. «'EDNESDA*k, NOVEMBER 30, 1866 THE MICItIGAN DAILY PAGEK TBEN WEDNSDAI', NVEMBR 3,,6 H IHG N AL A~ WW C1ll4J 1 [ G[i p Israel Claims Battle With Egyptian;Jets King Hussein Says Soviet Union Stirring Up Current Tensions AMMAN, Jordan (W) - Israel claimed its Mirage fighters de- stroyed two of Egypt's MIG19s in a dogfight yesterday over the Negev Desert, and reported a fresh exchange of shots on the Jordan- Israeli frontier. King Hussein of Jordan fired an oral blast at the Soviet Union, ac- cusing it of whipping up current tensions in the Middle East to win control of this strategic, oil-rich area. He told a news conference at his palace that Communists were to blame, for the unrest which erupted in riotous demonstrations. in Jordan last week. In Washington, authoritative sources said the United States is sending 36 F104 Starfighters, Lockheed jets -capable of doing 1,500 miles an hour, to bolster Hussein's armed forces. There was no immediate con- ~qfirmation in Amman or Cairo of Israel's story of the air and ground skirmishes, issued by an army spokesman in Tel Aviv. Israeli sources reported that a communications plane of the Israeli army, on routine patrol over the desert, was intercepted by two of Egypt's Soviet-designed MIG19s. Two of Israel's French- built Mirage jets sped to the scene and downed the MIGs in a two- minute fight at 15,000 feet over the frontier settlement of Beer- tayim. The MIGs-one wrecked by an 1 air-to-air Matra missile-fell on Egyptian soil. The Mirages re- turned safely to their base. Shots were fired across the border at a group of Israeli forest workers from Jordan's Rujum police station in the eastern Ju- dean Mountains, the area where an Israeli army command car was blown up Nov. 12. Israeli troops guarding the workers returned the fire. No Is-' raeli casualties, were reported. King Hussein, expressed belief in an interview with The Asso- ciattd Press that the Middle East is on the brink of an explosion more dangerous to world peace than the Suez crisis of 1956. In his new conference charge' later against the Soviet Union, he warned Western powers that if the Middle East were overrun by Communist or pro-Communist re- gimes "the threat to them will be very, very severe." "There is sufficient evidence of a new Soviet plan for this area, the result of setbacks the Com- munists have suffered at several points 'around the world, in Asia and in Africa," he said. "If they are able'to win control of this area, with its oil resources and its hold on strategic goods that pass through this region, it would have a great bearing on the destinity of so many people in this world." Hussein said some of his leftist Arab neighbors were serving Com- munist ends by exploiting Jordan's crisis. Touched off by Israeli at- tack Nov. 13 on the southern border village of Samua. He blamed Communists for disunity in the Arab sphere, the collapse of Arab summit meetings, and the continuing drain of civil war in Yemen. He said Jordan's border defenses were being reinforced against pos- sible further Israeli attacks, and if "they attack in force again, it will mean we will go full out with * all our force." "We can only die once, and we are determined to die fighting for our rights, our land and our free- dom," he said. The king was asked how the Israeli problem could be perma- nently solved without war. "By having the world recognize exactly what Israel is, what it stands for and what it wants," Hussein said. "We are represented as aggressive and warmongers, but the facts are exactly the reverse." $5.3 Billion INCREASED OPPOSITION: --Associated Press ERRANT GIANT The violent storm which lashed Michigan with snow, sleet and heavy winds yesterday snapped the bow moorings of the cruise ship SS Aquarama, berthed at Muskegon. The block-long vessel was blown to an angle acros her slip by winds which reached 40 knots. She will be winched back when the storm abates. RECORD INCREASE: Scarcity of Mortgage Funds Forces Rising Interest Rate WASHINGTON (R) - Interest rates on conventional home mort- gages jumped to another record during October while the mortgage terms tightened further, the gov- ernment reported last night. This reflected the continued scarcity of mortgage funds despite efforts by the Johnson admin- istration to pump more money into home loans. Chairman John E. Horne of the Federal Home Loan Bank Board said the average interest rate on conventional mortgages on new and older homes has risen about six-tenths of one per cent during the past year, while the average lengths of the , mortgage loan shrank by about one year. Although the board regulates rates for savings and loans or- ganizations, it report covered all conventional loans on both new and older homes. 10th Straight Rise The October increase to 6.32 peri cent on newly built single family, homes was the 10th straight1 monthly rise. The jump from the September level of 6.22 was the largest monthly increase of the year. In October last year the average was 5.7 per cept.