'DAY, MAY 14,1965
THE MICHIGAN DAILY
'DAY, MAY 14, 1965 THE MICHIGAN DAILY PAEI~1 'WTWi~k
. csuu 1ai1VL'ia
Bonn, Israel Set
D1ploima 1c Ties
Six Arab Nations Withdraw Their
Ambassadors from West Germany
BONN, Germany (IP)-West Germany and Israel announced yes-
terday the establishment of full diplomatic relations while Arab gov-
ernments began closing their German embassies.
Arab reaction was strong, but the Bonn government is con-
vinced that no more than one or two states will go so far as to estab-
lish diplomatic relations with Communist East Germany, as threat-
ened by Cairo.
ONLY QUARTERLY REPORT:
Payment Deficit Cu
of the Treasury Henry H. Fowler
said yesterday the United States
balance-of-payments deficit was
cut in half in the first three
months of 1965. But he warned
this should not be interpreted "as
indicating that the battle has been
Fowler reported also a further
$60-million reduction in the U.S.
gold stock, bringing the total gold
outflow this year to $1.035 billion
and leaving current gold stocks at
about $14.353 billion.
The balance-of-payments defi-
cit, which has persisted for about
15 years, represents the net
amount of dollars flowing abroad
because private and government
payments from foreigners are less
than payments to foreigners.
In his first news conference as
secretary of the treasury, Fowler
said the large gold outflow result-
ed primarily from a buildup of
dollars in foreign hands last year.
The gold loss was only $125 million
last year even though the pay-
ments deficit was $3.1 billion.
He also said another factor was
the decision of the French gov-
ernment to make substantial gold
purchases-totaling more than 500
milion-from the United States
with dollars it has accumulated.
The gold outflow is related to
the blance of payments but large
sales of gold do not necessarily
follow large balance-of-payments
A commerce department report
It in Half Bill Doubling.
placed the first-quarter payments WASHINGTON (P)-A bill tha
deficit at $767 million on a season- for the administration's anti-pave
ally adjusted basis, compared to yesterday by the House Education a
$1.5 billion in the last three Chairman Adam Clayton Powe
months of 1964. The large outflow request through both a subcommitt
of dollars in the fourth quarter of hours with Republicans protesting I
1964 was a record.
1964was recrd.A voice vote completed comn
Fowler said there was a sizable Alwich wouldcompnete ro
payments deficit in the early bill, which would continue the prof
weeks of 1965 but that there was increase its present authorization
a sizable surplus in March and of $800 million. Only one Republi-
preliminary figures indicate plus can, Rep. Ogden R. Reid, of New
signs for April. York, said he voted for it.
The Commerce Department said Funds Later
President Lyndon B. Johnson's Actual funds must be provided
program to cut the deficit, an- later in an appropriations bill.
nounced Feb. 10, did not have The committee approved one
time to be fully effective during key change in the law, which was
the quarter. enacted last year in an effort to
However, the department said raise the standard of living of the
it may have been a major factor nation's poor. It removes a provi-
in a large decline in long-term sion that gives governors a veto
foreign bank loans during March. power over some of the projects.
Two major points in the broad Powell had promised just such
program were requests to banks to speedy, action at a "summit meet-
halt the recent rapid increase in ing" Tuesday with Sargent Shriv-
foreign loans and requests to er, director of the Office of Eco-
major corporations to make similar nomic Opportunity.
voluntary reductions in the amount Program Criticisms
of projected overseas business in- The Harlem congressman had
vestment. been critical of the program,
A major adverse factor in the charging that local politicians
first three months was the inter- were monopolizing it, blocking in-
ruption of foreign trade by a dock dependent agencies from the funds
str ke which tied up east coast and and shutting out the poor in the
gulf ports for about 30 days. planning of projects.
at would nearly double the money
rty program was approved swiftly
iid Labor Committee.
ell (D-NY) rammed the $1.5-billion
tee and the full committee in three
oudly but vainly.
nittee action on the authorization
gram until June 30, 1967, as well as
Chancellor Ludwig Erhard's
old a news conference that
REP. JOHN V. LINDSAY
NEW 'ORK VP)-Rep. JohnI
Lindsay, one of the few Republ
cans to emerge in strength fro
his party's national elections d
feat, announced his candidacy ye
terday against Democratic May
Robert F. Wagner.
In going against Wagner's u
precedented fourth-term bid No
2 in a city that normally vot
3-1 Democratic, Lindsay said, "C
ties are for people and for li
ing, and yet under its presen
tired management, New York Ci
has become a place that is n
longer for people or for living.
"In these long years of on
party rule, we have witnessed t]
decline and fall of New York Cit
We have seen its strength dimin
ished, its prominent place in ti
world of cities lost, and its peop
beset with hopelessness and d
The state's top Republican fi
ures, from Gov. Nelson A. Rocke
feller and Sen. Jacob K.Javitsk
the city's five GOP county chai
men, announced enthusiastic bac
ing of Lindsay. This virtually a
sured him of formal nomination.
Lindsay took himself out of tr
mayoralty picture last Marc
then changed his mind.
State Republican Chairman Ca
Spad predicted a fusion of diser
chanted Democrats, liberals a
independents rallying b e h i n
Lindsay is serving his four
term as representative of Manha
tan's 17th Congressional Distri
By withholding his support fro
GOP presidential candidate Bar
Goldwater in the last nation
elections, Lindsay won by mo
than 90,000 votes, about 20,0
more than President Lyndon1
* Johnson polled in the district.
spokesman, Karl Guenther von Hase,
relations actually were established
-4Wednesday through an exchange
of letters between Erhard and
Prime Minister Levi Eshkol.
The official announcement also
was conveyed via West German
ambassadors to the Arab nations.
