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May 08, 1968 - Image 3

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Michigan Daily, 1968-05-08

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Wednesday Mary 8, 1968



Page Three

Wednesday May 8, 1968 THE MICHIGAN DAILY



from North

climbs to record height

Up interest rates
for FHA, GI loans
Weaver says new legislation allows
construction to iieeL trowildg deiiand

WASHINGTON (P) - Infiltra-
tion from the North has reached
such record levels in Vietnam in
the period preceding preliminary
peace talks that the administra-
tion is concerned about a neces-
sity for possible retaliatory steps.
Government officials say too,
that they are concerned with the
new Communist attacks that have
centered on Saigon and other
cities. They say these, too, con-
front the U.S. command in Viet-
nam with decisions on counter
Thus the hopes that soared
when Washington and Hanoi{
agreed on Paris and a starting
time around May 10 for prelimin-
ary peace discussions are being
N a-me peace
40 -WASHINGTON (P)-The United
States announced yesterday it
will send a six man delegation
headed by Ambassador W. Averell
Harriman to Paris for the pre-
liminary talks with North Viet-
namese negotiators.
Ms members of the delega-
tion, including Harriman, plan to
fly from Washington tomorrow.
"We are prepared to begin on
Friday," a State Department
spokesman said. Friday is the
proposed opening date for the
preliminary peace talks, although
final details on a meeting place!
in Paris have not yet been worked
The members of the delegation
are: Harriman, Cyrus R. Vance,
Lt. Gen. Andrew Goodpaster,
Philip C. Habib, William Jordan
and Daniel I. Davidson.

tempered now by caution and the
military facts of life in Vietnam.
As of May 5, reports from Sai-
gon to Washington put the esti-
mate of infiltration by the Com-
munists at 100,000 men since the
Tet offensive began in late Janu-
ary with about 35,000 in April
and more than 6,500 from May 1
to May 5.
Meanwhile, U.S. Gen. William
C. Westmoreland has received no
manpower reinforcements, offi-
cials say.
What can and should be done
about this imbalance obviously
has been a matter of top level
concern here and a subject of dis-
cussion at numerous conferences
in the White House, Pentagon
and State Department.
One obvious reaction could be
to step up the bombing which
President Johnson deescalated on
March 31, at the time he an-
nounced he was not going to seek
another White House term. But
so farno decisions have been
In the background is a delicate
concern over what the United
States might feel compelled to
do at a time when a start toward
peace negotiations is imminent.
The whole situation poses what
some officials consider to be the
gravest problem now confronting
the nation.
With the opening of talks in
Paris just a few days away, offi-
cials were suggesting that West-
moreland and Washington are
going to have to decide something
And the decision in the end,
will be up to President Johnson.
Meanwhile, the battle on the
southwest edge of Saigon rose in
fury yesterday, then ebbed at
nightfall. But North Vietnamese
and Viet Cong reinforcements

were reported moving to join the
fighting against South Vietnam-
ese troops and U.S. armor.
Parachute flares lighted the
night sky and planes pounded
suspected enemy positions in the
third day of heavy fighting in
and around Saigon. .The enemy
launched the attack Sunday and
shelled more than 100 other .cities
and military installations, pre-
sumably to strengthen their hand
at the forthcoming peace talks
in Paris.
Early in the day, an enemy
force tried to burst into Saigon
over a bridge across the Kinh
Doi Canal. But armored personnel
carriers of the U.S. 9th Infantry
Division beat them to the bridge
and the enemy took refuge in a
warehouse and factory area just
south of Saigon.
The fighting swept through the
warehouses and factories most of
the day.

WASHINGTON (M)-In an ac-
tion that will make it easier but
possibly costlier for Americans to
buy homes, the government raised
the maximum interest rate on
FHA and GI loans yesterday from
6 per cent to 6% per cent.
Meanwhile, President Johnson
predicted that if Congress doesn't
pass his proposed income tax sur-
charge, the interest rate for mort-
gages could soar to 10 per cent.
The President said that while
the tax bill has "languished" in
Congress, conventional interest
rates on mortgages have gone
from 5%/ per cent to 7 per cent
and in some cases to 8 per cent.
Johnson made the statements
while signing the bill that author-
ed Press ized a lifting of the 6 per cent
ceiling on loans insured by the,
Federal Housing Administration
- -,.and Veterans Administration.