- The rise in conventional rates on existing homes to.6.49 per cent1 represented the eighth straight monthly increase, the board re- ported. The September level was 6.4 per cent. The average in Oc- tober last year was 5.87 per cent. Maturity Down The average maturity on con- ventional home loans during Oc- tober was 23.6 years, down from September's 24.3 years and Au- gust's 25.4, the year's high, the board said. A slightly larger down payment was also required during October as the average conventional loan on a new house covered 71 per cent of the purchase price com- pared with 71.1 per cent during September. The loan-to-price ratio on exist- ing homes was unchanged at 69.5 per cent. Interest rates on home loans in- sured by the Federal Housing Ad- ministration or guaranteed by the Veterans Administration are fixed by law and government regulation at six per cent. Conventional interest rates on new homes ranged during October from 5.9 per cent in the New York City area to 6.91 per cent in the Houston, Tex. area. Slash Made In Program Johnson Cuts Federal Spending; Makes No Tax Boost Decision AUSTIN, Tex. () - President Johnson announced yesterday a $5.3 billion cut in federal programs and a $3 billion slash in actual spending this fiscal year in "an- other step to protect and preserve our prosperity." But there still is no decision for or against a tax boost, he said. Johnson also announced at a news conference in his seldom- used office in the new federal building here: -That he is very much con- cerned about the Israeli-Jordanian crisis, it watching it closely, and will offer any suggestions he thinks might be helpful. Christmas Truce -The prospect of a decision shortly-within the next few hours or at least before the departure for Mexico-on a Christmas-New Year's ceasefire in Viet Nam. Johnson said this is being dis- cussed carefully with the South Vietnamese and there will be no delay in disclosing the outcome. This is expected to favor a truce. -His second trip to Mexico this year, to meet President Gustavo Diaz Ordaz at the border Saturday and inspect the giant ,Amistad Dam which the two nations are building in partnership on the Rio Grande. The financial hold-down, John- son expl ained, comes about through "a combination of not asking some funds that were au- thorized and not spending some funds that were appropriated" by Congress. Cut No Surprise If there was any surprise, it was in the size of the cuts, and even the dimension wasn't too unex- pected. Johnson had annnounced back in September that he was setting a goal of $3 billion for fed- eral programs but lately had been saying it might be substantially more. It was. Johnson said ,he feels the re- ductions are "prudent and neces- sary" for the nation's well-being. He described the economy as strong, but with some burdens. He called inflation "the cruelest bur- den of all" and said the cutbacks will help combat inflationary pressures. Johnson toldreporters: "We are going to continue to review and study all our programs and make further reductions where possible. I welcome suggestions for addi- tion reduc'atios from the Cabinet, the Congress and the country- and from you, if you have any." In Washington, Undersecretary of the Treasury Joseph M. Barr said the $3 billion spending cut will have no effect on the admin- istration's thinking about a possi- ble tax increase. The cut, he said, has already been working into the Treasury's figuring. Barr said the only ingredients now needed to get the picture in focus are the additional costs of the Viet Nam war and the govern- ment survey expected next month on plant and equipment spending expected by business during 1967. UN General Assembly Rejects Admission of Communist China B eneDenies Ban Of Chinese Communism Kiesinger Has Difficulties In Assembling New Cabinet BUDAPEST, Hungary (I)-So- viet leader Leonid T. Brezhnev called again yesterday for a world Communist conference and denied the session would banish Red China from the worldwide party movement. He told the Hungarian Com- munist party congress the notion that Red China would be read out of the world movement was "utter nonsense trumpeted by the bour- geois press." "We are retaining confidence that the time will come when the Communist party of China will once again take its place in the closed ranksof the world Com- munist movement under the ban- ner of Marxism-Leninism," Bre- zhnev declared. The Soviet party chief said U.S. policies in Viet Nam "can and must be countered by the united forces of the anti-imperialist front, the backbone of these forces being community of Socialist states and the world army of Communists." . By refusing to take part in joint action, the Chinese "whether they want it or not, are objectively as- sisting the imperialists and are making the struggle of Viet Nam more difficult," Brezhnev con- tinued. This was an apparent reference to Soviet charges