TUESDAY, FEBRUARY '28, 1967 THE MICHIGAN DAILY PAGE THREE Liberia's Crash Program Resultsinlllassive Debt 9 MONROVIA, Liberia (A)-Libe- ria's crash program to keep up with the prestige of its recently independent West African neigh- Until a decade ago, Liberia's in- bors has shackled the 120-year- old republic to a massive debt. dependence was its principal dis- tinction over' the French and Brit- ish colonies around it. Liberia, settled in 1822 by freed slaves from the United States, proclaimed it- self a republic in 1847. Its distinction faded when other countries became independent,; starrting, with 1957 with Ghana and 1958 with Guinea. Some Li- berians even said that compared with the ex-colonies, Liberia had little to show for more than a cen- tury of freedom. One ambassador, Charles T. O. King, now in Nigeria, said "Ghana had better roads, better schools, better harbor facilities, a more highly developed industry, agricul- ture and public revenue." According to informed econo- mists, the Liberians felt goaded into a prestige building program financed by anticipated receipts from rubber and iron ore. , In the early '60s, up went: -a $6-million presidential pa- lace with offices for the executive staff and an underground swim- ming pool; -a $1 million building for the Department of Information; -an eight-story, $4-million Temple of Justice housing courts from supreme to traffic; -and 11-story Treasury build- ing. There was plenty of work, plenty of money in Monrovia," says one resident. "Now its quiet." By 1963, Liberia was obligated to pay $33 million in interest and principal on its debts. Once the prestige projects were up, the Liberian government built a ,much-needed hospital, a $4.5- million, 350-bed John F. Kennedy Memorial structure. "The Liberians will need $2- million a year to maintain it," says a U.S. Embassy official. "They can't afford it." Liberia's total debt eventually was figured at $125 million. The International Monetary F u n d loaned the government $12 million to get it over the rough spots. Debts were renegotiated so Liberia has longer to pay them off. Debt payment and service take up about 22 per cent of $50 mil- lion annual budget. By 1968, the percentage will be about 30 per cent. "Liberia may not be able to meet these commitments," said a' Western diplomat.j One economist estimates the longer period of payment will raise interest charges on the $125 mil- lion to about $60 million. Under IMF supervision, Liberia is enter- ing into long-term debts which the economist believes will raise the total outlay to $240 million by 1978 when the debt is scheduled to be paid off. Liberia's one million population will be one of the world's most heavily in debt. The government was caught by the debt because it figured on highj revenues based on good world prices for rubber and iron ore in 1951-58. By 1961, prices had fallen so that Liberia for the first time in years imported more than it exported. Governments are among Liberia's largest creditors. A major creditor is the American Import-Export Bank. But Liberia also borrowed from private contractors who used the money for their own projects. Some contractors supplied the credit, the materials, the design and the workmanship, a procedure likely to inflate cost. The govern- ment owes $20 million to an Ital- ian building firm. Despite close watching of new projects, new opportunities for debt spring up. One group has been pressing for international loans to build an oil refinery. A Western official said it costs 13 cents a gallon to import gasoline into the country but it would cost 2 cents a gallon to refine it in Liberia. U Thant May Meet Secret Viet Mission North Viet Diplomats In Burma, UN Chief Vacationing' There RANGOON, Burma 0P)-A high- level North Vietnamese diplomatic mission is in Rangoon at a time when U.N. Secretary-General U 'hant is vacationing in his home- land. But the purpose of the North Vietnamese mission is shrouded In secrecy. Thant told reporters he had been informed of the mission's ar- rival over the weekend but declin- ed to comment when asked if it had come here to meet with him. R Thant leaves tomorrow to spend three days at a beach resort on the southwest coast.' At the same time, Ambassador Arthur J. Goldberg, U.S. chief del- egate to the United Nations, is on a fact-finding tour for President Johnson in Asia. He went to South Korea today. Goldberg's schedule does not call for a stop in Burma at this time. In Washington, U.S. officials expressed surprise at the, North Vietnamese