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January 28, 1967 - Image 3

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The Michigan Daily, 1967-01-28

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Possible Chinese

Reconciliation with Russia

E9DITOR'S NOTE: What's ahead
for China? Manycrosscurrents of
ideology and personalities enter the
current purge there, putting fore-
casts in the realm of fancy. Even
the Soviet Union isn't sure of
what's happening to its Commu-
nist neighbor. In this article, last
of a series this week on China, an
AP specialisthin Communist affairs
looks at some of the straws in
the wind and weighs the impact.
AP Special Correspondent
The outcome of the slugging
match between contending forces
in Red China is a matter of tre-
mendous concern for the rest of
the world.
What will it mean for the fu-
turf of Chinese-Soviet relations,
now at their ebb? What impact
will it have on China's march to-
ward status as a full-fledged nu-
clear power? What will it mean to
the Chinese people and their econ-
omy? Is China facing a new eco-
nomic disaster because of the pro-
found upheaval now in progress?
All these questions and many
more are involved in the struggle,

but the answers can be little more
than speculation.
There is always a possibility, for
example, that China would make
some sort of peace with the Soviet
Union if the forces of Mao Tse-
tung and Defense Minister Lin
Piao lose the battle. All the so-
called "revisionists" in China are
closer to the Soviet.
The Russians aren't betting on
that, however. Their comments on
the China scene leave the impres-
sion that they have little expecta-
tion of a victory by any pro-Soviet
There is a possibility, too, that a
Chinese leadership in a death
struggle to maintain itself might
of adventurous course as a des-
be prompted to take some sort
perate measure to attempt to
unify the country. This could, take
the form of a military advance
into India or involvement in Viet-
Clearly, the Russians are wor-
ried about this, and display the
worry frequently in their press

comments on the China struggle.
The strugle has been going on
for years. What is happening now
is only a new-though probably
decisive-phase of it. Meanwhile,
it has failed to impede China's
march to membership in the nu-
clear club, which she now claims
by virtue of five explosions, in-
cluding one which matched a nu-
clear warhead to a missile and
brought China's neighbors within
range. Although scientists are re-
quired to be indoctrinated Com-
munists in China, both sides in
the struggle have had a tendency
to seal them off from the political
wars of Peking, to permit them to
concentrate on their job of push-
ing China toward the rank of
major power.
Some impact of the struggle may
yet be felt in Vietnam, since China
is one of the two chief sources of
help for North Vietnam and the
Communst cause in the south.
Disruption of the Chinese economy
could mean disruption in the flow
of supplies to Hanoi.

Another result could be a les-
sening of direct Chinese pressure'
on Hanoi to fight to the last Viet-
namese. Preoccupied with its in-
ternal struggle, Peking is in no
position to be preoccupied with
Vietnam, and this could leave
Hanoi some leeway should it want
to respond to a peace overture.
The most serious consequences
of the struggle are likely to show
up in the Chinese economy, al-
ready weak and austere. China is
a nation of 750 million, growing
at the rate of 15 million a year.
A half billion are peasants. Food
already is short and rationed.
Living standards are low.
Now the "great proletarian cul-
tural revolution," by which Mao
evidently intends to secure his
place in the pantheon of Commu-
nist gods and prevent a new gen-
eration from straying off the
orthodox path, has extended to
the hinterland peasants. This is
dangerous for China if it interfers
with spring sowing and the next

But serious damage must al-
ready have been done, if even
part of the reports from inside
China are true.
A mammoth struggle has been
going on to command an impor-
tant base of power: the urban
proletariat in the factories and at
the work benches.
Correspondents of a number of
nations, reporting from inside
China, including Japanese and the
Communist bloc, supply some
hints. So do broadcast reports of
the Red Chinese themselves, and
documents coming out of the
country. They tell of things like
-Defense Minister Lin Piao, ap-
parently seeking to deliver the
coup de grace to his opponents,
including President Liu Shao-chi,
has ordered a Red Guard revolu-
tionay onslaught among the labor
unions. He has abolished the par-
ty-dominated Trade Union Fed-
eration and replaced it with a
"federation of revolutionary reb-
els." This has caused bloody