that Red China has hampered the flow of Soviet and Eastern bloc military aid to Communist North Viet Nam. "There is much in the present policy of the Chinese leaders," he said, "that causes bitter regret and in no way conforms to Marx- ism-Leninism or to the principles of Socialist internationalism and is inflicting great damage on our common cause." Brezhnev asserted the world conference would be "a comradely discussion of urgent problems of international development that have taken place in the world in the past six years." This appeared to. be a reference to China. Brezhnev's attack on zhe Chi- nese appeared mild. Some sources said he apparently wanted to keep the door open on a world confer- ence for doubtful Communist par- ties that would stay away if the declared aim of the meeting to read the Chinese oumnof world movement. Brezhnev's speech marked the second time that he has come out for the world conference. The first time Brezhnev called for a conference was at the Bul- garian party congress tw3 weeks ago after Bulgarian party chief Todor Zhivkoc revived the idea, which dates back to 1964. By The Associated Press UNITED NATIONS, N.Y.-The General Assembly closed the U.N. door to Communist China by a decisive majority yesterday. It also rejected overwhelmingly a pro- posal for a high-level study aimed at breaking the deadlock over China's U.N. representation. It was the 16th time the as- sembly had debated the issue, and by a vote of 57 against and 46 in favor with 17 abstentions the 121- nation assembly rejected a resolu- tion to admit the Chinese Com- munist and expel the Chinese Nationalists. Laos did not partici- pate. Last year the vote was 47 to 47 with 20 abstentions-the near- est Peking has ever come to win- ning a U.N. seat. Two members of! the then 117-nation assembly did not vote, and one was absent. Majority Required Like last year, the assembly sup- ported the United States in its contention that a two-thirds ma- jority was required. The vote on that was 66 in favor and 48 against with 7 abstentions. But the 11- vote victory margin for the foes of Peking made application of the two-thirds rule unnecessai-y. On the resolution for a study championed by Italy, the vote was 62 against, 34 in favor and 25 ab- stentions. The vote found both foes and supporters of Peking joining in defeating a move they regarded as possibly presaging a two-China solution to the problem. Peking and Nationalist China op- pose that idea. The big gain chalked up the anti- Peking forces was attributed by U.N. diplomats to two factors: Disenchantment with the current domestic and foreign policies of Peking, and reluctance of U.N. members to accept a resolution which insisted upon expelling Na- tionalist China as well as seating Communist China. U.S. Ambassador Arthur J. Gold- berg made that point in a state- ment issued after the vote. "We believe the enlarged ma- jority against the Albanian reso- lution to expel the Republic of China and seat the Chinese Com- munists reflects the current situ- ation in Communist China, and a belief the rights of the Republic of China in the United Nations should be maintained," he said. Albania Prime Mover Albania, the voice of Peking in the United Nations, was the prime mover of the resolution to admit the Communists and boot out the Nationalists. The change in attitude toward Peking was reflected also in the considerable number of switches from last year's vote on the Al- banian resolution. As usual, France and Britain split with the United States and voted for Peking. But Britain voted for the resolution requiring a two- thirds majority, while France voted against. Communist China;Prepares Test of Fifth Nuclear Device WASHINGTON (P-Communist China is preparing for its fifth nuclear test in the near future- possibly within days, or a few weeks-the United States made known yesterday. There was immediate specula- tion that the Chinese Communist scientific community, totally under military direction, may be striving to archieve a thermonuciear test explosion. But officials sources in Wash- ington discounted Peking's cap- ability now to put together a hydrogen bomb and a guided mis- sile to deliver it. State Department press officer Robert J. McCloskey announced that "we have reason to believe another Chinese Communist nu- clear test will take place in the near future at the usual site of Lop Nor. "This continuation of Chinese atmospheric testing," he said, " xe- flects the determination of Com- munist China to move ahead in its nuclear weapons program in defiance of world opinion. as ex- pressed by more than 100 nations which signed the test ban treaty in 1963." U.S. expert anticipate that prep- arations for the new test in the Sinkiang Desert region would at- tempt to develop further the ther- monuclear experimentation of last May's third test. An explosion with a yield of 220,000 to 240,000 kilo- tons took place at that time. U.S. officials reported that