25,1964
THE MICHIGANDAILY
idministration Moves'
0
fleconsider
Policy
Expect No Rail Crisis
After End of Truce
WASHINGTON (P)-The railroads said yesterday "there is no
reason to expect a strike crisis" even though a congressional truce in
the railroad work rules dispuute ended at midnight last night.
J. E. Wolfe, chairman of the National Railway Labor Confer-
ence which represents most major railroads, said the railroads will
put into effect next Monday an arbitration ruling that may even-
tually wipe out the jobs of 32,000 firemen on diesel engines in freight
On Vietnamese Nations
Colony Lives in Fear of Red Takeover
.>
SECRET MEETINGS:
U .S. Panama Resume
alks on Cna 1Problems
WASHINGTON (P)--The United States and Panama have re-
sumed secret talks aimed at solving their controversy over the
Panama Canal, a qualified Latin American source reported yes-
terday.
A meeting between the two countries' ambassadors to the
Organization of American States, Ellsworth Bunker of the United
States and Miguel G. Moreno of Panama, took place over the
Soviets Hit,
Confiscations.
MOSCOW (M)-Albania has seiz-
ed a group of Soviet Embassy
buildings after harassment that
began in December, the govern-
ment newspaper Izvestia said yes-
terday.
Three Russian caretakers were
told to get out of the country.
Izvestia said two buildings used,
by the embassy staff and an ad-
ministration building were taken
over by police in Tirana, but did
not say the embassy itself was
seized. The buildings have been
vacant since the two nations called{
home their diplomats in 1961.
Latest in Chain
The incident was described by
Izvestia as the latest of "a chain
of actions against the Soviet Un-
ion" sinc the Balkan Communist
state split with Premier Nikita S.
Khrushchev over his de-Staliniza-
tion policy and lined up with Red
China.
When the diplomats cleared out
of the two capitals, both sides
agreed to leave caretakers behind
for embassy property. Izvestia gave
no hint that Albanians here would1
be expelled.
See No Retaliation
The move to evict the Russians1
and take over the Soviet diplomat-
ic buildings apparently began Dec.
27. The three Russian techniciansI
left in charge were told that dayI
to turn over the property, Izvestia
said.7
weekend at the Paraguayan'Em-
bassy the source added.
Ambassador Juan Plate of Par-
aguay heads a five-member QAS
delegation sent to investigate on
the spot Panama's charge of ag-
gression by the United States dur-
ing the rioting in the United States
Canal Zone Jan. 9 and 10 which
left more than 20 persons dead
and some 200 wounded.
Requests Inquiry
Panama requested the OAS in-
quiry after failure of an early me-
diation attempt by the Inter-
American Peace Committee, a per-
manent OAS agency.
In sending Plate's delegation to
investigate Panama's charge, the
OAS also called on the fact-find-
ing group to assist the United
States and Panama in finding a
formula to peacefully settle the
dispute.
Formula Kept Secret
The source would not disclose
what formula both countries might
be trying to work out.
Panama satnds firm on a re-
quest for an advance United States
pledge to renegotiate the 1903 trea-
ty under which the United States
operates the canal. The United
States has expressed willingness
to discuss the difference with Pan-
ama, but will not guarantee in ad-
vance a revision of the treaty.
Avoid Leaks
The source said that utmost care
had been taken to avoid leaks on
the new United States-Panana
talks. Only Ambassador Plate at-
tended the reported talks.
Plate's group is giving final
touches to a report on its findings
to be presented to a 17-member
general committee which is re-
sponsible to the OAS council for
handling the Panama issue.
McNamara,
Plans Junket
To Saigon
Rusk Gets New Aid
For Asian Problems
WASHINGTON (A:) - Defense
and State Department officials
moved yesterday to dig more deep-
ly into the situation in South Viet
Nam-steps which could lead to
,some major i change in United
States policy in that Red-plagued
nation.
The Pentagon announced that
Secretary of Defense Robert S.
McNamara will leave for Saigon
about March 1 for his second on-
the-spot look in two months.
The State Department said all
matters pertaining to South Viet
Nam will be placed under William
H. Sullivan acting as a special as-'
sistant to Secretary of State Dean
Rusk.
No Decision
There has been no decision, offi-
cials said, to adopt any fundamen-
tally different approach to the
problem of saving South Viet Nam
from a Communist takeover.
But the steps taken yesterday
obviously reflect deepening offi-
cial conviction that the present
effort against the Communist
guerrillas is not producing satis-i
factory results despite presence of,
15,000 troops and the expenditure
of around $5 billion-all under-
scored by a lengthening American,
casualty list.
In the current intragovernmen-
tal thinking, the possibility ofI
some reprisals from South Viet1
Nam against Communist NorthI
Viet Nam is not ruled out, al-
though McNamara has said the
situation will not develop into an-
other Korea with masses of United
States troops committed to a full-
scale war.
But President Lyndon B. John-
son in a speech last Friday said,
"those engaged in external direc-
tion and supply would do well to
be reminded and to remember that
this type of aggression is a deeply
dangerous game."