It explained Bonn's standpoint
and said, "the German hand re-
mains outstretched in the Arab
But Arab retaliation was swift.
Iraq broke relations with West
Germany Wednesday. Following
were Jordan, Syria, Egypt, Saudi
Arabia, Lebanon and Yemen. Ku-
wait, which was about to ex-
change ambassadors with Bonn
when negotiations with Israel be-
gan, abrogated the agreement.
Beirut analysts of Middle East
Affairs said they expected Algeria
and Sudan to follow with the ma-
jority of the 13-nation Arab league
which adopted a resolution in
Cairo March 15 calling for such
a break. They expected Morocco,
Tunisia and Libya to hold out.
Morocco To Stay
Morocco's Ambassador Mehdi
Abdelalil said his country has no
y intention of breaking relations
with Bonn. The embassies of Tu-
V nisia and Libya said they had
i- received no instructions.
m The new Israeli and German
e- ambassadors still are to be named.
s- In an official statement, the
or Bonn government said the remain-
ing deliveries due on a West Ger-
n- man arms agreement with Israel
v. had been transformed into eco-
es nomic deliveries. Von Hase said
i- these already have been carried
v- out. He did not say what they
it, were or how much they were
no Future Aid
Future economic aid to Israel
e- will be the subject of further ne-
he gotiations, he said .'
y. As for West Germany's scien-
n- tists working on warplanes and
he rockets in Egypt, this problem will
le be satisfactorily solved, von Hase
e- declared. Israel has repeatedly
voiced strong objections to the
activity of these specialists.
g- Von Hase said a major part of
:e- the scientists have left Egypt in
to the past several months and more
r- are expected to leave shortly.
'k He added that the Bonn gov-
s ernment. is determined to use
every means at its disposal to pre-
he vent scientists from being hired
h, to do military work abroad.
rl German - Israeli negotiations
were given a strong boost when
n- it became known that West Ger-
nd many was delivering arms to Is-
Erhard's cancellation of the
th agreement under strong Arab
t- pressure. last February became
ct. the prelude to the final estab-
im lishment of diplomatic relations.
'ry Arab reaction has been strong,
al but the Bonn government is con-
re vinced that no more than one or
00 two states will go so far as to es-
B. tablish diplomatic relations with
Communist East Germany.
Jardine Threatens To. Fire
Teachers if Strike Continues
SOUTH BEND, Ind. (P)--Public hool officials announced yester-
day 360 members of the American Federation of Teachers would be
fired if they did not return to duty this morning. They have been in
a continuous meeting once Tuesday morning in a salary dispute.
The federation wants the 1965-66 sa
for beginners. The school board set it
over the current school year. Supt.
Alex Jardine sent telegrams to thel
absent teachers ordering them
back to work.
"Your failure to do so will be'
construed as a break of your con-
tract, insubordination and neglect
of duty," he told them.
A school board spokesman said
the absent teachers would be
dropped from the payroll unless
reinstated by the board. The
teachers already had been told
that they won't be paid for the lost
The instructors sat in silence
when Jardine's telegram was read
in their union hall. Local President
George T. Bull read it again and
this time the teachers shouted de-
The teachers were'"avoiding any
appearance of being on strike, al-
though that's what the school
board called their action.
The union executive committee
oroposed yesterday that "infor-
mational demonstrations" be held
today. The proposal, evidently for
picketing, was withdrawn when.
the group indicated strong oppo-
Local President George T. Bull F
said the boycott has become a 4
matter of principle. He said the
union teachers want to talk di-
rectly to the school board mem-
bers instead of through Jardine.
The sharpest effect of the
teachers' absence was at Central,
Riley and Washington High
Schools, where only about half
of the staffs were on hand. Stu-
dents were supervising some class-
South Bend has 1400 public
scale to start at $5400
$5200, a $200 increase
NATIONAL TEACH-IN ON THE VIET NAM WAR
Saturday, May 15
LONDON M)-An American of-
ficial said yesterday the world's
big powers have until early 1968
to stop the runaway spread of
"After that," the informant
said, "as many as 20 countries
will be able to manufacture cheap,
but deadly atomic bombs."
Among those 20 countries, Pres-
ident Lyndon B. Johnson's ad-
ministration believes, are India,
Pakistan, Japan and Israel.
The source said Washington is
satisfied that the Russians and
French are in general agreement
with the Americans and British
in their wish for an early non-
dissemination pact between the
Washington, D. C.
Sheraton Park Hotel
9:30 a.m.-10:30 p.m.
Angell Hall Auditorium A, B, D
Critics of Administration Policy on Viet Nam will confront Representatives of the
Administration in Washington on Saturday, May 15. A nationwide telephone
network will carry a major part of the proceedings to more than 100 locations
across the country where local teach-ins will be held. The broadcast will feature
major statements by McGeorge Bundy for the Administration and by Prof.
George Kahin of Cornell proposing a new policy.
IN ANN ARBOR the teach-in will begin with a resume of the morning's
events in Washington. The broadcast from Washington will be heard from
1--4 p.m. At 4 p.m. Prof. George Totten of E.M.U., Prof. Rhoades Murphy
of U.M. and Mr. Carl Oglesby will offer a summing-up and commentary.
THE CONFRONTATION IN WASHINGTON will begin at 9 a.m. with
speeches by Arthur Schlesinger Jr. (Harvard), Hans Morgenthau (U. of
Chicago) and Isaac Deutscher (London, England) and conclude in the
evening with seminars and a panel discussion on American foreign policy.
For information about the program, travel
meetings, call 663-4243.
arrangements and tickets for the Washington
THE INTER-UNIVERSITY COMMITTEE FOR A PUBLIC HEARING ON VIET NAM
Post Office Box 1383 Ann Arbor, Michigan 48106
lee I I,
FRIDAY, MAY 14
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