the Chinese Communists are produ- cing a little more than their day- to-day needs of enriched uranium and are able to build up a supply. It is expected that the scientists, who have been removed from most of the political turmoil gripping Red China, may be under orders to test a fairly large bomb as soon as possible. was the BONN, Germany (P)-Hitches in putting together a cabinet under Kurt Georg Kiesinger prolonged the West German government crisis yesterday. At least part of the difficulties seemed to center on former Defense Minister Franz Joseph Strauss. Mayor Willy Brandt of West Berlin, slated to be foreign min- ister in Kiesinger's cabinet, has put pressure on Strauss to make a statement clarifying his role in the 1962 Der Spiegel affair that led to his ouster from the cabinet Approve Holiday Truce In Viet Nam Hostilities SAIGON, South Viet Nam (P)- The South Viet Nam government announced yesterday Christmas and New Year's truces of two days each in the Viet Nam war and a cessation of U.S. air bombing on North Viet Nam for the same periods. It said offshore bombard- ments by the U.S. Navy also would be suspended. Besides the Western holiday truce period around Dec. 25 and Jan. 1, there wil be a suspension of hostilities for the Vietnamese lunar new year period in February, the government said. The Communist Viet Cong last Saturday ordered a 48-hour truce over Christmas and a similar halt in the fighting over the New Year's holiday. Immediately afterward the United States said it was dis- cussing with the Saigon govern- ment the possibility of year-end interruptions in the fighting. In 1965 the Viet Cong an- nounced a truce of 12 hours be- ginning at 6 p.m. Christmas Eve. They generally are credited with observing it. But they accused the United States and its allies of having violated Viet Cong terms. Last year the United States and the South Vietnamese proposed a 30-hour cease-fire, starting at 6 p.m. Christmas Eve. Field units reported several instances in which the Viet Cong ignored this cease- fire after their own shorter truce period had ended. After the ground fire had re- sumed, the United States con- tinued .a suspension of air strikes against North' Viet Nam. The withhold lasted 37 days, but noth- ing came of attempts toget cease- fire talks going in the interval. Military men complained that the North Vietnamese had taken ad- vantage of thelull to rush men and material south and to rebuild bombed facilities. of Konrad Adenauer then chancel- lor. It was alleged at the time that he had misled the Bundestag- parliament-in saying he had nothing to do with the arrest of a writer for the newsmagazine Der Spiegel, who was vacationing in Spain. It later turned out that he had asked for the arrest through the West German military attache in Madrid. T r e a s o n charges against the writer were later dropped. Kiesinger, the Christian Dem- ocrat who is expected to replace Ludwig Erhard as chancellor, has promised Strauss a job in the new government. Strauss has been reported ready to accept the job as finance min- ister or to become Christian Dem- ocratic party leader in the Bun- destag. He is leader of the Bava- rian wing of the Christian Dem- ocratic party. Disagreements were also report- ed from the ranks of Christian Democratic negotiatiors over the future of Foreign Minister Ger- hard Schroeder, who is slated for the Defense Ministry. It was his Foreign Ministry that made public Strauss' role in the writer's arrest and the two men have been on unfriendly terms ever since. Kiesinger told reporters that he expected to complete his cabinet yesterday but separate meetings of the Christian Democratic and So- cialist party leadership that were to pass final judgment on the choices were postponed 24 hours. The election of the new chan- cellor is clue on tomorrow. Eugen Gerstenmaler, president or speaker of the Bundestag, said he expects this to go on as planned. POETRY FOR POOR POWER DONALD HALL JERRY BADANES JERRY SACHS Give a gift of JENSEN, WEDGWOOD, SPODE, ROYAL COPEN- HAGEN, or DANSK. It will be appreciated. JOH N B.L EIDY 601 and 607 E. Liberty St NO 8-6779 Ann Arbor .... .:.r': ., u ,. "Wj % r. .'!h." w .. ;..Y. .. SC . . . .._________________________ f F'.... . ..2CITA...S FRAGRANCE of CHRISTMAS Benefit for HEW Humanize Existing Welfare Washtenaw County Welfare Union THE ARK 1421 Hill, Ann Arbor Nov. 30 8:00 p.m. $1.25 coming tomorrow! a photograph of the JIM KWESKIN JUG BAND (of Vanguard Records) coming Friday, Saturday, AND Sunday! in full-color reality: r Amm androgrnmno m mm AminmimnmnAards I TONIGHT ONLY II 1 *" I I II by vi4Bins oJI A second program of Award 1 , / Winners and Highlights from S "the Ann Arbor Film Festival. 1 "Yellow Horse in Still Life" 1 , "Nothing Happened This Morning" by David Bienstock * "Schmeerguntz" by Gonvor Nelson UNIVERSITY PLAYERS! presents Tennessee Williams' CAMINO SACHET SPRAYAND PAIR OF CANDLES IN BAYBERRY SCENT FOR THE HOLIDAYS. $2O/e