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March 27, 1966 - Image 3

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The Michigan Daily, 1966-03-27

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SUNDAY, MARCH 27, 2966

THE MICHIGAN IIAILV

PCUA ". £UIZTLZI

SUNDAY, MARCH 27, 1966 THE MICHIGAN flAII'~

CHIaC: 1'tilGr,

5

Inflation

Control Eases

Pressure

for

Tax

WASHINGTON (fP)-High ad-
ministration officials believe the
odds against another Viet Nam
tax increase have risen because of
apparent successes in reducing
some inflationary pressures.
They give part of the credit to
a government-wide campaign to
ease the cost pressures on indus-
try by prying open some supply
bottlenecks, striking at such trou-
ble spots as they develop.
Under "orders from President
Johnson, the White House has co-
ordinated a dozen or more moves
made on individual commodities
to reinforce the basic anti-infla-
tionary weapons which have been
brought into play - the credit-
tightening operations of the Fed-
eral Reserve Board and the $6-
billion'tax bill just passed by Con-
gress._
Where looming shortages have

threatened to push prices up, fed-
eral agencies have moved rapidly
to release metals and other mate-
rials from the defense stockpile,
tighten export controls to conserve
domestic supplies, sell grain from
surplus stocks, curb the Defense
Department's buying of some foods
served to troops, and encourage
government contractors to sub-
stitute more plentiful materials
for scarce ones where possible.
None of these measures has re-
ceived the publicity of the pres-
sure and persuasion plays by the
President's Council of Economic
Advisers which brought the roll-
back of an aluminum price in-
crease and partial rollbacks of an-
nounced price advances on struc-
tural steel and cigarettes.
But a White House official said
privately yesterday:
"The commodity by commodity

approach is working. We've had
some real successes in the basic
metals - copper, aluminum and
steel. We see signs that food prices
are starting down, although this
may not be reflected in the con-
sumer indexes for a month or
two."
This source added:
"There is much less pressure
from Congress at this moment for
a quick anti-inflationary tax in-
crease."
"We have been advised that
some members were surprised at
the disagreement on this question
among the professional economists
who testified in the recent Senate-
House Economic Committee hear-
ings. Some influential members
now seem more disposed to wait
and see whether the tax program
now taking effect will have the
desired cooling-off results."

The President has ruled out any
immediate general tax action. He
told a news conference on Tuesday
he is watching every economic in-
dicator closely and has seen some
favorable trends recently - slight
decreases in retail sales and in new
orders reaching durable goods
manufacturers; a further decline
in housing starts; a drop in the
money supply, and cutbacks in
state and municipal bond floata-
tions.
However, officials concede that
the hazard of inflation has been
heightened by a faster than ex-
pected rise of the economy-to a
probable $730 billion or more of
national output this year instead
of $722 billion foreseen in January
by the Economic Council.
Scores of price increases have
been posted in recent weeks on
items ranging from meat and beer

to lumber and gasoline, and some
delays in delivery of textile, rub-
ber, and chemical products have
developed.
To counter such shortages, 10
or more bills have been sent to
Congress to permit the disposal of
stockpiled commodities-including
aluminum, platinum, sisal fiber,
molybdenum, asbestos and vana-
dium-to ease price pressures and
shortages.
"We are getting absolutely won-
derful cooperation from the House
Armed Services and other commit-
tees on speeding up the hearings
of these bills," an administration
official said.
A second release of 200,000 tons
of copper from the defense stock-
pile will ease the worst shortage
of all, officials believe. They now
predict that available supply will
tide industrial users over until new

capacity becomes available by the
end of the year.
White House sources give high
praise to the major American pro-
ducers by standing by their prices
of 36 cents a pound while world
prices soared to twice that level.
The government has released 1.5
million pounds of tungsten from
stockpile and announced that an
additional five million pounds will
be offered for sale. The release of
vanadium from stockpile this
month-the third disposal in six
months-is expected to bring sup-
ply into balance with demand this
year.
Improved supplies of 'platinum
have brought a welcome decline in
the world price.
On March 11, the Commerce
Department imposed export con-
trols and quota limitations on out-
going shipments, and prices have

dropped 15 to 20 per cent since
then. Officials now believe the
shortage will be wiped out by the
end of the year.
In this and many other cases,
requirements due directly to the
Viet Nam war are a minor factor
in the shortage. Booming world
demand for hides, at a time when
Argentina has drastically reduced
its exports, put heavy strain on
American supplies.
Government sources said yester-
day that in separate meetings with
the President's advisers, shoe man-
ufacturers and retailers agreed to
do what they can to hold down
prices. But they made no firm
promises.
The export curbs were welcomed
by the shoe industry but protested
by cattlemen and others who
argue that although hide prices

