the U.S. military force
in Vietnam compares with 297,000
North Vietnamese and Viet Cong
forces. The U.S. total includes
291,000 Army, 78,000 Marines,
55,000 Air Force, 29,000 Navy and
12,000 Coast Guard.
Other free-world forces amount
to 56,000.
The administration currently is
placing great emphasis on more
effective use of the existing Amer-
ican and allied units now in Viet-

__ _... _ _------.._ _ W u



Leave from Hillel at 1 :30
Bring your own food-Hillel will provide pop

Everyone Is


1429 Hill St.


i t ~v.
. __ _.. _.___..__._. ____. ..._-_.___.._ _.___. . .......... v. .. . ...__._....... .. ...® . .._._._. . r- ... .
I I I w

World News Roundup

By The Associated Press
WASHINGTON - Rep. Maston
O'Neal (D-Ga), introduced a reso-
lution yesterday calling for federal
prosecution of Stokeley Car-
michael if he returns to the Unit-
ed States from Cuba.
Carmichael, former chairman of
the Students Nonviolent Coordi-
nating Committee has been in
Havana attending a revolution
planning meeting and making
statements about guerrilla action
in the United States.
O'Neal's resolution states: "It is
the sense of Congress that if Sto-
kely Carmichael returns to the
United States the attorney gen-
eral of the United States should
institute criminal proceedings
against him under the laws of
the United States which provide
penalties for sedition."
In a speech prepared for de-
livery in the House today, O'Neal
said "The people of the United

States are experiencing a sort of
collective perplexity concerning
the Justice Department's failure
to do something about the in-
famous Stokely Carmichael.
* * *
NEW York-Blaming the cur-
rent copper strike, Phelps Dodge
Copper Products Corp. announced
yesterday it would add a sur-
charge equal to three cents a
pound to the invoice price of most
of its fabricated products during
The firm, a manufacturing sub-
sidiary of the struck Phelps Dodge
Corp., said the surcharge would
not apply to rod. It said the
charge was being made "to par-
tially compensate the firm for
copper it must purchase at pre-
mium prices from other than do-
mestic producer sources."
It said its supply of copper had
been shut off by a strike at its
parent firm's mines and at the
El Paso refinery.



the emu summer theatre
production of




In the intimate Quirk Amphitheatre at 8:00 P.M.
For information and reservations Dial 482-3453



'a' + ° '

August 3 through 5, 8:00 P.M.

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