President Johnson warns of interest hike


Montgomery closes,
in governor's memory
MONTGOMERY, Ala. - Ala- Brewer, a Decatur, Ala., attorney
Mama Democrats saddened by the who was Speaker of the House
death of Gov. Lurleen Wallace during the last of his th-ee terms'
voted yesterday to let her husband in the state legislature, drove to
run for president under the party Montgomery immediately after
emblem in his own state. being notified of Mrs. Wallace's
Alabama's historic state Capitol death at 12:34 a.m.
was closed and flags outside flut- The new governor was given the
tered at half staff Tuesday in me- oath of office Tuesday afternoon
mory of Gov. Wallace, a victim of by his hometown probate judge,
cancer at the age of 41. T. C. Almon. Standing at his side
Messages of sorrow poured in was Mrs. Wallace's husband,
from President Lyndon Johnson, George, the former governor and
Vice President Hubert Humphrey now a candidate for president.
and from governors across the An aide said doctors performed
South. an autopsy on Mrs. Wallace's frail
The White House said the presi- body "because she had indicated
dent had kept in touch with Mrs. that if this would be helpful to
Wallace during her illness and the doctors studying her case, she
sent a personal ,message of sym- wanted them to do it."
pathy to members of the family There was no evidence, made
Tuesday. public at least, that the governor
The death of the first woman had been stricken again with can-
governor in Alabama's history and cer after the removal of a malig-
the third in the nation projected nant tumor last Feb. 22, her third
39-year old Lt. Gov. Albert Brewer such operation in two years. And
into office as the state's chief the immediate cause of death was
executive. notannounced.

of t]
of t
of th
uty E

} J
Clark Clifford:*
'ASHINGTON (W) - Clark On significant policy ques-
Clifford's first months as tions, it is understood, Nitze
r e t a r y of defense have moves only after, discussing the
ped him as a "big picture" issues with Clifford.'
who concentrates on ad- One official said Clifford is
ig President' Johnson and likely to function chiefly as a
gates most day-to-day Pen- policy adviser to the President,
n decisions to his deputy. more in the manner of Secre-
he forging of new Vietnam tary of State Dean Rusk than
e initiatives and a reas- in he fashion of McNamara,
ment of the U.S. and South who insisted on getting into
namese military position nuts and bolts specifics of the.
r the Communist winter of- defense establishment.
ive have accounted for some "Clifford's been spending a
his. large part of his time with the
at associates believe this is President and on the phone to
way Clifford will operate the White House," said an as-
ughout his tenure - which sociate.
not last beyonnextJan-, "He's also been putting in
not at byJohn hn Ja time on Capitol Hill, smooth-
n himself out of the pres- ing relations with Congr'ess."
tial race. One, of McNamara's chief
ifford, a slow-spoken law- weaknesses, acknowledged even
has imprinted his own de- by his admirers, was his appar-
ate style on, the topmost ent inability to cozy up to Con-
in the Pentagon. gress. His presentations were
t so far at least he has brusque and formal and he
e no discernible changes ifn rarely bothered to make any
r defense ,policies inherited personal visits to influential
the seven-year regime of senators and representatives.
ert S. McNamara, In a very real sense, Clifford
I of the top McNamara-era has been mending fences which
ials still are with Clifford, fell into neglect and caused
there are indications most McNamara rising troubles with
hem will remain at least Congress.
ugh this year. There are evidences of Clif-
lose who have watched ford's success, even at this rel- g
ord close-up since March 4 atively early stage in his tenure.
he concerns himself with Chairman L. Mendel Rivers,
der problems. (D-S.C.), of the House Armed r
lifford sees the problem Services Committee, last week
the top down, leaving de- demonstrated the new era of p
to his subordinates," an good feeling when he told Clif- a
eiate said. ford at a hearing that he has a z
'his means the heavy part hunch "that we as a commit- g
ie day-to-day load falls on tee and you as secretary of de- f
Nitze."ofense are going to get along
is was a reference to Dep- very well together." n
Secretary of Defense Nitze, The contrasts in style be- p
himself reportedly had as- tween Clifford and McNamara e
ions to succeed McNamara are vivid.
McNamara moved on to Sitting in a high back chair
me president of the World and pondering his reply to a C
C. question, Clifford reminds a a