In Nanking and Shanghai, both
vitally important industrial cities,
water and power supplies were
cut off for some time as the teen-
age Red Guards met armed resist-
ance from workers.
-Rail traffic between cities of-
ten is cut. When the trains run,
they often are the scene of wild
disturbances. Already overcrowded
trains are boarded by swarms of
Red Guards without tickets, who
throw others off and beat up
-Canton, another highly impor-
tant industrial city, has been hit
by a wave of strikes. Shanghai,
China's largest city and hub of
her commerce, is experiencing a
desperate shortage of coal because
dockworkers refused to unload
ships. Factory production in many
cases has ground to a halt.
-On Chushan Island, off Shan-
ghai, 6,000 farmers attacked Red
Guard units and wrecked a radio
-In Peking, a clash at an air-
plane plant halted production.
-In some areas, the Red Guards

made propaganda attacks on the
police as "a claw thrust out" by
the supporters of President Liu.,
Police are helpless anyway, and
just look on while the Red Guards
-Fukien Province, a Mandarin
language broadcast said, would
have "very grave problems" soon
if the cultural revolution did not
prevail. Large numbers of work-
ers there left the factories, it ad-
mitted-with a charge that the
opposition was plotting to blame
the consequences on the cultural
-Local "responsible party per-
sons" at provincial levels are
being called "monsters, freaks and
rascals" because, it is alleged, they
are inciting strikes and threaten.
ing total stoppage in many enter-
-The "monsters and freaks"
are practicing "economism," which
is a pecularly Communist sin. It
means promising workers a better
deal. This will "corrupt the mass-
es," the Peking radio says.

There are elements in China
who evidently feel that the nation
should pull in its horns, become
less bellicose and pay more atten-
tion to the internal economy. They
see a prospect only of long, bitter
years of hardship for the entire
nation under present policies.
This might mean, should that
side prevail, some sort of recon-
ciliation with Moscow, although in
any case it likely would be an un-
easy one.
Nevertheless, by all the signs
coming out of Moscow, the Soviet
Communist party is preparing its
own rank and file for a long
struggle against Peking policies.
The Soviet Union is not alone in
its worries about what the Chi-
nese "great cultural revolution"
may produce in the future. Na-
tions on China's border and else-
where watch in fascinated awe as
the spectacle of the great upheaval
It could lead in almost any di-
rection. That is the danger.

Report 100
People Dead
In Clashes
Uranium-Rich Area
Of Sinkiang Province
Involved in Struggle
TOKYO (MP-Peking wall posters
reported yesterday that seven of
the eight army divisions in Sin-
kiang Province have t u r n e d
against Mao Tse-tung in an
"antirevolutionary rebellion" and
more than 100 persons have been
killed in clashes.
If the northwest province lines
up against Mao, it will be a seri-
ous blow to the 73-year-old party
chairman's prestige. Sinkiang is
Red China's nuclear testing
grounds, is rich in uranium, and
has many atomic plants.
There was little reason to doubt
the reports of serious disaffection.
Sinkiang is ruled by Wang En-
mao, first secretary of the party's
provincial committee and com-
mander of the province's military
district. Maoists have denounced
him for having ties with counter-
The Peking correspondent of the
Japanese newspaper Asahi said
only one division of 20,000 men
remained loyal to Mao in Sinkian.
With Sinkiang reported crum-
bling, Radio Peking indicated set-
backs to Mao in Manchuria and
Shanghai by broadcasting thou-
sands of words from Maoists there
calling for "an all-around struggle
to seize power." People's Daily, the
official paper, said the appeal was
"applicable to all other parts of
Wall posters also indicated
there was a long struggle ahead
between Mao and the forces of
President Liu Shao-chi. Japanese
reports said the posters quoted
Premier Chou En-lal as telling
Mao "the recovery of authority
has only started."
With the civil conflict spreading
over China, Chinese in Peking let
off steam by staging a demonstra-
tion outside the Soviet Embassy
for the second straight day.
Kyodo quoted wall posters as
saying the fighting in Sinkiang
centered in the new city of Shih-
hotze, which previous dispatches
had called Shihotzu. It is in the
desert northwest of Urumchi, the
provincial capital.
Anti-Maoists were said to have
seized the center of the city after
fighting in which more than 100
were killed and scores wounded.
Whether the army took part in the
fight was not indicated: But pre-
vious dispatches said 10,000 ex-
soldiers had formed a field army
in Shihhotze and were armed with
rifles, macines guns, grenades and
Tso Chi, deputy political chief
in Sinkiang who is loyal to Mao,
was said to have reported to De-
fetnse Minister Lin Piao' that he
was unable to handle the situation
in Shihhotze and asked for in-
struction. Lin is Mao's heir ap-




