FRIDAY, JANUARY 14 1966 THE MICHIGAN DAILY PAVV, TTMFit FRIDAY, JANUARY 14, 1966 THE MICHIGAN IJAIL~ PAI'V TJ1~U'V r- ur innr5~.rE 1 Hopes for Reduced Asian Tension Rise PEACE SEARCH: 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 Southeast Asia. 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 consumption. 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 and Chinese. 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 collective mind. 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 peace-loving forces." 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 difficulties." 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 to impossible. 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. Congressional i lift Looms Tax Boost 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 Nam. 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. Wednesday. He'll Win 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 boosts. - Support There is support for the plan, too. "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 Finance Committee. 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. Griffiths Opposed "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- dent said. 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 hand. $4.8 Billion 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 boost. The speedup in corporate tax collections was sought by April 15, the withholding rate boosts by May 1. Unsound 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- mittee. 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. Await Harriman. 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. Kosygin. 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- cials. 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 chilly reception. Hi Fi STUDIO January Sale PRICE REDUCTIONS stock of Radio, Phono, I on aWide and Varied and Hi Fi'Components. 1319 S. Univ. NO 8-7942 INSTANT SILENCE Sound Attenuators as utilized by military and commercial jet aircraft ground crew personnel. For information check your book store or write direct to: Academic Aids P. O. Box 969 Berkeley, Calif. 94701 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 radio contact. 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 propaganda defeat. 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. DI A M O N D R 1 N G S DIANA. . . . FROM $100 only the original can have the name Orange Blossom nside the ring ic/ncee, %/fndee ON SO. UNIVERSITY ,J 3 113 SOUTH U. 208 S MAIN ST ':X:*......... 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 diplomats. 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- munists. 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. T. TONIGHT DIXIELAND by the fabulous NEW WOLVERINE JASS BAND OLD HEIDELBERG 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 IL In Detroit . . CONCEPT EAST THEATER, 401 E. Adams presents Harold Printer's "THE CARETAKER" Fri., Sat., Sun.-Thru Jan. 8:30 P.M. 1. _I 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 mammoth tieup. 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 against inflation. 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. Big Loss 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." Two Questions Besides the transit fare, two other questions were left by the strike. 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 PROFESSIONAL THEATRE PROGRAM Presents A SY MPOIU on the newly created NATIONAL COUNCIL ON THE ARTS .~ :"".~~ Tests show that women, on the average, have the same intelligence as men. If this is what you've always maintained, here's your chance' to explore a career that will give you the opportunity to prove it and make it pay off. Women life insurance representatives earn the same commissions as men. They have the same chance to meet interesting and successful people in their work. They provide a genuine service to others by helping them find financial security. To learn more about the challenge of a sales career with Prudential Insurance Company, make an appointment through your placement office to visit with a Prudential executive. He will be on campus Tuesday, January 25. tie " nu n norr . a The Prudential Y't " a SI I A1MI F.(rCnXfANV (t' AXfFPlrA Women as smart as men? __ .f f ' "; _ S r J, , , .f' p / f kr rr y ,rwy+"', 6, ,^yY ;";%" + : $ ,.;,.J,: >J ! " v + yfj 1 4 +" t ' Y. Y.' j Prr?" J' . !S {i 5 1 . I ' Y ' J ": frl l I 4' ,iY , f ry, 'f fd ,4,d,. err,., ;5,., :. a : ;;, rf ""{?: n rfv; GREGORY PECK Film Star Member of the Council~ ELIZABETH ASHLEY Stage and Screen Star, Member of the Council STANLEY YOUNG Exec. Dir. of ANTA, Member of the Council 11! XiWWC. i