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 k 7 i i 1 . 171 TTTTT TTTT' Student Legal Defense Comm., Graduate Student Council minimum donation .50 - ®m ;E jEj 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 TT T K~y -T T: TyK Ty TK yK yyK TT Tyy Ty T-y yT Ty. y-K -K -Ky Ty Ty 'T T-K Ty Ty TK -T .T' T-y BLOOD WILL BE SENT TO VIET NAM BY THE AMERICAN D MOrcc TO L-IT 0 PZAV ill 1w!