Killer Snowstorm Paralyzes
iMidwest; 16 Reported Dead


Car Dealers Say Tight Credit
Responsible for Sales Slump

By The Associated Press
Auto dealers pinched by a new
car sales slump now in its tenth'
month place a major share of thej
blame on tight credit.
Other factors cited in a nation-
wide sampling of dealer 'views in-
cluded rising taxes, the huge sales
of 1965 and 1966, the higher costs
of living, apprehension about the
safety of 1967 models, the large
number of men in the armed
forces, and the threat of the draft

to prospective young buyers who
are eligible for Selective Service.
Slumping sales and the forced
layoff of more than 21,000 work-
ers spell possible economic trou-
ble for Michigan and some other
If the auto industry cutbacks
continue, supplier firms will be
affected eventually, any sales tax
revenues will go down and un-
employment compensation pay-
ments will go up.

60 Nations Sign Treaty
For. Disarmament in Space

from 60 nations signed the new
peace-in-space treaty yesterday at
an unusual White House ceremony
which President Johnson described
as "an inspiring moment in the
history of the human race."
Representatives of the United
States, the Soviet Union and Great
Britain were the first to sign the
document that aims at preventing
territorial or military rivalries in
outer space and at blocking the
orbiting of nuclear warheads.
Ambassador Anatoly F. Dob-
rynin, after signing for the Soviet
Union, told an East Room audi-
ence: "Let us hope we shall not
wait long for solution of earthly
Goal Sought
Johnson, who proposed such a
treaty last May, said that if dis-
armament on earth still remains
a goal to be sought, "we can at
least keep the virus from spread-
ing" to space.
Secretary of State Dean Rusk
said the treaty demonstrates that
conflicts or disagreements among
nations cannot be allowed to deter
a persistent search for areas of
agreement. Nations, he said, "must
take even small steps" toward
amity and cooperation.
The 2,000-word treaty seeks to;
block the orbiting of nuclear war-
heads or any other weapons of
mass destruction. It is aimed also
at preventing territorial claims in
space--such as asserting national
title to real estate on the moon.
Military Tests Banned
Other provisions ban military
tests or maneuvers on the moon
or other celestial bodies and call
for the prompt return of any
astronauts, cosmonauts, and space-
ships that might land accidentally
on alien soil.
Earlier yesterday, Soviet Pre-
mier Alexei N. Kosygin presided
at a similar ceremony in Moscow,1
where Ambassador Llewellyn E.
Thompson signed for the United
States. A third signing, which also
drew American participation, took
place in London.
The treaty, while drafted under

Lagging sales caused General
Motors and Chrysler to announce
this week that some 17,000 work-
ers will be laid off next month.
Earlier, American Motors an-
nounced indefinite layoffs for
4,100 workers.
While most industry officials
said it is too early to predict how
the production curtailment will
affect related business, already
there were signs of spreading de-
The auto industry, a powerful
force in the nation's economy,
accounts directly or indirectly for
about one out of every six jobs in
About 11,600 workers are to be
laid off in Michigan. Chrysler's
layoff will affect 1,600 at Los An-
geles and 2,800 at St. Louis. GM,
which already has laid off 2,800
at various plants, said it will lay
off 800 at Tarrytown, N.Y. The
American Motors layoffs primar-
ily are in Wisconsin.
An Associated Press survey in-
dicated that auto industry pro-
duction cutbacks may result in
the layoffs of workers at Michigan
supplier plants, if there is no im-
provement in the sales picture.
In Benton Harbor, Walter Laetz,
vice president of Auto Specialties
Manufacturing Co., which em-
ploys some 2,000 workers, said:
"We anticipate some cutbacks
but we don't know just how severe
they will be."

United Nations auspices, resulted
largely from negotiations between
the United States and the Soviet,
Union. This fact is seen as evi-j
dence that the two superpowers'
still can find areas of agreement
despite the Vietnam war.
U.N. Secretary-General U Thant
in messages to Johnson, Kosygin
and British Prime Minister Harold
Wilson compared the new pact
with the 1959 treaty neutralizing
the antartic and the 1963 partial
nuclear test-ban agreement as
"landmarks of man's march to-
ward international peace and sec-
Johnson proposed the treaty in
a statement last May 7. The U.N.
General Assembly endorsed the
final draft on Dec. 19.