visitor more of a judge than
the manager of an enormous
and complex government enter-
He forms his thought after
evident reflection and the lan-
guage he uses to express those
thoughts is sprinkled with such
formal-sounding words as "spe-
cificity . . . particularity .
He works at his desk without
doffing the double-breasted,
wide lapeled suit coat which has
become something of a hall-
McNamara was a shirtsleeve
worker. He spoke with auto-
matic rifle rapidity, with heavy
use of statistics and figures and
-in a language often redolent of
the management technicians.

When McNamara last fall
made known his intention to
leave, some of the Vietnam war
critics - who formerly had
worked him over - suddenly
pictured him as a kind of
Dutch - boy - with - his - fin-
ger-in-the-dike - a restraining
influence against all-out es-
There were predictions that
Clifford's advent as secretary of
defense signaled a big step-up'
in the war.
With wry humor, Clifford
harked back -to this in his April
22 speech to The Associated
Press in New York.
He recalled that columnists
and analysts had written of
McNamara as "a gentle, even
lovable dove - who was step-
ping aside for a bloodthirsty
old hawk, me."
Clifford was reputed to be a
hard-liner and has acknowl-
edged publicly that in the past
he had opposed bombing pauses.

Big picture

Shortly afterwardhSecretary
Robert C. Weaver of the Depart-
ment of Housing and Urban de-
velopment announced the newI
maximum rate. He said it would
speed the flow of mortgage money
into the housing market and make
it possible to keep construction at{
a pace with demand.
Home building has lagged badly
during the last couple of years be-
cause of difficulty of obtaining+
mortgage loans'.1
The president of the National
Association of Home Builders,'
Lloyd E. Clarke, said at, a news
conference earlier in the day
"We're developing a housing short-
age in this nation."
But the Des Moines, Iowa,;
builder said the higher interest
rate would help speed construction
of housing.
He said it would make it easier
for people to get home financing-
especially people of low income-,
because the interest ceiling has
made lenders reluctant 'to put
their money into FHA and VA,
home mortagges when they could
get a greater return elsewhere.
But he said it would probablyI
increase the monthly payments of
home buyers even though some!
- l

builders would reduce the price of
new homes.
A spokesman for the association
said later that the effect on new
home prices might more likely be
one of "holding the line" because
of the increase in building costs.
The spokesman said home prices
;could be reduced, however, be-
cause builders have in effect been
adding the cost of the discount
points to the total cost of the
FHA Commissioner P. N. Brown-
stein said the new rate should
bring to within "a range of toler-
ance" the discount points, which
lenders have been charging on
their mortgages at the time homes
are sold.
Con march
Marchers in the Poor People's
Campaign set out for the Ala-
bama capital yesterday after the
Rev. Ralph David Abernathy led
a second demonstration in Selma.
Abernathy, successor to the
slain Dr. Martin Luther King Jr.,
went ahead with the iarch
schedule despite the death of Gov.
Lurleen Wallace of Alabama. The
governor died shortly after mid-
night Monday.
After marching out of Selma,
the main contingent of the
marchers climbed aboard six big
air conditioned buses for the ride
of about 40 miles to the outskirts
of Montgomery and the trek into
the city.
"A dark shadow has been cast
across the horizon of America,"
Abernathy said in a statement
at Selma. He sent a telegram of
condolences to Mrs. Wallace's
husband, former Gov. George C.
But, Abernathy said, the Poor
People's Campaign -its destina-
tion Washington in a drive for

McNamara brought
language such terms
sured destruction .
strike capability .
definition." -

into the
as ;'as-

World news roun

111.11/ i,

| jobs or income for the poor-con-
tinued after King was assassi-
~-- --_--,-nated April 4 in Memphis Tenn

