FRIDAY, JANUARY 14 1966
THE MICHIGAN DAILY
FRIDAY, JANUARY 14, 1966 THE MICHIGAN IJAIL~ PAI'V TJ1~U'V
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Hopes for Reduced Asian Tension Rise
Viet Cong Overrun Battalion-
'' Harriman Arriving in Saigon
By The Associated Press
A new Soviet pronouncement
promises modern weapons for
North Viet Nam to "defeat im-
perialist aggressor," but develop-
ments of the past few days kindle
hopes for lessened tension in
These come from a combination
of President Johnson's measured
treatment of the Soviet bloc in
his State of the Union message
and hints from the Soviet mission
to North Viet Nam apart from
what is said for general world
Johnson's address left an im-
pression that U.S. policy as it is
developing tends to view commun-
ism as two distinct worlds: Soviet
The President spoke of building
bridges to Communist East Eur-
ope, of making it possible "to
expand trade between the United
States and Eastern Europe and
the Soviet Union." China seemed
singled out as tlTe most dangerous
antagonist of the United States,
the main threat to Asia, which the
President said the United States
would not abandon to conquest.
Moscow says Alexander N.
Shelepin, who headed the Hanoi
mission, promised North Viet Nam
"all available aid to defeat the
U.S. aggressions." Shelepin also
left the Ho Chi Minh government
some sobering thoughts.
Pravda has published Shelepin's
principal Hanoi address. The
Communist party organ treated
Shelepin's hosts to a lecture on
Soviet problems, as if to tell them
that the USSR had no intention
of risking war with the United
States. The Soviet Union, he made
clear, has many problems on its
Shelepin told the North Viet-
namese that "more than anyone
else, the Soviet people fully un-
derstand the calamities of war,"
and that Soviet policy was aimed
at "insuring peaceful conditions
for the construction of socialism
and communism, and at prevent-
ing a new world war."
He elaborated on the question
of Germany and the possibility,
of a West German finger on the
nuclear trigger. He seemed to im-
ply that this question was of most
immediate importance to Moscow.
Then he went on to say that
the USSR is trying- to improve
food and other consumer pro-
duction and raise living standards
at home. This, he said, would be
of great importance to Russia's
allies in years to come, because
a strong USSR would constitute
a "prop for all progressive and
He put it this way:
"When we tell you about the
achievements of the Soviet Union,
this absolutely does not mean
there are in our country nothing
but achievements, and no short-
comings or pending problems. No,
comrades, it is not so. We frankly
tell you that while implementing
the plans already worked out, we
have had to overcome difficulties,
and sometimes these are no small
He reminded Hanoi that the'
Soviet party will hold in March
a congress where leaders will ex-
pose plans for the next five years.
Those leaders set great store by
those plans, perhaps to the extent
of staking their political positions
on getting the program in motion.
In conditions of extreme tension
and a possible showdown with the
United States, and with the So-
viet Union's own "hawks" nagging
in the background, getting the
program in motion might be next
Shelepin promised that Moscow
would enhance the "defense po-
tential" of the Vietnamese Com-
munists. He could hardly say less,
and Moscow seeks to rebut Red
Chinese charges that it intended
to abandon revolution in Asia.
Expansion of U.S. trade with
the Soviet bloc must be an at-
tractive prospect for Moscow if
it is to deliver on promises the
collective leaders have made to
the consumer. That, along with
growing mutual distrust between
Moscow and Peking, might inspire
greater Soviet efforts to lessen the
peril to world peace in Asia.
WASHINGTON ()-A congres-
sional storm brewed last night
over President Johnson's call for
a quick billion-dollar boost in
excise ,taxes to help offset the
mounting costs of war in Viet
Secretary of the Treasury Henry
H. Fowler formally sent to Capi-
tol Hill that proposal and two
other revenue measures Johnson
recommended in his State of the
Union message. The Treasury said
they would boost revenues by $4.81
billion next year.
The House Ways and, Means
Committee plans to begin hearings
on the money-raising plan next.
One committee member, Rep. A.
Sidney Herlong Jr. (D-Fla) sum-
med up the outlook for Johnson's
request this way:
"He'll get the tax increases.
There's no doubt about it. Of:
course, there will be opposition."
There is plenty of that. A
check of the Senate Finance Com-
mittee showed a majority initially
inclined to oppose the excise tax
There is support for the plan,
"I believe that this is the least
objectionable and the most pain-
less way of raising some needed
revenues," said Sen. Paul H. Doug-
las (D-Ill), who serves on the
If it heeds Johnson, Congress
will repeal two excise tax reduc-
tions the President himself pro-
posed nine months ago.
The cuts, of 1 per cent in the
automobile excise tax and 7 per
cent in telephone levies, 'took ef-
fect with the new year.
