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WEDNESDAY, SEPTEMBER 29, 1965
THE MICHIGAN DAILY
PA1
WEDNESDAY, SEPTEMBER 29, 1965 U~ A flu, 'Y'twtuuu,
!°P!(.a b 1 "REV,
West Doubts Kosygin Cure for Economic Ills
MOSCOW (M--Western diplo-
matic sources expressed doubt
yesterday that the economic re-
form proposed by Premier Alexei
N. Kosygin will cure the Soviet
Union's chronic economic ills.
The Central Committee of the
Soviet Communist party spent the
day discussing Kosygin's program,
which he introduced at the com-
mittee's initial session Monday.
The meeting was called specific-
ically to consider ways to pull the
Soviet economy out of the slump
it fell into in the last years of
Nikita S. Khrushchev's leadership.
Kosygin called for greater in-
centives for the labor force, more
reliance on the profit motive and
whittling down bureaucracy.
'Not Capitalism'
He argued that the Soviet Un-
ion is not going over to capitalistic
methods and said his reforms "will
strengthen the positions of social-
ism in the economic competition
between the two social systems."
But well-informed Western dip-
lomatic sources in Moscow said the
reform would not correct the basic
cumbersomeness of the Soviet sys-
tem, directed from the top and
stifling initiative on the opera-
tion level.
They predicted that the partial
use of the profit motive, cost ac-
counting and other capitalist de-
vices could well add to the con-
fusion and further set back pro-
duction.
Westerners said the Kosygin
program seemed a halfway at-
tempt aimed at holding the new
group leadership of the Soviet
Union together, and giving the
people hope for better times.
No Change
Kosygin said that "bourgeois
ideologists" were seeking to de-
pict the difficulties of the So-
viet economy as showing it would
have to go over to capitalism, but
he vowed that there would be no
change in the basic principle of
state ownership.
Kosygin and the Communist
party first secretary, Leonid I.
Brezhnev, who took over from
Khrushchev last Oct. 14, are seek-
ing to solidify their power at the
Central Committee meeting.
Last March, the committee took
up agricultural problems and pro-
duced a program Western observ-
ers regarded as having merit, but
this was ruined by bad weather.
The country is suffering another
wheat shortage.
The general Soviet public first
heard of the economic reform
when the party's paper, Pravda,
carried the text of Kosygin's
speech in its morning edition. The
government paper Izvestia, which
came out in the afternoon, also
featured the 15,000-word speech.
There was no comment.
More Incentives
The main change in the new
Kosygin program is that it gives
1
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Pak istan Demands Neutral
incentive for quality rather than
quantity. Under the new system
a factory will be rewarded only on
the basis of profit. Soviet factor-
ies previously were rewarded for
producing great number of goods
even if they wouldn't sell. The new
profit-incentive program is in-
tended to reduce the pileup of
these unwanted goods and to speed
up distribution. Now a factory
will not be-rewarded for produc-
ing many consumer goods if the
goods produced will not sell.
Kosygin also hopes to cut down
on the bureaucracy in the- eco-
nomic system by eliminating two-
economic agencies established' by
Khrushchev in 1962. Specialized
ministries will be combined with
more independence for industrial
managers in the daily operation
of their plants. The Supreme
Council of the National Economy
and the National Industrial Man-
agement Council are the agencies
to be eliminated.
Kosygin hopes that these eco-
nomic reforms combined with re-
cently granted shorter work week,
more wages, higher pensions and
lower taxes will stop growing dis-
satisfaction over the scarcity and
expense of consumer goods.
The new plan should provide
material incentives for the work-
ers as well as allowing more di-
rect contact between factories and
stores by elimination of bureau-
cratic state marketing associa-
tions.
Fundamental in the establish-
ment of the new system is the de-
cision to abolish the regional
councils-in operation since 1957
-which directed the nation's eco-
nomic management. Broader rights
will be given the 15 republics that
make up the Soviet Union in
planning and financing capital
investments'and in labor and
wage regulations._w
BOOKSTORE MEETING
Thursday, Setember 30-7:30
Room 3-R, Michigan Union
w w
ALPHA PHI OMEGA'S
25th Anniversary Sale
1965-66 Student Directory
ON SALE
October 5-6 ONLY
i
~UN
Troops
for
.:.
Viet Ran ers
Battle Con
~AIn Pass Area
North Vietnamese
Protest Guam-Based
American Bombers
SAIGON, South Viet Nam (P)-
Hundreds of Vietnamese rangers
and Viet Cong fighters were battl-
ing late yesterday in the Phu Cu
Pass area, a U.S. military spokes-
man reported.
The Viet Cong suffered heavy
losses last week in the area, which
is 295 miles northwest of Saigon
and 45 miles northwest of Qui
Nhon.