arrival but seemed in- terested in speculation that the delegation might meet with Thant. The U.S. officials said they had been informed in advance that Thant's trip home was a (personal one not connected with any peace effort. In Tokyo, Goldberg told Prime Minister Eisaku Sato that the United States will continue to stand by South Vietnam while pursuing peace. "What is necessary is for the other side to have the will and the wish and the, desire to make peace," he said. "The ebb and flow of the mili- tary situation, I said to the Prime Minister, in no way impaired our desire for 'unconditional negotia- tions." Goldberg is expected to discuss the Vietnamese war with President Chung Hee Party during his visit to Seoul. South Korean leaders have said they favor an "honor- able peace settlement" in Vietnam but advocated stepped-up military activities until peace talks actually start. Hoffa Loses Last Appealsj For Freedom PRESS CONFERENCE: LBJ Terms War Escalation Best Long-Range Peace Plan Teamster President WASHINGTON (AP) - President militarized zone, Johnson told a Refused New Hearing Johnson said yesterday the United news conference he believes he is States has gone in for more far- pursuing the course best calculated By Supreme Court reaching blows at North Vietnam to lead to peace. Abut he doesn't interpret this as At a question-and-answer ses- WASHINGTON ('P)-Teamstersmoving away from hopes of peace. sion in his office devoted mainly Union President James R. Hoffa In the aftermath of naval shall- to the conflict in Vietnam, he was yesterday in his fight to stay out ing of ground targets in North asked whether the more far- of prison as the Supreme Court Vietnam, the mining of rivers and reaching steps over the weekend turned down a succession of his the use of long-range artillery were taken because bombing has appeals. against targets north of the de- failed to halt infiltration from The tribunal refused to give him a second hearing on his 1964. fed- " eral jury-tampering conviction, s ]' tM a an it refused to hear hcimn;( ,if . G O of widespread government eaves- dropping at the Chattanooga trial.: ; Then, at day's end, the courti cleared the way for the early jail- judgment to the clerk of the U.S. TOKYO (I) - Peking Radio wireless communication stations, Dist. Court in Tennessee. hinted today that opponents of and prisons."' Judges Agree Mao Tse-tung were still resisting "Under any circumstances, the And Justice Potter Stewart, in Shanghai despite repeated revolutionary organization mem- -Associated Press THE BLACK BAG A MYSTERIOUS STUDENT at Oregon State University made his usual appearance in class yester- day encased in a black bag. The student, unknown to all except the professr. has iee2ftendinz sessions of a course in Basic Persuasion since the beginning of the1 AFTER APOLLO FIRE: NASAPans Improve In Spaerft Safety.I term. (See story Page 2.) after conferring "with each mem- ber of the court who has partici- pated in these cases" except Chief Justice Earl Warren, turned down twin efforts by Hoffa's attorneys to block temporarily his imprison- ment. m en ts The court's refusal to grant Hof- fa a new hearing and its refusal to hear his eavesdropping claim were announced, without com- vicesment and in a routine way, at nte end of the morning session. Shortly afterward. Hoffa's at- sible by April, after a review board torneys, their backs against the completes its study of the Jan. 27 wall, asked Stewart to hold up the Apollo fire at Cape Kennedy, Fla. judgment. WASHINGTON (P) - Space agency officials reported yester- day they have launched an over- haul of the Apollo capsule and said scientists are designing an in- stant-escape hatch to replace the one that sealed the cabin of three fire-doomed astronauts. But two top officials of the Na- tional Aeronautics and Space Ad- ministration said they could not now estimate the cost of the over- haul in time or in money. And they acknowledged the fire hazard had been underestimated prior to the tragedy. Associate Administrator George E. Mueller said that might be pos- Apollo Blaze 'Bugging' Thav 0kd fin the rlpin nnnd- claims that pro-Mao forces had seized control of the city, Red China's largest. In other developments in Chi- na's violent power struggle, the Czechoslovakian news agency CTK quoted a Peking wall poster as saying that disorders had spread through the south China province of Szechwan. Another poster quoted by the Bulgarian news agency told of a 16-hour fight between Red Guards and members of the commune