When he proposed excise tax
reductions last May 17, Johnson
said he had "no present indica-
tion" that defense spending would
increase to an extent that would
make the cuts inadvisable.
There is opposition to rein-
statement from both Democrats
and Republicans in the Senate.
Sen. Russell B. Long (D-La), the
Finance Committee chairman, said
he would prefer increases in liquor
and cigarette taxes.
"He lost me on the auto excise
tax," said Rep Martha W. Grif-
fiths (D-Mich). "I'm already writ-
ing my speech against it. I'm for a
tax that is just-not just a tax
that is easy to collect."
In Detroit, the president of Gen-
eral Motors Corp, said reinstate-
ment of the automobile tax would
be unfortunate. "I will be badly
disappointed if it is restored," said
James M. Roche.
But Henry Ford II, chairman of
Ford Motor Co., said he does not
think that firm will oppose the
revenue move. "I don't think it
will have any effect over the long
haul on automobile sales," he said.
Increase 1 Per Cent
The tax now is 6 per cent. The
Johnson plan would peg it at 7
per cent-temporarily, the Presi-
Other facets of the Johnson
proposal would institute higher
withholding rates for personal in-
come taxes, and speed the collec-
tion of corporate taxes.
Those are money raising meas-
ures which would increase the
sums the government has on
Fowler estimated over-all rev-
enue increases from the entire
package at $4.8 billion during the
government bookkeeping year that
begins next July 1.
The Treasury set no target date
for the excise tax boosts-but
figured government revenues on
the basis of an April 1 date for
the higher telephone levy and
March 15 for the automobile tax
The speedup in corporate tax
collections was sought by April
15, the withholding rate boosts
by May 1.
Sen. A. Willis Robertson (D-
Va) said the accelerated collection
of personal and corporate taxes
"will not strengthen the long-run
soundness of fiscal policy."
"It may help to make the de-
ficit look smaller in fiscal year
1967," said the Virginian, chair-
man of the Senate Banking Com-
SAIGON (PM-The Viet Cong
ambushed a South Vietnamese
battalion yesterday northwest of
Saigon, within artillery range of
a big U.S.-Australian operation,
and inflicted considerable losses.
The attack came as at least a
three-day truce for the lunar new
year next week shaped up in
South Viet Nam, promising a brief
respite from bloodshed for U.S.
and Vietnamese troops.
The Viet Cong overran part of
the battalion, causing what was
described as moderate casualties,
but U.S. advisers accompanying
the Vietnamese troops were re-
ported to have suffered heavily.
On the political front, Saigon
awaited the arrival of presiden-
tial envoy W. Averell Harriman,
who first had been scheduled to
arrive during the day on his glo-
bal peace mission.
He is in Bangkok, Thailand,
and will meet there with Secretary
of State Dean Rusk, who is flying
from New Delhi, India, after talks
with Soviet Premier Alexei N.
With Vice-President Hubert H.
Humphrey, Rusk presumably dis-
cussed President Johnson's Viet-
namese peace offensive with Kosy-
gin. All three had gone to New
Delhi for the funeral of Prime
Minister Lal Bahadur Shastri.
Shelepin in Peking
While that conference was tak-
ing place, the Kremlin's No. 2
man, Alexander N. Shelepin, ar-
rived in Peking for 24 hours of
meetings with Red Chinese offi-
Shelepin is en route home from
Hanoi, where he promised staunch
Soviet support for the North Viet-
namese in resisting what he calls
U.S. aggression. The Chinese have
accusedthe Russians of dragging
their feet in granting military aid
to North Viet Nam. They are re-
ported to have given Shelepin a
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Meanwhile, in an area about 25
miles northwest of Saigon, Ameri-
cans and Australians were press-
ing Operation Crimp, a drive
against the Viet Cong's Iron Tri-
angle. But apparently U.S. ar-
tillery was powerless to help the
Vietnamese because of lack of
31 Guerrillas Die
Operation Crimp still was rack-
ing up the Viet Cong, reporting
31 additional guerrillas slain. This
brought the total in the six-day
drive to 131 killed and 80 captur-
ed. Mountains of supplies also
have been seized.
As for a cease-fire, a U.S.
spokesman said American forces
"will conform to the posture of the
government" after the official
Viet Nam press announced South
Viet Nam agreed to go along with
a three- day truce.
To Release Prisoners
The Foreign Ministry reported
it will release 20 captured North
Vietnamese soldiers at the de-
militarized zone between North
and South Viet Nam next Thurs-'
day in honor of the new year.
The U.S. bombing pause for
North Viet Nam went into its 21st
day with no, sign of resumption.