A Vietnamese army ranger unit
reported that it was engaged with
a large Viet Cong element, pos-
sibly one or two battalions.
About 600 men are in a govern-
ment ranger battalion and 500 to
600 in a Viet Cong battalion.
Meanwhile in Tokyo, North Viet
Nam protested yesterday against
the use of U.S. Guam-based B52
strategic bombers in Viet Nam and
the shelling of Viet Cong bases
in South Viet Nam by the U.S.
7th Fleet.
'Poison Gas'
The protest statement issued by
the foreign ministry and broadcast
by Hanoi Radio also accused the
United States of continued use of
"poison gas in many places."
The naval shellings and high
altitude bombings "were indis-
criminantely directed at villages,
schools, churches and pagodas,
causing many casualties, destroy-
ing houses and crops and most
seriously hampering the activities
of local people," the statement
charged.
In South Viet Nam a Vietnam-
ese army unit reported making
contact at a nearby point with a
Viet Cong group believed to be
of company size.
Tactical air strikes were launch-
ed to aid the government forces.
Since the Phu Cu action last
week, 250 Viet Cong bodies have
been counted by U.S. officers, and
both Vietnamese and U.S. military
men believe the number killed ex-
ceeded 700.
High Vietnamese military au-
thorities at the scene said Sun-
day that the Viet Cong dead were
from the 18th Regiment of the
North Vietnamese army's 325th
Division. U.S. advisers at the
scene agreed.
Enter Highlands
Intelligence reports some time
ago said the 325th had entered the
central highlands of South Viet
Nam, but there were later reports
that it had dropped from sight.
Government losses in the action
last week were described as mod-
erate.
A U.S. spokesman reported the
death of three Americans in the
crash of a chartered plane Mon-
day about 25 miles west of Saigon.
He said seven Vietnamese police-
men guarding the wreckage were
killed during the night by Viet
Cong small arms fire.
It was believed the plane was
shot down as it was coming in for
a landing at Bau Trai, in Hau
Ngai Province. It crashed about
200 yards short of the airstrip.
Killed in the crash were the
pilot and copilot of the Air Amer-
ica plane and Jack Wells of Col-
lege Park, Ga., an official of the
U.S. Operations Mission's public
safety department. The mission
charters planes from Air America,
a private airline.
Early yesterday 150 to 200 Viet
Cong with mortars and automatic
weapons attacked and 'overran a
Ayub, you don't expect me to fall for T
gag ...?
PUSH CHANGES:
D.C. Home Rule Opp
Kashmirk
Bhutto Asks
Both Armiest
To Withdraw4
Disputants Ignore n
Cease-Fire Pact; 200
UN Observers Sent r
UNITED NATIONS, N.Y. (/P)-
Pakistan demanded yesterday that
the United Nations compel India
to accept a U.N. force in Kashmir
while attempts are made to de-
termine the future of that disput-
ed state.
Z. A. Bhutto, Pakistan's foreign
minister, proposed in an emotional
policy, speech to the 117-nation
U.N. General Assembly that both
India and Pakistan withdraw their
forces in Kashmir, and that they
be replaced by a U.N. force re-
cruited from Asia, Africa and
Latin America.
The proposal came as the Unit-
ed Nations awaited anxiously the
outcome of the Security Council's
latest demand that' the two coun-
tries honor their agreement to a
cease-fire and withdraw' their
forces to positions occupied before
the outbreak of their undeclared
war last month.
Discouraging
Reports from the India-Pakistan
front were discouraging. Clashes
were reported in India's desert-
like Rajasthan state. Sporadic fir-
ing occurred on other sectors of
the Indian-Pakistan lines. It ap-
peared both sides were breaking
H 01(1the five-day old cease-fire at will.
'HAT oSecretary-General U Thant re-
ported that nearly 200 observers
had arrived, were on their way, or
preparing to leave to beef up the
U.N. observer corps.
Bhutto proposed that the U.N.
force remain in Kashmir pending
n to the outcome of a plebiscite -to de-
OStltoi 0 termine the state's future status.