of the New People's University in Peking Feb. 24. In Hong Kong, travelers from the south China city of Canton said penniless and hungry Red Guards had turned to robbery. Peking Radio, in a Chinese-lan- guage broadcast monitored in To- kyo, said the Shanghai Revolu- tionary Committee, controlled by Maoists, had banned "movements of armed militia by any mass or- ganizations or individuals," ap- parently meaning anti-Mao forces. "The violators of this order will be punished as antirevolutionary elements," it said. The committee, in a resolution adopted at a Feb. 23 meeting, also prohibited "attacks on airfields, bers must not be beaten, detained or forcibly taken away," it said. "We must resolutely crush the antirevolutionary forces ,who op- pose Chairman Mao Tse-tung and Defense Minister Lin Piao." Cheng Tu The Czechoslovak news agency (CTK) said posters told of a counterattack by an anti-Mao group against "genuine revolu- tionary rebel forces" in Cheng Tu, capital of Szechwan Province. CTK said the posters had been attached by Cheng Tu worker's who arrived in the Chinese capital to ask for help. The posters said that on Feb. 17 rebel forces were attacked by the anti-Mao group, a large number of their members were arrested, physically mistreated and women were raped, CTK reported. The Bulgarian news agency (BTA) quoted posters as de- scribing "bloody beatings" Red Guards had suffered when they tried to seize the New People's University printing press Feb. 24. The news agency .reported an- other bloody clash had occurred Feb. 19 in front of the Peking broadcasting station after 3,000 persons had besieged the building. North Vietnam. He said he thinks it impossible to state with any great precision how many individuals were in South Vietnam because we did bomb or didn't bomb during some period. Infiltration He added that "no one ever ex- pected bombing wpuld stop infil- tration-except those who want the United States to stop it. "We do think" the President went on, "that there are hundreds of thousands of people who are busy trying to put the bridges' back and the railroad ties back. I would estimate that we have lost less than 500 men in our bombing experiences. Probably we have lost a billion dollars in planes." "We, thought that we could make them pay a rather heavy price in manpower. They may have 100,000 busy on air defense. They may have 100,000k or so busy on coastal defense. I don't want to be held to these figures. Some have estimated as many as 300,000 additional on roads, rails and these other things," he said. Bombing Stopped From their own voices and their sympathizers and friends, John- son said, there are good indica- tions the North Vietnamese would like to see the bombing stopped. He said he thinks the proof of the pudding is in their own statements on a bombing halt. The new tactics in the wr, es- pecially the mining of North Viet- namese rivers, drew praise from Rep. Mendel Rivers (D-SC), chair- man of the House Armed Services Committee. He said in a statement: "It's about time this action was taken. However, I again urge this administration to mine the harbor at Haiphong so that this war can be brought to a successful conclu- sion." Escalation On the Senate side, the Demo- cratic majority leader, Sen. Mike Mansfield of Montana, told re- porters "this is escalation"-some- thing Mansfield has boen opposing. Gornmen Rease Funds For Highway, Construct ion The blaze erupted in the cabin . ie a iw cue auay pen a- ofhan Alloerd manto-m cap-n ing the filing of a request for a of an Apollo man-to-moon cap- new trial in U.S. District Court in sule undergoing ground testing, Chattanooga based on the "bug- swept through an atmoshphere of ging" allegations. pressurized oxygen and killed Air They also said carrying out of Force Lt. Col. Virgil I. Grissom, the sentence should be held up Air Force Lt. Col. Edward H. until the U.S. Circuit Court in White II and Navy Lt. Cmdr. Cincinnati rules on other new trial Roger B. Chaffee. motions. Mueller and NASA Administra- Stewart, who has supervisory tor James C. Webb reported to the jurisdiction over this region of the Senate Space Committee, and ac- federal court system, said each of knowledged that the menace of the justices with whom he con- fire had been underestimated. ferred agreed with and approved Webb said the risk was "con- of his action turning the pleas siderably greater than was rec- down. ognze."Stewart said' he also had con- ' WASHINGTON OP)-The John- son administration announced yesterday it is releasing $175 