There previously had been specu-
lation no U.S. bombs would fall
on North Viet Nam while Shele-
pin was in Hanoi. An Hanoi an-
nouncement said North Viet-
namese gunners shot down a
pilotless reconnaissance plane
Thursday. Such reports never have
been confirmed by U.S. officials.
May Extend Cease Fire
The question of whether there
might be an extension of the new
year's cease fire as part of the
peace offensive was not known.
American officials may feel it
imperative that the allied truce
period be at least as long as that
of the Viet Cong to prevent a
During the truce, Premier
Nguyen Coa Ky's regime will
launch a psychological warfare
drive to try to induce the Viet
Cong to defect. Safe conduct
passes have been prepared calling
upon the insurgents to return 'to
their homes for Tet-as the lunar
new year is called-and turn in
their weapons. They are promised
a warm welcome.
Red Cross Admitted
The Foreign Ministry also an-
nounced it has opened its prisoner
of war camps to Red Cross in-
spection. The United States has
been putting pressure on Ky to
permit this, hoping that North
Viet Nam will allow the Red Cross
to visit the North camps.
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WORLD NEWS ROUNDUP:
Negro To Fill Cabinet Position
By The Associated Press
WASHINGTON - President
Johnson announced yesterday he
is nominating a Negro to the
Cabinet for the first time in his-
tory. Dr. Robert C. Weaver will
be named to head the new De-
partment of Housing and Urban
Development. Weaver, 58, has been
administrator of the Housing and
Home Finance Agency since the
start of the Kennedy administra-
tion in 1961.
Sen. A. Willis Robertson (D-
Va'), chairman of the Senate
Banking Committee that will
handle the nomination, said "I
don't anticipate any trouble" in
Weaver's confirmation. He said he
would call a meeting of the Bank-.
ing Committee Monday to consider
the nomination of Weaver.
"He's an able man," Robertson
said. He added that he had seen
"no evidence of any prejudice" on
Weaver's part as administrator of
the housing agency.
LONDON - Western authorities
report a new power struggle de-
veloping in Indonesia, with Presi-
dent Sukarno threatened by army
challengers under the leadership
of Gen. Abdul Haris Nasution.
The developing struggle follows
a grisly, nationwide massacre of
Communists and sympathizers.
Estimates of the number slain
since mid-October range between
100,000 and 200,000, according to
U.S., British, Malaysian and other
The figures are based on reports
received from diplomatic missions
in Jakarta, on accounts by West-
ern engineers and businessmen
working in remote areas and on
statements by travelers and tour-
ists. The murders were mainly the
work of soldiers and vengeful
Moslems seeking to revenge suf-
ferings at the hands of the Com-
Western diplomats report that
while Sukarno remains ruler in
name only, Gen. Nasution is the
real master of the country. There
are indications, however, that Su-
karno may be attempting to re-
assert his lost power.
by the fabulous
211 N. Main
NEW YORKERS DIDN'T MIND waiting in line for buses yes-
terday as the city's vast transit system swung into action after
settlement of a 13-day strike.
New York Strike Settled:l
Buses andSbwy Roll
In Detroit . .
CONCEPT EAST THEATER, 401 E. Adams
Harold Printer's "THE CARETAKER"
Fri., Sat., Sun.-Thru Jan. 8:30 P.M.
NEW YORK W)-With a roar
above ground and a' rumble be-
neath, New York's 800-mile sub-
way and bus system rolled back
to normal yesterday, with settle-,
ment of a 12-day citywide transit,
strike, first in the city's history.
Losses of $500 million to $800
million during the municipal crisis
were grievious, and strike settle-
ment terms placed the 15-cent
transit fare in jeopardy. But eight
million footsore New Yorkers hail-
ed with jubilation the end of the
Peace terms were drawn up
by a three-man team of nation-
alb;' known mediators, although
Republican Mayor John V. Lind-
say hailed the agreement as a
triumph. for collective bargaining.
The cost to the city was estimated
at from $52 million to $70 million
over two years.
President Johnson said the
terms of settlement violate the
administration's wage-price guide-
lines designed to hold the line
1 Johnson told an unannounced
ed in Bellevue Hospital where he
was taken two hours after being
jailed. But the bills for his $48
a day hospital room and for ex-
tensive treatment as a "cardiac
patient" were no longer being
picked up by the city.
Lindsay estimated losses due to
the strike at $500 million. The
Commerce and Industry Associa-
tion, scaling down a previous bil-
lion-dollar estimate, put the loss
at $800 million, and called the
economic blow the severest "since
the great depression."
Besides the transit fare, two
other questions were left by the
One was the future of Lindsay.
He took office on New Year's Day,
and from the time he was sworn
in was confronted by an un-
precedented transit crisis. A proven
campaigner, New York's first Re-
publican mayor in 20 years was
regarded as a real comer in GOP
politics. His handling of the strike
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