By The Associated Press
PARIS-North Vietnam's dele-'
gation for preliminary peace talks
with the United States began
arriving yesterday with a top
member of the group sounding a,
positive note.
Ha Van Lao, who will act as
adviser to chief negotiator Xuan
Thuy, was at the head of 23 dele-
gation members who arrived;
rom Hanoi by way of Peking and
Moscow. Ha Van Lao told news-
men "I am optimistic" about pros-
pects for the talks He did not
** * *
PITTSBURGH - Crucible Steel
Co. said yesterday it has obtained
no strike agreement from the
United Steelworkers Union in re-
urn for a small temporary pay,
Crucible President John C. Lobb
aid workers will receive 10 cents
n hour more immediately and
another five cents an hour from
July 31 until the industry gets a
new contract.
special council told the General!
Assembly yesterday that racial
var is inevitable if South Africa

refuses to turn South West A
over to the United Nation
contended only use of forcec
oust South Africa from the
MOSCOW-The Kremlin e
yesterday its permissive han
of Czechoslovakia's drive to
liberal reform with a denial
Soviet agents murdered Cz
slovak Foreign' Minister Jan
saryk in 1948. In Prague,t
was open talk of the possi
of Soviet military interventio
A Soviet government staten
acknowledging "anti-Soviet m
among politically unstable
ple" in Czechoslovakia, dism
as lies a report April 16 in
official Czechoslovak Commi
party newspaper linking M
ryk's death,- officially a su
with the Soviet secret police
- * *- *
Findley (R-Ill.) blocked ye
day a move to swiftly extend4
Earle G. Wheeler's term as c
man of the Joint Chiefs of St
Findley said the Armed Ser
Committee should conduct I
ings to determine whether W
er is in favor of what Fin

1 mr__

- - - - - - .,


Wednesday, May 8
Plans for the sum
All those who completed courses held this
winter at the Bell Tower Inn achieved speeds
of 800 to 1800 w.p.m. with the same or
increased comprehension they had at their
slower reading rates.

Africa called the policy of gradualism in - -----------
s. It Vietnam. "Neither will we stop because
could * * * of the death of Gov. Wallace,"
ter- WASHINGTON - Rep. William Abernathy said.
L. Dawson (D-Ill.) apparently In Washington, Sen. John L.
abandoning plans to abolish the McClellan, who heads the Senate
ended subcommittee on foreign opera- investigations s u b c o m m i t t e e,
dling tions and government informa- charged yesterday that black
ward tion, has asked more money to let militants intend to try to touch
that it continue. off new rioting when the Poor
echo- TPeople's Campaign converges on
ch- The subcommittee, headed by the nain's capital.
Ma- Rep. John E. Moss (D-Calif.) has hSenate ts capny disclosed the
there championed access to government Army already has been placed on
bility information. It also initiated a a partial alert and is poised to
n. probe of corruption in 'the U.S. 1 prthousand ts idto
ment, aid program in Vietnam, , and! pour thousands of troops into
noods Moss has criticized Selective Serv- Washington for the second time
peo- ice Director Lewis B. Hershey. in recent weeks, should violence
lissed - McClellan told the Senate,
ust WASHINGTON - Gonorrhea is "There are militant leaders, now
lasa- "out of . control" in the United on the road or ready to march
ieid, States, the director of the Na- with their followers toward Wash-
.' tional Communicable Disease Cen- ington, who have boasted
ter says. that, once they arrive here, they
Paul Dr. David J: Sencer, the direc- will control their own groups and
ster- tor, told a House appropriations incite them to rioting and vio-
Gen. subcommittee, "I would say it is lence."
hair- out of control.. . there has been An estimated 600 marehers
taff. a 12 per cent increase in reported followed Abernathy on a winding,
'vices gonorrhea cases in each of the frequently h a 1 t e d procession
hear- last few years. You can say it is through Selma.
heel- increasing and increasing dan- Abernathy held onto the reins
ndley Igerously." of a farm mule, one of a paid
pulling an old weatherbeaten
As Abernathy had announced
before Mrs. Wallace's death, the
two mules were dubbed "George
Wallace" and "Jim Clark." Clark
was sheriff of Dallas County
(Selma) when King and Aber-
nathy conducted the 1965 cam-
paign that produced a voting
rights law.
When asked why he went
Union Room 3-y "*"hrougwithtnicknaming of
Unio Roo 3-ythe, mules, Abernathy said: "We
didn't see any need to change the
name. We already had named
imer them. We don't think this de-
fames her (Mrs. Wallace) or him,
for that matter. We just didn't
E- change the names."
University Charter
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