mil- lion in frozenhighway funds and said more will be forthcoming if the economic slowdown con- tinues. Johnson announced last Novem- ber that as an anti-inflationary measure he was ordering that federal grants to the states be held World News Roundup By The Associated Press BONN-Chancellor Kurt Georg Kiesinger was quoted as saying yesterday the United States is giv- ing his government insufficient in- formation about the treaty being negotiated with the Soviet Union to stop the spread of nuclear weapons to nations which do not have them. "I look upon our rleations with the United States with great worry," Kiesinger is reported to have told an association of pub- lishers and newsmen who are membersv of his Christian Demo- cratic party. SNEW YORK- Continental Oil Co.j cut' yesterday a portion of its recent gasoline price increase, un- der government pressure. It was the first crack in the oil companies' ranks since they an- nounced increases which it was estimated would add one cent a gallon to the service station price. There was no immediate word from other petroleum firms. * * * NEW YORK-The stock market suffered its steepest loss of 1967 in heavy trading yesterday. Brokers sad investors were dis- couraged by news of slumps in crdcrs for new machine tools, rail- road equipment, steel and automo- bes. Selling also was triggered, they sa.d, by a Hanoi claim of sinking a U.S. warship, which was denied by the Pentagon. JACKSON -- A federal grand jury that has been hearing evi- dence in the 1964 slaying of three civil rights workers near Phila- delphia, Miss., returned an unspe- cified number of indictments yes- terday. to $3.3 billion in the fiscal year that ends June 30. Congress authorized $4.4 billion for the year, but Johnson said the cut amounted to only $700 million because he never intended to go beyond $4 billion this year. State executives and Congress members protested the cutback would slow down work on the 41,000-mile interstate expressway system, for which the federal gov- ernment is meeting 90 per cent of the bills, and also the primary, secondary and urban highways for which the federal share is 50 per cent. Secretary of Transportation Alan S. Boyd, who told the congres- sional hearing of the decision to release $175 million of the frozen funds, insisted, "There has been no impact on the 1972 completion date for the interstate system." He conceded, however, that there will be an impact in the next quarter, reflecting a falloff in planning, contract awards and material orders. Boyd made clear under ques- tioning that the $175 million is to be used only for preliminary en- gineering and rights-of-way ac- quisitions. 4 Test Not Hazardous And Mueller said the ground test in which the three astronauts died was not considered hazardous. "Because this was not considered a hazardous test," he said, "emer- gency procedures for this partic- ular test do not exist." Their testimony also produced these reports: Mueller said it might have been physically impossible for the as- tronauts to have opened their cabin escape hatch because of intense pressure built by the fire inside. Not Time "There was not time to have actuated the mechanism in any event," he said. He said it would have taken about 90 seconds to open the double hatch. Mueller said space scientists now are designing a single hatch, which swings outward. He said it will be possible to open the new hatch in about two seconds. sidered a memorandum from U.S. Solicitor General Thurgood Mar- shall, who said Hoffa's request for "relief" from the sentencing should be presented first in lower federal courts. KEEP FREEDOM RINGING Returning On National Tour! "AN EVENING TO. CHERISH.I Mounting joy beyond anything you might expect. Radiant!" W. TELEGRAM "THE TOUCH OF, GREATNES SI A warm portrayal of Robert Frost,an evening when the poet spins out his own story,the sweet and the following bitter,the tragedy and triumph, in words creating laughter; but event more often tears." N.Y. TIMES "MAGNIFICENTI MEMORABLE MAGIC.," CUE "FROST'S TRUE VOICE SPEAKS IN ALL ITS LYRIC CLARITY." HERALD TRIBUNE BUY U.S. SAVINGS BONDS Weant to enjoy Shaw having fun I . ,11 B'NAI B'RITH HILLEL FOUNDATION at the EASTERN MICHIGAN UNIVERSITY presents RABBI SHERWIN T. WINE the "Ignostic" Rabbi of the The University of Michigan PROFESSIONAL THEATRE PROGRAM Production of C~r Evenings Frost featuring Anne Gee Byrd -T homas Coley - Jack Davidson By DONALD HALL Directed by MARCELLACISNEY C. __ \ 33 3rVI~ THE DEVIL'S DISCIPLE rniU -- ~ -~.W. ~EIIII ND MN 1