Boost
have risen they still are below
1951 levels.
These critics found support
Thursday in the House Agriculture
Committee which adopted a reso-
lution asking reconsideration of
the curbs.
In addition to instructing gov-
ernment contractors to use sub-
stitute materials wherever possible,
the General Services Administra-
tion reportedly is considering a
shift from leather to plastic in
furniture coverings and other pro-
curement items. And it has asked
that aluminum replace copper in
electrical equipment where fea-
sible.
The Agriculture Department has
accelerated its sales of corn from
surplus stocks. Prices have de-
clined, and officials hope that this
will be reflected in a drop in the
price of pork.

WIDER SINO-SOVIET SPLIT?
Sa1 on Budd ists Demonstrate
Top Kremlin Leaders Meet Nc
" For Political, Social Reform As Delegates to Soviet Congres

irth Wets
s Gather

By The Associated Press
SAIGON-Hundreds of Buddhist
youths staged an anti-government
street demonstration in Saigon
* yesterday.
Mounting against Premier Ngu-
yen Cao Ky's miiltary regime were
political pressures which threat-
ened-as others have done at in-
tervals since the downfall of
President Ngo Dinh Diem in 1963
-to complicate the fight against
the Viet Cong.
Two hundreds or more young
Vietnamese marched from a rally
of 10,000 at the Buddhist Institute
of Saigon's central market in the
first such "street manifestation of
opposition here to Ky's govern-
ment since he assumed power last
June.
They called, as their fellows in
Hue and Da Nang have previously
done, for a speedy return to civil-
ian rule.
Police broke up a preliminary
attempt at a march by exploding
two smoke grenades, but afterward
kept hands off. They let the dem-
onstrators pass unmolested to har-
angue passersby under banners+
that said "Save the national sov-'
ereignity" and "Bring democracy
and destroy colonialism."
Subarto Still
Struggling to
Pick Cabinet
JAKARTA -A five-man pre-
sidium conferred with President
Sukarno in his summer palace at
Bogor yesterday on formation of a
new cabinet to serve under Lt.
Gen. Suharto, Indonesia's anti-
Communist strong man.
Suharto's regime struggled into
the seventh day of trying to shape
a cabinet that will help the mili-
tary chief brake the nation's rock-
eting inflation and solve its food
shortages.
Communications between Jakar-
to and Bogor, 40 miles to the
south, were spotty and there was
no word as to progress. But Su-
karno was expected eventually to
approve the cabinet list submitted
to him by the military leadership.
Although Sukarno is believed to
be only a figurehead now, the mili-
tary leaders want to preserve him
as a rallying point to affirm the
new regime's legality.
Informants said Sukarno had
rejected a cabinet post for Gen
Abdul Haris Nasution, former de-
fense minister and architect of a
military campaign to crush Indo-
nesia's two-million-member Coi-
munist party after a Red coup at-
tempt Oct. 1.
Although military leaders pre-
ferred a high place for Nasution
they went along with Sukarno to
avoid'alienating him.
The inclusion of many old faces
on the new cabinet is said to have
angered student leaders - prime
movers of the army's ouster of Su-
karno's pro-Peking cabinet and his
chief lientenant, First Deputy Pre-
mier Subandrio. But the students
informants said, might give the
iew cabinet a chance.