But Indian Prime Minister Lal
Bahadur Shastri already has re-
jected any role for a U.N. force
in resolving the India-Pakistan
crisis, and India officials also have
opposed holding a plebiscite.
ep. Abraham J. Multer (D- Bhutto reiterated that Pakistan
), who is handling the bill, re- would have to consider withdraw-
d, "The facts are very simple. ing from the United Nations if
rybody knows we couldn't pass the Security Council fails to work
ill with automatic payments. out a permanent solution of the
didn't have enough votes." 18-year-old Kashmir dispute with-
he principal change Multer in a reasonable time.
others made in the bill was to No Help
inate a provision for automa- He said it would be dishonest
payments from the Treasury for anyone to suggest that the
al to what the federal govern- cease-fire mitigates the dangers
t would pay the city in real that lie ahead.
te taxes if it were a private in- Syed Mir Qasin, Indian minister
try. without portfolio, told the as-
he change would retain the sembly India would reply in de-
sent annual appropriation pro- tail to Bhutto on Wednesday. Sar-
ure, under which Congress it- dar S. Singh, the Indian foreign
determines how much it will minister, will arrive in New York
tribute. Wednesday to attend the assem-
ongress now governs the city, bly.
ng most tax rates and passing The Indian Defense Ministry
nicipal laws which are admin- said 'its troops had "liquidated
red by three appointed com- an enemy column" operating about
sioners. 28 miles southeast of the road
ome rule opponents had hoped leading from Barmer, Rajasthan,
etain the Senate-passed auto- to the Pakistani town of Gadra,
ic payment, so the new city now said to be in Indian hands.
ernment coudl be more sure of Capture Village
income. 'Our troops have also captured
a village called Sachu, 78 miles
northwest of Bikaner," an Indian
communique said, and added that
Pakistan occupied Sachu after the
cease-fire was supposed to have
11gone into effect last Thursday.
In another area, 240 miles
ez de la Campa, also listed southeast of Rawalpindi, a Pak-
ico City, Montevideo,sUruguay istani spokesman said six Indian
Santiago as centers for' Com- army men were captured Monday
nist traffic in Latin America. night while trying to probe Paki-
e la Campa was former minis- stani defenses in the Khem
counsellor in the Cuban em- Karan-Husseiniwala sector.
sy in Madrid. There was no possibility of sep-
arating the withdrawal of forces
VASHiINGTQ -The Navy dis-in Kashmir from a withdrawal
seastigtNthesad- along the western front, the in-
ed last night that it has placed formant said.
LENOY IMPORTS
DISTINCTIVE GIFTS
Mexican Handicraft
Sweaters
Pottery
MAYNARD HOUSE
I
!
WHY NOT, DAMMIT?
-SGC Committee on the University Bookstore
Woolen Goods
Sara pes
Gifts
524 E. WILLIAM
WASHINGTON (RP)-Opponents
pushed for a series of changes yes-
terday in a bill which would let
citizens of Washington govern
themselves.
Republicans sought particularly
to knock out a provision which
would permit partisan election of
the mayor, city council and other
officials with federal employes
participating.
This would ease the Hatch Act
ban on partisan political activity
by government workers. The bill
calls for patisan balloting in years
between presidential elections.
Washington registration is pre-
dominantly Democratic.
Home rule backers won two
quick test votes on procedural
questions Monday as the bill was
taken up for consideration. They
said the votes of 213 to 183 and
222 to 179 support their contention
of a comfortable margin for pas-
sage of the measure later this
week.
As debate began, Rep. Howard
W. Smith (D-Va), chief strategist
for the opponents, called the bill
a monstrosity.
He said those voting for the bill
were plotting against their own
constituents.
Rep. Adam Clayton Powell, the
Negro Democrat from New York's
Harlem, said the only reason home
rule for the District of Columbia
is an issue today is because a
majority of its citizens are Negro.
"That single shameful truth
about this legislation obscures and
overrides all other considerations.
Deep in our hearts, we all know
that the numerical fact of life
about our nation's capital-that
a majority of its citizens are black
-has alone shoved the home rule
bill into the watershed of contro-
versial legislation," Powell said.
Powell's prepared speech was
released by his office for publica-
tion in advance of its delivery.
Rep. Joel Broyhill (R-Va) said
the bill's backers "have admitted
it is a bad bill" by changing it last
week" in clandestine meetings or
a smokefilled room."
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Differing Philosophies:
By The Associated Press
WASHINGTON-A fierce lob-
bying contest is raging behind the
scenes as a Senate showdown
nears in the struggle over repeal
of the federal provision authoriz-
ing state bans on the union shop.
It pits a lobbying task force
from the AFL-CIO against the
forces of the National Right to
HAYNEVILLE, Ala:-An attor-
ney defending a part-time sheriff's
deputy in the slaying of a civil
rights worker yesterday said he
would show that the victim or one
of his companions was armed at
the time of the killing.
The remark by State Sen.
Vaughn Hill Robison, chief de-
fense counsel, punctuated open-
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WAYNE STATE:
MICHIGAN:
"The University shall continue to operate a bookstore whose
purpose is to provide service to the students. In keeping with this
general policy, the Bookstore shall sell books at reasonable dis-
counts." (Wayne State Board of Governors, March 18, 1965)
"Resolved, That it is not and will not be the policy of the Re-
gents of the University of Michigan to encourage or approve