Red Guards 'Falling
Behind' in Battle;
New Purges Begin
TOKYO (A)-Mao Tse-tung and
his foes appeared yesterday to
be girding for a protracted strug-
Japanese reports from the main-
land told of wall posters in Peking
reporting that Premier Chou En-
lai had informed Mao "the re-
covery of authority has only start-
Other wall posters said that
Mao's chief purge administrator,
Chen Po-ta, had complained that
Red Guards in the capital were
"falling behind the rest of the
Mao's own propaganda outlets
indicated the shape the struggle
was taking. There was growing
emphasis on the military, and the
New China News Agency poured
out thousands of words claiming
that army support at the "de-
cisive moment" had routed anti-
Mao forces in Shansi Province and
the Manchurian industrial city of
But in reporting pledges of sup-
port from pro-Mao forces in other
parts of the country, NCNA ap-
peared to be indirectly disclosing
that his opponents, led by Pres-
ident Liu Shao-chi, were en-
trenched almost everywhere.
In other developments reported
in posters and Peking broadcasts:
-Maoists were taking over con-
trol of the Foreign Ministery and
a reshuffle was in the offing. Re-+
ports said anti-Mao diplomats
would be purged.+
-Radio Peking admitted new
opposition in Heilunkiang, the
northernmost province of Man-
churia and indicated setbacks;
around Shanghai. Mao's forces had
claimed victories in both areas.
The Chinese-language news-7
paper Tseng Po, quoting reports;
from Canton, said, Gen. Wu;
Hsueh-lin, military commander of
Hainan, had defied Mao's orders1
and refused to allow Red Guards1
on the island.

By The Associated Press
A killer storm which smothered
the Midwest with a paralyzing
snowfall, and rendered Chicago a
snow-h"aped wasteland with the
heaviest accumulation in its his-
tory, thundered toward the east
The storm,- which left at least
16 dead in Illinois, punished the
nation's midsection with snows
that closed schools, highways and
Chicago was crippled by a 23-
inch snowfall. All three major air-

By The Associated Press
SAIGON - The ruling junta
named Lt. Gen. Cao Van Vien as
South Vietnam's new defense min-
ister yesterday, ostensibly ending
more than a week of political
sparring that shared :attention
with the war effort.
Vien, 45, was among the offi-
cers who overthrew President Ngo
Dinh Diem's regime in 1963. He i,
currently chief of the general
Premier Nguyen Cao Ky's gov-
ernment announced after secret
deliberations by the ruling generals
that Vien will assume the post of
commissioner of national defense,
replacing Lt. Gen. Nguyen Huu
'* * *
JAKARTA, Indonesia-The ap-
pearance of troop concentrations
around Jakarta in the last few
days has sharpened fears of a
misstep in the current war of
nerves centering on President
Veteran diplomats estimate that
about 40 battalions of the army,
marines, air force and police have
moved into the city area. By their
reckoning, part of these back
Sukarno but most support Gen.
Suharto, his adversary.
These sources express fear that
Sukarno, believing he has the
people's backing, might make a
desperate move. Suharto is rep-
resented as believing that who-
ever makes the first move will
lose out in the end.
* * *
WASHINGTON - The defense
said the charges against Bobby
Baker were built on quicksand.
The government said Bobby
Baker betrayed the confidence
and trust in him when he was a
Senate Aide.
With these closing statements
the trial of Bobby Baker, 38, one-
time secretary to the Senate Dem-
ocratic majority, moved toward

a climax yesterday. The jury will
receive the case today after being
instructed by U.S. Dist. Court
Judge Oliver Gasch.
Defense attorney Edward Ben-
nett Williams said "we're fighting
a phantom," referring to the
charges of income tax evasion in
1961 and 1962, theft, fraud and
conspiracy against Baker,.

World News Roundup

Pravda Demands Party Line
For Opposing Journalists

ports were closed and no schools
were open. The expressway r--
sembled huge parking lots. Side-
walks were impassable.
Low Temperatures
The hardship in Illinois and
Wisconsin was furthered by the
forecast of temperatures dipping
to zero.
To add to the complex weather
picture, tornado watches were is-
sued for northeastern Maryland,
most of Delaware, southern New
Jersey, east-central Virginia and
southeastern Pennsylvania.