The demonstration attracted
about 3,000 persons, including
many children. The crowd dis-
persed shortly before midnight.
In all, it never approached the
violence of some demonstrations
that Buddhists and students have
launched here in the past.
The Buddhist Institute rally
heard a denunciation from Thich
Thien Minh, head of Buddhist
youth affairs, of South Viet Nam's
current governmental, social and
economic situation.
He urged the youths at the
rally, however, to take no action
at least until after a scheduled
meeting of Buddhist leaders today.
He said this meeting would be im-
portant.
That could mean a showdown
in political trouble simmering
since March 10, when the govern-
ment oustedanBuddhist favorite,
Lt. Gen. Nguyen Chanh Thi, from
his command of the 1st Corps area
and his seat within the govern-
ment.
Strikes and demonstrations have
stirred Hue and Da Nang, chief
cities of the 1st Corps area, since
Thi returned there, ostensibly to
explain his dismissal and bid for
national unity without regard for
personalities.
Minh repeated the Buddhist de-
mands for social improvement, a
civilian government, a national
congress and equality among the
people. Essentially all were touch-
ed upon in the Feb. 8 declaration
of Honolulu.
"The economic situation is in

collapse," Minh said. "Where is
our noble and pure morale? The
situation is tragic. The people
want social improvement.
"This government is not a gov-
ernment of the people. We are not
free to act, no interests guaran-
teed. They want to put in jail any-
body they want, to execute any-
body they want. All the political
groups are paralyzed."
In Viet Nam battle action yes-
terday, a b o u t 1200 American
troops of the 1st Battalion, 5th
Marine Regiment stormed ashore
in assault boats and helicopters
in a driving rain at the mouth of
the Saigon Riber, 35 miles south-
east of Saigon. With naval guns
firing in support, there was no in-
itial Viet Cong resistance. The

main mission is to help shield
from Communist harassment a
shipping lane by which vital sup-
plies are moved inland from the
South China Sea.
Operations elsewhere cost the
United States three planes. Of
four crewmen in these crashes,
three were killed and one is listed
as missing.
One of the planes, an A4 Sky-
hawk from the nuclear-powered
carrier Enterprise, crashed in one
of 38 attacks against North Viet
Nam's transport and communica-
tion lines Friday. It went down
about 60 miles north of the border
during a bomb run on a highway
ferry landing. The others fell dur-
ing attacks on Viet Cong centers
in the South.r

By The Associated Press
MOSCOW-Top Kremlin lead-
ers turned out yesterday to wel-
come a high-ranking delegation
from North Viet Nam which came
to attend the 23rd Soviet Com-
munist party congress.
This was the first time that so
many major figures in the Soviet
regime, including Party First Sec-
retary Leonid Brezhnev and Pre-
mier Alexei Kosygin, honored a
delegation arriving for the con-
gress, which starts Tuesday. ItI
underscored the importance the
Kremlin attaches- to North Viet
Nam, which Red China has been
trying to win over to its side.
The world will watch with a
mixture of hope and misgiving

when Communists from all corners
of the U.S.S.R. assemble in Mos-
cow Tuesday for the congress.
There seems a good chance the
congress will drive deeper the
wedge between the Kremlin and
Red China, even though the Rus-
sians likely will try to keep the
quarrel from exploding into pub-
licized debate. The congress pro-
vides an opportunity for summon-
ing the leaders of the world's 111
Communist parties to Moscow for
exchange of viewpoints.,
Decisions to be approved prob-
ably will have been made long be-
fore the 5,000 party members meet.
Nevertheless, the congress is an
important Soviet milestone.
There is detectable now in the
U.S.S.R. a clash between economic
managers, anxious to get reforms
rolling, and party functionaries
interested in protecting their pri-
vileges within the bureaucracy.
Pressure from below for reforms
reflects the rising influence of the
economic leaders.
This pressure has beenrushing
the Soviet leaders into domestic
policies that invited the withering
scorn of Peking, which views the
Russians as headed pell mell to-
ward capitalism. Some influential
elements in Moscow may believe
the Chinese are not entirely wrong.
There are signs that top leaders
are worried by the pressure for
swift liberalization of the political