Johnson has rejected a sugges-
tion by French President Charles
de Gaulle that both Viet Nams be
neutralized. However, Senate Ma-
jority Leader Mike Mansfield (D-
Mont) said some study might well
be given to this idea.
In rejecting any thought of a
Korea-type involvement, McNa-
mara is sticking to a target call-
ing for return of two-thirds of the
United States forces from South
Viet Nam by the end of 1965.
and yard service. This was one of<"
two rulings by a congressionally
created arbitration panel. The
other was on the question of the
size of crews outside the engine.
Binding Arbitration
The panel, whose decisions on
these two questions must by law
be accepted by both sides, set up
procedures for local negotiations
on the crew consist issue, with pro-
visions for binding arbitration.
These procedures were put into ef-
fect last month.
Remaining to be settled are side
issues involving wage scales, holi-
day pay, vacations and other sub-
jects. Congress called for contin-
ued negotiation on these issues, but
so far they appear to be dead-
locked.
After midnight last night, the
railroads could, if they wished, put
into effect wage scales and other
working conditions approved more
than a year ago by the Supreme
Court. This would trigger a strike.
Issues Statement
With the deadline near, Wolfe
issued this statement:
"As we approach the Feb. 25
expiration of the law passed by
Congres last August banning a
strike in the featherbedding dis-
pute, the nation's railroads reaf-
firm their intention to reach a
fair settlement on the remaining
issues in the best interests of the
public, the employes and the rail-
roads.
"If the unions will join us in
realistic and honest bargaining,
an equitable solution can be reach-+
ed on these issues. In any event,
the railroads emphasize that there
is no reason to expect a strike
crisis at this time.
"Meanwhile, the railroads are
proceeding to carry out the award
of the arbitration board set up
by Congress, and the fireman sec-
tion of the award will be imple-
mented on March 2 as provided
by law, there can be no crisis overc
the arbitrated issues."
o-
(Third of a Four-Part Series)
By JEFF GREENFIELD
Collegiate Press Service
HONG KONG-This city is a
time bomb and its students live
in political darkness in a society
where each spark of agitation may
light the fuse of violence.
The colony's explosive status is
a result of its geography-it lies
across a narrow strait which sep-
arates it from Communist China
(some of its territory, in fact, is
on the mainland itself). The main-
land government is capable of
overrunning the British-controlled
colony at will, and the British
authorities know this.
Their limited goal-an indefi-
nite preservation of the status quo
which makes this colony of 3.5
million a bustling, tourist-filled
free port-is in conflict with a
wide open, politically active so-
ciety. Consequently, the authori-
ties firmly discourage any politi-
cal agitation, either from Commu-
nist or pro-Nationalist sources.
(Recently a high-ranking police
official was deported to Taiwan
for'Nationalist espionage work.).
'Antipolitical' Spirit
This "antipolitical" spirit per-
vades the colleges and universities
on the island. Students are care-
fully watched for signs of politi-
cal activism and controversy is a
handicap to job-seeking graduates.
Both; the civil servants and pri-
vate employes have a rough time,
students here say, if they are
known as activists.
Politicla debate, controversial
speakers, controversy in the stu-
dent paper, are all alien concepts
to the students in Hong Kong.
"We are not supposed to get
involved in politics-it is not wise
if we want to work here," one
student commented.
Crowded Market
A crowded job market, caused by
the hundreds of thousands of ref-
ugees from Communist China, is
primarily why it is "not wise" to
engage in causes such as extend-
ing voting rights to the citizens
of the colony. Employment is
highly limited and few students
PROF. J. PHILIP WERNETTE
Predicts Rise
In Dividends
DETROIT WP)-If federal taxes
are cut, business is more likely to
use tax savings to increase stock-
holders' dividends than to raise
wages, Prof. J. Philip Wernette of
the business administration school
predicted Saturday.
"The corporations are likely to
contend that their shareholders
should have priority on the added
earnings," said Prof. Wernette.
"After all, the wages for capital
have been going down."
The oth remost likely alterna-
tive, Prof. Wernette said, is that
businesses would plough the added
earnings into new facilities or
other growth activities.
Prof. Wernette added that some
companies may pass tax savings
on to customers by cutting prices.
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SUPPLEMENT
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World News
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I Y
By The Associated Press
VIETIANE, Laos - Representa-
tives of the three Laotian fac-
tions held their first meeting yes-
terday to discuss security arrange-
rnents for a sumimt conference
between their three leaders of the
Plaine des Jarres 100 miles north-
east of Vietiane.
MOSCOW -The United States
freighter Exilona finished un-
toading its cargo of wheat yester-
day and sailed for Istanbul, Odes-
sa harbor officials reported. The
Exilona arrived at Odessa last
Friday with 6500 tons of wheat-
the first consignment of United
States grain to reach the Soviet
Union during the present short-
age.
NEW YORK-The stock market
rose slightly yesterday, then set-
tled back in a good day of trad-
ing. The Dow Jones average
showed 30 industrials up .13, 20
railroads up 1.11, 65 stocks up
.65 and 15 utilities up .60.
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