The 23-inch snowfall in Chicago
in a 26-hour period broke a 37-
year record. It bettered the 24-
hour fall of 9.2 inches Mar. 25-26,
The Police Department urged
all Chicago workers to stay home.
Most did. Chicago's normally
bustling Loop was nearly deserted.
A severe ice storm knocked out
power, crippled communications
and closed schools over a large
area of northwestern Ohio. Air-
ports were closed, telephone com-
munications were knocked out,
and small communities were with-
out electricity as high winds snap-
ped ice-coated power lines.
Possibly the worst storm in In-
diana history isolated the north-
western part of the state. Freezing
rain coated power lines which were
then snapped by high winds.
Indiana State Police threw up
roadblocks on highways to prevent
more motorists from moving into
the huge traffic jams of snow-
bound cars and trucks. Thousands
of persons were marooned in pub-
lic buildings, service stations and
private homes.

MOSCOW (A)-The Soviet Com-
munist party severely criticized
two magazines yesterday, leading
a turbulent war of words between
liberal and conservative Soviet
Pravda, voice of the party, de-
manded yesterday that old Stalin-
ists and young liberals "make the
necessary conclusions" from the
criticism, and work for "the unity
of all creative forces."
Pravda clearly was setting the
stage for a middle line at the
forthcoming writers congress in
May, the first of its kind in eight
years. The liberal-conservative dis-
pute has long caused postpone-
ments of the congress.
Pravda again criticized the much
maligned voice of younger liberal
writers here, the magfzine New
World, for stressing a negative
side of Soviet life. The critique,
however, was comparatively mild,
making no mention of the maga-
zine's controversial editor, Alex-
ander T. Tvardovsky, by name. A
magazine spokesman said Tvar-
dovsky, long rumored about to be
fired, is still editor.
Perhaps more surprising was
the accompanying attack on the
magazine October, the organ of
conservative forces.

Banks Cut Interest Rate;
Chase Remains Lower

NEW YORK (P-First Nation-
al City Bank of New York trim-
med its prime interest to 5%
from 6 per cent yesterday. The
nation's largest banks followed,
leaving Chase Manhattan virtu-
ally alone with its reduction to
51/2 per cent.
Within a fews hours, Bank of
America, the nation's largest, an-
nounced in San Francisco that
it would join others in trimming
its rate to 5% per cent.
Wall Street speculated how long
Chase, the second-largest bank
in the country, could hold out.
A Chase spokesman said later,
"We have no present plans to
make any chance in the prime
rate of 52 per cent we announced
The prime rate is that charged
a bank's most credit-worthy cus-
tomers, usually large corporations.
From it, all other interest rates
are scaled upward.
I don't see how Chase can hold
out with everybody and their
brother beating on the doorstep
for loans," said an banker.

"The pattern seems pretty wel
established," said another as the
Bank of America fell in line.
Chase startled business and fi-
nancial circles Thursday by de-
creasing its prime rate to 51/2 pe
cent in the first major bank re-
duction in six years. The 6 pei
cent rate, reached at the height
of the severe money pinch las
August, was the highest since th
early 1930s.
President Johnson hailed the
Chase move as a contribution "t
the sound and healthy develop-
ment. of the American economy.'
He had called for easier credi'
in his Jan. 10 State of the Union
But some bankers called it po
litically inspired, precipitous an
a case of bad judgment.
Usually, other banks quickly
follow the lead of the major one,
in the New York money market
But with one exception - First
Western Bank & Trust of Loe
Angeles-Chase stood alone among
the large banks.


Pravda rapped October for re-
jecting works of "artistic merit"
and failing to see "those qual-
itative shifts in the creative works
of the young poets and prose
The Pravda critique came in an
editorial. Six columns criticized
New World and four criticized
"An excessive stress on the
negative facts and wariness in
describing positive events, per-
sistence in defending erroneous
views, these are the characteristic
features of the magazine New
World now," Pravda said.
Pravda also panned specific
works in October and criticized
both magazines for criticizing each
Jean Vigo's
1933, French subtitles
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boarding school -- one

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