quently is told that because of
U.S. policies, defense requirements
will continue to limit production
of consumer goods. But some ex-
pectations are permitted -- with
some "ifs."
One big "if" concerns eradica-
tion of some of the chronic ail-
ments of Soviet agriculture.
This congress comes just a year
after a painful Kremlin exper-
ience. Last March the new leaders
found themselves s t u c k with
Khrushchev's move for a show-
down with Peking. He had an-
nounced invitations to leaders of
25 foreign parties for a summit
meeting.
Unable to cancel it without em-
barrassment, the new leaders went
through the motions against op-
position from foreign parties. Six
of those invited boycotted the
meeting. The rest issued a pale,
noncommittal communique. And
while the meeting was in progress,
Chinese students in Moscow led a
violent demonstration which had
to be quelled by police and troops.
By now the Russians are better
prepared. This congress is six
months behind schedule. The de-
lay allowed time for mending
fences.

The Russians have made in-
roads. The Chinese can rely on the
support of no more than a few
parties in the Communist world.
Even Castro's Cubans have turned
against them. High-powered Rus-
sian delegations nailed down the
allegiance of the Mongolian Peoa-
ple's Republic, laid the situation
on the line to the North Vietna-
nese influence in Korean parties,
strongly asserted Soviet influence
in Asia by intervening in the In-
dia-Pakistan dispute over Kash-
mir.
Western sources said the turn-
out the Kremlin is getting for the
congress shows progress in its at-
tempt to isolate Peking. Only the
Communist parties of Japan, Al-
bania and New Zealand have join-
ed Red China in boycotting the
big Moscow get-together.
But it is understood the Soviet
leaders have had to promise not to
force a showdown with Peking, in
order to persuade so many dele-
gations to ° come. No statement
violently condemning Red China
is expected.
'The Kremlin line is the need for
unity in the Communist world,
plus moderation in internationar
affairs to avoid a nuclear war.

Rusk Calls Peking Responsible
For Poor China-U.S. Relations

WASHINGTON (OP)-The Unit-
ed States is holding the door ajar
for a broad change in its China
policy. At the moment, a key
tactic is to blame Red China's
isolation on Peking itself.
Just when Washington might
shift to a policy of recognizing
Communist China, favoring her
entry into the United Nations and
engaging in trade with her is un-
clear. But most agree the time
still is years away.

World News Roundup

By The Associated Press
WASHINGTON - The nation's
712 Social Security offices will be
open evenings the first three days
of next week and until midnight
on March 31 to receive applica-
tions from people 65 and over for
medical care coverage under medi-
care.
Robert M. Ball, commissioner of
Social Security, announced yes-
terday that all district and branch
offices and temporary. service cen-
ters will be open until 9 p.m. Mon-
day, Tuesday and Wednesday.
The midnight closing Thursday
night will mark the deadline for
people, who are 65 and older by
Jan. 1 to sign up.
* * *
QUITO, Ecuador-New antigov-
ernment demonstrations broke out

here Saturday and a woman was
fatally wounded by a tear 'gas
grenade.
Soldiers from the army's en-
gineers corps were dispersing stu-
dents of the Mejia College in
front of the college when the
woman was killed.
The students were protesting
the army's attack on the Central
University Friday night. The stu-
dents have been protesting against
the junta and demanding free
elections for several months.
, , ,
ACCRA, Ghana-Ghana's new
regime Saturday seized all asset
and property of deposed President
Kwame Nkrumah's party and
seven other organizations, most
of them Nkrumah-instituted.
Their value is estimated at be-
tween $14 million and $42 million.

It takes two to tango, and so far
Peking continues to berate the
United States as her No. 1 capital-
ist-imperialist enemy. As Secre-
tary of State Dean Rusk put it
Friday, "We do not find at the
present time a serious interest in
Peking in improvement of rela-
tions."
Even with an overnight about-
face by the Reds-which no one
expects--the issues involved are
of such giant proportions as to
defy speedy readjustments.
One interlocking question is the
Chinese-Soviet rivalry and Wash-
ington's relations with Moscow.
Another is what to do about Na-
tionalist China. Still another could
be the structure of the United Na-
tions.
Still, the latest round of official
U.S. statements has an air of keep-
ing the way open for a change
sometime in the future.
This contrasts with hardline
talk in earlier years about U.S.
steps to quarantine the Commu-
nist mainland.
One value of a more flexible
posture is tactical at the United
Nations. For instance, a growing
number of countries favor Peking's
admission. Last year a General As-
sembly vote on this issue was a 47-
47 tie with 20 members abstain-
ing.
Washington still opposes a UN
seat for Red China at this time.
But faced with a diminishing mar-
gin in the world body. American
strategists are weighing how to
proceed at the next assembly meet-
ing this fall.

admission do not dant to expel
Formosa.
Sisco questioned whether Red
China wants to join the United
Nations or really wishes to destroy
it. And he asked UN members to
weigh the serious consequences of
her entry price.
"In actuality," he said, "Com-
munist China is keeping itself out
of the United Nations."
A side issue at the moment is
whether to recognize Outer Mon-
golia, the pro-Soviet buffer state
between the Soviet Union and Chi-
na which is claimed by both the
Communists and Nationalist Chi-
nese.
Rusk said U.S. recognition of
Outer Mongolia is "under consid-
eration"-the same status that
possibility has held in Washing-
ton for several years.
But as a measure of the sensitiv-
ity of the subject, Rusk's brief
mention of it under news confer-
ence 'questioning was enough to
ring alarms at once in U.S.-sup-
ported Formosa.I
State Department sources said
Nationalist China inquired about
Rusk's statement yesterday and
was told it represented no U.S
change.

The signs pop up in newspaper
articles hinting that there should
be a more realistic appraisal of
Stalin and his "positive" achieve-
ments in the fields, for example,
of industrialization, collectiviza-
tion and World War II leadership.
This could act as a brake on the
promises which have been made in
the 17 months since Nikita Khru-
shchev was dethroned.
The leaders have seemed careful
not to encourage consumer hopes
to soar too high. The public fre-

CHARMS
for the graduate-
Sterling & 14K Gold
Charms
from $1.50
Engraved Free
Arcade Jewelry Shop
16 Nickels Arcade

Within the past few days, UN
Ambassador Arthur J. Goldberg
and Joseph J. Sisco, assistant sec-
retary of state for international
organization affairs, have under-
scored in public statements the
Communist Chinese demand for
UN reorganization and expulsion
of Nationalist China as her pricel
for entry.I

Many nations favoring Peking'! and economic systems, however.

program schedule
THE
NEW YORK
PHILHARMONIC
ORCHESTRA
Tune in the Philharmonic each Sunday at 2:00 p.m.,
(WUOM-FM, 91.7 on your dial), brought to you through
special arrangements between the University of Mich-
igan, Ann Arbor Federal and the Liberty Music Shop.
The current program schedule is:
Sunday, March 27
SCHIPPERS, Conducting
Rossini: Overture "La Gazza Ladra"; Copland: Statements
for Orchestra; Ravel: Rapsodie Espagnole;
Schumann: Symphony No. 2
Sunday, April 3
SCHIPPERS, Conducting; VAN CLIBURN, Pianist
Cornelius: Overture at "Barber of Baghdad"; Menotti:
Apocalypse; MacDowell: Piano Concerto No. 2
ANN ARBOR FEDERAL SAVINGS
and LIBERTY MUSIC SHOP

GUILD HOUSE
802 Monroe
Monday, March 28
Noon Luncheon 25c
PROF. ANATOL RAPAPORT
Title: "Concerning China & The World"

Y

---- ----- ------

- - - i

SENATOR PHILIP HART
REGENT IRENE MURPHY
PROF. ROSS WILHELM
on
DISSENT & THE DRAFT
FRIDAY, April 1 ... 3:15, Auditorium A

4
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7
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171

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Student Legal Defense Comm.,
Graduate Student Council

minimum
donation .50

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Student-Faculty Group Flight
PAN AM JET
to EUROPE
New York-London-New York-

Creative Arts Festival
presents
CHRISTOPHER MIDDLETON
in a reading of his own poetry

BLOOD DRIVE for VIENAM
SIGN UP NOW THROUGH WED., MARCH 30
IN FISHBOWL
TO GIVE BLOOD THURS., MARCH 31, AND FRI., APRIL 1

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